Alabama LLC Business Privilege Tax — Step 6 of 8
Alabama LLCs do not file a recurring Secretary of State annual report. Business Privilege Tax is a separate ALDOR obligation. For taxable years beginning after December 31, 2023, calculated tax of $100 or less means no payment and no BPT-IN, PPT or CPT return is required. Determine the exemption before planning a filing.
If calculated Business Privilege Tax exceeds $100, follow the applicable ALDOR form instructions. An initial BPT-IN is generally due within two and one-half months after organization, qualification or starting business. Annual PPT/CPT timing follows the corresponding federal income-return due date and tax classification, with weekend and holiday adjustments; member count alone does not establish the deadline.
- Initial return due
- ~2.5 months
- Annual PPT/CPT deadline
- Corresponding federal return
- Member count
- Does not alone control deadline
- Exemption threshold
- ≤$100: no tax or BPT return
- Filed with
- Dept. of Revenue
- SOS annual report
- Not required
- Next step
- Step 7 →
What the Business Privilege Tax Actually Is
Business Privilege Tax applies under Alabama’s tax rules to covered corporations, limited liability entities and disregarded entities. It is not an LLC Secretary of State annual report or a replacement for one. Apply the $100-or-less exemption and the appropriate tax classification before deciding which return is required.
There are two distinct filings to know about:
- Initial BPT-IN, if required — first apply the $100-or-less no-return rule. Otherwise follow ALDOR’s two-and-one-half-month timing and current form instructions.
- Annual PPT or CPT, if required — apply the exemption and tax classification. The corresponding federal income-return due date controls, with applicable adjustments.
BPT Filing Requirements Guide
Use the filing guide below to check the exemption, applicable form and timing rule. Confirm the actual due date from the current instructions for your tax classification.
How to File
- Get your EIN first — follow the identifying-number requirements of the applicable return and establish any required tax account. See Step 5.
- Initial BPT-IN, if required — first apply the $100-or-less no-return rule. Otherwise follow ALDOR’s two-and-one-half-month timing and current form instructions.
- Annual PPT or CPT, if required — apply the exemption and tax classification. The corresponding federal income-return due date controls, with applicable adjustments.
- Pay any tax owed by the due date, even if you're requesting a filing extension — extensions extend the paperwork deadline, not the payment deadline.
Business Privilege Tax questions belong with ALDOR. Alabama LLCs do not file a recurring Secretary of State annual report. Keep tax compliance and the Secretary of State entity record separate.
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Alabama Business Privilege Tax — FAQ
Ahmad Adil is the founder and CEO of LLC School. For filing and ongoing compliance, confirm the requirements with the responsible state agency. This is educational information, not legal or tax advice.
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