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Alabama LLC · Step 6 of 8 · Verified June 2026

Alabama LLC Business Privilege Tax — Step 6 of 8

This is the one recurring filing every Alabama LLC needs to know about — it replaced the old Secretary of State annual report and now does double duty as your yearly tax return and entity update. There are two separate filings to track: an initial one right after formation, and an annual one every year after. Here's the full timeline.

Ahmad Adil Written & verified by Ahmad Adil, LLC School·Updated June 2026
Quick Answer

File the Initial Business Privilege Tax Return (Form BPT-IN) within 2.5 months of formation, then the Annual return (Form PPT) every year after, due the same day as your federal return — April 15 for single-member LLCs, March 15 for multi-member. If your calculated tax is $100 or less, you're fully exempt from paying, which covers most small LLCs. Both filings go to the Department of Revenue, not the Secretary of State.

Step 6 — Fast Facts
Initial return due
~2.5 months
Annual return (SMLLC)
April 15
Annual return (MMLLC)
March 15
Exemption threshold
≤$100 tax
Filed with
Dept. of Revenue
SOS annual report
Not required
Next step
Step 7 →

What the Business Privilege Tax Actually Is

Under Code of Alabama § 40-14A-22, every LLC "doing business in Alabama or organized under the laws of Alabama" owes the Business Privilege Tax — literally, a tax for the privilege of existing as a legal entity here. Since 2024, this single filing has done double duty: it's your yearly tax payment and the entity-information update that used to be a separate annual report with the Secretary of State.

There are two distinct filings to know about:

  • Initial Business Privilege Tax Return (Form BPT-IN) — a one-time filing due within 2.5 months of formation, registering your LLC in Alabama's tax system.
  • Annual Business Privilege Tax Return (Form PPT) — filed every year after, due the same date as your federal income tax return.

BPT Filing Deadline Calculator

Enter your formation date and LLC type to see both deadlines:

BPT Filing Deadline Calculator
Find your Initial and first Annual return due dates
Initial Return (Form BPT-IN)
—
Due within 2.5 months of formation — one-time filing
First Annual Return (Form PPT)
—
Due the year after formation, same date as your federal return
If your calculated tax comes to $100 or less, you're fully exempt from paying — this covers most small LLCs in their early years. You should still confirm this with a tax professional or ALDOR each year.
Alabama LLC owner filing the Business Privilege Tax Return with the Department of Revenue

How to File

  • Get your EIN first — you need it before filing any Alabama Department of Revenue return. See Step 5.
  • File Form BPT-IN through the Alabama Department of Revenue's My Alabama Taxes (MAT) portal, or by paper, within 2.5 months of formation.
  • File Form PPT annually thereafter, calculating tax based on your LLC's net worth and taxable income.
  • 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.

This is the Department of Revenue, not the Secretary of StateAll Business Privilege Tax questions go to ALDOR — the Secretary of State's office doesn't handle these filings or answer questions about them. This confuses first-year owners, since the old annual report used to go to the Secretary of State. Not anymore: it's all tax filings now, all through the Department of Revenue.

Ahmad Adil's Take: The Initial Return (BPT-IN) is the one people forget, because it's due so soon after formation — 2.5 months feels like nothing when you're still setting up your bank account and getting your EIN sorted. Put a calendar reminder in the moment your LLC gets approved. After that first filing, the annual rhythm is easy to remember since it lines up with your federal tax deadline anyway. And don't stress about owing money every year — if your LLC is small, the $100 exemption almost certainly means you owe nothing, though you may still need to file the return itself.
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Frequently Asked Questions

Alabama Business Privilege Tax — FAQ

Does Alabama still require an annual report for LLCs?
No — Alabama eliminated the separate Secretary of State annual report for LLCs, effective for tax years after 2023 (Act 2022-252). The Business Privilege Tax return (Form PPT) now serves as both the tax filing and the entity-information update.
When is the Initial Business Privilege Tax Return due?
Within 2.5 months of your LLC's formation date. This is Form BPT-IN — a one-time filing separate from your recurring annual return.
When is the Annual Business Privilege Tax Return due?
Form PPT is due on the same date as your federal income tax return — generally April 15 for single-member LLCs and March 15 for multi-member LLCs, starting the year after formation.
How much is the Alabama Business Privilege Tax?
The tax is based on your LLC's net worth and taxable income, with a calculated minimum around $100. LLCs whose calculated tax is $100 or less are fully exempt from paying, which covers most small businesses.
Who do I file the Business Privilege Tax with?
The Alabama Department of Revenue (ALDOR), not the Secretary of State. This filing is entirely tax-related and is separate from any Secretary of State entity filings.
What happens if I miss a Business Privilege Tax deadline?
You risk interest charges and penalties on any tax owed. Since the SOS annual report was eliminated, there's no separate annual-report late fee — but the BPT deadline itself is enforced by ALDOR.
Do I need my EIN to file the Business Privilege Tax?
Yes — you must have your EIN from the IRS before filing any Alabama Department of Revenue return, including both the Initial and Annual Business Privilege Tax filings.
Ahmad Adil, founder of LLC School
About the Author
Ahmad Adil

Ahmad Adil is the founder and CEO of LLC School. The guidance here — the elimination of the SOS annual report, the two-filing BPT structure (Form BPT-IN and Form PPT), deadlines, and the $100 exemption threshold — reflects Code of Alabama § 40-14A-22 and current Alabama Department of Revenue guidance. This is educational information, not tax advice.

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