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The objective of the annual report is three-fold. The annual report keeps the Government informed about all the updates, it communicates about all the modifications or changes, & it keeps the LLC members informed about the necessary taxes and costs. This article has all the information about Alabama LLC annual report filing in Alabama.
An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This yearly report is a record of all the company’s activities in an entire year. It is also referred to as the Annual Franchise Tax Report because it helps in filing the franchise tax.
On this page, you’ll learn about the following:
Contents of the Annual Report
Typically the annual report filed by an LLC in Alabama (or any other business entity for that matter) will include all the information related to its business & members. The standard contents of the annual report or the annual franchise tax report are
- Office Address of the LLC
- Names & Addresses of the Members & managers.
- Identification Documents
- Social Security numbers of the key members of LLC
- The objective of the business of LLC
- List of all the signatories of the LLC
- Information of the registered agent, if any
Alabama LLC Annual Report
An Annual report is essential for all business types. It authenticates that the information provided to the Secretary Of the State is accurate & updated. The information provided in the annual report helps the State officials to ensure that all the companies pay taxes. The Alabama Annual Report is filed with the office of the Alabama Secretary of State.
Does the State of Alabama require an Annual Report Filing?
It is mandatory for an LLC to file an Annual Report in the State of Alabama, with the office of Alabama Secretary of State. In addition to LLCs, legal entities such LLPs & Corporations are bound to file the Annual Report along with the Business Privilege Tax.
Annual Report Deadline
The Alabama Annual Report must be filed by April 15 each year. Every LLC is bound by this rule, except an LLC in its first calendar year of the business. For the first calendar year of business, an LLC will file the annual report next year. E.g., the LLC, which was formed in the month of January in 2021, will be submitting the annual report on April 15, 2022.
Penalties for non-filing or late filing
Filing the Business Privilege Tax along with the annual report is essential in the state of Alabama. There can be penalties for non-filing of the Annual Report & the Business Privilege Tax. The non-filing penalty or the late filing penalties of the annual report with the Secretary of State is $50. Alabama Authorities have the power to dissolve the LLC in certain circumstances, where the annual report has not been filed frequently.
Why Do LLCs Have to File the Annual Report?
Some of the states are not required to file this yearly report, commonly known as the Annual Report. However, there are some reasons why states should file an LLC Annual Report. Here are some reasons,
To Maintain the Accuracy of the Information
An annual report filed by the LLC has all the updated information about its official addresses & the names or addresses of all its officials. This updated information allows the State authorities to track down any LLC when communicating.
To Provide the Correct Correspondence
Many times, any creditor or other entity willing to transact with the LLC requires the correct correspondence address. If this information (which can only be modified with the help of an annual report) is not updated every year, such entities will not be able to communicate with them.
To Notify the Government About All the Significant Changes
If you have changed your main business address or had new business appointments of managers or members, the annual public information report notifies the State Government Entities about it. So, the next time someone questions a newer reform that you have introduced in your LLC, you will be saved because you had submitted the information with the Government.
To Provide an Activity Log of an LLC
The Annual report is like an activity log of the LLC. It brings on record; all the transactions, new associations, appointments, etc. & keeps those records intact for all future references.
To Help You With the One-time Filing of Taxes
The annual report is an excellent means to keep you on your toes in case of your dues payment. Every LLC must pay the taxes through the annual report filing. By filing the report on time, the LLC can manage the exemptions & can avoid penalties imposed by the Government.
To Enable the State to Track the Payments
The government authorities use all the information filed through the annual report, for tracking the payment of State Taxes.
How to File a Alabama LLC Annual Report
In Alabama, the Annual report can be filed only by mail. The Annual report is due on April 15 every year. The Alabama Secretary of the State can charge a late filing fee amounting to 10% of the business privilege tax a business owes or $50, whichever is greater amongst these two.
To file the Annual Report in Alabama by mail, follow the below steps:
- Go to the Alabama Department of Revenue’s Downloadable Forms page.
- Search the Annual Report Form (Form CPT) in the list of forms.
- Download the form (.pdf) on your personal computer.
- Please note, you will require Adobe Reader installed to fill up or edit the form.
- Fill the form with the correct information and save it on your computer.
- Along with this form, Alabama SOS requires an ‘Initial Business Privilege Tax Return’ filing. For that LLCs need to get the Form BPT-IN, fill it up, and send it to the Department of Revenue.
- Get the print-out of the form and attach the necessary documents.
- Write a paper check with an amount as per the applicable Business Privilege Tax, as per the instructions here!
- Send the printed copies of the forms and documents to the address: Alabama Secretary of State, PO Box 5616, Montgomery, AL 36103-5616
Alabama LLC Annual Report (Domestic & Foreign)
| State Office: | Alabama Secretary of State, PO Box 5616, Montgomery, AL 36103-5616 Links to Website, Forms |
| Due Date: | April 15 Every year |
| Filing Fee: | A minimum tax of $100 & the Annual Report Filing Fee of $10 |
| Penalty: | The Alabama Secretary of the State can charge a late filing fee amounting to 10% of the business privilege tax a business owes or $50, whichever is greater amongst these two. |
| Filing Method: | The Alabama Annual Report can be filed by mail only |
| Forms: | The form to file the Alabama Annual Report can be found here |
| Important Information: | Once the Annual report is filed with the Alabama Secretary of State with appropriate fees, the process of filing shall be complete. |
Seek the Help of a Registered Agent
Every State will have a different rule for filing the Annual Report. Usually, it is submitted every year, but it is submitted once in two years in some states. Some states require the filing of the report only once in ten years.
Not only the timing, the mode of filing, the proper addresses, exemptions, legality, annual report compliance, etc., have to be taken care of while paying the taxes or filing any reports with the State authorities. In many such scenarios, it is advised that an LLC appoints a Registered Agent to manage all this. Check out the best LLC service that offers all the services at an affordable price. An experienced agent is required for:
- Streamlining the mandatory processes & filing.
- Sending or receiving any documents.
- Reminding you about important dates of filing or payment of taxes.
- Simplifying the filing procedures.
- Avoid any penalties.
- Flexibility in working.
- Maintaining Privacy (as it keeps your personal records off the public record)
You can read more about an Alabama Registered Agent here.
FAQs
Yes, an annual report is essential for every business entity in most states. Some states also ask to file biennial or decennial reports to be filed.
A Yearly Business Report or the annual report typically incorporates the address of the business, names & addresses of the members, a list of all the signatories, SSN of the members, & details of the registered agent.
A Registered Agent is well-aware of all the filing requirements, annual report filing fee, & overall Annual Report compliance. The knowledge & proficiency of the registered agent allows the smooth filing of reports & other fees.
The most important thing for filing an Annual Report is record keeping. Make sure that you document every other transaction well.
Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing.
How Fast Can I Fill Alabama LLC Annual Report
The good news is that filling out and submitting an Alabama LLC annual report is a relatively quick and straightforward process. The form can usually be completed online through the Secretary of State’s website, making it convenient for busy business owners. The information required typically includes basic details about your LLC, such as the name of the business, registered agent information, and current contact information.
In terms of timing, Alabama LLCs are typically required to file their annual report by a specific due date each year. This due date can vary depending on when your LLC was initially formed, so it’s important to check with the Secretary of State to determine your specific deadline. However, many businesses choose to file their annual reports at the beginning of the calendar year to get it out of the way early.
Filing your Alabama LLC annual report promptly is crucial to maintaining good standing with the state and avoiding potentially severe consequences. If you fail to file your annual report on time, your LLC may be subject to late fees and penalties, or even the risk of administrative dissolution.
In addition to the legal requirements, keeping up with your annual reports also serves as a reflection of your business’s credibility and professionalism. Prospective clients, partners, and investors may look at your LLC’s status with the state as a sign of how well you manage your affairs. Failing to file your annual report in a timely manner may raise doubts about your business’s reliability and attention to detail.
Fortunately, filling your Alabama LLC annual report doesn’t have to be a burdensome task. By setting aside a bit of time each year to ensure your business’s paperwork is in order, you can avoid the stress and potential consequences of missing the deadline. Setting reminders, utilizing online filing methods, and keeping accurate records of your LLC’s information can all help streamline the process and make it as fast and efficient as possible.
In conclusion, filing your Alabama LLC annual report is a crucial task that should not be overlooked or delayed. The time and effort required to complete this annual requirement is minimal compared to the potential consequences of neglecting it. By prioritizing your business’s compliance with state regulations, you can maintain your LLC’s good standing and uphold a positive reputation in the business community.
In Conclusion
In conclusion, we can see that the annual report – which is also called the Franchise Tax Public Information Report is much easy to be filed. However, it is mandatory to file the report on time to avoid any penalties. If you are running an LLC in the state of Alabama, you have to comply with the filing of certain important documents including the annual report or the Franchise Tax Public Information Report as it is named in the state of Alabama.
It is also important to note that once this Public Information Report is filed with the Comptroller of Public Accounts, there is no need for additional filing with the secretary of state.