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
- Alabama LLC Annual Report
- Does the State of Alabama require an Annual Report Filing?
- Why Do LLCs Have to File the Annual Report?
- How to File a Alabama LLC Annual Report
- Seek the Help of a Registered Agent
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.
How Fast Can I Fill Alabama LLC Annual Report
Annual LLC report for Alabama LLC must be filed on or before April 15 every year after that penalty will be imposed. Only the LLCs formed in same calender year are exempted from it.
When forming an Alabama LLC, you will need to complete an annual report with the Department of Revenue. This report helps the state keep up-to-date on your business and its activities. In addition, the reports also include contact information for your LLC. Keeping up with your report on a regular basis will ensure that your company remains in good standing. Getting this report on time will help you avoid penalties.
The Department of Revenue requires all LLCs and corporations to file an annual report. These forms ask you for a variety of information, including the type of business you run, your business address, the president’s and secretary’s information, and your social security number. You must fill out these forms and submit them by the deadline. If you need assistance completing the form, you can hire a tax professional to do the job for you.
Fortunately, most businesses only have to pay a minimum of $100 to file their annual reports. However, the cost can vary depending on your net worth and federal taxable income. Depending on the size of your business, additional taxes may be owed. For instance, if your business has employees, you’ll have to pay more in taxes.
The information on the Alabama Business Privilege Tax Return will help you calculate how much you need to pay. Whether you need to pay the business privilege tax will depend on your net worth, the type of business you operate, and the type of entity you form. Some entities, like S corporations, can exempt themselves from the tax. PLLCs, however, will have to pay the tax. Your tax amount will be based on your net worth and the number of shareholders.
The fee to file the annual report can be as low as $10, but you’ll need to pay a fee for processing. An expedited processing fee can reduce the time you need to file the form. Alternatively, you can file the forms online. Online filing services will save you from the hassle of having to file by mail. It’s also a convenient way to avoid mistakes.
Alabama’s Business Privilege Tax is a special tax levied on LLCs and corporations that do business in the state. Businesses that have a net worth of less than $3 million will not have to pay this tax. But, larger entities will have to pay a yearly fee. Regardless of whether you’re a corporation or an LLC, you’ll need to make sure you’re paying your business privilege tax on time. To find out more about the tax, go to the Alabama Department of Revenue. They also have a page with forms.
The process for filing the report is easy. Essentially, you will fill out the same form that you used to file the original tax return. Besides filling out the form correctly, you’ll have to attach a Certificate of Amendment if you’ve made any errors. After you’ve filed your form, you’ll have to make payment by mail.
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.
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.