Every year, LLC company owners are required by the Alabama State law to file for their LLC Annual Report as well as their Business Privilege Tax Return.
In this case, filing an LLC annual report and the Business Privilege Tax Return are essential for compliance and maintaining a good record with the government. Likewise, another reason for this is to avoid the dissolution of your LLC company.
With that said, this article will guide you through the steps of filing your annual LLC report and the Business Privilege Tax return in Alabama.
When to File Your LLC’s Annual Report?
The Annual Report and the Business Privilege Tax Return of your organization should be filed on or before the 15th day of the 3rd month of a fiscal year, in essence, on or before the 15th of March. To avoid forgetting your annual report filing, you must always include it on your calendar of activities.
For example, you can create a reminder on your phone or calendar to help you remember around one to two months before your company’s designated month to avoid missing the filing.
On the other hand, if it’s your first year to file for LLC annual reports, it’s due the following year after the approval of your LLC application.
Similarly, if you want to double-check the date when the state approved your LLC, it’s best to check your LLC’s Certificate of Formation. However, if you don’t want to go over the files again, you can search for this information on the state of Alabama’s website using your LLC’s name.
The state of Alabama expects you to know when to submit your annual report and as such, they do not send a reminder regarding this. However, they will mail your business address if you fail to file and make payment on time.
In Alabama, you’re required to submit an initial Business Privilege Tax return within the first 2 and half months after successfully submitting your Certificate of Formation. This is a one-time filing that involves completing the Form BPT-IN and then submitting it to the Alabama Department of Revenue. The form is available on the Alabama Department of Revenue forms webpage. Note that a fee of $100 minimum is needed for this process to be completed.
What Are the Requirements You Need to Prepare?
Before you file, make sure that you have these documents or information prepared. Preparing these documents beforehand can help prevent any delays during the process.
- State-issued LLC entity number
- Date of organization
- Alabama Business EIN (entity identification number)
- Other important details about your company, such as:
- Your registered agent
- Its registered office address
- Officers/directors or partners updated contact information
- Insurance policy information including your proof of insurance, the insurance company’s name, the insurer’s name, and the policy date.
- Your signature and title if you are the one filing the report.
In addition to these documents above, you’ll need to fill only the tax section of Form PPT and not the annual report section. There is information on how to complete the tax section of the form on the pages of the form.
- Filing fee is different for organizations, some are free, meanwhile, some cost hundreds of dollars depending on the Federal Taxable Income of the LLC for each year.
What Will Happen If I Don’t File My Company’s LLC Annual Report?
Not filing your company’s LLC Annual Report will result in your company losing its good standing in the state and also making it difficult for you to get a Certificate of Compliance for your LLC. The Certificate of Compliance is an important document for your LLC to perform different business activities in the State of Alabama
You’ll also have to pay a $50 or more penalty fee for late payment if you wish to submit late.
Where to File the LLC Annual Report?
Fortunately, filing your company’s LLC Annual Report is easy. In this case, you will need to file your LLC annual report online on the “My Alabama Taxes” portal. You can also choose to mail the completed form as well as the other documents which include your payment to the Alabama Department of Revenue at the address;
Business Privilege Tax Section
P.O. Box 327320
Montgomery, AL 36132-7320
If you’re submitting online and have made the payment online you’ll have to send a copy of your payment to the
Alabama Department of Revenue
Business Privilege Tax Section
P.O. Box 327431
Montgomery, AL 36132-7431.
How to File Your LLC Annual Report: A Step-by-Step Guide
To help you file your company’s LLC Annual Report, this article has outlined the steps of the process. Check them out below.
Step 1: Download the Form PPT on the Department of Revenue website.
Step 2: Complete only the tax section of this form, and not the annual report section on paper or online through the “My Alabama Taxes” portal.
Step 3: Make the necessary payment for your filling.
Step 4: mail the completed forms and the other documents including the proof of payment to the Alabama State’s Department of Revenue through the appropriate mailing address.
Step 5: After this, the filing process will begin. You will be asked to encode essential details about your LLC, including the following:
- Your company’s registered agent – this is the person authorized to transact on behalf of your company.
- The mailing address of your registered agent – updating or changing of your LLCs registered agent may incur a fee.
- Officers and members – This lists the names of your LL members. There is a provision for additional members if you need to add new officers to your company.
- Your LLC registered address – Check your company’s indicated address. If it’s still the same
Step 6: Once you’re done, you need to review all your provided information in the LLC Annual Report form. If you find typos or other errors, you can correct them.
What Is the Difference Between an LLC Annual Report and LLC Partner Tax?
Most company owners mistake LLC Annual Report and LLC Partner Tax as being the same. Due to this misconception, they either miss filing one or the other. If you have multi-member LLCs, which means you have two or more owners, you must file for LLC Partner Tax.
Other Transactions You Can Do Under the Annual Reports and Change Services
Aside from filing your company’s LLC Annual Report, here are the other business documents that can be generated through the Annual Reports and Change Services:
- Changing of registered agent/office
- Reinstating a business entity
- Closing a business
There are two possible reasons you might want to change your LLC’s assigned registered agent. First, you are dissatisfied with your existing agent and would like to change services. Second, you are your own agent and would like to get the services of a registered agent.
Regardless of the reason, you’ll need a registered agent for your company. This is because an LLC licensed agent plays a vital role in every company. In this case, your registered agent is the official representative of your company.
For example, suppose the state needs to contact your company for some legal matters. In that case, there should be an authorized representative where they can send legal documents.
- Reinstating a business entity
One reason for filing a reinstatement is that your LLC faced dissolution due to non-filing of the Annual Report or paying taxes.
So, suppose your LLC company is put on the inactive list. In that case, you can file for reinstatement in the State of Alabama.
Of course, aside from these, some of the other tasks you can perform in the Annual Reports and Change Services:
- File an amendment
- Business name search
- Change tax/Employer registration record
Finally, you now know how to file your company’s LLC Annual Report in Alabama. Making sure you comply with this requirement is essential to avoid penalties or the dissolution of your company.
In this case, to avoid forgetting your annual reporting, it’s best to organize your calendar. In fact, it’s recommended to set a reminder two months before your date of filing.
After all, as a business owner, it’s your responsibility to abide by the government’s ordinance to avoid penalties for your company.