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.
Filing an annual report is a necessity for any limited liability company. All states require it. In Alabama, LLCs must file one on a yearly basis. However, some states only require an annual report every ten years. When filing the annual report, you should consider all of the deadlines, as a late filing will result in penalties.
The deadline for LLC annual reports in Alabama is April 15. The fee is $100. The amount you owe is based on your net worth and federal taxable income. If you want to pay less, use an enhanced PPT/CPT form. This form will calculate your tax automatically.
When filling out the form, you may want to consider drafting an operating agreement. Even if Alabama doesn’t require an operating agreement, it is a good idea to have one. These documents will lay out the goals of the business, explain the roles of the members, and clarify financial obligations. They will give your business legitimacy and prevent confusion down the road.
Filing an annual report in Alabama is a requirement for all business entities, as failing to file one will lead to the dissolution of your LLC. Your annual report will contain updated information about your LLC, making it easier for State authorities to locate your business. You can get an annual report form from the Alabama Department of Revenue. To fill it out, you’ll need Adobe Reader. You can also use a template if you’d like to save time.
The date you formed the limited liability company is optional. However, if your LLC was formed at the end of a calendar year, you’ll want to include a delayed formation date. This will help you avoid being taxed for a short period of time. For most LLCs, however, this section is left blank.
When is an Alabama LLC annual report due? In Alabama, domestic and foreign corporations must file a Business Privilege Tax Return with the Department of Revenue. Even if LLCs don’t have an annual report schedule, they must still file a Business Privilege Tax Return (BPT). Pass-through entities file Form CPT while LLCs file Form PPT. Most entities pay tax on net worth, so filing a business tax return with the Alabama Department of Revenue is essential.
A good business plan is essential to a successful LLC. It should include a name, function, and market analysis. In addition, it should include a detailed description of the products and services the LLC provides. The plan should also include a marketing, logistics, and finance plan. A federal employer identification number is assigned to an LLC to identify the business to federal and state tax authorities.
Filing an Alabama LLC annual report can be completed by mailing or faxing the paperwork to the Secretary of State. However, if the business is no longer active, it must file a Certificate of Withdrawal. An inactive business can rack up fines and fees in many states and end up in collections, which could cost hundreds of thousands of dollars.
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.