At Allec CPA, we get plenty of real estate investors and business owners who form a new LLC in Alabama and are wondering if they need to file the Alabama Business Privilege Tax Return and pay the Alabama Business Privilege Tax.
If this sounds like you, then the answer is yes, you do need to file the Alabama Business Privilege Tax Return and pay the Business Privilege Tax, even if your LLC had no activity.
See below for important information regarding your LLC’s tax obligations in Alabama. If you would like to get on my calendar to discuss your tax situation, book me here for a free 30-minute consultation.
When Is the Initial Business Privilege Tax Return Due?
If you’ve had your Alabama LLC for at least a few months now, you may actually be late in filing your Initial Business Privilege Tax Return (Form BPT-IN).
The Form BPT-IN is actually due two and a half months from the day that you formed your LLC in Alabama.
So if you formed your LLC on March 13, then your LLC’s return would be due on May 28 (count two months from March 13 and then add 15 days).
How Much Is My Initial Business Privilege Tax Amount?
The actual initial business privilege tax amount varies, but there is a minimum of $100 for LLCs, even if your LLC had no activity.
If your LLC had activity during the year, you will have to complete the Initial Business Privilege Tax return in order to determine your privilege tax amount.
What Is the Due Date for the Annual Business Privilege Tax Return?
After you file your Initial Business Privilege Tax Return, you will have to file your Annual Business Privilege Tax Return every year, including your first year, and pay the business privilege tax on that return as well.
The due date for the Annual Business Privilege Tax Return is two and a half months after the beginning of your LLC’s taxable year.
So if your LLC is on a calendar year, the Annual Business Privilege Tax Return is due by March 15 of the following year.
Do I Have to File the Alabama Form 65?
If you have a multi-member LLC, and your LLC did not elect to be taxed as a corporation, then your LLC is a partnership for both federal and Alabama income tax purposes.
Unless your LLC had no income or expenses during the year, it will have to file Form 65.
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