How to File an Alabama Annual Report

Are annual reports still required in Alabama?

No, businesses no longer need to file annual reports in the Alabama Secretary of State's office. This requirement was repealed in 2024 through Alabama Act No. 2024-213 (House Bill 230). As of October 1, 2024, no business entity operating in Alabama has to file an annual report in the state, including corporations, limited liability companies (LLCs), limited partnerships, and other entities that register with the Secretary of State. 

With policy changes such as this, it’s understandable that business owners may be confused, especially with outdated information online. Remember that even though the annual report requirement has been eliminated, there are still other state compliance tasks that have remained in place. 

What changed with Alabama's annual report law in 2024?

For years, domestic and foreign businesses in Alabama were required to file an annual report, called Alabama Secretary of State Corporation Annual Report (AL-CAR). During this time, the annual report and Alabama’s Business Privilege Tax were filed together and submitted to the Alabama Department of Revenue. Then, in 2022, an unintended consequence of Alabama Act 2022-252 was that businesses had to submit annual reports to the Secretary of State instead of the Department of Revenue. This change caused confusion among business owners, which prompted lawmakers to propose repealing the requirement in 2024 through House Bill 230.

Here’s what was eliminated with the repeal of Alabama’s annual report legislation (Alabama Code § 10A-2A-16.11):

• Annual filing with the Secretary of State
• $10 annual report fee
• Requirement to update entity information through Alabama annual report forms

Does the annual report elimination apply to all Alabama business entities?

Yes, the elimination of the annual report in Alabama applies to all business entities, including domestic and foreign corporations, domestic and foreign LLCs, limited partnerships, limited liability partnerships, and professional associations. 

Professional associations and nonprofits do have separate annual filing requirements that have not changed for their specific business entities:

• Professional associations, which are organized to provide certain licensed services (like legal, accounting, and medical services), still have to submit a Professional Association Renewal Notice annually by December 1, along with a $100 filing fee. This requirement doesn’t apply to other business entities.
• Nonprofits that are required to register as charitable organizations must still submit an annual Charitable Organization Renewal Statement either via an online form or via mail (PDF form) to the Alabama Attorney General along with a $25 filing fee. Filing due dates are based on fiscal year. You can find your deadline by referencing the Charitable Organizations page on the Attorney General’s website.

What do Alabama businesses need to file instead of annual reports?

Even though businesses don't need to file an annual report anymore, there are still several legal requirements that Alabama businesses must fulfill, including some mandatory filing obligations:

• File a Business Privilege Tax return annually with the Department of Revenue
• Pay all other required state taxes
• Maintain a registered agent in Alabama
• Maintain and renew your business privilege license and any other local, state, or federal licenses
• Update new business information with the Secretary of State

Do I still need to file the Alabama Business Privilege Tax?

Yes, Alabama Business Privilege Tax filing requirements are still in place. Many businesses need to file their return annually with the Alabama Department of Revenue. Even though the Business Privilege Tax return used to be filed along with the annual report, it’s technically separate and still remains a compliance step for most businesses.

• Who must file: Most domestic and foreign registered business entities, such as corporations and LLCs
• Exemptions: Organizations that qualify under Internal Revenue Code 501(a), such as nonprofits; governmental entities; homeowners associations; and businesses that owe less than $100 on their Business Privilege Tax return, although entities owing less than the minimum tax may still be required to file a return, even if no payment is due
• Filing deadline for initial tax return: Within 2.5 months of incorporation/organization
• Filing deadline for subsequent tax returns: C corporations with a fiscal year of June 30 file by September 14; C corporations with a fiscal year other than June 30 file by April 15; LLCs file by March 15
• Where to file: Through your My Alabama Taxes account 

What are my registered agent requirements in Alabama?

Alabama registered agent requirements haven’t changed. All Alabama business entities must maintain a registered agent that meets the following: 

• Is a person who is a resident of Alabama, or is a domestic or foreign entity registered to do business in the state
• Keeps a registered office with a physical street address (no P.O. boxes)
• Be available during normal business hours to accept mail or service of process

Businesses used to be able to update registered agent information on their annual reports, but with the elimination of this law, it’s crucial to note any changes by filing a Change of Registered Agent or Registered Office by Entity form with the Alabama Secretary of State. There is a $100 filing fee. 

How do I maintain good standing for my Alabama business?

Just as in other states, to maintain good standing in Alabama, businesses must ensure that they are continually compliant with state law. This includes the following compliance tasks: 

• Filing Business Privilege Tax returns by the deadline
• Pay taxes, including other state or local taxes, by the deadlines
• Maintaining a registered agent that meets Alabama’s requirements
• Keeping business information updated with the Secretary of State by filing the correct individual forms
• Complying with any industry-specific licensing requirements, maintaining your business privilege license, and staying up-to-date with any federal licenses or permits

The Department of Revenue issues certificates of compliance (also known as “certificates of good standing” in other states). You can request a certificate of compliance online, which costs $13.30. The Department typically processes requests within 5 days.

How do I update my business information with the Alabama Secretary of State?

Now that the annual report in Alabama has been eliminated, businesses only need to provide updated information when necessary—in other words, when changes occur. These could include address, corporate officer, and registered agent changes. 

There are different documents for different types of business changes, many of which can be found on the Secretary of State’s Business Downloads page. Just navigate to your business entity type or to the type of business information and find the applicable document linked. Certain filing amendments can also be made through the Secretary of State Online Services application.

Where can I verify my Alabama business entity status?

To check your basic business entity status (e.g., “exists” or “dissolved”), perform an Alabama Secretary of State Business Entity Search. Click on your business, which will take you to your business profile. This will show your business’ status, registered agent information, and the types of documents on file with the Secretary of State, such as formation documents and amendments. If all the required documents have been filed with the Secretary of State, you can request a certificate of existence for $28, which shows that your business is authorized to operate in Alabama.

To confirm that your business is in compliance (good standing), request a certificate of compliance from the Alabama Department of Revenue. This, and perhaps the certificate of existence from the Secretary of State, can be used when applying for loans or funding, opening a business bank account, expanding to other states, and more.

What are the penalties for non-compliance with Alabama business requirements?

It’s crucial to stay in compliance with Alabama business requirements to avoid costly fees and legal action. Here’s an overview of some potential penalties for specific compliance tasks:

• Business Privilege Tax. According to the Alabama Business Privilege Tax Return Instructions, the penalty for not filing your tax return on time is 10% or $50 of what you owe, and the penalty for failure to pay the tax by the deadline is 1% of the amount due for each month it goes unpaid. Additionally, delinquent payments may also result in a loss of compliance (good standing) from the Department of Revenue, which may also lead to difficulties in obtaining financing or entering into contracts.
• Registered agent. The penalties for not having a registered agent could range from legal action according to the Alabama Rules of Civil Procedure to administrative dissolution proceedings.
• Business license. Operating a business, such as a professional corporation, without the proper licenses may result in fines up to $500 or even imprisonment. 

Stay on top of Alabama compliance requirements with LegalZoom’s Compliance services, which help you file amendments; send alerts about upcoming deadlines; provide a comprehensive rollup of all necessary federal, state, and local licenses; and track changes to state filing updates. With our support, you can run your business smoothly, ensuring that you don’t miss an important due date.