Alabama lesson 6 of 6
Bank account, Business Privilege Tax filing and ongoing compliance
Alabama's ongoing compliance centers on the annual Business Privilege Tax filing rather than a separate Secretary of State annual report, since Alabama does not require LLCs to file a yearly report with the Secretary of State.
Opening and running the bank account
Bring your recorded Certificate of Formation, EIN confirmation letter, an operating agreement, and identification for signers and significant owners. Confirm with the bank whether they need the Probate Judge's recording stamp specifically, since some Alabama banks look for that rather than a Secretary of State certificate alone.
The annual Business Privilege Tax return
If your LLC's computed Business Privilege Tax exceeds the $100 exemption threshold, file Form PPT annually with the Department of Revenue. For calendar-year LLCs the return is generally due around April 15, aligned with the federal individual filing season; check the Department of Revenue's current instructions for your specific due date, since it depends on your entity's tax year.
A newly formed LLC also has an initial filing obligation shortly after formation, separate from the first annual return, so check the initial return requirement under the same $100 exemption rule rather than assuming no filing is ever needed just because you are new.
Keeping the LLC in good standing
Beyond the Business Privilege Tax, keep your registered agent and registered office current with the Secretary of State, renew any city or county business licenses on their own schedules, and keep your name reservation current if you have not yet completed formation. Alabama does not require a separate annual report filing with the Secretary of State for a standard LLC, so the Business Privilege Tax filing is the main recurring state-level obligation to track.
Because Alabama's recurring filing sits with the Department of Revenue rather than the Secretary of State, set your own reminder around your tax year end rather than expecting a Secretary of State renewal notice.
Key takeaways
- Bring the Probate Judge's recorded Certificate of Formation and your EIN letter when opening a bank account.
- The recurring state-level filing to track is the Business Privilege Tax return with the Department of Revenue, not a Secretary of State annual report.
- Check both the initial and annual Business Privilege Tax filing requirements against the $100 exemption threshold rather than assuming either one is automatically waived.
Frequently asked questions
Does Alabama require an LLC annual report with the Secretary of State?
No. Alabama does not require a standard LLC to file a separate annual report with the Secretary of State. The recurring state-level obligation to track is the Business Privilege Tax return with the Department of Revenue.
What happens if I never file the Business Privilege Tax return?
Failing to file when a return is required can lead to penalties and interest from the Department of Revenue, and can put the LLC's standing at risk. Check current requirements on the Department of Revenue's Business Privilege Tax pages.
Official sources
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Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team