Alabama’s Annual Report Filing Requirement Eliminated

In prior years, corporations in Alabama were required to file annual reports by March 15 of each year. As a result of Alabama Act. No 2024-213 which was passed by the legislature and signed by Governor Kay Ivey in 2024, no annual reports will be due in 2025 and beyond.

Prior to 2024, corporations filed their annual report with their business privilege tax returns. The Alabama Business Privilege Tax is levied for the privilege of being organized under the laws of Alabama or doing business in Alabama (if organized under the laws of another state or country). Alabama Act 2022-252 gradually eliminated the minimum business privilege tax for some 230,000 small businesses during 2023 and 2024.  As of January 1, 2024, the Alabama Secretary of State, rather than the Alabama Department of Revenue began processing annual reports from domestic and foreign for-profit and professional corporations.  Notably, Limited Liability Companies and other entity types continued to have no annual report filing requirements.

The change in the filing of the annual reports with the Secretary of States’s office rather than the Department of Revenue resulted in numerous complaints and confusion from Alabama business owners. As a result, Alabama Act. No. 2024-213 was signed into law and became effective on October 1, 2024.  Corporations will continue to have to register and pay taxes, Act 2024-213 only removes the need to file an annual report.

If you need further information, feel free to contact the professionals at HHM CPAs: (850) 434-5574.

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