Alabama officially eliminated annual report filings for corporations, effective October 1, 2024. For 2025 and beyond, annual reports are no longer required, but the Alabama Business Privilege Tax remains in effect, with strict penalties for non-compliance.

This guide explains why annual reports are no longer required and outlines your current compliance responsibilities.

Do Alabama businesses need to file an annual report?

No. Alabama Act No. 2024-213 (House Bill 230) permanently eliminated this requirement by repealing Alabama Code § 10A-2A-16.11, and applies to corporations, including both domestic corporations and foreign corporations authorized to transact business in Alabama.

This change removes both the filing obligation and the associated $10 annual fee tied to the now-repealed annual report. The requirement itself originated with Act 2022-252, which shifted the filing obligation from the Department of Revenue to the Secretary of State effective January 1, 2024. Many practitioners viewed that shift as an unintended consequence; HB 230 corrected it permanently.

What you still need to file

While annual reports are gone, you must still submit tax returns according to established deadlines.

• Alabama Business Privilege Tax information: Still required for corporations, limited liability entities, business trusts, disregarded entities, and REITs that calculate more than $100 in Business Privilege Tax due (those at or below $100 are not required to file a BPT return)

• Registered agent: Must maintain a registered agent in Alabama with a physical Alabama street address

• Foreign registration: Out-of-state entities must maintain an Alabama foreign qualification registration

These requirements are backed by statutory penalties and interest for non-compliance under Alabama Code § 40-2A-11 and related regulations.

Business Privilege Tax deadlines by entity type

Filing deadlines differ by entity type, a detail that matters for firms managing multiple Alabama entities.

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Alabama BPT due dates track the corresponding federal return dates, so deadlines are generally stable but confirm against current ALDOR guidance each year. An approved federal extension extends the Alabama filing deadline, but ALDOR instructions are explicit that full BPT payment is still due by the original due date. According to the 2025 CPT instructions, the BPT obligation continues every registered year until the entity is legally dissolved or withdrawn through the Secretary of State.

Penalty structure

The penalties for BPT non-compliance are more granular than commonly described. Under Alabama Code § 40-2A-11, the failure-to-file penalty is the greater of 10% of tax shown due or $50. A separate failure-to-pay penalty of 1% per month (capped at 25% in aggregate) also applies. Mandatory interest computed using the federal underpayment rate under IRC § 6621 is charged in addition to both penalties.

All three charges — failure-to-file penalty, failure-to-pay penalty, and interest — can apply simultaneously. Unresolved BPT non-compliance can ultimately contribute to administrative dissolution or revocation under Title 10A procedures, though ALDOR tax enforcement and SOS administrative dissolution operate as separate processes.

Registered agent requirements

Alabama Code § 10A-1-5.31 requires every domestic filing entity, foreign filing entity, and qualifying general partnership to maintain a registered agent. This requirement survived the elimination of the annual report because it serves a different compliance function: it ensures the state and legal parties can reliably contact your business.

All businesses operating in Alabama must maintain a registered agent with:

• A physical street address in Alabama (the registered office may not be solely a mailbox service or telephone answering service, per § 10A-1-5.31(c)(3))

• A business office maintained at the same address as the registered office

• Capacity to receive legal documents and personal service of process

• Status as either an Alabama resident individual or a domestic/foreign entity registered in Alabama

The registered office does not need to be your entity's place of business, which means professional registered agent services can fulfill this requirement.

Simplify Alabama compliance with Discern

Alabama's elimination of annual reports removed one compliance layer, but maintaining a registered agent and tracking Business Privilege Tax deadlines, with entity-type-specific due dates and a compounding penalty structure, requires ongoing attention. Missing either requirement creates legal exposure that can result in administrative dissolution or registration revocation.

Discern provides registered agent services in Alabama and all 51 jurisdictions, with automated compliance tracking that keeps your entities in good standing. For firms managing multiple entity types across several states, Discern's platform consolidates deadline tracking and filing management into a single system, replacing manual spreadsheets and fragmented provider relationships.

Schedule a demo with Discern

FAQs about Alabama's annual report

Below are answers to the most common questions about Alabama's annual report elimination and ongoing compliance obligations.

Are annual reports still required in Alabama?

No. Alabama eliminated the annual report filing requirement for corporations effective October 1, 2024, through Act No. 2024-213, which repealed § 10A-2A-16.11. The repeal applies to domestic corporations and foreign corporations authorized to transact business in Alabama.

Do I still need to file a Business Privilege Tax return?

Yes. The Business Privilege Tax filing requirement continues unchanged. C-corporations on a calendar year must file by April 15, while S-corporations and limited liability entities on a calendar year must file by March 15. Entities whose calculated tax is $100 or less are not required to file a BPT return.

What happened to the $10 annual report fee?

Alabama eliminated the $10 annual report fee along with the annual report requirement for corporations. You no longer pay this fee to maintain your corporation's registration.

How do I change my principal address or registered agent information?

Update your registered agent or registered office information through the Secretary of State's change of agent form. Principal address changes are handled through entity-type-specific amendment forms available on the SOS Business Downloads page. Tax address changes with the Department of Revenue are a separate process and do not update your SOS records.

What changed and what remains?

Alabama's elimination of annual reports removed one compliance obligation for corporations, but Business Privilege Tax filings remain fully enforced. Filing deadlines vary by entity type; accurate net worth calculations are required; and penalties include the greater of 10% of tax due or $50 for failure to file, plus a separate 1% monthly failure-to-pay penalty (capped at 25%), plus mandatory interest under IRC § 6621.

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