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Last summer, Governor Kay Ivey signed into law Act No. 2022-252, which amends the law regarding the minimum business privilege tax to be paid by small businesses, reducing the minimum-required fee from $100 to $50 in 2023 and to $0 in 2024.
By state law, Alabama corporations, limited liability companies, limited liability partnerships, and limited partnerships are required to file an Alabama Business Privilege Tax Return each year.
The CPT form is filed with the Alabama Department of Revenue. PPT ? S Corps, Limited Liability Companies, and PLLCs file a PPT form for their business privilege tax. The PPT form also includes the AL-, which is used for the annual report. Both are filed with Alabama's Department of Revenue.
Ing to the Alabama business privilege tax law, every corporation, limited liability entity, and disregarded entity doing business in Alabama or organized, incorporated, qualified, or registered under the laws of Alabama is required to file an Alabama Business Privilege Tax Return and Annual Report.
C Corporations will need to file ?Form CPT? and S Corporations/Limited Liability Entities will need to file ?Form PPT.? If you own a C or S corporation, you'll be required to attach an Alabama Annual Report (Schedule AL-CAR) to your tax return. Again, this form does not apply to Limited Liability Entities.
Ing to the Alabama business privilege tax law, every corporation, limited liability entity, and disregarded entity doing business in Alabama or organized, incorporated, qualified, or registered under the laws of Alabama is required to file an Alabama Business Privilege Tax Return and Annual Report.
Minimum privilege tax is $100; plus the $10 Secretary of State annual report fee for corporations. For the taxable year beginning after December 31, 2022, taxpayers who would otherwise be subject to the minimum tax due of $100 shall pay $50 in lieu thereof.