Alabama Business Tax Filing Requirements
Understand what your business needs to file in Alabama. From corporate income taxes to business privilege tax and extensions, get clear guidance on required forms, due dates, and payment rules to ensure your business stays compliant with Alabama tax laws.
What are the Business Tax Forms in Alabama?
Alabama requires different business entities to file specific state tax forms with the Alabama Department of Revenue (ADOR).
Here’s a breakdown by business type:
Sole Proprietorship &
Single-Member LLC
- Form 40 – Alabama Individual Income Tax Return
- Federal Schedule C – Profit or Loss from Business
- Form 40 Schedule E – Supplemental Income
Partnership & Multi-Member LLC
- Form 65 – Partnership/ Limited Liability Company Return of Income
- Schedule K-1 – Partner's share of Income/ Loss
C Corporation
- Form 20C –Corporation Income Tax Return
- Alabama Form 2220 – Underpayment of Estimated Tax for Corporations
S Corporation
- Form 20S – S Corporation Information/ Tax Return
Business Privilege Tax
(All Entities)
- Form BPT-IN – Alabama Business Privilege Tax Initial Privilege Tax Return
- Form PPT – Alabama Business Privilege Tax Return and Annual Report
- Form CPT – Alabama Business Privilege Tax Return and Annual Report
Financial Institutions
- Form ET-1 – Financial Institution Excise Tax Return
What are the Deadlines for Business Tax Forms in Alabama?
Understand the key deadlines for filing Alabama business taxes for all entity types:
- C Corporations
- S Corporations
- Partnerships
- Business Privilege Tax
Return due date:
15th
day of 4th month
Initial Privilege Tax
Return due date:
2½ months
after registration or incorporation
What Business Extension Forms are required in Alabama?
Business Type
- Corporation
- S Corporation
- Partnerships
- Business Privilege Tax
- Financial Institution
You can also make payments online using the My Alabama Taxes (MAT) portal at: alabama.gov.
What are the Extended due dates for the Business Tax Forms in Alabama?
C Corporations
Extended due date:
15th day
of 11th month
S Corporations
Extended due date:
15th day
of 10 th month
Partnerships
Extended due date:
15th day of 10th month
Business Privilege Tax
Extended due date:
15th day
of 10th month
Initial Privilege Tax
Extended due date:
No extension allowed
Alabama Business Tax Extension Filing Requirements
To qualify for a business tax extension in Alabama, your business must:
- File a corresponding federal extension (Form 7004) by the original due date.
- Ensure all payments are made by the original due date — no extension applies to payments.
- Attach a copy of your federal extension with your Alabama return (Form 20C, 20S, or 65).
- Use the My Alabama Taxes (MAT) portal for e-payments or electronic filing.
- Keep ADOR confirmation records for compliance.
Alabama Business Tax Rates
Business tax rates in Alabama vary based on your entity type:
C Corporation
6.5%
of Alabama taxable net income
S Corporation
Pass Through Entity
5% composite payment may apply to nonresident shareholders.
LLC
Pass Through Entity
$0.25 to $1.75 per $1,000 net worth, with a minimum of $50 and a maximum of $15,000.
Business Privilege Tax
$100 minimum up to $15,000
Financial Institution
6.5%
Calculated on net income earned in Alabama
Estimated Tax Payments for Alabama Businesses
Businesses must make quarterly estimated tax payments if they expect to owe $500 or more in state tax for the year.
Payment Deadlines
1st payment
April 15
2nd payment
June 15
3rd Payment
Sept 15
4th Payment
Dec 15
Who should pay
Corporations & S corporations
If expected, tax liability exceeds $500.
LLCs & Partnerships
Based on distributive income shares.
Business Privilege Tax
Pay annually using CPT/PPT forms.
Missed Payments: Late or missed estimated payments may lead to interest and penalties.
Penalties and Interest for Business in Alabama
If your Alabama business doesn’t pay the required tax by the original due date, penalties and interest
may apply — even if you’ve filed an extension. This includes both income taxes and
the Alabama Business Privilege Tax (BPT).
Late Payment Penalty
- A 1% penalty per month (or part of a month) applies to any unpaid tax, up to a maximum of 25% of the total tax due.
- This applies to both corporate income tax and Business Privilege Tax payments that are not made by the due date.
Late filing Penalty
If your business fails to file its return or BPT report on time, a penalty of the greater of 10% of the tax due or $50 will apply.
Interest
- Interest accrues daily on any unpaid tax balance until it’s paid in full.
- The interest rate is set quarterly by the Alabama Department of Revenue (ADOR) under § 40-1-44, Ala. Code 1975, and applies to both income and BPT liabilities
How TaxZerone Can Help You?
TaxZerone simplifies tax filing by supporting your federal submissions and guiding you through state requirements — ensuring accuracy, compliance, and peace of mind whether you’re filing for your business or yourself.
Ready to File Your Business Tax Extension?
Save time and avoid penalties — file your federal business tax extension (Form 7004) online with TaxZerone in just minutes.
Frequently Asked Questions
1. What Alabama state tax forms should my business file?
- Corporations and S Corporations file income tax returns and the Business Privilege Tax using Form 20C or 20S along with Form CPT.
- LLCs and Partnerships generally file Form PPT and, if applicable, Form 65.
- Sole Proprietors report business income through Schedule C with their individual return.
2. Does Alabama automatically grant extensions for businesses?
3. How do I get an extension of time to file in Alabama?
4. What happens if I don’t pay my taxes by the original due date in Alabama?
If your Alabama business doesn’t pay its taxes by the original due date, penalties and interest will apply — even if you’ve filed for an extension. Extensions only give you more time to file, not to pay.
