The steps for withdrawals and dissolutions are outline below:
Dissolutions- Domestic entity
Complete Articles of Dissolutions Form based on the entity type.
https://www.alabamainteractive.org/sos/welcome.action
Follow the instructions on the form pertaining to the type of entity you are dissolving.
DOMESTIC BUSINESS CORPORATION ARTICLES OF DISSOLUTION
https://www.sos.alabama.gov/sites/default/files/2020-12/DomesticBusinessCorporationDissolution.pdf
DOMESTIC LIMITED LIABILITY COMPANY (LLC) ARTICLES OF DISSOLUTION
https://www.sos.alabama.gov/sites/default/files/2020-12/DomesticLLCDissolution.pdf
DOMESTIC LIMITED PARTNERSHIP (LP) STATEMENT OF DISSOLUTION
https://www.sos.alabama.gov/sites/default/files/2020-12/DomesticLPDissolution.pdf
Withdrawals- Foreign entity
Complete a Request for Certificate of Compliance from ADOR. https://www.alabamainteractive.org/ador_tax_compliance/welcome.action
Provide any missing returns and payments as determined by ADOR staff, if found not to be in compliance to ADOR.
Receive Certificate of Compliance from ADOR.
Complete Certificate of Withdrawal Form https://www.alabamainteractive.org/sos/welcome.action
Submit two (2) signed completed Certificate of Withdrawals with Certificate of Compliance (from ADOR) and filing fee to Secretary of State’s address on the form.
Certificate of Compliance cannot be more than 6 months old to be accepted by SOS.
Office of the Judge of Probate- County Offices contact link page- https://www.sos.alabama.gov/city-county-lookup/probate-judges
If you have received a business privilege tax delinquency notice from the Alabama Department of Revenue, and you have not filed the required return or made the required payment please do so at this time in order to avoid any further interest and penalties. BPT returns can be filed in MAT (My Alabama Taxes). See “How do I register for MAT?” if you do not have a MAT account. Paper forms can be obtained by clicking on the ADOR Form page. See “How do I find Business Privilege Tax forms on the website?” for step by step instructions of obtaining forms. If you are uncertain if a return was required or filed, please forward a copy of the delinquency notice to your tax professional.
If you believe you received the delinquency notice in error and have filed the required return, please provide a copy of the return and proof of payment after consulting with your tax professional. Attach copies of the return and proof of payment to a copy of the business privilege tax delinquency notice and email to businessprivilege.tax@revenue.alabama.gov or mail the response to:
Alabama Department of Revenue
Income Tax Administration
Business Privilege Tax Section – Delinquency Notice Response
PO Box 327900
Montgomery, AL 36132-7900
Taxpayers must receive an (Online Filing Info) letter to sign up for MAT. Normally after they have registered their business with the Secretary of State, taxpayers will receive their letter within 4-6 weeks from the Alabama Department of Revenue. Once this letter is received, taxpayers need to visit our website https://myalabamataxes.alabama.gov/_/#1. In the left side of the screen you will see username, password, and logon. Beneath that you will see forgot password, forgot username, DON’T HAVE A LOG ON? REGISTER HERE. Taxpayers should click register here. Select: Business Privilege Tax. Then the taxpayer will need to provide the Account number, Sign On ID, and Access Code. This information is located on the (Online Filing Info) letter.
Where do I start?
Click the Home link to go to the summary page you see when you first sign in.
To edit a customer level address:
Click the Names and Addressestab from the customer springboard.
Find the Customer Names & Addresses
To edit an account level address:
Go to the Accounts tab and click the applicable account (i.e. Business Privilege Tax).
Click the Names and Addressestab from the account springboard.
Find the Account Names & Addresses
What do I do?
View an address
Click an address to view it.
Edit an address
Click the Edit
Update the address fields.
Click the Verify Address link to check that it is a valid address. This step is mandatory
Click the Select link next to the verified address (if applicable).
When finished, click the Submit button to submit the request.
A confirmation message appears. Click the Print Confirmation button to print the page, or click OK to continue.
Payment Options
My Alabama Taxes
Pay via Credit/Debit card or ACH online with MyAlabamaTaxes. Billing payments can be made at Pay Bill.
By Phone
Taxpayer Assistance Group (TAG): To make a credit card payment by phone, please contact the Alabama Department of Revenue Taxpayer Assistance Group at 334-353-8096.
By Mail
Check or money orders may be mailed if the amount owed is less than $750. Attach voucher Form BPT-V and payment. Mail to:
Alabama Department of Revenue
Business Privilege Tax Section
P.O. Box 327320
Montgomery, AL 36132-7320
Go to our website, www.revenue.alabama.gov. Click on Forms. Enter Business Privilege into the Search box. Sort the forms by Year by clicking on the box “Year” to find the needed Form. Click on the needed Form. Instructions, Forms with calculations, Printable Forms, and our Voucher (BPT-V) are located here.
Where to apply-
revenue.alabama.gov
Click Businesses (along top left in dark blue)
Certificate of Compliance (last option in first column, bottom left)
Request a Certificate of Compliance (link within paragraph)
Please Read: Important Information Regarding Certificate of Compliance and Special Notes (in red)
Request a Single Certificate of Compliance
Fee is $10(with an additional $4 service charge)
Payment Options: American Express, Discover, Master Card or Visa
*Sometimes the taxpayer may not know the 6-digit Secretary of State ID. They can enter all nines in that field, but it must be in the correct format, 999-999. Also, if they do not have a FEIN number, they can do the same, but must be in correct format, 99-9999999. In order to ensure accuracy in verifying the entity for compliance, it is not recommended that a request be made without the proper identifying numbers for the entity. Either the correct FEIN or SOS ID must be on the application*
Certificates of Compliance are issued if the Department verifies that an entity has filed all returns required to be submitted and paid the taxes as shown due as payable on those returns.
If an entity has not filed all returns required to be submitted and not paid the taxes as shown due as payable on those returns, the certificate will be denied.
Disregarded entities requesting a Certificate of Compliance must provide their owner’s information (name, FEIN) in order for the Department to be able to verify the income tax filing requirements for the disregarded entity have been met, since the disregarded entity’s income is reported on its owner’s return for income tax purposes. Failure to provide the owner’s information for a Certificate of Compliance request made for a disregarded entity is the number one reason a request for a Certificate of Compliance is erroneously denied.
Forms and information needed can be accessed through one of the following websites provided by the Office of the Secretary of State or Atlas Alabama.
https://www.sos.alabama.gov/ Main page for Office of the Secretary of State
https://www.sos.alabama.gov/business-entities Business Entities main page
https://www.sos.alabama.gov/business-entities/business-downloads Business downloads/ forms
https://atlasalabama.gov/ - Atlas Alabama
All fees associated with the Office of Secretary of State business entities can be found at the following website:
Business Entity Fees
https://www.sos.alabama.gov/sites/default/files/2020-12/2021FeeSchedule.pdf
No. Section 40-14A-43, Code of Alabama 1975, states “The taxes levied by this chapter shall not apply to any organization described in 26 U.S.C. §501(a)…”
Section 501(a) of the Internal Revenue Code further refers to 26 U.S.C. §501(c), which identifies exempt organizations. Section 501(c)(14) (A) addresses credit unions without capital stock organized and operated for mutual purposes and without profit.
A qualifying LLE would make the election to be treated as an Electing Family Limited Liability Entity by completing Alabama Schedule BPT-E, Family Limited Liability Entity Election Form, and attaching the completed form to the Alabama Form PPT being filed for the LLE. Page 1, line 20 must be checked to indicate that the election form is attached to the Form PPT. The filing deadline for Family LLE election is September 15 of the calendar year.
The Franchise Tax return should not be filed; the Alabama Business Privilege Tax replaces the domestic and foreign Franchise Tax.
To determine the tax rate for the Business Privilege Tax, begin with the federal taxable income. Then multiply that amount by the taxpayer’s apportionment factor. The resultant amount is used to determine the appropriate rate from the rate schedule.
For years prior to January 1, 2024, 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. The Business Privilege Tax remains due every registered year until the entity is legally dissolved/withdrawn through Alabama Secretary of State, regardless of whether or not such entity is actively doing business in Alabama.
For taxable years beginning on or after January 1, 2024, every corporation, limited liability entity, and disregarded entity doing business in Alabama or organized, incorporated, qualified, or registered under the laws of Alabama who would otherwise be subject to the minimum tax due shall be exempt from the privilege tax.
C-corporations, Financial Institution Groups, insurance companies, REITs, and business trusts must file Alabama Form CPT. Limited liability entities taxed as corporations for federal income tax purposes must also file Alabama Form CPT.
S-corporations, limited liability entities and disregarded entities must file Alabama Form PPT.
Limited liability entity is defined in Section 40-14A-1, Code of Alabama 1975, as: Any entity, other than a corporation, organized under the laws of this or any other jurisdiction through which business may be conducted while offering limited liability to the owners of the entity with respect to some or all of the obligations of the entity and which is taxable under subchapter K of the Code, including, without limitation, limited liability companies, registered limited liability partnerships, and limited partnerships.
Corporation is defined in Section 40-14A-1, Code of Alabama 1975, as: Any entity, including a limited liability company electing to be taxed as a corporation for federal income tax purposes, through which business can be conducted while offering limited liability to the owners of the entity with respect to some or all of the obligations of the entity, other than a limited liability entity or a disregarded entity.
“S-corporation” is defined in Section 40-14A-1, Code of Alabama 1975, as: An S corporation defined under Section 40-18-160.
The federal taxable income to be used for S corporations and limited liability entities is the total amount of income passed through to the shareholders, members, or partners. 810-2-8-.01(1)(b) and 810-2-8-.01(1)(c)
Political subdivisions of the state
Governmental corporations
Governmental agencies
Organizations described in Internal Revenue Code Section 501(a)
Community chest
Any entity organized and operated exclusively for religious purposes
Homeowners association
Political parties
Political action committees
Political campaign committees
Agricultural cooperative
See Section 40-14A-43, Code of Alabama 1975.
A limited liability entity is any entity, other than a corporation, through which business may be conducted while offering limited liability to the owners of the entity with respect to some or all of the obligations of the entity and which is taxable under Subchapter K of the Internal Revenue Code of 1986. Limited liability entities include, but are not limited to, limited liability companies, limited liability partnerships, registered limited liability partnerships, and limited partnerships.
With the exception of the Business Privilege return for Financial Institutions Groups, the Business Privilege tax return due date corresponds to the due date of the corresponding federal return.
For C-corporations with a calendar year or a fiscal year other than June 30, the Alabama business privilege tax return is due no later than three and a half months after the beginning of a taxpayer’s taxable year. Taxable year 2021 Form CPT would be due on April 15, 2021, for a calendar year C-corporation.
For C-corporations with a fiscal year of June 30, the Alabama business privilege tax return is due no later than two and a half months after the beginning of a taxpayer’s taxable year. Taxable year 2021 Form CPT would be due on September 15, 2021, for C-corporations with a fiscal year of June 30.
For Limited Liability Entities, the Alabama business privilege tax return is due no later than two and a half months after the beginning of the taxpayer’s taxable year. Taxable year 2021 Form PPT would be due on March 15, 2021, for a calendar year limited liability entity.
The due date for the Business Privilege Tax return for Financial Institution Groups corresponds to the due date for the Alabama Financial Institution Excise tax return.
The Alabama Department of Revenue’s records indicate the required return and payment for the tax due have not been received. Business entities are liable for the Alabama business privilege tax for each taxable year during which the entity is in legal existence – regardless of the level of business activity. With certain exceptions, the minimum business privilege tax is $100, and the maximum business privilege tax is $15,000. A business entity that legally exists, but is dormant in its business operations, is subject to the Alabama business privilege tax filing and payment requirements until the entity is legally dissolved or withdrawn.
If you are not making a payment, mail your return to:
Alabama Department of Revenue
Business Privilege Tax Section
PO Box 327431
Montgomery, AL 36132-7431
If you are making a payment, mail your return, Form BPT-V, and payment to:
Alabama Department of Revenue
Business Privilege Tax Section
P.O. Box 327320
Montgomery, AL 36132-7320
If you have questions, or need to provide information to the Business Privilege Tax Section regarding a delinquent return, electronic responses, with explanations and attachments, may be sent to: businessprivilege.tax@revenue.alabama.gov
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). See Section 40-14A-22, Code of Alabama 1975.
With the exception of the financial institutions, the Department of Revenue is now following IRS filing and extension dates for taxpayers filing form / taxable year 2021 return CPT or PPT. The six-month extension for filing the Business Privilege Tax return will be granted automatically. For financial institutions, the Department will follow the filing and extension dates of the Alabama Financial Institution Excise Tax return. An automatic extension to file will be granted for the corresponding period and time requested, if granted, for the Financial Institution Excise Tax return. For all taxpayers, the amount of tax due must be paid on or before the due date, without extension. There is no extension of time to file the form BPT-IN. The form BPT-IN must be filed within two- and one-half months after the entity incorporates, organizes, qualifies or starts doing business in the State. Form BPT-V must accompany all business privilege tax payments, unless payments are made electronically.
An initial business privilege tax return is the first return due after the taxpayer comes into existence or begins doing business in Alabama. The initial business privilege tax return is due two- and one-half months after the taxpayer is incorporated or organized (if an Alabama taxpayer), or two-and one-half months after the taxpayer qualifies with the Alabama Secretary of State to do business in Alabama (if incorporated or organized in another state or country). Section 40-14A-29, Code of Alabama 1975. For taxable years beginning on or after January 1, 2008, the Form BPT-IN is used to file an initial business privilege tax return. For years prior to January 1, 2008, the Alabama Schedule BPT-IN, Alabama Business Privilege Tax Initial Privilege Tax Computation Schedule is used to file an initial business privilege tax. See the instructions for more information.
