Alabama Corporation Annual Report
By Edmond Hui · Facts verified July 29, 2026 against primary state sources
Filing for an LLC instead? See the Alabama LLC annual report.

What Alabama requires
corporate annual report (Schedule AL-CAR)
| Frequency | every year |
| Due | Filed with the Alabama Business Privilege Tax return: the C-corporation return (Form CPT) is due the 15th day of the 4th month after year-end (April 15 for calendar-year filers, matching the federal deadline); the S-corporation/pass-through return (Form PPT) is due the 15th day of the 3rd month (March 15 for calendar-year filers). |
| Fee | $10 |
| Form | Secretary of State corporate annual report (Schedule AL-CAR), $10 fee, collected by the Dept. of Revenue and filed as part of the Business Privilege Tax return, Form CPT for C corporations, Form PPT for S corporations and other pass-through entities |
Alabama is one of 41 states on an annual corporate reporting cycle. Nationally, 41 states require an annual corporate report, 7 require one every two years, and 2 require none.
What the filings cost over five years
State filing charges only, incorporation plus five years of reporting, annualized. Corporate income tax and franchise tax are excluded, because both depend on income or net worth.
| Period | State filing charges |
|---|---|
| Incorporation | $200 |
| Each year after (report, annualized) | $10 |
| Five-year equivalent (annualized) | $250 |
That ranks Alabama 25th cheapest of 49 states on five-year corporate filing charges.
Alabama corporation vs Alabama LLC
State filing charges only. Corporate income tax and franchise tax are excluded because both depend on income or net worth, so no flat figure exists for either entity.
| Corporation | LLC | |
|---|---|---|
| Formation filing fee | $200 | $200 |
| Report cadence | Every year | Not required |
| Report fee | $10 | No report required |
| Entity-level tax on the LLC side | N/A | Alabama Business Privilege Tax |
Both entities cost $200 to file in Alabama, so the filing fee is not a reason to pick one over the other.
Full Alabama LLC cost breakdown · LLC vs C-corp explained · LLC vs S-corp explained
State taxes an Alabama corporation pays
Corporate income tax
| Applies | Yes |
| Rate | 6.5% of Alabama net income, with a deduction allowed for federal income tax paid/accrued; applies to all net income (there is no $25,000 exemption). Filed on Form 20C. |
Franchise or gross-receipts tax
Alabama levies a separate Business Privilege Tax (a net-worth privilege tax) on corporations and LLEs. Rate is graduated from $0.25 to $1.75 per $1,000 of net worth apportioned to Alabama (rate tier set by federal taxable income). Historic minimum was $100; reduced to $50 for taxable years beginning after 12/31/2022, the ADOR Business Privilege Tax page still states this $50 minimum and makes no mention of any elimination to $0. Maximum is $15,000 (higher caps apply to financial institutions/insurance companies, $3,000,000; electing Family Limited Liability Entities capped at $500). Corporations also pay the $10 Secretary of State annual report fee with the return (Form CPT for C corps, Form PPT for S corps/pass-through entities).
What these totals leave out: the filing-charge figures on this page are what you pay the business filing office. They exclude corporate income tax and any franchise or gross-receipts tax, because both depend on income, net worth or receipts. The section above sets out what Alabama levies, or that it levies neither. Where a state's franchise tax carries a flat minimum, that minimum is an unavoidable annual cost these totals do not include, and over five years it can be the larger number.
C-corp return: Form 20C (Alabama Corporation Income Tax Return)
Frequently Asked Questions
Where these numbers come from
This page covers the recurring report a for-profit corporation files with Alabama. Every figure was checked against Alabama's own published sources on July 29, 2026, the state business filing agency's fee schedule, the governing statute, and where a state tax applies, the state Department of Revenue. Commercial formation-service pages were used as leads only and are never cited. Anything the review could not confirm from an official source is left blank on this page rather than filled with an estimate.
Corporate income tax and franchise tax are quoted as the state publishes them, as rate schedules and thresholds, and are excluded from every dollar total here. They depend on income or net worth, so there is no flat figure that would be true for every corporation.
Primary sources:
- https://www.sos.alabama.gov/business-entities/domestic-corporations
- https://www.sos.alabama.gov/sites/default/files/form-files/FeeSchedule.pdf
- https://www.revenue.alabama.gov/tax-types/business-privilege-tax/
- https://www.revenue.alabama.gov/tax-types/corporate-income-tax/
- https://www.revenue.alabama.gov/faqs/what-is-the-electing-pass-through-entity-tax-return-form-and-when-is-it-due/
- https://www.revenue.alabama.gov/forms/proforma-form-20c-for-corporations-filing-the-alabama-consolidated-corporate-income-tax-return/
- https://www.revenue.alabama.gov/forms/computation-of-federal-taxable-income-reference-for-alabama-business-privilege-tax-forms-form-cpt-and-form-ppt/
- https://www.revenue.alabama.gov/forms/balance-sheet-net-worth-computation-form-cpt-and-form-ppt-9/
- Alabama statute: Ala. Code § 10A-1-4.31 (corporation formation filing)
- Alabama statute: Ala. Code § 10A-2-16.22 (corporation annual report)
- Alabama statute: Ala. Code § 40-14A (Business Privilege Tax)
This guide is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. It describes rules that can differ from state to state, and fees, rates, forms and deadlines can change after we review them. It cannot tell you what applies to your own business: that turns on where the business is formed, where it operates and how it is taxed. Confirm anything you rely on with the state or federal agency concerned, or with a licensed attorney or CPA, before you act on it.
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Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.