For non-US owners of a Alabama LLC
Foreign-Owned Alabama LLC: State Report, Tax and IRS Filing
A Alabama LLC owned from abroad has a state duty and a federal one. Miss the state one and the LLC can lose its good standing; miss the federal one and the IRS penalty is US$25,000. This page sets out both.
Quick answer
What does a foreign-owned Alabama LLC have to file each year?
With Alabama: None required for LLCs. Since January 1, 2024 the Secretary of State accepts annual reports only from for-profit and professional corporations; annual reports from other entities are not accepted. Fee: No report fee. Due: No annual report. Business Privilege Tax return (Form PPT) is due on the same date as the corresponding federal income tax return; for a disregarded entity, no later than the date its owner must file its federal return. Tax is payable by the original due date; extensions do not extend payment. With the IRS: Form 5472 with a pro forma Form 1120 for any year with a transaction between the LLC and its foreign owner, with a US$25,000 penalty if missed.
At a glance
- Alabama yearly report
- None required for LLCs. Since January 1, 2024 the Secretary of State accepts annual reports only from for-profit and pro
- Alabama fee
- No report fee
- Alabama due date
- No annual report. Business Privilege Tax return (Form PPT) is due on the same date as the corresponding federal income tax return; for a dis
- IRS filing
- Form 5472 with a pro forma Form 1120; US$25,000 penalty if missed
- Fees
- See our Form 5472 filing service page, or request a quote
Alabama filings for a foreign-owned LLC
These are the state-level duties of a Alabama LLC, as published by Alabama (Alabama official source, tax source). State figures checked October 28, 2026.
| Item | Alabama |
|---|---|
| Yearly report | None required for LLCs. Since January 1, 2024 the Secretary of State accepts annual reports only from for-profit and professional corporations; annual reports from other entities are not accepted. |
| Fee | No report fee. No Secretary of State annual report fee for LLCs. The annual state obligation is the Alabama Business Privilege Tax filed with the Department of Revenue (see the state tax row). |
| Due | No annual report. Business Privilege Tax return (Form PPT) is due on the same date as the corresponding federal income tax return; for a disregarded entity, no later than the date its owner must file its federal return. Tax is payable by the original due date; extensions do not extend payment. |
| State tax | Alabama Business Privilege Tax, based on Alabama net worth (maximum US$15,000). For taxable years beginning after December 31, 2023, tax due of US$100 or less is fully exempt and no return (BPT-IN, PPT or CPT) is required. A disregarded single-member LLC files Form PPT; if its owner is not itself subject to the tax (non-resident individuals are listed as not subject), the LLC computes its own net worth and pays accordingly. The tax remains due every registered year until the LLC is formally dissolved or withdrawn with the Secretary of State, even if inactive. |
| If it is late | Late filing penalty: 10% of the tax shown due or US$50, whichever is greater. Late payment penalty: 1% of the tax shown due per month, up to 25%. For dissolution rules, check with the state. |
Easy to miss: The privilege tax stays due every year the LLC is registered, even if it does no business, until it is formally dissolved; owners also assume an annual report is still filed when it is not.
A yearly calendar for a Alabama LLC
- State: None required for LLCs. Since January 1, 2024 the Secretary of State accepts annual reports only from for-profit and professional corporations; annual reports from other entities are not accepted.: No annual report. Business Privilege Tax return (Form PPT) is due on the same date as the corresponding federal income tax return; for a disregarded entity, no later than the date its owner must file its federal return. Tax is payable by the original due date; extensions do not extend payment.
- IRS: Form 5472 with the pro forma Form 1120, normally by April 15 for a calendar-year LLC (Form 7004 extends it)
- Once: BE-13 within 45 days of formation, if it applies
The IRS filings for a Alabama LLC with a foreign owner
The state filings do not replace the federal ones. A Alabama LLC owned by one non-US person is a disregarded entity for income tax, but the IRS treats it as a corporation for related-party reporting, so it files Form 5472 with a pro forma Form 1120 for any year with a transaction between the LLC and its owner, including the money used to form it. A missed or substantially incomplete form carries a US$25,000 penalty (IRS).
Also on the federal side: the BE-13 survey, generally within 45 days of a foreign person setting up a US business (BEA rule), and a Form 1040-NR only if the LLC has income effectively connected with a US trade or business (IRS).
How we help
We prepare Form 5472 and the pro forma Form 1120 for foreign-owned Alabama LLCs, or the full year under our annual package. Fees are on our Form 5472 filing service. Gurleen Kaur, CPA licensed in British Columbia and Washington State, signs. We remind you of the Alabama date; the state report itself is filed with Alabama.
See the annual compliance package, best state for non-US founders and US LLC tax by country.
Law references for a Alabama LLC
Alabama
- State rules: Alabama official page, Alabama tax page.
Federal
- Form 5472: Internal Revenue Code section 6038A and Treas. Reg. section 1.6038A-1; T.D. 9796 treats a foreign-owned single-member LLC as a corporation for this purpose (IRS).
- Effectively connected income and Form 1040-NR: Code sections 864 and 871 (IRS Pub 519).
- BE-13: 15 CFR 801.7 (eCFR).
Other states
All 50 states and DC in one table: US LLC annual fees by state.
- Wyoming
- Delaware
- Florida
- Texas
- Nevada
- Colorado
- Montana
- South Dakota
- Missouri
- Ohio
- Arizona
- California
- New York
- Washington
- Illinois
- Alaska
- Arkansas
- Connecticut
- Georgia
- Hawaii
- Iowa
- Kentucky
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- New Hampshire
- New Jersey
- North Carolina
- North Dakota
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- Tennessee
- Utah
- Vermont
- Virginia
- West Virginia
Common questions
What does a Alabama LLC owe the state each year?
None required for LLCs. Since January 1, 2024 the Secretary of State accepts annual reports only from for-profit and professional corporations; annual reports from other entities are not accepted.. Fee: No report fee. Due: No annual report. Business Privilege Tax return (Form PPT) is due on the same date as the corresponding federal income tax return; for a disregarded entity, no later than the date its owner must file its federal return. Tax is payable by the original due date; extensions do not extend payment.
Does a Alabama LLC owned by a non-US person pay Alabama tax?
Alabama Business Privilege Tax, based on Alabama net worth (maximum US$15,000). For taxable years beginning after December 31, 2023, tax due of US$100 or less is fully exempt and no return (BPT-IN, PPT or CPT) is required. A disregarded single-member LLC files Form PPT; if its owner is not itself subject to the tax (non-resident individuals are listed as not subject), the LLC computes its own net worth and pays accordingly. The tax remains due every registered year until the LLC is formally dissolved or withdrawn with the Secretary of State, even if inactive.
What happens if the Alabama filing is late?
Late filing penalty: 10% of the tax shown due or US$50, whichever is greater. Late payment penalty: 1% of the tax shown due per month, up to 25%. For dissolution rules, check with the state.
Does a foreign-owned Alabama LLC file with the IRS?
Yes. Form 5472 with a pro forma Form 1120 for any year with a reportable transaction with the foreign owner, including the money used to form it. The penalty for missing it is US$25,000. This is separate from the state filing.
Sources
Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.
- Alabama: official source
- Alabama: tax source
- IRS: Instructions for Form 5472
- eCFR: 15 CFR 801.7 (BE-13 reporting requirement)
- IRS: Publication 515
Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.
Related guides: US LLC fees by state, Annual compliance package, Best state for non-US founders.
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