Filing Taxes for Partnerships in Alabama

Filing Taxes for Partnerships in Alabama

Investor · Nashville, TN · Member since 2016 · 17 posts · 8 votes

Quick question for those who are familiar with Alabama tax laws...for an LLC partnership that has done no business in 2017 (it was started last year but no deals were done underneath the LLC) is it still required to file taxes for that year? I've read in a few places that single member LLCs or partnerships that did no business need not file a federal return. However, I believe that the Alabama Business Privilege tax must still be paid and I do not know a way of filing it without filing form 1065 and going through the whole process of a federal return. All responses welcome! Any advice would be much appreciated.

Thanks.

0Reply
18 views

3 Replies

Jump to latestLatest
  • Logan AllecBusiness Member
    Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
    8y

    @Ahmad Omar While you're probably OK with the Form 65, in my experience Alabama will come after new LLCs with no activity to make them file their initial business privilege tax return (BPT-IN) and pay the $100 minimum tax.

    "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."  See under "Why did I receive a Business Privilege Tax Delinquent Notice?" in the Business Privilege Tax FAQ.

    If you haven't filed your BPT-IN yet, I recommend you do so ASAP since it's due 2.5 months after you formed your Alabama LLC.

    Clarita CPA Group516 Reviews
  • Investor · Nashville, TN · Member since 2016 · 17 posts · 8 votes
    8y

    @Logan Allec thanks for your response. So in summary, I'll have to file the federal return (Form 1065) in order to file the BPT-IN and pay the $100 minimum tax for Alabama. Correct?

  • Logan AllecBusiness Member
    Accountant · Los Angeles, CA · Member since 2014 · 1k+ posts · 980 votes
    8y

    @Ahmad Omar You don't need to file the 1065 in order to file the BPT-IN.

    Clarita CPA Group516 Reviews
Join the conversationCreate a free account to reply, vote on answers and follow this thread.