Operating a Business in Alabama - Business Income Filing Requirements - Rev. 06/15/2022

Sep 19, 2026

Business Income Filing Requirements explains how Alabama business taxpayers must file state income taxes based on business entity type. It outlines sole proprietors, partnerships, S corporations, and C corporations, including how income or loss flows to owners and which Alabama forms and attachments apply. The material also covers estimated taxes, and summarizes potential penalties and interest, emphasizing that filing timing generally aligns with corresponding federal income tax return due dates.

LanguageEnglish

CategoryLetters

FormatPDF

Pages28

Reading Time10 min

AccessFree to download

Business Income Filing Requirements - Rev. 06/15/2022

Purpose of this Webinar

Business Entity Types and Tax Reporting

Sole Proprietor

Partnership

Types of Partnership

Operating a Business in Alabama: Business Income Filing Requirements Business Essentials for State Taxpayers (B. E.S.T. ) Rev. 06/15/2022 1 | B.E.S.T. Webinar Series Housekeeping Reminders | | | --- | --- | | | Everyone’s lines were muted when entering the meeting. This is to prevent background noises from interrupting the presentations. Only the host is able to unmute someone.
Click on the Layout button to set your preferred viewing option.
If you would like to ask a question about the presentation, please use the Q&A box to send a question to all panelists (not to a particular presenter) . We will respond to your question during the Q&A Session near the end of the presentation.
At the conclusion of the webinar, a short evaluation survey will open on your screen. Your feedback is important to us, so thank you in advance for responding to the survey.
| | Disclaimer | | --- | | The information in this presentation is intended to be an overview. It is not a comprehensive explanation of all aspects of the subject matter, does not represent legal advice, and is not legally binding on the department. Information regarding taxes and tax administration changes frequently and should always be confirmed through a tax professional.
Please refer to the Alabama Department of Revenue website at [revenue.alabama.gov](revenue.alabama.gov) for additional information.
| 3 | Purpose of this Webinar | | | --- | --- | | To inform Alabama taxpayers of the requirements and guidelines for filing business income taxes in Alabama. This presentation will:
• Define business entity types
• Provide income filing requirements for each business entity type
• Discuss estimated taxes
• Review penalties and interest due | | Business Entity Types 5 | Business Entities Types and Tax Reporting | | | --- | --- | | Entity Taxed As Tax Reporting Due Dates Sole Proprietor • One owner
• Not a separate taxable entity • For an individual income is reported on the Alabama Form 40, with the required attachments.
• Income and Expenses reported on Federal Schedule C, Form 40 Schedule E, or Federal Schedule F No later than the corresponding Federal Income Tax Return as required to be filed, as provided under federal law. Partnership • Two or more owners/partners
• Income/loss passes through to owners/partners • Partnership income reported on Form 65, with the required attachments.
• Partner’s share of Income/Loss reported on Schedule K-1
• Amount from K-1 is reported on Form 40 Schedule E No later than the corresponding Federal Income Tax Return as required to be filed, as provided under federal law. S Corporation • No tax at entity level (see Form 20S for exceptions)
• Income/loss passes through to owners/shareholders • Income reported on Form 20S, with the required attachments.
• Partner’s share of Income/Loss reported on Schedule K-1
• Amount from K-1 is reported on Form 40 Schedule E No later than the corresponding Federal Income Tax Return as required to be filed, as provided under federal law. C Corporation • Taxed at entity level • Income reported on Form 20C, with the required attachments. No later than the corresponding Federal Income Tax Return as required to be filed, as provided under federal law. | | Sole Proprietor 7 | Sole Proprietor | | | --- | --- | | • A single owner or single member LLC is a sole proprietor by default.
• A sole proprietorship is not a separate taxable entity.
• A sole proprietorship files an Alabama Form 40, with the required attachments including Federal Schedule C or C-EZ, Form 40 Schedule E, or Federal Schedule F (See the form instructions.)
• The Alabama income tax return is due no later than the corresponding federal income tax return as required to be filed under federal law. | | | Sole Proprietor | | --- | |
| 9 | Sole Proprietor | | | --- | --- | | | | Partnership 11 | Partnership | | --- | | A partnership is the relatio

FAQs

What is the purpose of this B.E.S.T. presentation?

It informs Alabama taxpayers of the requirements and guidelines for filing business income taxes in Alabama, including entity types, income filing requirements, estimated taxes, and penalties/interest.

How does income filing differ for a sole proprietor in Alabama?

A sole proprietor reports income on Alabama Form 40 with required attachments such as Federal Schedule C or C-EZ, Schedule E, or Schedule F. The Alabama return is due no later than the corresponding federal return.

What Alabama forms are used for partnership tax reporting?

Partnership income/loss is reported on Alabama Form 65 with required attachments, and each partner’s share is filed on Schedule K-1, which is then reported on the partner’s Alabama Form 40 Schedule E.

Sep 19, 2026

Upload by Felix Montgomery