Alabama · Graduated income tax, business privilege tax
CPA, bookkeeping & fractional CFO services in Alabama
Alabama has a graduated personal income tax with a low top rate, a business privilege tax on most entities and some of the highest combined local sales tax rates in the country. CPA Torrance is a CPA-led firm based in Torrance, California that provides bookkeeping, tax planning, tax filing and fractional CFO support to Alabama businesses remotely.
- Serving all of Alabama remotely
- Alabama business privilege tax and Form 65/20S tracked for you
- Monthly reporting included
In short
What is the Alabama business privilege tax?
The business privilege tax is an annual Alabama tax on most corporations, LLCs and partnerships for the privilege of doing business in the state. It is based on the entity net worth in Alabama, with a minimum amount due, and is filed with the annual report. Alabama sales tax combines a 4% state rate with city and county rates that often push the total much higher.
- State income tax
- Graduated (low top rate)
- State sales tax
- 4% + local
- Key business tax
- Business privilege tax
- How we serve
- Remotely, statewide
Services in Alabama
What we do for Alabama business owners
From Huntsville aerospace firms and Birmingham healthcare companies to Mobile port businesses and Montgomery contractors, Alabama owners need state and local taxes handled correctly. We provide monthly bookkeeping, federal and Alabama tax planning, filings and CFO reporting from one coordinated team.
Bookkeeping Services
- Monthly reconciliations in QuickBooks Online
- Alabama state, city and county sales tax tracking
- Payroll and contractor payment review
- Monthly profit and loss and balance sheet
- Catch-up and clean-up bookkeeping
Tax Planning & Strategy
- Entity and S corporation review
- Alabama electing PTE review
- Federal and state estimated payments
- Multi-state income review
- Year-end tax planning meeting
Tax Filing & Compliance
- Federal business returns (1120, 1120S, 1065)
- Alabama Form 65, 20S, 20C and business privilege tax returns
- Owner individual returns
- IRS and state notice help
- Due-date tracking for every filing
Fractional CFO Services
- Cash-flow forecasts
- Budget versus actual reviews
- Margin and pricing analysis
- Lender- and investor-ready reporting
- Growth and hiring plans
Alabama tax planning
Planning around Alabama taxes
Alabama planning combines the business privilege tax, the electing PTE option, local sales and license taxes and federal planning.
Book a 15-min callBusiness privilege tax
We calculate net worth correctly and look for deductions and exclusions that apply.
Electing PTE
Alabama allows pass-through entities to elect entity-level taxation. We model the federal benefit.
Local taxes
Cities and counties have their own sales and license taxes. We track which ones apply.
Who we work with
Alabama industries we serve
We work with owner-led businesses across Alabama, with experience in the industries that drive the state economy.
Aerospace and defense
Contractors and suppliers around Huntsville.
Automotive suppliers
Manufacturers supporting Alabama auto plants.
Healthcare
Practices and healthcare companies in Birmingham.
Logistics
Freight and port businesses around Mobile.
E-commerce sellers
Online brands with Alabama sales tax, inventory and multi-channel books.
Professional firms
Consultants, agencies and law firms billing by the hour, project or retainer.
Why Alabama businesses choose CPA Torrance
Areas we cover
Serving businesses across Alabama
Businesses in Birmingham, Huntsville, Montgomery, Mobile, Tuscaloosa work in aerospace, automotive manufacturing, healthcare, logistics and agriculture. CPA Torrance helps Alabama businesses, including those owned from out of state, stay compliant and organized through remote meetings.
- Birmingham
- Huntsville
- Montgomery
- Mobile
- Tuscaloosa
- Hoover
- Auburn
- Dothan
- Madison
- Decatur
- Video meetings on your schedule
- Secure document portal for statements and returns
- Cloud accounting you can see any time
FAQ
Alabama business tax and accounting questions
Not covered here? A 15-minute call gets you a straight answer for your situation.
What financial services can CPA Torrance provide to Alabama businesses?
We provide monthly bookkeeping, federal and Alabama tax planning, business tax filing and fractional CFO services. Everything runs from one set of books, so your bookkeeper, CPA and CFO advisor work from the same numbers.
Does every Alabama LLC pay the business privilege tax?
Most do, with a minimum amount due each year even for small companies.
Why is sales tax so high in some Alabama cities?
Cities and counties add their own rates to the 4% state rate, and some administer their own sales taxes.
Does Alabama have a pass-through entity tax?
Yes. Alabama allows electing pass-through entities to pay tax at the entity level.
Can CPA Torrance work with Alabama businesses remotely?
Yes. We serve businesses across Alabama, including Birmingham, Huntsville, Montgomery, Mobile, Tuscaloosa, Hoover, Auburn, Dothan, Madison and Decatur, through video meetings, a secure document portal and cloud accounting you can see any time. Our office is in Torrance, California.
How do I get started?
Book a 15-minute call or request a free financial assessment. We review your books, tax position and systems and recommend the right mix of support for your Alabama business.
Get your Alabama books and taxes in order.
Book a call to review bookkeeping and tax planning for your Alabama business.