Form Bpt-E - Family Limited Liability Entity Election Form

*07128306BPTE*

FORM

BUSINESS PRIVILEGE

Reset Form

TAX YEAR

BPT-E

2007

LABAMA

EPARTMENT OF

EVENUE

Family Limited Liability Entity Election Form

Electing Family

Limited Liability Entity: ____________________________________________ Tax Period: ________________________

FEIN: ___________________________________

The following information must be provided in order for this election to be effective.

Part 1 – 80% Ownership Test

Partners’ capital account from Form 1065, Schedule L:. . . . . . . . . . . . . . . . . . . . . . $___________

Percentages of partners’ capital accounts that are directly or constructively owned by:

Individual:. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

Spouse: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

Parents: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

Grandparents: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

Lineal descendants of grandparents: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

Part 2 – Taxpayer must complete at least one of the following.

(a) Gross Receipts Test: 90% or more of the gross receipts of the entity consist of any

combination of the following:

(i)

Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

(ii)

Dividends/distributions/payments on stock or securities . . . . . . . . . . . . . . _________%

(iii)

Rents, license fees or other fees for use of property . . . . . . . . . . . . . . . . . _________%

(iv) Receipts from sale or leasing of timber or timberland . . . . . . . . . . . . . . . . _________%

(v)

Royalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

(vi) Annuity payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

(vii) Proceeds from sale of asset not in ordinary course of business . . . . . . . _________%

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

(b) Assets Test: The aggregate adjusted basis of the following assets constitutes at least

90% of the adjusted basis of all of the entity’s assets:

(i)

Cash or cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

(ii)

Stocks, bonds, debentures, notes or other securities . . . . . . . . . . . . . . . . _________%

(iii)

Timber or timberlands . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

(iv) Annuities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

(v)

Assets held principally for appreciation and not production of income . . _________%

(vi) Mutual funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

(vii) Assets not used directly in the conduct of the entity’s business . . . . . . . _________%

(viii) Royalty interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _________%

This entity is making an election to be an electing family limited liability entity as described in Code of Alabama 1975 ,

§40-14A-1(h). I hereby certify that the profits and capital interests of the entity were calculated using the constructive

ownership rules of 26 U.S.C. §318, without regard to the 50% limitation contained in 26 U.S.C. §318(a)(2)(C) and 26 U.S.C.

§318(a)(3)(C):

Signature: ____________________________________________

Date: _____________________________________

Title: _________________________________________________