Instructions For Completing Application For Certificate Of Authority For Alabama Secretary Of State Form (Page 3 of 3) in pdf

Instructions For Completing Application For Certificate Of Authority For Alabama Secretary Of State Form Page 3

Admission Tax Base

The Admission Tax is based on the Total Alabama Capital employed during the year of qualification as

reflected on Schedule B, Form FT: 1-1IN. The minimum admission tax due is $25.00. If the actual Total

Alabama Capital as reflected on the subsequent year Foreign Corporation Franchise Tax Return, Permit

Application, and Annual Report (Form FT 1-1) exceeds the Total Alabama Capital Reported at the time of

qualification, additional admission tax with interest will be due.

Limitations

Where the corporation’s principal place of business is or will be located in Alabama, or where it has, or will

acquire the Alabama assets of a previously qualified corporation, the Admission Tax shall not exceed $500.00.

The corporation must furnish the Alabama Department of Revenue with documentary evidence that it does

or will meet one of the above requirements if Alabama capital during the initial year will be greater than

$431,000 and it claims the $500.00 tax limitation.

Definitions

Authorized Capital – The total number and par or stated value of shares, by each class, that the corpora-

tion has authority to issue. A corporation’s charter contains the types and amounts of stock that it can legal-

ly issue.

Paid-In Capital – Capital in excess of par or stated value for each class of security. All stockholder’s equi-

ty that is not classified as legal capital, minority interest, or retained earnings is usually designated as paid-

in capital.

Instructions For Completing Application For Certificate Of Authority For Alabama Secretary Of State Form Page 3