What Business Licenses & Permits are Needed in Alabama?
Starting a in will mean potentially registering with several federal, and local agencies. Let’s take a look at common licenses and permits a will register for in .
Before applying for any licenses, the structure will need to be established. Learn more about the differences between the , general partnership, and Limited Liability Company (LLC)
Related: Comparison of Entities
& Privilege Licenses
The Department of administers the , the is issued at the local level by the Probate Judge or Commissioner. It is important to note that one may require several different types of Privilege Licenses depending upon the business’s products or services. Most businesses will also need to get a in every where is conducted. of requires anyone conducting to obtain a . While the
Privilege licenses expire on September 30th every year.
The costs for the Privilege vary depending on the type of required and, in some cases, upon the population of the area where the is located or the business’s sales volume. Some businesses may require several different types of privilege licenses depending upon the business’s services or products.
Additionally, some licenses first require applying for Regulatory Permits, such as , food establishments, and air conditioning contractors.
Many cities in require businesses to be licensed in order to operate. Rules for registration vary depending on location and what the does. Below are a few cities that have requirements.
Birmingham – The of Birmingham requires an annual for certain businesses, including; those that sell alcoholic beverages, dance or pool table licenses, street vendors, and more.
Montgomery – The Montgomery Division of and requires all businesses within to apply for a .
Mobile – A is required to operate a within the of Mobile. The cost of a Mobile is $130 and renews annually.
Huntsville – The Huntsville Treasurer’s Office requires a for commercial and residential-based businesses operating in . Additional licenses are required for Airbnb rentals, businesses selling alcohol, taxi, or rideshare businesses.
Tuscaloosa – All businesses are required to get a from the of Tuscaloosa. The cost of a Tuscaloosa varies depending on the type of and annual sales.
Depending on the location of the business, it’s important to verify whether the needs an occupancy permit or has specific regulations to operate in the zoning district. Even businesses operating out of the home may need from the city as well.
The charged will vary by the product or, in some cases, service sold. The rate for most products sold in is 4%
While there is a , some counties also levy an additional on the sale of tangible property at retail or from generated from the operation of machines or places of entertainment or amusement.
Businesses purchasing merchandise to resell will usually want to obtain an Resale to not pay for merchandise that is resold to customers.
Every person or that opens one or more physical stores in is required to get a Store for the privilege of operating in the . Licenses are obtained by filing with the Probate Judge or commissioner of the in which the store is located.
Vocation or Occupational Privilege
A variety of occupations or professions in the are regulated and need before offering certain services. A few common occupations that require in include; beauty shops, photographers, restaurants, diaper services, fruit stands, contractors, and many more. Additional information, requirements, and fees are available from the of .
Employer Identification Number (EIN)
Many businesses will register with the Internal Service (IRS) for an Employer Identification Number (sometimes referred to as a Federal Employer Identification Number or ID number). The EIN is the equivalent for a for an individual. Corporations, Limited Liability Companies, Partnerships, and Sole Proprietorships with employees will all need to register for one. Sole Proprietorships without employees can use the owner’s .
There is no cost for an EIN, and it only takes a few minutes to get.
Assumed Name Registration
While not a , Sole Proprietorships and Partnerships operating under a name that is different from the full name of the owner(s) may register for a Trade Name (also known as a Doing of . As or DBA) with the
These are some of the most common Alabama licenses, but there are far too many licenses and permits for us to keep track of. Before starting your , be sure to check with Hall, Clerk, Chamber of Commerce, and/or Economic Developer in your area to get more information regarding .