Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Written By Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Kelly Main Staff ReviewerKelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c.
Staff Reviewer Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
Rob Watts Managing Editor, SMBWith over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
| Managing Editor, SMB
Updated: Feb 13, 2024, 8:50pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
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When you’re setting out to start a new business, it can feel as though there’s no end to the stuff you must register for, the forms you have to sign and the fees you have to pay. The local, state and federal governments want to know every little thing about how you are conducting your business—and they want a cut. Starting a business in the state of Alabama does have its advantages. Unless you’re applying for a specialty license to sell controlled substances or firearms or your business is related to people’s health, you don’t have to pay any fees to establish a business license.
Step one in obtaining an Alabama business license is to set up your company (if you have not already). Forbes Advisor has a number of guides for starting a business, forming an LLC or, if you’d rather someone else do it for you, the best LLC services. Once you have started your business, gather these details for your business license application:
Once you have gathered the necessary information, you’ll need to apply for the main Alabama business license, called a business privilege license. Head to the website for your city or county to find the appropriate forms and applications. If you’re not sure, the Alabama Department of Revenue has a list of all the county probate offices here.
You will also need to apply for a store license for each brick-and-mortar store you have in each county of Alabama. This license can also be applied for via your city’s or county’s website.
If your business is renting or selling tangible goods, you will need a business tax registration, commonly called a seller’s permit, which is handled by the Alabama state government. You can register for your business tax registration at the My Alabama Taxes website. Additional licenses may be required for certain types of businesses working in certain industries. The full list, and the appropriate regulatory agencies to apply with, can be found on the Alabama Department of Revenue’s website.
Finally, be sure to understand the federal government’s licenses and tax policies. Even though the federal government does not issue any general business licenses, you may need to get a permit for specific industries. Licensing for food, for example, is required for farming, fishing and alcohol sales. Transportation-related businesses may also need federal permits.
Nearly all businesses registered or doing business in the state of Alabama are required to have one or more business privilege licenses. This so-called business “privilege” license is an umbrella term that refers to any number of state and local licenses that businesses may be required to have. All of these Alabama business licenses are valid October 1 through September 30 and must be renewed annually.
Nearly all businesses in Alabama must obtain a business license for operating in any city or county across the state. In addition to the local business operating license—called a business privilege license—you will likely need other licenses from the local municipality as well as the state or federal government.
For example, you will need a business tax registration, sometimes called a seller’s permit, if you sell or lease tangible property. Multiple store locations will each need a store license in each county where your business operates.
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Nearly every business in Alabama is required to obtain at least one type of license or permit to legally operate. The three primary business licenses in Alabama are the business privilege, the business tax registration and the store license. It can be a headache to figure out which additional license (or licenses) you need to obtain for operating in your specific industry. Depending on what type of business you operate, you might need to obtain local, county, state or federal business licenses for specific purposes. You can consult the Alabama Department of Revenue to determine some of the additional licenses you may need.
The most common type of business license you will need in every municipality is what Alabama calls a business privilege license, commonly known as a “business license” or “general license.” If you have a brick-and-mortar location, you will also need to obtain a store license for each location where you conduct business. These are the most common licenses and will apply to essentially all types of businesses. These will be nearly identical in all cities and counties across Alabama.
Any public-facing businesses serving food, providing accommodations or otherwise related to or impacting customers’ health will be required to obtain a public health license. Some cities and counties do not require a public health license if one is obtained at the state level, while some municipalities require both. These permits often also require some form of training and/or testing.
Additional permits you may be required to obtain on a city or county level when starting your business in Alabama include:
While these permits are not the same as business licenses, you should research to see if you must obtain one before starting your business.
In Alabama, businesses are also regulated on a statewide level with what is called a “business tax registration.” Sometimes called a “seller’s permit,” the business tax registration is required for all businesses engaged in business in Alabama and that intend to sell or lease tangible personal property that would ordinarily be subject to sales tax if sold at retail. You can register for your business tax registration at the My Alabama Taxes website.
A number of other Alabama state licenses may be required for certain types of businesses or professions. The list is extensive so make sure to check with the Alabama Department of Revenue (ADOR) to determine which professions require additional licensing. The ADOR offers an extensive list of the different types of professions requiring specific licensing and the departments or agencies to contact for those licenses. See its spreadsheet here.
Depending on the size or activities of your small business, you may need to obtain a federal license. If your small business operates in one of these industries, you will likely need a federal license:
There is no cost to register for a business privilege license in the state of Alabama, though some specialty licenses may have a fee associated with them on the local or state level.
All Alabama business privilege licenses, business tax registrations and store licenses are annual and must be renewed each year.
