Commercial Compliance Hub

Alabama · 20 jurisdictions covered

Business licenses and permits in Alabama

Alabama prices its state business license by trade — by town population and seats for a restaurant, by headcount for a garage, by chairs for a barber shop — through the county probate judge, who adds fifty percent on top.

What applies everywhere in Alabama

15 requirements are set by Alabama itself and apply whichever city you open in. Local permits sit on top of them.

Requirements set by Alabama that apply in every jurisdiction in the state, with the issuing agency, the published fee and the date each was last checked against its source
Business Privilege TaxAlabama Department of Revenue, Sales and Use Tax DivisionNothing at all where the computed tax is $100 or less, and no return is due; above that, $0.25 to $1.75 per $1,000 of Alabama net worth, capped at $15,000 for most entitiesOnly in some cases2026-09-03
Certificate of Formation (LLC)Alabama Secretary of State, Business Services$200 one-time filingOnly in some cases2026-09-03
Certificate of IncorporationAlabama Secretary of State, Business Services$200 one-time filingOnly in some cases2026-09-03
Certified Food Protection ManagerAlabama Department of Public Health, Division of Food, Milk and LodgingNo feeOnly in some cases2026-09-03
Corporation Annual Report (abolished)Alabama Secretary of State, Business ServicesNo feeOnly in some cases2026-09-03
Day Care Centre or Day Care Home LicenseAlabama Department of Human Resources, Child Care Services DivisionNo feeTo every business2026-09-03
Food Establishment PermitAlabama Department of Public Health, Division of Food, Milk and Lodging$50–$650 a year, set by the county health department, not by the stateTo every business2026-09-03
Garage and Repair Shop Privilege LicenseAlabama Department of Revenue, Business and License Tax Division$8.50 for the first man including the issuance fee, then $7.50 for each additional man, counted at the year's maximum headcountTo every business2026-09-03
General Contractor LicenseAlabama State Licensing Board for General Contractors$300 new application; renewal is $200, and a subcontractor pays half of eachOnly in some cases2026-09-03
Residential Home Builder LicenseAlabama Home Builders Licensure Board$250 a year, being the $235 license and $15 recovery fund fee; $100 more in the first yearOnly in some cases2026-09-03
Sales Tax LicenseAlabama Department of Revenue, Sales and Use Tax DivisionNo feeTo every business2026-09-03
Salon and Barber Shop LicenseAlabama Board of Cosmetology and Barbering$200 new shop; renewal is $150To every business2026-09-03
State and County Business Privilege LicenseAlabama Department of Revenue, Business and License Tax DivisionPriced trade by trade — a restaurant by town population and seats from $8.50 to $76, a garage by headcount, a barber shop by chairs, a contractor by contract value to $376 — plus 50% for the county and a $1 issuance feeOnly in some cases2026-09-03
Store LicenseAlabama Department of Revenue, Business and License Tax Division$2 for a single store including the issuance fee, then $16 each for stores two to five, $23.50 for six to ten, $38.50 for eleven to twenty and $113.50 each beyond thatOnly in some cases2026-09-03
Veterinary Premises PermitAlabama State Board of Veterinary Medical Examiners$150 a year, plus $200 for the evaluation of a new premisesTo every business2026-09-03

Sources

Every statewide figure above was read from one of these government pages on the date shown.

  1. Alabama Department of Revenue — notice on the full exemption from business privilege tax where the tax due is $100 or lessAlabama Department of Revenue · primary source · retrieved 2026-09-03
  2. Alabama Department of Revenue — 2026 business privilege tax quick preparation reference, confirming no filing requirement below the $100 thresholdAlabama Department of Revenue · primary source · retrieved 2026-09-03
  3. Alabama Secretary of State — domestic LLC certificate of formation, showing the $200 fee and the $100 remitted to the countyAlabama Secretary of State · primary source · retrieved 2026-09-03
  4. Alabama Secretary of State — filing fee schedule, revised 23 August 2023Alabama Secretary of State · primary source · retrieved 2026-09-03
  5. Alabama Secretary of State — domestic entity name reservation request formAlabama Secretary of State · primary source · retrieved 2026-09-03
  6. Alabama Secretary of State — domestic business corporation certificate of incorporationAlabama Secretary of State · primary source · retrieved 2026-09-03
  7. Alabama Administrative Code chapter 420-3-22 — food establishment sanitation, permits issued by the county health officerAlabama Department of Public Health · primary source · retrieved 2026-09-03
  8. Alabama Secretary of State — business entities page, stating corporations no longer file an annual reportAlabama Secretary of State · primary source · retrieved 2026-09-03
  9. Alabama Administrative Code chapter 660-5-26 — day care centre and nighttime centre licensing, with the two-year termAlabama Department of Human Resources · primary source · retrieved 2026-09-03
  10. Alabama Administrative Code chapter 660-5-27 — day care home and group day care home licensingAlabama Department of Human Resources · primary source · retrieved 2026-09-03
  11. Alabama Administrative Code chapter 420-1-5 — the exhaustive list of fees the health department collects at state level, which contains no food establishment feeAlabama Department of Public Health · primary source · retrieved 2026-09-03
  12. Russell County Health Department — environmental fee schedule, revised 27 March 2025, an example of a state-run county's food permit feesAlabama Department of Public Health · primary source · retrieved 2026-09-03
  13. Mobile County Health Department — board of health fee schedule, 5 December 2025, an independent county department's food permit feesMobile County Health Department · primary source · retrieved 2026-09-03
  14. Alabama Department of Revenue — Handbook of Privilege and Store Licenses, October 2022, with the fee schedule for each business typeAlabama Department of Revenue · primary source · retrieved 2026-09-03
  15. Alabama Department of Revenue — the complete list of state regulatory boards requiring permits or licenses, which contains no auto repair boardAlabama Department of Revenue · primary source · retrieved 2026-09-03
  16. Alabama State Licensing Board for General Contractors — renewal information and current feesAlabama State Licensing Board for General Contractors · primary source · retrieved 2026-09-03
  17. Alabama Act 2024-277 as enrolled — raising the general contractor licensing threshold to $100,000 from 1 October 2024Alabama Legislature · primary source · retrieved 2026-09-03
  18. Alabama Administrative Code rule 465-X-4-.04 — Home Builders Licensure Board fee schedule, effective 17 March 2025Alabama Home Builders Licensure Board · primary source · retrieved 2026-09-03
  19. Alabama Department of Revenue — FAQ confirming there is no cost to renew an Alabama tax account licenseAlabama Department of Revenue · primary source · retrieved 2026-09-03
  20. Alabama Administrative Code rule 810-6-5-.01.01 — annual license renewal for sales and use tax accountsAlabama Legislature · primary source · retrieved 2026-09-03
  21. Alabama Administrative Code rule 250-X-2-.01 — Board of Cosmetology and Barbering fee schedule, effective 15 May 2026Alabama Board of Cosmetology and Barbering · primary source · retrieved 2026-09-03
  22. Alabama Board of Cosmetology and Barbering — renewal FAQ, with the odd-year expiry and late feeAlabama Board of Cosmetology and Barbering · primary source · retrieved 2026-09-03
  23. Alabama Department of Revenue — business privilege license briefing, on the $1 issuance fee and county-by-county issuanceAlabama Department of Revenue · primary source · retrieved 2026-09-03
  24. Alabama Administrative Code rule 930-X-1-.06 — Board of Veterinary Medical Examiners fee scheduleAlabama State Board of Veterinary Medical Examiners · primary source · retrieved 2026-09-03
  25. Alabama Administrative Code rule 930-X-1-.31 — every veterinary facility must hold a premises permit, and the eight permit typesAlabama State Board of Veterinary Medical Examiners · primary source · retrieved 2026-09-03

Which Alabama city are you opening in?

These are the 12 Alabama jurisdictions where we publish the most. All 20 jurisdictions we cover lists the other 8.

Is there a single Alabama business license?

No. Alabama has no single license that covers every business. What you need depends on your industry, your city and your county, and most of the obligations that matter are issued locally rather than at state level.

The state-level registrations that do apply to nearly everyone are tax accounts rather than licenses — which is why they are easy to miss.

Who issues permits in Alabama?

By industry

Commercial Compliance Hub publishes information, not legal advice. Requirements change — confirm anything you rely on with the issuing agency before you file.