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Alabama · 15 statewide requirements covered

Business licences and permits in Alabama

Alabama prices its state business licence 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 LicenceAlabama 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 LicenceAlabama 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 LicenceAlabama 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 LicenceAlabama Home Builders Licensure Board$250 a year, being the $235 licence and $15 recovery fund fee; $100 more in the first yearOnly in some cases2026-09-03
Sales Tax LicenceAlabama Department of Revenue, Sales and Use Tax DivisionNo feeTo every business2026-09-03
Salon and Barber Shop LicenceAlabama Board of Cosmetology and Barbering$200 new shop; renewal is $150To every business2026-09-03
State and County Business Privilege LicenceAlabama 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 LicenceAlabama 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

Which Alabama city are you opening in?

We do not yet publish a Alabama city. The statewide requirements above are verified as far as they go, but a city or county adds its own — a local business tax receipt, a food permit, a building sign-off — and we will not guess at those. The jurisdictions we do cover are listed in full.

Is there a single Alabama business licence?

No. Alabama has no single licence 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 licences — 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.