13 permits · verified 2026-09-08
What permits do you need to open a auto repair shop in Birmingham?
In short
A auto repair shop in Birmingham, AL has 6 permits that apply to every business of this type, plus 7 more that depend on your premises, signage or how you are set up. City of Birmingham Department of Planning, Engineering and Permits charges $150 flat; a new Certificate of Use and Occupancy triggered by a change of occupancy or tenant is a $300 inspection fee instead for the certificate of occupancy. 8 of the 13 are charged as a range or formula rather than a flat fee. Verified 2026-09-08 against the issuing agencies’ published fee schedules.
The permits at a glance
| Permit | Issuing agency | Fee | Renews | Last checked |
|---|---|---|---|---|
| Sign Permit | City of Birmingham Department of Planning, Engineering and Permits | $175.00 application fee per sign, plus $1.50 per square foot of sign face. | one-time, per sign | 2026-09-08 |
| Certificate of Occupancy | City of Birmingham Department of Planning, Engineering and Permits | $150 flat; a new Certificate of Use and Occupancy triggered by a change of occupancy or tenant is a $300 inspection fee instead | one-time, per issuance | 2026-09-08 |
| Zoning Certificate or Information Letteronly if it applies to you | City of Birmingham Department of Planning, Engineering and Permits | $50–$100 a Zoning Certificate Letter (zoning classification and flood plain status only) is $50; a more detailed Zoning Information Letter is $100 or more depending on scope | one-time, per request | 2026-09-08 |
| Municipal Business Licence — Automotive Repair Shop | City of Birmingham Finance Department, Tax and License Administration Division | Schedules 215B (indoor) and 215C (indoor and/or outdoor), by number of workers: 1 worker $60, 2 to under 4 $120, 4 to under 6 $180, 6 to under 10 $240, 10 to under 15 $300, 15 or more $360. | annual — calendar year | 2026-09-08 |
| Commercial Building Permit | City of Birmingham Department of Planning, Engineering and Permits | $9.50 per $1,000 of valuation for the building permit itself, and identically for HVAC, sprinkler/fire detection, awnings, and parking lot installation; plumbing, gas, electrical and mechanical permits are the same $9.50 per $1,000 with a $125 minimum each. Plan review (commercial): $150 up to $10,000 valuation, $350 for $10,001–$50,000, $700 for $50,001–$100,000, then $700 plus $1.50 per $1,000 above $100,001. A $1.00 per $1,000 state craft-training-fund surcharge applies to nonresidential permits. Reinspection is $125; weekend/after-hours inspection is a $300 minimum for the first four hours. | one-time, per project | 2026-09-08 |
| Garage and Repair Shop Privilege Licence | Alabama 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 headcount | annual — 1 October to 30 September, delinquent 1 November | 2026-09-03 |
| State and County Business Privilege Licenceonly if it applies to you | Alabama Department of Revenue, Business and License Tax Division | Priced 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 fee | annual — 1 October to 30 September, delinquent 1 November | 2026-09-03 |
| Store Licenceonly if it applies to you | Alabama 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 that | annual — 1 October to 30 September | 2026-09-03 |
| Certificate of Formation (LLC)only if it applies to you | Alabama Secretary of State, Business Services | $200 one-time filing | perpetual — Alabama abolished the annual report in 2024 | 2026-09-03 |
| Certificate of Incorporationonly if it applies to you | Alabama Secretary of State, Business Services | $200 one-time filing | perpetual — Alabama abolished the annual report in 2024 | 2026-09-03 |
| Corporation Annual Report (abolished)only if it applies to you | Alabama Secretary of State, Business Services | No fee | not applicable — the filing no longer exists | 2026-09-03 |
| Business Privilege Taxonly if it applies to you | Alabama Department of Revenue, Sales and Use Tax Division | Nothing 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 entities | annual — due when the matching federal return is due | 2026-09-03 |
| Sales Tax Licence | Alabama Department of Revenue, Sales and Use Tax Division | No fee | annual — renew online between 1 November and 31 December | 2026-09-03 |
Fees shown as a range or formula are set that way by the issuing agency — we do not average them into a single number.
How much does it actually cost to permit a auto repair shop in Birmingham?
There is no single figure, and any site quoting one is rounding away the part that matters. Of the 13 records listed for a auto repair shop in Birmingham, AL, 6 apply to every business of this type and 7 are conditional. Adding every fee on the page together would overstate what most operators pay, because it would include permits they never need.
Of the 6 that always apply, 1 carry a flat fee, coming to $150.00. That is a floor, not a total. 8 of the 13 are charged as a range or a formula set by the issuing agency, and 2 have no fee published at all. The ones that vary:
Sign Permit: $175.00 application fee per sign, plus $1.50 per square foot of sign face.
Zoning Certificate or Information Letter: $50–$100 a Zoning Certificate Letter (zoning classification and flood plain status only) is $50; a more detailed Zoning Information Letter is $100 or more depending on scope
Municipal Business Licence — Automotive Repair Shop: Schedules 215B (indoor) and 215C (indoor and/or outdoor), by number of workers: 1 worker $60, 2 to under 4 $120, 4 to under 6 $180, 6 to under 10 $240, 10 to under 15 $300, 15 or more $360.
Commercial Building Permit: $9.50 per $1,000 of valuation for the building permit itself, and identically for HVAC, sprinkler/fire detection, awnings, and parking lot installation; plumbing, gas, electrical and mechanical permits are the same $9.50 per $1,000 with a $125 minimum each. Plan review (commercial): $150 up to $10,000 valuation, $350 for $10,001–$50,000, $700 for $50,001–$100,000, then $700 plus $1.50 per $1,000 above $100,001. A $1.00 per $1,000 state craft-training-fund surcharge applies to nonresidential permits. Reinspection is $125; weekend/after-hours inspection is a $300 minimum for the first four hours.
Garage and Repair Shop Privilege Licence: $8.50 for the first man including the issuance fee, then $7.50 for each additional man, counted at the year's maximum headcount
State and County Business Privilege Licence: Priced 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 fee
Store Licence: $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 that
Business Privilege Tax: Nothing 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 entities
Which offices issue these permits in Birmingham?
Permits for a auto repair shop in Birmingham, AL come from 5 separate offices: City of Birmingham Department of Planning, Engineering and Permits, City of Birmingham Finance Department, Tax and License Administration Division, Alabama Department of Revenue, Business and License Tax Division, Alabama Secretary of State, Business Services, Alabama Department of Revenue, Sales and Use Tax Division. No single office issues them all, which is why an opening means filing in several places rather than one.
- City of Birmingham Department of Planning, Engineering and PermitsIssues 4 permits on this page: Sign Permit, Certificate of Occupancy, Zoning Certificate or Information Letter, Commercial Building Permit(205) 254-2478www.birminghamal.gov/government/city-departments/planning-engineering-permits
- City of Birmingham Finance Department, Tax and License Administration DivisionIssues 1 permit on this page: Municipal Business Licence — Automotive Repair Shop710 North 20th Street, Room TL-100, Birmingham, AL 35203 · (205) 254-2198www.birminghamal.gov/government/city-departments/finance/tax-license-division
- Alabama Department of Revenue, Business and License Tax DivisionIssues 3 permits on this page: Garage and Repair Shop Privilege Licence, State and County Business Privilege Licence, Store Licence2545 Taylor Road, Montgomery, AL 36117 · (334) 353-7827www.revenue.alabama.gov/business-license
- Alabama Secretary of State, Business ServicesIssues 3 permits on this page: Certificate of Formation (LLC), Certificate of Incorporation, Corporation Annual Report (abolished)770 Washington Avenue, Suite 580, Montgomery, AL 36104 · (334) 242-5324www.sos.alabama.gov/business-entities
- Alabama Department of Revenue, Sales and Use Tax DivisionIssues 2 permits on this page: Business Privilege Tax, Sales Tax LicencePO Box 327710, Montgomery, AL 36132-7710 · (334) 242-1490www.revenue.alabama.gov/sales-use/business-tax-online-registration-system
Is anything about these requirements changing?
Historic Preservation Review or Commercial Revitalization District design review, where applicable, adds a further $35 each.
A duplicate certificate is $150. Where a building permit for alterations exceeding $10,000 is already being issued, the occupancy inspection appears to be folded into that permit process rather than charged as the separate $300 change-of-occupancy fee, though the city's fee document does not state this explicitly.
The city's own request form does not state whether this letter is a mandatory prerequisite to opening or an optional due-diligence document a business can request; several municipal business licence schedules (auto repair, parking, junk yards) do separately condition licence issuance on zoning sign-off from this department. Confirm with the Zoning Division (205-254-2478) before treating this as a required step for every business type.
Requires written zoning compliance verification from Planning, Engineering and Permits before the licence is issued.
A citywide minimum permit fee of $125 applies regardless of the calculated amount for any individual trade permit.
Alabama has no licensing board for auto repair — the revenue department's own list of every state board requiring a licence contains no auto repair, auto body, mechanic or garage entry, and title 34 has no chapter for the trade. But a licence is still required, and it is easy to miss because it is a tax licence rather than an occupational one. Garages and shops where vehicles are repaired, painted, trimmed or welded for the public pay by headcount, counted at the maximum number of men employed at any point in the licence year, with owners who work in the shop counted as men. It is needed for each location, including a service station or someone working from home, and the revenue department reads it to cover window tinting, fitting parts and tyres, motorcycle repair, alarm fitting and disabled vehicle lifts, but not oil changes, wheel alignment or farm machinery repair. A mechanic working exclusively from a truck at the customer's premises is outside it. Note also what is not needed: a dealer licence, since every dealer class turns on selling or preparing for resale, so a shop that repairs customers' vehicles and returns them to their owners falls outside all of them.
This is the licence people mean when they say Alabama has a state business licence, and it has no single price because the statute enumerates business types one by one — around a hundred and twenty of them — each with its own schedule. A restaurant is banded by the population of the town and then by seats, running from $8.50 in a small town with ten seats to $76 in a city over forty thousand with more than thirty-five. A garage pays by the number of men, a barber shop by the number of chairs, a beauty parlour by the number of operators, a contractor by the value of the contract. Whatever the state levies, the county adds fifty per cent, and a $1 issuance fee goes on top of the first line. Three things trip people up. It is a tax licence, not a competence test — it sits on top of any professional board licence and replaces none of them, and the county need not even see the board certificate. It is needed in every county you do business in, and generally for each location. And a business that operates in more than one category needs more than one. New businesses starting after 1 April pay a half-year rate; renewals never do.
The store licence reaches essentially every retail and wholesale merchant, which makes it the closest thing Alabama has to a universal business licence — and it is remarkably cheap for a single-location business at $2 all in. The price climbs per store as a chain grows, reaching $113.50 for each store past the twentieth. Unlike the privilege licence, this one is state-only: the statute says expressly that no fee is due for the use of any county. An auto repair shop needs it only if it sells parts to the public over the counter; keeping a stock of parts to fit to customers' vehicles does not trigger it, even where the parts are itemised on the repair bill.
Two hundred dollars, of which the Secretary of State passes $100 to the treasurer of the county where the registered agent sits — which is why older material describes a two-stage filing. Since 1 January 2021 you file directly with the Secretary of State and pay nothing separately to the probate judge. Watch for stale forms: two older PDFs are still live on the Secretary of State's own site and both instruct filers to mail the document to the probate judge with a $100 fee. A name reservation is a prerequisite and costs $25 by post or $28 online. A corporation costs the same $200.
The same $200 as an LLC, with the same $100 passed to the county treasurer. Alabama calls this a certificate of incorporation rather than articles, following the title 10A-2A recodification, and calls the LLC equivalent a certificate of formation. Amendments and dissolutions are $100 each; registering a foreign entity is $150.
No fee, because the filing was abolished — the Secretary of State states plainly that corporations authorised to transact business in Alabama are no longer required by law to file an annual report. It cost $10 and disappeared on 1 October 2024. The history is worth knowing because it explains the confusion: the report used to ride along with the business privilege tax return, was detached into a standalone $10 filing at the start of 2024 when the minimum tax went, and was then repealed outright nine months later. One live trap remains — the revenue department's forms CPT and PPT are still titled business privilege tax return and annual report, and that internal annual report is a different thing that has not been abolished.
Alabama used to charge every entity a $100 minimum whether or not it had made a penny. That minimum was phased down to $50 for 2023 and to nothing from tax year 2024, and the exemption is total: where the computed tax is $100 or less there is no tax and no return. Above the threshold the tax is real — a rate per thousand dollars of Alabama net worth, set by a band keyed to apportioned federal taxable income, capped at $15,000 for most entities, $3 million for financial institution groups and insurers paying premium tax, and $500 for an electing family limited liability entity. A new entity files an initial return within two and a half months of organising, but again only if the tax computes above $100.
No fee to obtain and none to renew — the revenue department says so in as many words. The catch is that renewal is compulsory and annual, which surprises businesses used to a licence that simply persists: every sales, rental, sellers use, lodgings, utility gross receipts and simplified sellers use licence must be renewed online each November or December, and a licence not renewed by 31 December expires. An expired licence cannot be used for tax-exempt transactions, which is the practical bite — your suppliers can no longer sell to you free of tax. Renewal is a verification exercise rather than a payment: you confirm the legal name, the owners and officers, and every location and trading name. Extensions of up to sixty days are available for reasonable cause.
Sources
Every figure above was read from one of these government pages on the date shown. Confirmed by Editorial Team.
- City of Birmingham — Permit and Inspection Fees, articles V and VIICity of Birmingham, Department of Planning, Engineering and Permits · primary source · retrieved 2026-09-08
- City of Birmingham — Zoning Letter Request Form and feesCity of Birmingham, Department of Planning, Engineering and Permits · primary source · retrieved 2026-09-08
- City of Birmingham Business Licence Code, Ordinance 97-183 as amended, listing of schedules by number (hosted by the Alabama Department of Revenue)City of Birmingham, republished by the Alabama Department of Revenue · primary source · retrieved 2026-09-08
- 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
- Alabama Department of Revenue — the complete list of state regulatory boards requiring permits or licences, which contains no auto repair boardAlabama Department of Revenue · primary source · retrieved 2026-09-03
- Alabama Department of Revenue — business privilege licence briefing, on the $1 issuance fee and county-by-county issuanceAlabama Department of Revenue · primary source · retrieved 2026-09-03
- 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
- Alabama Secretary of State — filing fee schedule, revised 23 August 2023Alabama Secretary of State · primary source · retrieved 2026-09-03
- Alabama Secretary of State — domestic entity name reservation request formAlabama Secretary of State · primary source · retrieved 2026-09-03
- Alabama Secretary of State — domestic business corporation certificate of incorporationAlabama Secretary of State · primary source · retrieved 2026-09-03
- Alabama Secretary of State — business entities page, stating corporations no longer file an annual reportAlabama Secretary of State · primary source · retrieved 2026-09-03
- 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
- 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
- Alabama Department of Revenue — FAQ confirming there is no cost to renew an Alabama tax account licenceAlabama Department of Revenue · primary source · retrieved 2026-09-03
- Alabama Administrative Code rule 810-6-5-.01.01 — annual licence renewal for sales and use tax accountsAlabama Legislature · primary source · retrieved 2026-09-03
Related
- All permits in Birmingham
- Auto repair shops — national overview
- Auto repair shops in Fort Worth, TX
- Auto repair shops in Grand Prairie, TX
- Auto repair shops in Arlington, TX
- Auto repair shops in San Antonio, TX
- Auto repair shops in Pasadena, TX
- Childcare centres in Birmingham
- Coffee shops in Birmingham
- Contractors and trades in Birmingham
Commercial Compliance Hub publishes information, not legal advice. Requirements change — confirm anything you rely on with the issuing agency before you file.
