Commercial Compliance Hub

10 permits · verified 2026-09-08

What permits do you need to open a childcare centre in Birmingham?

In short

A childcare centre in Birmingham, AL has 3 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. 5 of the 10 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

Permits required, with issuing agency, fee, renewal term and the date each record was last verified against its source
Day Care Centre Food Service Permitonly if it applies to youJefferson County Department of Health, Food Protection Division$150–$350 a year, by enrolment — under 20 children $150, 21 to 40 $200, 41 or more $350annual2026-09-08
Certificate of OccupancyCity 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 insteadone-time, per issuance2026-09-08
Zoning Certificate or Information Letteronly if it applies to youCity 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 scopeone-time, per request2026-09-08
Commercial Building PermitCity 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 project2026-09-08
State and County Business Privilege Licenceonly if it applies to youAlabama 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 feeannual — 1 October to 30 September, delinquent 1 November2026-09-03
Certificate of Formation (LLC)only if it applies to youAlabama Secretary of State, Business Services$200 one-time filingperpetual — Alabama abolished the annual report in 20242026-09-03
Certificate of Incorporationonly if it applies to youAlabama Secretary of State, Business Services$200 one-time filingperpetual — Alabama abolished the annual report in 20242026-09-03
Corporation Annual Report (abolished)only if it applies to youAlabama Secretary of State, Business ServicesNo feenot applicable — the filing no longer exists2026-09-03
Business Privilege Taxonly if it applies to youAlabama 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 entitiesannual — due when the matching federal return is due2026-09-03
Day Care Centre or Day Care Home LicenceAlabama Department of Human Resources, Child Care Services DivisionNo fee2 years, for centres and homes alike2026-09-03

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 childcare centre in Birmingham?

There is no single figure, and any site quoting one is rounding away the part that matters. Of the 10 records listed for a childcare centre in Birmingham, AL, 3 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 3 that always apply, 1 carry a flat fee, coming to $150.00. That is a floor, not a total. 5 of the 10 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:

Day Care Centre Food Service Permit: $150–$350 a year, by enrolment — under 20 children $150, 21 to 40 $200, 41 or more $350

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

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.

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

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 childcare centre in Birmingham, AL come from 6 separate offices: Jefferson County Department of Health, Food Protection Division, City of Birmingham Department of Planning, Engineering and Permits, Alabama Department of Revenue, Business and License Tax Division, Alabama Secretary of State, Business Services, Alabama Department of Revenue, Sales and Use Tax Division, Alabama Department of Human Resources, Child Care Services Division. No single office issues them all, which is why an opening means filing in several places rather than one.

Is anything about these requirements changing?

This is a health-department kitchen/food-service permit for a day care centre, additional to and separate from the state Department of Human Resources day care licence recorded at the state layer — it is easy to miss because it is filed with the county health department rather than with the childcare licensing agency.

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.

A citywide minimum permit fee of $125 applies regardless of the calculated amount for any individual trade permit.

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.

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, and this is a genuine zero rather than a gap: the two licensing chapters contain no dollar figure at all except the criminal penalties for operating without a licence, and the application form names no fee beyond the criminal history check. The licence runs two years for every category — a day care centre, a nighttime centre, a day care home taking up to six children, or a group day care home taking seven to twelve with at least two adults supervising. A six-month permit is available where standards are not yet fully met. One large exemption to know about: a preschool that is an integral part of a local church ministry or a religious nonprofit elementary school need not be licensed, but must notify the department thirty days before opening, submit to inspection, carry a million dollars of liability cover per occurrence, and post publicly that it is not regulated or licensed by the department.

Sources

Every figure above was read from one of these government pages on the date shown. Confirmed by Editorial Team.

  1. Jefferson County Department of Health — Food and Lodging Fee CodesJefferson County Department of Health · primary source · retrieved 2026-09-08
  2. 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
  3. City of Birmingham — Zoning Letter Request Form and feesCity of Birmingham, Department of Planning, Engineering and Permits · primary source · retrieved 2026-09-08
  4. 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
  5. 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
  6. 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
  7. Alabama Secretary of State — filing fee schedule, revised 23 August 2023Alabama Secretary of State · primary source · retrieved 2026-09-03
  8. Alabama Secretary of State — domestic entity name reservation request formAlabama Secretary of State · primary source · retrieved 2026-09-03
  9. Alabama Secretary of State — domestic business corporation certificate of incorporationAlabama Secretary of State · primary source · retrieved 2026-09-03
  10. Alabama Secretary of State — business entities page, stating corporations no longer file an annual reportAlabama Secretary of State · primary source · retrieved 2026-09-03
  11. 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
  12. 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
  13. 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
  14. 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

Related

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