12 permits · verified 2026-09-08
What permits do you need to open a retail store in Birmingham?
In short
A retail store in Birmingham, AL has 5 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. 7 of the 12 are charged as a range or formula rather than a flat fee. Verified 2026-09-08 against the issuing agencies’ published fee schedules.
Permits particular to a retail store in Birmingham
| Permit | Issuing agency | Fee | Renews | Last checked |
|---|---|---|---|---|
| Municipal Business License — Merchandise (Retail) | City of Birmingham Finance Department, Tax and License Administration Division | Schedule 165: $60 flat where prior-year gross receipts are $30,000 or less, or 0.2% of gross receipts (minimum $60) above that. Certain named retail sub-categories carry their own separate schedule instead — for example, clothing shops and boutiques are Schedule 091. | annual — calendar year | 2026-09-08 |
| 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 |
| Store Licenseonly 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 |
Fees shown as a range or formula are set that way by the issuing agency — we do not average them into a single number.
Local permits that apply to every type of business in Birmingham
| Permit | Issuing agency | Fee | Renews | Last checked |
|---|---|---|---|---|
| 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 |
| Commercial Building Permit | City of Birmingham Department of Planning, Engineering and Permits | Varies — formula on the Birmingham page | one-time, per project | 2026-09-08 |
| Zoning Certificate or Information Letteronly if it applies to you | City of Birmingham Department of Planning, Engineering and Permits | Varies — formula on the Birmingham page | one-time, per request | 2026-09-08 |
Fees shown as a range or formula are set that way by the issuing agency — we do not average them into a single number.
AL registrations that apply to every type of business
| Permit | Issuing agency | Fee | Renews | Last checked |
|---|---|---|---|---|
| State and County Business Privilege Licenseonly if it applies to you | Alabama Department of Revenue, Business and License Tax Division | Varies — formula on the AL page | annual — 1 October to 30 September, delinquent 1 November | 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 | Varies — formula on the AL page | annual — due when the matching federal return is due | 2026-09-03 |
| Sales Tax License | 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 retail store in Birmingham?
There is no single figure, and any site quoting one is rounding away the part that matters. Of the 12 records listed for a retail store in Birmingham, AL, 5 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 5 that always apply, 1 carry a flat fee, coming to $150.00. That is a floor, not a total. 7 of the 12 are charged as a range or a formula set by the issuing agency, and 2 have no fee published at all. The ones particular to this business that vary:
Municipal Business License — Merchandise (Retail): Schedule 165: $60 flat where prior-year gross receipts are $30,000 or less, or 0.2% of gross receipts (minimum $60) above that. Certain named retail sub-categories carry their own separate schedule instead — for example, clothing shops and boutiques are Schedule 091.
Sign Permit: $175.00 application fee per sign, plus $1.50 per square foot of sign face.
Store License: $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
The other 4 variable fees belong to permits that apply to every type of business here; their formulas are set out on the Birmingham permits page and the AL state page.
Which offices issue these permits in Birmingham?
Permits for a retail store in Birmingham, AL come from 5 separate offices: City of Birmingham Finance Department, Tax and License Administration 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. No single office issues them all, which is why an opening means filing in several places rather than one.
- City of Birmingham Finance Department, Tax and License Administration DivisionIssues 1 permit on this page: Municipal Business License — Merchandise (Retail)710 North 20th Street, Room TL-100, Birmingham, AL 35203 · (205) 254-2198www.birminghamal.gov/government/city-departments/finance/tax-license-division
- City of Birmingham Department of Planning, Engineering and PermitsIssues 4 permits on this page: Sign Permit, Certificate of Occupancy, Commercial Building Permit, Zoning Certificate or Information Letter(205) 254-2478www.birminghamal.gov/government/city-departments/planning-engineering-permits
- Alabama Department of Revenue, Business and License Tax DivisionIssues 2 permits on this page: State and County Business Privilege License, Store License2545 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 LicensePO Box 327710, Montgomery, AL 36132-7710 · (334) 242-1490www.revenue.alabama.gov/sales-use/business-tax-online-registration-system
What does a retail store need in Birmingham that other businesses do not?
1 of the 3 permits particular to a retail store here applies to no other business type we cover in Birmingham: Municipal Business License — Merchandise (Retail).
Municipal Business License — Merchandise (Retail)
Schedule 165 is the generic merchandise category; confirm with the Tax and License Division whether a specific retail line of business has its own named schedule instead, since the ordinance runs to roughly three hundred schedules by trade.
Store License
The store license reaches essentially every retail and wholesale merchant, which makes it the closest thing Alabama has to a universal business license — 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 license, 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.
Shared with other businesses in Birmingham
- 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. Also required for restaurants, coffee shops, salons and barbers, fitness studios, auto repair shops and veterinary clinics; what it involves is set out on the restaurants page.
The other 3 local permits in the tables apply to every type of business in Birmingham, AL; what each one involves is set out on the Birmingham permits page. The 6 state-level registrations apply to every type of business across AL and are covered on the AL state page.
How does a retail store compare with other businesses in Birmingham?
The closest match is a auto repair shop, which shares 2 of these permits. A retail store also needs Municipal Business License — Merchandise (Retail). A auto repair shop needs Municipal Business License — Automotive Repair Shop and Garage and Repair Shop Privilege License, which a retail store does not.
| Business | Its own permits | Shared with a retail store | Only a retail store needs | Only it needs |
|---|---|---|---|---|
| Auto repair shops | 4 | 2 | 1 | 2 |
| Fitness studios | 1 | 1 | 2 | 0 |
| Salons and barbers | 3 | 1 | 2 | 2 |
| Veterinary clinics | 3 | 1 | 2 | 2 |
| Coffee shops | 5 | 1 | 2 | 4 |
| Restaurants | 5 | 1 | 2 | 4 |
| Childcare centres | 2 | 0 | 3 | 2 |
| Contractors and trades | 3 | 0 | 3 | 3 |
| Food trucks | 5 | 0 | 3 | 5 |
Sources
Every figure for the permits explained on this page was read from one of these government pages on the date shown. Sources for the permits shared with other businesses are listed with their explanations on the restaurants page. Sources for the permits that apply to every type of business are listed on the Birmingham permits page and the AL state page. Confirmed by Editorial Team.
- City of Birmingham Business License 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
Related
Commercial Compliance Hub publishes information, not legal advice. Requirements change — confirm anything you rely on with the issuing agency before you file.