Commercial Compliance Hub

10 permits · verified 2026-09-08

What permits do you need to open a retail store in Mobile?

In short

A retail store in Mobile, AL has 4 permits that apply to every business of this type, plus 6 more that depend on your premises, signage or how you are set up. City of Mobile Building, Engineering and Environmental Services (Build Mobile) charges $100 a temporary Certificate of Occupancy, or a change of occupancy where no work is performed and no permit is issued; no separate fee where a building permit is already being issued for the same work 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
Municipal Business LicenceCity of Mobile Revenue DepartmentA NAICS-classified percentage of gross receipts, with a floor of $120 plus a $10 issue fee and an $8 zoning fee (about $138 total) for any classification not assigned a higher rate in the schedule. A business in the Police Jurisdiction (the unincorporated band outside city limits where the city still asserts partial authority) pays half the in-city rate.annual — calendar year, all licences expire December 31, delinquent after January 312026-09-08
Commercial Building PermitCity of Mobile Building, Engineering and Environmental Services (Build Mobile)$5.50 per $1,000 of valuation for the first $50,000, then $4.50 per $1,000 above that, for new construction, additions, alterations and repairs alike (a $25 minimum applies, with no fee at all for $1,000 or under unless an inspection is required). Commercial valuation is set from the construction contract or notarized documentation rather than a fixed per-square-foot table. Plan review is a $100 base, escalating to $200, $500, $1,000 and $2,000 on repeated re-submittals. Reinspection is $50/$75/$100 for the first, second and third-or-later visit; weekend or after-hours inspection is $200 for up to four hours.one-time, per project2026-09-08
Certificate of OccupancyCity of Mobile Building, Engineering and Environmental Services (Build Mobile)$100 a temporary Certificate of Occupancy, or a change of occupancy where no work is performed and no permit is issued; no separate fee where a building permit is already being issued for the same workone-time, per issuance2026-09-08
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
Store Licenceonly if it applies to youAlabama 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 thatannual — 1 October to 30 September2026-09-03
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
Sales Tax LicenceAlabama Department of Revenue, Sales and Use Tax DivisionNo feeannual — renew online between 1 November and 31 December2026-09-03

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 Mobile?

There is no single figure, and any site quoting one is rounding away the part that matters. Of the 10 records listed for a retail store in Mobile, AL, 4 apply to every business of this type and 6 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 4 that always apply, 1 carry a flat fee, coming to $100.00. 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:

Municipal Business Licence: A NAICS-classified percentage of gross receipts, with a floor of $120 plus a $10 issue fee and an $8 zoning fee (about $138 total) for any classification not assigned a higher rate in the schedule. A business in the Police Jurisdiction (the unincorporated band outside city limits where the city still asserts partial authority) pays half the in-city rate.

Commercial Building Permit: $5.50 per $1,000 of valuation for the first $50,000, then $4.50 per $1,000 above that, for new construction, additions, alterations and repairs alike (a $25 minimum applies, with no fee at all for $1,000 or under unless an inspection is required). Commercial valuation is set from the construction contract or notarized documentation rather than a fixed per-square-foot table. Plan review is a $100 base, escalating to $200, $500, $1,000 and $2,000 on repeated re-submittals. Reinspection is $50/$75/$100 for the first, second and third-or-later visit; weekend or after-hours inspection is $200 for up to 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

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 Mobile?

Permits for a retail store in Mobile, AL come from 5 separate offices: City of Mobile Revenue Department, City of Mobile Building, Engineering and Environmental Services (Build Mobile), 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 Mobile Revenue DepartmentIssues 1 permit on this page: Municipal Business Licence(251) 208-7462www.cityofmobile.gov/business-license-overview
  • City of Mobile Building, Engineering and Environmental Services (Build Mobile)Issues 2 permits on this page: Commercial Building Permit, Certificate of Occupancy(251) 208-5895www.buildmobile.org
  • Alabama Department of Revenue, Business and License Tax DivisionIssues 2 permits on this page: 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?

The specific NAICS-code-by-NAICS-code percentage rate above this floor could not be confirmed — Mobile's Municode host returned HTTP 403 on every attempt to read the current Schedule of Licenses, for every business type covered by this project. Confirm the actual rate for a specific classification with the Revenue Department (251-208-7462) before budgeting for anything beyond the floor. A restaurant/food business must also present an MCHD inspection report, and a business inside city limits must present a Zoning Approval Certificate and a Fire Inspection Report, before this licence issues.

Cite buildmobile.org, not cityofmobile.gov's own /pdf/permit_fee_schedule.pdf link — that city-hosted copy still serves the superseded 2006 ordinance this 2022 ordinance replaced. The dollar figures matched where compared, but buildmobile.org is the current, legally operative source.

Zoning, tree, fire-final and engineering as-built sign-offs are all required before either a Certificate of Occupancy or a Temporary Certificate of Occupancy issues.

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.

  1. City of Mobile — Revenue FAQ, quoting City Code sections 34-44 (minimum licence fee) and the licence year and renewal deadlinesCity of Mobile, Revenue Department · primary source · retrieved 2026-09-08
  2. City of Mobile — Business Licence Tax Application, revised April 5, 2024, including the City Limits/Police Jurisdiction rate distinctionCity of Mobile, Revenue Department · primary source · retrieved 2026-09-08
  3. City of Mobile — Building Codes Permit Fee Schedule Ordinance 28-052, adopted November 8, 2022City of Mobile, Build Mobile · primary source · retrieved 2026-09-08
  4. City of Mobile — Commercial Certificate of Occupancy FAQ, February 2024City of Mobile, Build Mobile · primary source · retrieved 2026-09-08
  5. 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
  6. 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
  7. 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
  8. Alabama Secretary of State — filing fee schedule, revised 23 August 2023Alabama Secretary of State · primary source · retrieved 2026-09-03
  9. Alabama Secretary of State — domestic entity name reservation request formAlabama Secretary of State · primary source · retrieved 2026-09-03
  10. Alabama Secretary of State — domestic business corporation certificate of incorporationAlabama Secretary of State · primary source · retrieved 2026-09-03
  11. Alabama Secretary of State — business entities page, stating corporations no longer file an annual reportAlabama Secretary of State · primary source · retrieved 2026-09-03
  12. 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
  13. 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
  14. 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
  15. 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

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