Business License in Alabama: Who Issues It, Cost & Steps
If you're trying to get a general business license in Alabama, the state is not who you file with. This is issued locally, and the rules change at the city line. Here's how to find the right counter, and what the process generally looks like once you do.
Alabama has no statewide business license requirement-you register by business type with either the Secretary of State or Department of Revenue.
Alabama does not issue a single "business license" document. Instead, you file incorporation papers with the Secretary of State (for corporations, LLCs, partnerships) or register for specific taxes with the Department of Revenue (sales tax, lodging tax, etc.). The requirement depends entirely on your business structure and what you sell.
- The Secretary of State's Business Entity Division handles registration for corporations, LLCs, limited partnerships, and other formal business structures.
“The Business Entity Division operates as a depository for records of domestic entities and foreign entities that have qualified to transact business in Alabama. The types of entities we serve include For-Profit Corporations, Non-Profit Corporations, Limited Liability Companies, Limited Partnerships, Registered Limited Liability Partnerships, and Limited Liability Limited Partnerships.”
https://www.sos.alabama.gov/business-entities - Corporations no longer have to file an annual report with the Secretary of State after incorporation.
“Corporations authorized to transact business in Alabama are no longer required by law to file an annual report with the Secretary of State.”
https://www.sos.alabama.gov/business-entities - The Department of Revenue handles business tax registration and licensing, separate from the Secretary of State.
“Services Audit and Appeals Business and License Collections Entity Registration Human Resources Income Tax Legal Motor Vehicle Property Tax Sales and Use Tax”
https://www.revenue.alabama.gov - Alabama offers online filing services for business entity registration through the Secretary of State.
“Business Entities Online Services Domestic Corporations Foreign Corporations Homeowners' Associations HOA Electronic Database HOA FAQs LLCs LLPs”
https://www.sos.alabama.gov/business-entities - The Department of Revenue provides guidance on what taxes apply to your specific business type to help you understand startup requirements.
“Business Tax Basics Learn what taxes apply to your business and what you need to do to get started and stay compliant in Alabama.”
https://www.revenue.alabama.gov
Sources (each one opened and read on 2026-09-15)
- https://www.sos.alabama.gov/business-entities: https://www.sos.alabama.gov/business-entities
- https://www.revenue.alabama.gov: https://www.revenue.alabama.gov
Who issues a Business License in Alabama
This is a local permit. It is issued by your city or county, not by the state of Alabama. The state office listed underneath handles a related filing — it does not issue this permit.
- Alabama — the state revenue or taxation department (handles state tax registration and permits)
https://www.revenue.alabama.gov
Finding your local office
Start with the city your address sits in — the relevant department is usually called Planning, Building, Community Development, or Business Licensing. If your address is unincorporated, the county performs that role instead. Calling the main switchboard and asking who handles this is usually faster than searching.
Starting point for anything else in Alabama: the state business portal, https://www.sos.alabama.gov/business-entities. It is a starting point, not the issuer of this permit.
The general US process
This sequence is the shape the process takes across the US. It is not a list of Alabama requirements, and no step here should be read as one — the issuing office named above sets the actual requirements.
- Step 1: Work out which government actually licenses you. In most of the country this is the city; unincorporated addresses are usually licensed by the county; a few states also run a statewide business licence.
- Step 2: Check the zoning for your address before paying anything — a licence does not override zoning.
- Step 3: Apply through that office. Larger cities almost all have an online portal; smaller ones may still be paper.
- Step 4: Expect the fee to be flat, or scaled to gross receipts or headcount, depending on the jurisdiction.
- Step 5: Display the licence if the issuing office asks you to.
- Step 6: Put the renewal date in a calendar. Renewal notices are not guaranteed.
What varies: whether a licence is required at all, who issues it, how the fee is calculated, and whether the state has its own layer on top.
Documents usually asked for
A typical list, not an Alabama checklist.
- EIN or SSN
- Business name/DBA filing
- Physical address
- Description of business activities
Related permits in Alabama
Business License in states bordering Alabama
Rules stop at the state line — same permit, each state bordering Alabama:
See Business License in all 50 states & DC →
Frequently asked questions
Who issues a business license in Alabama?
Your city or county — not the state.
How much does a business license cost in Alabama?
We don't publish an Alabama figure we haven't verified. The typical US range is $25–$500. The office named above has the real number for your address.
How long does it take to get a business license in Alabama?
Typical US processing is 3–30 days, and expedited handling is often available for a fee. The issuing office publishes its own turnaround, and that is the number to trust.
What is Alabama-specific on this page: the issuing office, 5 Alabama facts, each quoted off the government page beside it. Everything else — the numbered process, the document list, the cost and timeline — is the general US pattern, not an Alabama rule, and is labelled that way above. Requirements, fees and deadlines are set by the issuing office; confirm with it before you file or pay.