Licenses and permits in Alabama

The Secretary of State filing is not a license to do the work. What you need depends on the activity and on the county and city. Start with the Department of Revenue’s license guide, then the local office, then the board that regulates your kind of work.

What’s different in Alabama

• No single statewide business license. Not every business needs a state or county license. Check the city too¹.
• Contractors are split. Commercial and public work, and pools, go to the general contractor board. Residential work goes to the Home Builders Licensure Board, at a lower dollar line.
• Cottage food can be sold online and by mail, inside Alabama. The health department does not inspect the home kitchen. The annual income limit under the cottage food law has been removed⁴.
• Alcohol licenses are issued through the county ABC office. The state fee is a table, not one number.

Do this

1. Look up the activity in the business license guide. Not every business needs a state or county license. Check the city too. The guide is written for county licensing officials and for owners. It does not give one office title for every county.* Start with the county where you will work, and the city if you are inside a city or its police jurisdiction. The guide's row for computer repairs, and the row for a consultant, say none¹. A city can still require its own license when the state row says none.
2. Expect more than one license if you sell more than one thing. One business can need more than one license. A restaurant example on the guide is a restaurant license, a beverage license, and a store license. If a board regulates the work, you may have to show that certification before the county issues the license¹. The guide links a list of state boards. Board fees are not in the guide.* Check the fee with the board that regulates your work.
3. Renew a state or county license by October 31. After that date, 15%¹ plus interest. The guide is dated October 2022.* Confirm the renewal date with the county.
4. Get a contractor license if the job size requires one. The Home Builders Licensure Board FAQ states both lines. A general contractor license covers commercial or public construction at $100,000 or more, including labor and materials, and swimming pool construction at $5,000 or more. A residential home builder license covers construction, remodeling, repair, or improvement of a residence when the cost exceeds $10,000, unless the work is outside the Home Builders Licensure Board's jurisdiction. The general contractor board’s 2024 notice is the statute change that moved the commercial line to $100,000. For a home builder license, the FAQ names a $100² processing fee that is not refunded, plus a license fee it does not print.* Check the license fee on the application.
5. Selling food from home? Read the cottage food page. The food is non-potentially hazardous food made at home, sold only to the consumer, in person, by phone, or online, inside Alabama. Meat, poultry, and fish are not included. You complete a food safety course the health department accepts, kept current, and send a review form to the county health department. The county health department reviews the course certificate and the labels. It does not inspect the home kitchen. The review fee varies by county. The annual income limit under the cottage food law has been removed. You may deliver in person, through an agent, or by mail, to a person in Alabama. You may not sell in an establishment or from a mobile food unit that the health department permits. A van, cart, tent, booth, or storefront the health department does not permit is allowed, if the food is made at home and sold directly to the consumer. For a business license, the county health department can give you a written confirmation that the course certificate and the labels were reviewed⁴. The page also says permitted food establishments, such as restaurants, may not sell food made in a private home.
6. Selling alcohol? The ABC license table says to contact the licensing division office for your county, plus the pre-application packet. State fees on that table include $300 for lounge retail liquor class I, $150 for retail beer on or off the premises, $500 for a manufacturer, $1,000 for a brewpub, and $0⁵ for a nonprofit tax-exempt license. Other rows are on the table. Read the pre-application packet for any amount it adds before you pay.
7. Selling taxable goods? Register with the Department of Revenue: Get your tax IDs. A professional license is also separate from the company filing. Register your business has the name rules for a licensed profession.

What you get back

A county or city license where one is required, a state contractor or home builder license if the job size requires it, a cottage-food review if you sell from home, and an ABC license if you sell alcohol. Each one renews on its own date. The October 31¹ date is the state and county license in the Revenue guide, not the city license and not the ABC license.