Business license · Alabama

Does Your LLC Need a Business License in Alabama?

The short answer. Alabama requires a state license only for the business activities its law lists: Alabama's state business privilege license, issued by the county probate judge or license commissioner, under the Alabama Department of Revenue. Which activities are listed is explained below. Your local government may also require its own license.

Alabama Business License at a Glance

General state business license	Only for listed activities (see State license)
License name	State business privilege license
Issued by	County probate judge or license commissioner, under the Alabama Department of Revenue
State license fee	Varies (see Cost)
Renewal	Every year (see Cost)
City or county licenses	Local governments may require one (see Local licenses)
Trade and professional licenses	State licensing boards (see Trade licenses)

Read from the government sources listed at the foot of this page, last checked September 30, 2026. See the sources.

Does Alabama Require a State Business License?

Alabama requires a state license only for the business activities its law lists: Alabama's state business privilege license, issued by the county probate judge or license commissioner, under the Alabama Department of Revenue. The activities are listed in the license schedule of Alabama's state privilege license law, such as contractors, restaurants, real estate brokers and auto dealers, and a county license applies too where one is levied. Ask the probate judge or license commissioner in the county where you do business whether your activity is listed, and buy the license there.

You apply for Alabama's state business privilege license with the county probate judge or license commissioner, under the Alabama Department of Revenue. Go to the application page.

What It Costs and When to Renew

The license amount is set separately for each listed activity, and some amounts depend on the population of the city or county. A business that starts after April 1 pays half of the year's amount, and the probate office adds a $1 issuance fee.

It must be renewed every year. The license year runs from October 1 to September 30, and renewal is due October 1 and delinquent from November 1.

City and County Business Licenses

Alabama law lets every municipality license any lawful business carried on within its limits and set the amount and term of the license. A city license runs for no more than one license year.

Where Alabama points businesses for local requirements.

Professional and Trade Licenses

Alabama licenses regulated businesses and occupations through separate state boards and agencies, and the Alabama Department of Revenue keeps a list of them for municipal license officers. A business in a listed occupation should present the board's permit or certificate before a city issues its business license. Look up Alabama license requirements.

Our verified guides for specific trades in this state:

See trade and business license requirements by state for every trade we cover.

Other Alabama Registrations to Check

Alabama articles of organization, the filing that creates the LLC itself.
Alabama Sales Tax License, for a business that sells taxable goods or services.
Alabama resale certificate, to buy inventory for resale without paying tax on it.
How to get an EIN, the federal tax ID most LLCs need to open a bank account or hire.

Frequently Asked Questions

: Alabama requires a state license only for the business activities its law lists: Alabama's state business privilege license, issued by the county probate judge or license commissioner, under the Alabama Department of Revenue. The activities are listed in the license schedule of Alabama's state privilege license law, such as contractors, restaurants, real estate brokers and auto dealers, and a county license applies too where one is levied. Ask the probate judge or license commissioner in the county where you do business whether your activity is listed, and buy the license there.
: The license amount is set separately for each listed activity, and some amounts depend on the population of the city or county. A business that starts after April 1 pays half of the year's amount, and the probate office adds a $1 issuance fee. It must be renewed every year. The license year runs from October 1 to September 30, and renewal is due October 1 and delinquent from November 1.
: You apply for Alabama's state business privilege license with the county probate judge or license commissioner, under the Alabama Department of Revenue.
: Alabama law lets every municipality license any lawful business carried on within its limits and set the amount and term of the license. A city license runs for no more than one license year.
: Alabama licenses regulated businesses and occupations through separate state boards and agencies, and the Alabama Department of Revenue keeps a list of them for municipal license officers. A business in a listed occupation should present the board's permit or certificate before a city issues its business license.

This guide is general information, not legal or tax advice, and reading it does not create an attorney-client relationship. It reports what each state's law and agencies say about a general state business license, with the sources this page cites. It cannot tell you which licenses your own business needs: that turns on what the business does, where it operates, and what its city or county requires, and fees and exemptions change between our reviews. Confirm your own position with the state agency named on this page, the city or county where the business is located, and any state board that licenses your trade before you open.

Sources

Each entry below is a document recorded in our verified Alabama sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so.

alison.legislature.state.al.us/code-of-alabama?section=11-51-90Code of Alabama 11-51-90, Municipal Business Licenses; Branch Offices; Application
revenue.alabama.gov/business-license/municipal-business-license-information/Alabama Department of Revenue, Municipal Business License
alison.legislature.state.al.us/code-of-alabama?section=40-12-40Code of Alabama 40-12-40, Who Must Procure State and County Licenses (license schedule in Title 40, Chapter 12, Article 2)
alison.legislature.state.al.us/code-of-alabama?section=40-12-2Code of Alabama 40-12-2, Issuance; Form of License; Levy of County Tax
alison.legislature.state.al.us/code-of-alabama?section=40-12-25Code of Alabama 40-12-25, License for Part of Year
alison.legislature.state.al.us/code-of-alabama?section=40-12-26Code of Alabama 40-12-26, Due and Delinquent Date; Term of License
revenue.alabama.gov/notice-business-license-due-date-reminder-3/Alabama Department of Revenue, NOTICE Business License Due Date Reminder (2026)
revenue.alabama.gov/business-license/Alabama Department of Revenue, Business and License

More for Alabama LLCs

Start and set up

Taxes, money and growth

Stay compliant

Operate in other states

Compare structures

By owner type

By profession

Edmond Hui · Founder, MyStateLLC

Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.