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Last updated June 29, 2021

Alabama LLC
Business Licenses and Permits

How to form an LLC in Alabama
This Quick Start Guide is a brief overview of how to form an LLC in Alabama.

Detailed Lessons:

 

Alabama LLC Costs:
Alabama LLC filing fee: $200
Alabama LLC annual fee: $100 minimum

Need to save time?
Hire a professional to form your LLC in Alabama:
Northwest ($39 + state fee) or LegalZoom ($149 + state fee)

★ Check out Northwest vs LegalZoom

After your Alabama LLC is approved, you’ll need to comply with federal, state, and local government license and permit requirements.

Your requirements are determined by the industry you are in and where your business is located.

Types of licenses you may need in Alabama

Below are some license and permits examples:

  • Department of Revenue State Tax ID number
  • Business operation license/business privilege license
  • Sales tax license
  • Seller/reseller permit
  • Building permit
  • Health permit
  • Signage permit
  • Home occupation permit
  • Zoning and land use permits
  • Withholding taxes (if you have employees)

Industries that are more regulated have more requirements.

Do it yourself in Alabama

Need Help? If you don’t want to make phone calls and determine the licensing requirements yourself, we recommend using IncFile.

Below are some resources for determining your Alabama license and permit requirements yourself:

Alabama State Tax Registration
Alabama Department of Revenue: Business
Alabama Department of Revenue: Sales Tax
Alabama Department of Revenue: Business Tax Online Registration System
334-242-1170

Alabama Business Licenses
Alabama Department of Revenue: Business & License Tax
334-242-1170

Local County Requirements
You’ll need to contact the county where your LLC is located to obtain the requirements. Contact info for all 67 counties can be found here:
Association of County Commissions of Alabama: County Links

Free Business Counseling with the Alabama Small Business Development Center
Alabama Small Business Development Center: Register

Matt Horwitz
Founder & Educator, LLC University®
Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.

4 comments on “Alabama Business Licenses and Permits”

Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Rules and regulations vary by location. They also change over time and are specific to your situation. Furthermore, this comment section is provided so people can share their thoughts and experience. Please consult a licensed professional if you have legal or tax questions.

  1. I just want to say THANK YOU THANK YOU THANK YOU!!!! My llc is officially formed, thanks to you!! your steps were clear as the blue seas of Florida!!

    • FANTASTIC!! You’re so welcome Laquitta. Wishing you nothing but success!:)

  2. You “How much does it cost to form an LLC” link states that if you complete the free online course it will not cost you anything. I’ve completed the course and am wondering what to do next.

    • Hi Alisa, if you went through the lessons and formed your Alabama LLC, then there’s nothing else to do in terms of LLC formation. You can open an LLC bank account and then just make sure to take care of your tax filings every year. We recommend working with an accountant. Please see how to find an accountant. Hope that helps.

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