Alabama LLC Business Licenses & Permits: Complete 2026 Guide

Alabama’s state/county privilege-license rules depend on the business activity. Check Title 40, Chapter 12 and the county licensing office for every county where you conduct business, subject to statutory exceptions. The Business Privilege License and Business Privilege Tax are separate obligations.

State/county Business Privilege License — check the covered business activity under Title 40, Chapter 12 with the Probate Judge or License Commissioner.
Every county where business is conducted, unless excepted — check the applicable license statute. A home-county license does not automatically cover operations in another county.
City business license — most Alabama cities (Birmingham, Montgomery, Huntsville, Mobile) additionally require their own city-issued license, separate from the county one.
State occupational licenses — regulated professions (contractors, cosmetology, HVAC, healthcare) need approval from the relevant state board.

License Finder Checklist

Check what applies to you and we'll list the licenses and registrations most likely to apply:

License Finder

Check what applies — get your likely permit list

Which of these describe your Alabama LLC?

I operate in Alabama (any location)Check covered activities and each county where conducted

I'm located within city limitsBirmingham, Montgomery, Huntsville, Mobile, or similar

I'm in a regulated/licensed professionContractor, food, health, cosmetology, HVAC…

I'll install signage or renovate a spacePermanent signs, patios, or build-outs

I don't operate in Alabama at allAlabama LLC used only as a legal entity

Your likely requirements

Where Each License Comes From

Official source: ALDOR Business Privilege License guidance. Check the covered activity and statutory exceptions with each relevant county and city.

County Business Privilege License

Ask the Probate Judge or License Commissioner about the license category for your activity and every county where business is conducted. A statutory exception can alter the county rule. Fees vary by the applicable license classification; the Secretary of State formation filing does not replace licensing.

City business license

Municipal licenses are separate from state/county privilege licenses. Contact every city where you conduct business to determine whether a license, renewal, zoning approval or other local permit applies.

State occupational licenses

Alabama routes regulated trades through standalone industry boards rather than one umbrella agency — contractors go through the Alabama Licensing Board for General Contractors, cosmetologists through the Board of Cosmetology and Barbering, and so on.

Don't confuse this with Step 6The Business Privilege License (this step) is issued by your county and lets you legally operate. The Business Privilege Tax (Step 6) is a state tax return filed with the Alabama Department of Revenue. They share almost the same name but are handled by entirely different offices — completing one doesn't satisfy the other.

Ahmad Adil's Take: The name collision between the Business Privilege License and the Business Privilege Tax genuinely trips people up every year — I've seen owners assume filing one covers the other. It doesn't. Start with a call to your county Probate Judge's office; that conversation alone usually clarifies what you owe locally. If you're inside city limits, plan on a second call to your city's revenue department. And if you're a non-operating LLC — formed in Alabama but doing business elsewhere — you likely skip all of this and should check your actual operating state's requirements instead.

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Frequently Asked Questions

Alabama Business Licenses — FAQ

Does Alabama have a general statewide business license?

Alabama has activity-specific state/county privilege licenses under Title 40, Chapter 12. The county Probate Judge or License Commissioner issues them. Unless otherwise provided by statute, licensing is required in every county where business is conducted. Municipal and professional requirements are separate.

What is a Business Privilege License in Alabama?

It is an activity-specific state/county privilege license under Title 40, Chapter 12, issued by the county Probate Judge or License Commissioner. Check every county where business is conducted unless a statutory exception applies. It is separate from Business Privilege Tax.

Do I need a license in every county I do business in?

Unless otherwise provided by statute, a privilege license is required in every county where the business is conducted. Confirm the covered activity and any exception with the county licensing office or ALDOR; do not assume your home-county license covers all counties.

Do I need a city business license in Alabama?

Check with every city where you conduct business. Municipal licenses are administered separately from state/county privilege licenses, and the required license, permit and renewal depend on the city and activity.

Is the Business Privilege License the same as the Business Privilege Tax?

No. State/county privilege licenses and Business Privilege Tax are separate obligations. A license does not satisfy tax requirements, and a tax exemption does not by itself waive licensing. Check the applicable filing and exemption rules.

Do I need a state license for a regulated profession in Alabama?

Yes, if your work falls under a regulated category — contractors, cosmetology, healthcare, HVAC, and similar. These are handled by standalone state boards, separate from your LLC formation and your county license.

Do I need an Alabama business license if I don't operate there?

Licensing depends on the activity and where business is conducted, not merely where the LLC was formed or whether you have a physical office. Check Alabama’s covered activities, county and city rules, and the requirements of any other operating state.

About the Author

Ahmad Adil

Ahmad Adil is the founder and CEO of LLC School. For filing and ongoing compliance, confirm the requirements with the responsible state agency. This is educational information, not legal or tax advice.

About Ahmad Adil → Alabama LLC Overview →

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Alabama LLC Business Licenses — Step 7 of 8