Business Licenses

Persons engaged in the operation of a business must obtain the proper city and state/county license prior to beginning operation. A business operating outside the city limits may only be required to purchase a State/County license. State/County business privilege licenses are issued via the local county probate offices.  The License Section provides guidance to the counties in administering the licenses.

There are several differences in City and State/County licenses.

A City license is issued at City Hall, while the State/County license is issued through the County in which the business is located. In Autauga County, the State/County license must be purchased at the Office of the Judge of Probate at Autauga County.

The City License is valid for a calendar year, i.e., January 1 through December 31, while State/County business licenses are valid for a fiscal year, i.e., October 1 through September 30. State/County licenses must be renewed by October 31 to avoid penalties and interest charges.

Many businesses are exempt from obtaining a State/County business license. A determination of exemption is made by the Business License Section of the Probate Office. Additional information may be obtained by calling 334.361.3732.

Business Privilege License

A privilege license is a license requirement of every person, firm, company or corporation engaged in any business, vocation, occupation or profession described in Title 40, Chapter 12, Code of Alabama 1975.

The state and county license(s) is issued by the county Probate Judge or License Commissioner in the county where the business is located. Unless otherwise provided, a license is required in every county where the business is conducted. The Alabama Department of Revenue does not administer municipal licenses. Check with every city office where you are conducting business to verify what licenses are required prior to transacting business. For city contact information visit the Alabama League of Municipalities website  https://alalm.org/

View the Handbook of Privilege & Store Licenses  https://revenue.alabama.gov/wp-content/uploads/2019/09/Handbook-of-Priv-Store-Licenses.pdf

View Interest Rates for Privilege Licenses Report  https://revenue.alabama.gov/wp-content/uploads/2017/05/interestchart.pdf

Store Licenses

The term “store” includes any store or stores or any mercantile establishment or establishments which are owned, operated, maintained, controlled or for which the buying is done by the same person, firm, corporation, copartnership, or association, either domestic or foreign, in which goods, wares or merchandise of any kind are sold, either at retail or wholesale.

For information on Store Licenses see Title 40, Chapter 12, Article 6 in the Code of Alabama 1975    http://alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/136203.htm

HELPFUL VIDEOS:

Business License Essentials   https://www.youtube.com/watch?v=BGsDWKs2GJc&list=PLzq1n7es2QOnMm6axMTCpGmfROoGCG9mz&index=3&t=0s

Defining Business Privilege Licenses: https://www.youtube.com/watch?v=uk2kAC2BY0c&list=PLzq1n7es2QOnMm6axMTCpGmfROoGCG9mz&index=2&t=0s

Business License Frequently Asked Questions: https://www.youtube.com/watch?v=ima-HXfaknY&list=PLzq1n7es2QOnMm6axMTCpGmfROoGCG9mz&index=4&t=0s

QUICK REFERENCE GUIDE: https://revenue.alabama.gov/wp-content/uploads/2017/07/qkref.pdf

GENERAL SUBJECT INDEX: https://revenue.alabama.gov/wp-content/uploads/2017/07/gensub.pdf

HANDBOOK OF PRIVILEGE AND STORE LICENSE: https://revenue.alabama.gov/wp-content/uploads/2019/09/Handbook-of-Priv-Store-Licenses.pdf

STARTING A NEW BUSINESS BOOKLET: https://revenue.alabama.gov/wp-content/uploads/2017/05/Business-Starting_a_New_Business.pdf

ALABAMA DEPARTMENT OF REVENUE FORMS SEARCH: https://revenue.alabama.gov/forms/

Laws

The taxes listed below are administered by the License Tax Section of the Business & License Tax Division.
Go to the Code of Alabama 1975. http://alisondb.legislature.state.al.us/alison/codeofalabama/1975/coatoc.htm

• General Provisions: Title 40, Chapter 12, Article 1
• Business, Vocation or Occupation Privilege Licenses: Title 40, Chapter 12, Article 2
• Store Licenses: Title 40, Chapter 12, Article 6
• Exemption of Certain Persons: Title 40, Chapter 12, Article 7
• Business, Profession & Occupation Index: Title 40, Chapter 12, Article 2