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Business Licensing FAQ

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Business Licensing FAQ

What is a 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. License handbook

When is the license due?
The annual license covers the period of October 1 through September 30. The license must be renewed during the month of October each year. The license will be delinquent on November 1.

Where do I buy the license?
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.

Do I need a city license?
The Alabama Department of Revenue does not administer municipal licenses. You should check with every city office where you are conducting business to verify what licenses are required prior to transacting business. For contact information related to cities, please visit the Alabama League of Municipalities website at Alabama League of Municipalities website .

What licenses and permits are necessary and what are the fees?
City and County officials will determine what local licenses and permits are necessary. A variety of business privilege licenses are administered by the Alabama Department of Revenue which affect proprietorships, partnerships, and corporations as well as certain professions. Fees vary dependent upon the type of license required, and, in some cases, upon the population of the area where the business is located or upon the volume of business. It is important to be aware that one business may require several different types of business privilege licenses depending upon the services offered or products sold by the business.