Obtain Alabama Business License

Updated on Monday 15th July 2019

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From the beginning, international investors must have a clear picture of how the business is done in Alabama. For instance, they need to align with the requirements for obtaining the Alabama business license which is normally renewed on a yearly basis. Our company formation specialists in USA are at your service if you want to register a company in Alabama and apply for a business privilege license. Guidance and support are offered to both local and foreign entrepreneurs in Alabama.

How do I apply for an Alabama business license?

The State of Alabama and specifically the Alabama Department of Revenue is in charge of registering the companies in the state and of issuing the needed business license. The following information can help entrepreneurs understand better the ways in which they can obtain the Alabama business license:
  1. The County Licensing Commission or the County Probate Office issues the business privilege license;
  2. Any firm, person, corporation or company having a business in Alabama needs to obtain the privilege business license;
  3. The company’s documents are needed when applying for Alabama business license;
  4. The professional licenses are needed for accountants, lawyers, doctors, real estate agents, etc.
If you need support for obtaining the Alabama business license, do not hesitate to get in touch with our team of company formation representatives in USA. Our advisors are at your service with in-depth information and support for properly opening a company in Alabama and for applying for the necessary business license. Moreover, you might want to read the general guide to company incorporation in Alabama and find out more details about how to start a business in Alabama.

What is a professional business license?

Most of the entrepreneurs wanting to start their activities as sole traders in Alabama will have to observe the requirements for obtaining the professional business license. For example, persons wanting to operate as real estate agents will have to apply to the Real Estate Appraisers Board in Alabama and pay a fee of approximately $347 on the official website of the organization. The same institution issues the renewals for such licenses at the same fee if the application is made no later than 30th of September. We remind that the Alabama Department of Revenue issues a series of local licenses and permits, mentioning that the fees will depend on the type of business and other aspects. The Alabama business license can be obtained with the guidance and support of our company formation agents in USA, so do not hesitate to get in touch with us.

Do I need a city license besides the Alabama business license?

The municipal licenses and permits do not enter the jurisdiction of the Alabama Department of Revenue, therefore, it is best to check with the local offices in the city you wish to develop your business.

Having a false business license – what happens to the owner

It is forbidden to companies or sole proprietorships to activate on the market with a false business license. Severe fines and even years of imprisonment can be issued for these kinds of entrepreneurs in Alabama. We remind that you cannot have a company and run the business in USA without having the necessary licenses and permits. You may ask our team of consultants about the general rules for obtaining the Alabama business license.

Occupations for which a business license is needed

The occupation privilege licenses are issued for attorneys, architects, construction companies, collection agencies, certified public accountants, engineers, laundries, opticians, optometrists, vendors, auditors, photographers, real estate brokers, soliciting brokers, scientists, plumbers, among any others. The license fee will also depend on the city population, and for example, if the business serves to more than 100,000, the business owners will have to pay approximately $114.

Short facts about the business in Alabama

Doing business in Alabama means taking advantage of an ideal environment, easily business registration process, no minimum share capital for establishing an LLC and lots of opportunities in most of the business sectors. The following statistics and numbers show why Alabama is a preferred destination for business:
  • there are more than 323,000 small businesses currently registered in Alabama;
  • more than 239,000 are sole traders in Alabama, not having any employee;
  • the workforce in Alabama rose from approximately 2 million in 2017 to 2.1 million in 2018;
  • the GDP in Alabama is expected to be around $191 billion in 2019.
Foreign investors looking for company formation in USA, including in Alabama, can contact our company incorporation agents in USA and ask for support and information. You can also receive assistance in obtaining the Alabama business license.