Every business operating in Alabama needs a Business Privilege License — a state-required license administered and issued at the county level. You get it from your county's Revenue Commissioner office. Fees typically start at $10–$15 and increase based on business type and gross receipts. Licenses renew annually by October 1.
What is an Alabama Business Privilege License?
Alabama requires every person or entity engaged in or carrying on any trade, business, or profession in the state to obtain a Business Privilege License. Despite the name, this is the standard business license that most people refer to when they say they need a "business license in Alabama."
The license is issued by each county's Revenue Commissioner — meaning even though it's a state requirement, you apply locally. The county collects the license fees on behalf of the state.
What licenses do I actually need?
Most Alabama businesses need up to three licenses depending on location:
- State Business Privilege License — obtained from your county Revenue Commissioner, required statewide
- County License — some counties have additional local requirements beyond the state privilege license
- City License — if your business is within city limits, you typically also need a city business license from your municipality
In practice, the county Revenue Commissioner handles the state privilege license. The city license is obtained separately from the city. If you operate outside city limits in an unincorporated area, you only need the county/state license.
How much does an Alabama business license cost?
| Business Type | Typical Fee Range |
|---|---|
| Service business (low gross receipts) | $10–$50 |
| Retail — small volume | $15–$100 |
| Retail — medium/high volume | $100–$500+ |
| Wholesale | $25–$200+ |
| Professional (attorneys, CPAs, etc.) | $10–$100 |
| Contractor/construction | $25–$200+ |
Exact fees vary by county and depend on your annual gross receipts. Contact your county Revenue Commissioner for current fee schedules.
When do I need to get a business license?
You need a business license before you begin operating your business in Alabama. The Alabama fiscal year for business licenses runs October 1 through September 30, and licenses must be renewed annually. New businesses starting mid-year pay a prorated fee.
Find your county
Business license requirements vary by county. Select your county below for specific office locations, phone numbers, fees, and instructions.