To operate a business in Madison County, Alabama, you need two licenses: a state Business Privilege License (obtained from the Madison County Revenue Commissioner) and a local Madison County license. If your business is located within Huntsville city limits, you will also need a City of Huntsville business license. Licenses must be renewed annually by October 1.
Business license requirements in Madison County
Alabama requires every business operating in the state to hold a Business Privilege License. This license is administered at the county level — even though it is a state requirement. In Madison County, you obtain the license from the Madison County Revenue Commissioner's office.
In addition to the state privilege license, businesses within city limits need a separate municipal business license from the city where they operate. Businesses outside city limits only need the county license.
| Office | Madison County Revenue Commissioner |
| Address | 100 Northside Square, Huntsville, AL 35801 |
| Phone | (256) 532-3370 |
| Hours | Mon–Fri 8:00 AM – 5:00 PM |
| License fee | Fees start at $10 and increase based on business type and gross receipts. |
| Renewal deadline | October 1 |
How to get a business license in Madison County
- Determine your business classification — license fees are based on business type and gross receipts. Common categories include retail, wholesale, service, and professional.
- Gather required documents — bring your business name, physical address, federal EIN, description of business activities, and estimated gross receipts.
- Visit or contact the Revenue Commissioner's office — apply in person at the address listed above, or check whether online applications are available at the county's website.
- Pay the license fee — fees are based on your business type and gross receipts. Fees start at $10 and increase based on business type and gross receipts.
- Display your license — Alabama law requires you to display your business privilege license at your place of business.
Madison County is home to Huntsville — the largest city in Alabama — and has one of the state's most active business license offices. The Revenue Commissioner's office also handles businesses in smaller Madison County cities including Madison, Gurley, Harvest, and unincorporated areas.
Do I also need a city business license?
If your business operates within Huntsville city limits, yes — you need both the county license and a City of Huntsville business license. The city license is obtained separately from the city's revenue or business license department. Businesses outside city limits only need the county license.
Do I need an LLC to get a business license?
No — sole proprietors, partnerships, LLCs, and corporations all need a business license. However, if you're operating as a sole proprietor and haven't formed an LLC yet, consider doing so. An Alabama LLC provides personal liability protection that a sole proprietorship doesn't, and the $200 filing cost is often worth it.