Alabama business license 2025

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Business owners operating online businesses are subject to the same requirements as other businesses that collect sales tax on items sold. Thus, if youre operating an online business in Alabama that sells goods, you will likely need a sellers use tax license.
In Alabama, all businesses are required to file for a general business license (sometimes referred to as a business tax certificate). Business licenses are issued by cities and municipalities, and every city in Alabama differs in their requirements.
For most small businesses, registering your business is as simple as registering your business name with state and local governments. In some cases, you dont need to register at all. If you conduct business as yourself using your legal name, you wont need to register anywhere.
How much does a business license cost in Alabama? License NameCostLink Business License $300+ for annual licenses Alabama Department of Revenue Business and License Division Business Privilege License
Heres how to get a business license in the state of Alabama in five steps: Name and Form Your Company. Apply for Your Alabama Business License. Determine Which Other Local Licenses May Be Applicable. Apply for Any Additional Statewide License(s) You Need. Apply for Federal Licenses and Tax Treatment (as Necessary)
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