AL Business License Basics
If you have a business in Alabama you'll need a license to operate. There are many different types of Alabama business licenses and permits that are required by various government entities at federal, state and local levels. An operating license is the basic type of business license that most all businesses will be required to have.
Each level of government has specific regulations and requirements that need to be met before a business can get a license. If you don’t understand the licensing rules in Alabama and follow them it could result in expensive fines and putting your business at risk.
Types of Business Licenses in Alabama
Federal Business Licenses – The U.S. government has a number of agencies that regulate and supervise business activities. If your business participates in one of these federally regulated activities you will need to get a federal business license.
Activities that'll be required to get a federal business license include:
- Alcohol manufacturing, importing and sales
- Agriculture
- Firearm dealing, importing and manufacturing
- Ammunition and Explosives dealing, importing and manufacturing
- Aviation
- Wildlife related activity
- Mining
- Drilling
- Commercial fishing
- TV and radio broadcasting
- Trucking
State Business Licenses – Nearly all Alabama businesses must obtain some kind of state business license so as to legally operate. At the very least a business will need to get a professional or occupational license. Alabama business licenses are typically used for tax purposes.
Local Business Licenses – Local Alabama governments and municipalities also grant business licenses. All businesses will be required to get some sort of local business license to be able to operate in Alabama.
Permits – Permits are more specific to a certain type of business within an industry. Permits have a wide variety of purposes from parking to product sales.
How to Get a Alabama Business License
The steps you will have to take to obtain a business license in Alabama will vary depending on which type of business license you need. No matter what type of license you are attempting to get you will need to fill out application form(s) and supply detailed information about your business.
If you are starting a business or expanding your business you'll have numerous forms to fill out. Be ready to supply your Employer Identification Number (EIN).
The SBA (Small Business Administration) has great online tools for helping business owners decide exactly what type of Alabama business licenses they need to get, links to websites, applications and instructions. If you’re just starting a business and need help with licensing, the SBA is the perfect place to learn more.
Maintaining Your Alabama Business License
Once you get your Alabama business licenses and permits you must still maintain them yearly to keep them current. The guidelines below are recommended in order to ensure your business license is in good standing.
- Make copies of your business licenses and permits.
- Track when licenses and permits have to be renewed.
- Follow the regulations for displaying your business license.
- If you would like to change or expand your business make sure to verify whether you need additional permits or business licenses.