Starting a Business in Birmingham: Licenses, Registrations & Checklist
A step-by-step plan to open a business in Birmingham: what to file first, what depends on what, and which permits come before opening day. Change the business details to fit yours.
Permits and registrations specific to Birmingham, AL
- Renew Birmingham business license · City of Birmingham Finance Department, Tax and License Administration Division (city)
- File Jefferson County business personal property return · Jefferson County property tax assessing official (county)
- File the Jefferson County lodging tax return · Jefferson County Department of Revenue (county)
- File the Jefferson County sales tax return · Jefferson County Department of Revenue (county)
- Form the business: Alabama Secretary of State
- Register for state taxes: Alabama Department of Revenue
- Register as an employer: Alabama Department of Workforce
Startup sequence and prerequisites in Birmingham
Based on your selections, this plan has 28 steps. What you file first decides what you can do next: later registrations and licenses wait on the ones below.
Do these first
- Maintain a registered agent in Alabama
- File formation documents with the Alabama Secretary of State
- Obtain an Employer Identification Number (EIN)
Then, once those are done
- Register for unemployment insurance (Alabama) — after: Obtain an Employer Identification Number (EIN)
- Register for state income tax withholding (Alabama) — after: Obtain an Employer Identification Number (EIN)
- Sales tax account (My Alabama Taxes) (Alabama) — after: Obtain an Employer Identification Number (EIN)
- Register for locally administered sales tax (Alabama) — after: Obtain an Employer Identification Number (EIN)
- Register for and file Alabama entity-level taxes — after: Obtain an Employer Identification Number (EIN)
- Municipal or county business license — Birmingham, Jefferson County, Alabama — after: Obtain an Employer Identification Number (EIN)
- Obtain food service establishment / health permit — after: Obtain an Employer Identification Number (EIN)
- Ensure certified food protection manager on staff — after: Obtain an Employer Identification Number (EIN)
- Obtain certificate of occupancy for premises in Birmingham — after: Obtain an Employer Identification Number (EIN)
- Renew Birmingham business license — after: Obtain an Employer Identification Number (EIN)
- Report new hires to the Alabama new hire directory — after: Obtain an Employer Identification Number (EIN)
- Display required federal labor law posters — after: Obtain an Employer Identification Number (EIN)
- Complete Form I-9 for each new hire — after: Obtain an Employer Identification Number (EIN)
- Display required Alabama workplace notices — after: Obtain an Employer Identification Number (EIN)
No fee amounts are known for this plan yet.
Total incomplete: some fees unknown
27 of 28 steps have no fee amount in our data. The figures above count only the 1 step with a recorded fee. Check each agency's fee schedule. Fees that depend on your situation: File wage reports and pay unemployment insurance contributions (Alabama).
Things the formation documents depend on: a registered agent and any professional approvals.
File the formation documents with the state.
Obtain the EIN (and apply for tax-exempt status, for nonprofits). Most registrations need it.
State tax accounts, trade name, foreign qualification and publication requirements.
Licenses and permits you need before you operate: state, industry, local and professional.
Insurance, employment paperwork, new-hire reporting and workplace notices.
Recurring filings and payments, in the order they fall due.
Common questions about Birmingham
The state licenses your industry through its own regulator, and the city and county add local permits. These are the authorities and local items on record for Birmingham:
- Contractor licensing: Alabama Licensing Board for General Contractors
- Real estate licensing: Alabama Real Estate Commission
- Alcohol licensing: Alabama Alcoholic Beverage Control Board
- Child care licensing: Alabama Department of Human Resources
- Health facility licensing: Alabama Department of Public Health
- Renew Birmingham business license (City of Birmingham Finance Department, Tax and License Administration Division, city)
- File Jefferson County business personal property return (Jefferson County property tax assessing official, county)
- File the Jefferson County lodging tax return (Jefferson County Department of Revenue, county)
- File the Jefferson County sales tax return (Jefferson County Department of Revenue, county)
With your current selections, the licenses and permits are: Sales tax account (My Alabama Taxes) (Alabama); Obtain food service establishment / health permit; Ensure certified food protection manager on staff; Municipal or county business license — Birmingham, Jefferson County, Alabama; Obtain certificate of occupancy for premises in Birmingham; Renew Birmingham business license. Change the industry above to see yours.
Sources: sos.alabama.gov, revenue.alabama.gov, labor.alabama.gov
In your plan for Birmingham, requirements come from four levels. Alabama sets formation, state taxes and employer rules; the city and county add local licenses and taxes.
- Federal (8): Obtain an Employer Identification Number (EIN); File federal income tax return: Form 1040 with Schedule C; Deposit federal payroll taxes; File Form 941 (Employer's Quarterly Federal Tax Return)…
- State (12): Maintain a registered agent in Alabama; Register for and file Alabama entity-level taxes; Sales tax account (My Alabama Taxes) (Alabama); File sales tax returns and remit tax (Alabama)…
- County (3): Obtain food service establishment / health permit; File Jefferson County business personal property return; File the Jefferson County sales tax return
- City (4): Register for locally administered sales tax (Alabama); Municipal or county business license — Birmingham, Jefferson County, Alabama; Obtain certificate of occupancy for premises in Birmingham; Renew Birmingham business license
Sources: sos.alabama.gov, revenue.alabama.gov
- Register for unemployment insurance with Alabama Department of Workforce.
- Workers' compensation: Alabama Department of Workforce, Workers' Compensation Division. Required when: 5 employees
- Register to withhold Alabama income tax from wages.
- Your plan adds these employer steps: Report new hires to the Alabama new hire directory; Display required federal labor law posters; Complete Form I-9 for each new hire; Display required Alabama workplace notices.
Sources: labor.alabama.gov, workforce.alabama.gov, revenue.alabama.gov