Starting a Business in Alabama: Licenses, Registrations & Checklist

Alabama start-up checklist

Register for state taxes with Alabama Department of Revenue. Official page
Business-level tax: Corporate income tax and Business Privilege Tax (no return required when only the $100 minimum is due; the Secretary of State corporate annual report was repealed effective October 1, 2024).
Sales tax: get a Sales tax account (My Alabama Taxes) from Alabama Department of Revenue before you sell taxable goods. Official page
Remote sellers must register once sales into the state pass $250,000 a year.
Local sales taxes are administered by each locality, with separate filings.
If you have employees, withhold Alabama income tax from wages and register for withholding. Official page

Register for unemployment insurance with Alabama Department of Workforce. The 2026 taxable wage base is $8,000 per employee; experience-rated rates run from 0.2% to 5.4%. Official page
New employers start at 2.7%.
Workers' compensation through Alabama Department of Workforce, Workers' Compensation Division and private insurers. Required when: 5 employees
Post the required labor notices at your workplace. Official page

Alabama does not require a periodic state report from the business entity.
State tax returns and payments (sales, withholding, unemployment) follow the schedule your agency assigns when you register.

Business filings and annual reports: Alabama Secretary of State. Official page
Taxes: Alabama Department of Revenue. Official page
Unemployment insurance and labor rules: Alabama Department of Workforce. Official page
Workers' compensation: Alabama Department of Workforce, Workers' Compensation Division.
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.

Municipal or county business license (City or county revenue office): Alabama cities and counties issue general business licenses and collect local sales/use taxes.
Cannabis: medical licensing only, regulated by Alabama Medical Cannabis Commission.

Checked against official sources on October 13, 2026. Rules change; confirm each item with its agency.

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