How to Get a Business License in Birmingham: What You Need to Know (2026)
The Quick Version
Starting a business in Birmingham, AL requires permits and registrations across multiple government layers — federal, state, Jefferson County (county), and city. The primary city-level requirement is the Business License, issued by the Revenue Division. Most businesses need 5 to 10 separate registrations, and the order you complete them matters because each step has dependencies on the ones before it.
The base fee for a Business License in Birmingham is Occupational tax on gross receipts. Contact the Revenue Division at 205-254-2198 for current requirements. More information is available at birminghamal.gov.
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What Makes Birmingham Different
Birmingham has several characteristics that affect the licensing process:
- Alabama business privilege tax at state level
- Jefferson County has separate business license requirement
- City occupational tax may apply
- Dual city + county licensing common in Alabama
- Alabama requires a Business Privilege License Tax filing annually with the Department of Revenue
The Permit Stack: What You Need
Most businesses in Birmingham need permits from four levels of government:
Federal: An EIN (Employer Identification Number) from the IRS — free and available instantly online at irs.gov/ein.
State (AL): LLC or Corporation filing through the AL Secretary of State. Filing fee: $200 LLC, processing time: 3-5 business days.
County (Jefferson County): Health permits (for food businesses), building inspections, and any county-specific requirements.
City (Birmingham): Business License from the Revenue Division. Base fee: Occupational tax on gross receipts. Phone: 205-254-2198.
How Long Does It Take?
Most businesses in Birmingham can be fully licensed and operational within 4 to 12 weeks, depending on the business type. Simple home-based businesses can often complete the process in 2 to 4 weeks, while restaurants, bars, and businesses requiring inspections typically take 8 to 12 weeks.
The dependency chain matters — some permits can't be applied for until others are in place. Getting the order wrong means delays and wasted time.
Don't Guess — Get Your Roadmap
Every business type has different requirements, and Birmingham has its own quirks that generic state guides miss. PermitBoard analyzes your specific business type against Birmingham's actual requirements and gives you a step-by-step plan with fees, timelines, and direct links to every form.