Alabama State Law

Alabama requires most businesses to obtain a Business Privilege License from the county probate judge in the county where the business operates. Fees vary by county and business type. Some…

Source: AL Department of Revenue

Alabama employers who pay $1,500 or more in wages in any calendar quarter or employ at least one worker in 20 weeks of a calendar year must register with the…

Source: AL Department of Labor

Alabama LLCs are formed by filing a Certificate of Formation with the Secretary of State and paying a $200 filing fee. All LLCs must designate a registered agent with an…

Source: AL Secretary of State

Alabama corporations are formed by filing a Certificate of Incorporation with the Secretary of State and paying a minimum $200 filing fee based on authorized capital. Corporations must designate a…

Source: AL Secretary of State

Alabama LLCs and corporations must file an Annual Report with the Secretary of State by April 15 each year. The filing fee is $50 for LLCs and varies for corporations.…

Source: AL Secretary of State

Alabama imposes a 6.5% corporate income tax on net income attributable to Alabama. C corporations file Form 20C with the Department of Revenue. Multi-state corporations apportion income using a three-factor…

Source: AL Department of Revenue

Alabama imposes a state sales tax of 4% on retail sales of tangible personal property and certain services, with county and city taxes bringing combined rates as high as 12%…

Source: AL Department of Revenue

Alabama does not have a state minimum wage law and defaults to the federal minimum of $7.25 per hour. Tipped employees may be paid $2.13 per hour provided tips bring…

Source: AL Department of Labor

Alabama employers with five or more employees must carry workers compensation insurance. Construction industry employers must provide coverage with one or more employees. Coverage may be obtained through a private…

Source: AL Department of Labor

Alabama professional licensing is administered through multiple state boards covering engineers, architects, real estate agents, healthcare providers, accountants, and contractors. The Alabama One Stop Business Portal provides a centralized directory…

Source: AL Secretary of State

Alabama requires general contractors performing work valued at $50,000 or more to be licensed by the Contractors Licensing Board for the State of Alabama. Residential home builders performing work over…

Source: AL Contractors Licensing Board

The Alabama Jobs Act provides income tax credits and payroll rebates to qualifying companies that create new jobs in Alabama. Credits of up to 3% of wages paid to new…

Source: AL Department of Commerce

The Alabama Small Business Development Center (ASBDC) network provides free confidential business advising, market research, and access-to-capital assistance to Alabama entrepreneurs. The network is hosted by the University of Alabama…

Source: AL Small Business Development Center

Home-based businesses in Alabama are regulated by local city and county zoning ordinances. Most jurisdictions permit home occupations as an accessory residential use subject to restrictions on signage, customer visits,…

Source: AL Department of Commerce