Cannabis Permits & Licenses in Montgomery, AL

All businesses operating in Alabama must obtain a privilege license annually. Cannabis businesses are not exempt despite federal illegality.

Required for all LLCs. Annual report filing also required separately ($100 fee, due by April 15 anniversary date).

Required for all businesses with nexus in Alabama. Renews annually.

Publication in county newspaper required within 10 days of filing (additional cost ~$50-100).

Alabama has NO recreational cannabis program. Medical cannabis only via Alabama Medical Cannabis Commission (AMCC). All cultivator, processor, dispensary, etc., licenses awarded via competitive bidding (completed 2023-2024). No new applications accepted currently. Strict vertical integration restrictions. Effective date of program: May 17, 2021 (SB 46).

Limited licenses issued. Requires secure facilities, background checks, testing compliance.

Geographically dispersed licenses. Patient cardholder verification required for all sales.

Criminal background check, training, and fingerprinting required. Prerequisites: 21+, no disqualifying felonies.

Required for all medical cannabis facilities despite state legalization. Coordinates with DEA.

Dispensaries must verify patient registry status via AMCC system before dispensing products. Requires staff training on compliance protocols.

Not applicable to cannabis businesses. Required only for businesses holding an alcohol license under ABC regulations. Alabama does not permit cannabis retail operations, and no overlap exists between cannabis and liquor licensing.

Cannabis is illegal under Alabama state law for recreational use; only limited medical cannabis (CBD with ≤ 3% THC) is permitted under strict conditions. No general retail sales tax registration is available for full-legal cannabis businesses as of current law. This registration would only apply if future changes allow legal retail cannabis sales.

LLCs are pass-through entities unless electing corporate taxation. Alabama generally follows federal treatment. However, since cannabis businesses are not legally permitted in Alabama (except for limited CBD), no legal entity can currently operate a compliant cannabis business subject to standard income tax. Future-legal operations would be subject to standard rules.

Applies to all Alabama employers. Cannabis businesses are not legally recognized in Alabama; thus, no employer registration for cannabis operations is currently lawful. This would apply only if future legislation permits legal operations.

All employers with one or more employees must register. Since cannabis is not legally recognized in Alabama, no business may currently lawfully employ workers for cannabis activities. This requirement would apply only if future legalization occurs.

All LLCs formed or registered to do business in Alabama must file an annual franchise tax return (Form PPT). However, since cannabis businesses are not legally permitted, no LLC may currently operate a cannabis business in compliance with state law. This obligation would apply only if future legalization allows such operations.

As of 2024, Alabama does not impose a cannabis excise tax because commercial cannabis sales are not legal. The only exception is low-THC CBD under the Carly McCord Act (Act 2014-395), which does not include an excise tax framework for commercial sales. No official excise tax structure exists. Future legislation may introduce such a tax.

Most Alabama cities require a local business license or privilege tax. However, since cannabis is illegal under Alabama law, no city may legally issue such a license for cannabis activities. This would only apply if future state and local laws permit cannabis operations.

Required for all businesses operating within city limits; cannabis businesses prohibited per municipal code Sec. 6-1-3

Cannabis operations banned in all zoning districts per Zoning Ordinance Appendix A; no allowances for medical cannabis facilities

Applies outside city limits; cannabis businesses face enforcement challenges due to state licensing conflicts

Required per International Building Code adoption; cannabis facilities cannot obtain due to prohibited use

Cannabis cultivation/processing would trigger hazardous materials permit; currently prohibited

Cannot be issued for prohibited cannabis uses per zoning restrictions

Cannabis-related signage would violate content restrictions in zoning code

Required for commercial security systems; cannabis facilities would need enhanced systems

Required for all employers with five or more employees under Alabama Code § 25-5-50. Agricultural and domestic workers may be exempt. Sole proprietors and partners may opt out, but corporate officers must be included unless formally excluded.

General liability insurance is not statutorily required by the state for cannabis businesses because Alabama does not have a legal medical or adult-use cannabis program as of 2024. However, private landlords, lenders, or municipalities may require it as a condition of leasing or financing. No official mandate exists.

Not legally required for any business in Alabama, including cannabis-related activities. May be recommended for consultants or testing laboratories if such services were permitted, but no legal mandate exists.

Alabama does not currently license or regulate commercial cannabis businesses; therefore, no surety bond requirements exist. In states with legal programs, bonds are typically required as part of licensing, but Alabama has no such framework.

Required under Alabama’s Financial Responsibility Law (Alabama Code § 32-7-6) for all motor vehicles operated on public roads. Applies to any business using vehicles, regardless of industry. Minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, $25,000 property damage.

Not legally required by Alabama law for any business, including cannabis. However, it is strongly recommended for manufacturers or distributors of physical goods. Since Alabama does not license cannabis businesses, no product liability insurance mandate exists.

Alabama does not have a legal medical or recreational cannabis program as of 2024. The state only permits limited CBD oil use under House Bill 318 (Syble Blackwell Act), which allows low-THC cannabis oil for specific medical conditions. No commercial cultivation, processing, or retail licensing exists, and therefore no insurance mandates specific to cannabis operations are in place.

While no such program exists yet, states like Oklahoma require a $75,000 surety bond for cultivation/processing facilities. Alabama would likely require similar bonding as a condition of licensing.

All LLCs operating a business in the U.S., including cannabis-related businesses, must obtain an EIN regardless of whether they have employees. This is required for tax reporting, even if the business is treated as a disregarded entity. However, due to federal illegality of cannabis, banks often refuse to open accounts even with EIN.

Cannabis businesses, even in states where legal, are subject to federal tax under 26 U.S.C. § 280E, which prohibits deductions or credits for businesses trafficking in Schedule I or II controlled substances. This results in effective tax rates of 70% or more. All income must be reported on Form 1120 or 1065, and payroll taxes must be withheld and reported via Forms 941, 940, and 944.

Applies to all employers with employees in the U.S. Cannabis businesses with employees must comply with general industry standards (29 CFR 1910), including hazard communication, emergency action plans, and recordkeeping (OSHA Form 300). However, due to federal illegality, OSHA does not typically proactively inspect cannabis operations, but complaints can trigger investigations.

Title I of the Americans with Disabilities Act (ADA) applies to employers with 15+ employees. Cannabis businesses must provide reasonable accommodations for disabilities (excluding current illegal drug use under ADA definition). However, medical marijuana use is not protected under federal law, so employers may enforce drug-free workplace policies.

If the cannabis business uses solvents (e.g., butane, ethanol) in extraction, it may generate hazardous waste regulated under RCRA (40 CFR Part 260–270). Must comply with storage, labeling, manifesting, and disposal requirements. Registration with EPA as a hazardous waste generator may be required. Note: EPA does not regulate cannabis cultivation or processing per se, but byproducts may trigger environmental rules.

FTC enforces truth-in-advertising rules under Section 5 of the FTC Act. Cannabis businesses must avoid deceptive claims (e.g., unsubstantiated health benefits). However, due to federal illegality, most mainstream platforms (Google, Facebook) prohibit cannabis advertising. FTC does not regulate product legality but prohibits false or misleading claims.

Applies to employers with employees engaged in interstate commerce (which includes nearly all businesses). Must comply with minimum wage ($7.25/hr), overtime (1.5x after 40 hrs), and recordkeeping (29 CFR Part 516). Cannabis businesses are not exempt, but enforcement is rare due to federal conflict. Still, employees may sue under FLSA for unpaid wages.

FMLA requires covered employers to provide 12 weeks of unpaid, job-protected leave for qualifying medical and family reasons. Applies only if employer has 50+ employees for at least 20 workweeks in current or prior year. Cannabis businesses meeting threshold must comply, though federal conflict creates legal uncertainty.

All U.S. employers must complete Form I-9 to verify identity and work authorization for every employee. Applies regardless of industry. Cannabis businesses are not exempt, though federal illegality complicates enforcement. Employers must retain I-9s for 3 years after hire or 1 year after termination.

Cannabis (marijuana) is classified as a Schedule I controlled substance under 21 U.S.C. § 812 and 21 CFR § 1308.11. No federal license exists for commercial cannabis activity in Alabama or any state. Operating a cannabis business violates federal law regardless of state authorization. No federal permits are available. This is the primary barrier to federal compliance.

FDA prohibits the sale of cannabis or cannabis-derived products (e.g., CBD) in interstate commerce for therapeutic purposes unless approved as drugs (e.g., Epidiolex). Also prohibits adding THC/CBD to food or labeling as dietary supplements (21 U.S.C. §§ 331, 342). Applies even if state-legal. FDA has issued warnings to cannabis companies making unproven health claims.

Only five dispensing organizations are licensed statewide. Must register with ADPH, maintain seed-to-sale tracking (Metrc), employ security personnel, and comply with strict packaging, labeling, and advertising restrictions. No high-THC cannabis may be sold.

As of June 2024, the AMCC has not yet released final rules or fee schedules. The Alabama Medical Cannabis Act (Act 2021-321) authorizes the commission to establish renewal procedures. No operational licenses have been issued as of 2024.

This is a general business requirement for all LLCs in Alabama, not specific to cannabis. Must be filed even if the business is inactive.

EINs do not expire. However, businesses must notify the IRS of changes in address, responsible party, or business structure.

Medical cannabis products are expected to be subject to Alabama sales tax once available for sale. Frequency of filing depends on volume.

Pursuant to Act 2021-321, all licensees must participate in a seed-to-sale tracking system. Specific retention period not yet published, but typical standard is 3–5 years. Final rules pending.

Licensees must visibly display their AMCC-issued license at the primary point of customer contact. General business license must also be displayed per state law.

Under Act 2021-321, the AMCC has authority to conduct routine and for-cause inspections. Specific frequency not yet codified in final rules.

Many Alabama municipalities require local business licenses. Cannabis businesses may face additional zoning restrictions (e.g., distance from schools). Verify with city/county clerk.

All employers must report work-related injuries. Businesses with 11+ employees must maintain OSHA Form 300, 300A, and 301. Form 300A must be posted from February 1 to April 30 each year.

Businesses may use Form STP-100 to claim exemption on qualifying purchases. Validity depends on current status.

Reports Social Security, Medicare, and withheld income taxes. First quarter ends March 31.

Even if no tax is owed, Form 940 may still need to be filed.

Frequency based on withholding volume. High-volume employers may be required to file semi-weekly.

Posters include Fair Labor Standards Act (FLSA), Family and Medical Leave Act (FMLA), OSHA, and EEO. Available for free download from federal websites.