Firearms Dealer (FFL) Permits & Licenses in Montgomery, AL

Required for all LLCs. Online filing via Business Services portal recommended.

All LLCs must file Annual Business Privilege Tax Return (Form CPT). No separate 'general business license' at state level.

File with county Probate Judge ($10-28 fee varies by county) OR Secretary of State. Renew every 10 years.

Apply online via My Alabama Taxes portal. Monthly/quarterly returns required based on revenue.

Required for FFLs dealing in regulated explosives/NFA items. Separate from federal requirements.

Administered by AL DOR for 450+ municipalities/counties. Firearms dealers classified as 'retail' or 'gun shop'; check specific city/county rates.

Firearms dealers in Alabama are required to collect and remit sales tax on taxable sales. Sales of firearms are generally subject to Alabama's 4% state sales tax. Local sales taxes may also apply depending on jurisdiction. Registration is mandatory via Form ACR-1.

Required for any business that hires employees in Alabama. Employers must register using Form WH-1 and withhold state income tax from employee wages.

All employers with one or more employees must register. New employers are assigned a standard rate of 2.7% for the first three years. Registration is completed through the Alabama Taxpayer Access Point (ATAP).

All LLCs in Alabama are subject to the franchise tax, which is based on net worth or capital employed in the state. Must file Form PPT-100 by April 15 each year. Even if no tax is due, a return may still be required.

FFLs are responsible for ensuring excise tax is paid on firearms and ammunition. While typically paid by manufacturers/importers, FFL dealers acting as importers or special manufacturers may have liability. Most retail FFLs do not pay this directly but must understand compliance chain. Confirmed via TTB guidance.

Many Alabama cities and counties impose a business privilege tax based on gross receipts. Examples include Birmingham, Montgomery, and Huntsville. Registration is with the local tax office. FFLs must check with city/county of operation. List of participating jurisdictions: https://revenue.alabama.gov/taxation/local-business-tax/local-bpt-jurisdictions/

Required for all businesses operating in unincorporated Jefferson County, AL. Birmingham has separate city requirements.

All businesses must obtain; firearms dealers classified as retail. See fee schedule at linked page.

Firearms sales typically allowed in C-1/C-2 commercial zones; home occupation prohibited for retail sales.

Required for all businesses; City of Mobile has separate requirements.

All retail businesses including firearms dealers.

NFPA 1/101 compliance; local fire dept. inspects (e.g., Birmingham Fire Dept. Ordinance 80-296).

Required per International Building Code as adopted locally.

Applies in most municipalities; e.g., Birmingham Zoning Code Appendix A.

False alarm reduction ordinance; similar in other AL cities.

Applies to all businesses.

A $200,000 surety bond is required for most FFL types under 27 CFR § 478.118. The bond ensures compliance with the Gun Control Act. Premiums typically range from $100–$1,000 annually based on creditworthiness. Not required for Type 03 (Curio & Relic) or Type 06 (Manufacturer) FFLs unless engaged in business as a dealer.

Alabama law (Ala. Code § 25-5-50) requires employers with five or more employees to carry workers' compensation insurance. However, most employers in hazardous industries (including retail) are strongly encouraged to carry coverage regardless of size. Sole proprietors and partners may opt out unless working in construction.

While Alabama does not statutorily require general liability insurance for all businesses, commercial landlords, business partners, or local municipalities may require proof of coverage as a condition of operation. For firearms dealers, this is particularly relevant due to high-risk nature of inventory. Strongly recommended.

Alabama law (Ala. Code § 32-7A-3) requires all motor vehicles registered to a business to carry liability insurance with minimum limits of $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage (25/50/25). Applies to any vehicle used in connection with the firearms business.

Not legally mandated by Alabama or federal law, but firearms dealers face significant product liability exposure due to the nature of their inventory. ATF guidance and industry best practices strongly recommend coverage. This is typically included in a commercial general liability (CGL) policy.

Not legally required by Alabama or ATF, but highly recommended for FFLs due to risk of liability from incorrect NICS checks, prohibited person sales, or recordkeeping errors. E&O coverage can protect against lawsuits arising from administrative mistakes.

Only applicable if the firearms dealership operates a bar, restaurant, or event space where alcohol is served. Not relevant for standard FFL operations. If applicable, liquor liability insurance is typically required as part of ABC licensing.

Required under the Gun Control Act of 1968 (18 U.S.C. § 923) for any person 'engaged in the business' of manufacturing, importing, or dealing in firearms. LLC must register with ATF using Form 7/7CR. Includes background check and fingerprinting of responsible persons.

SOT is required in addition to FFL for certain types of firearms businesses. Paid annually; due date is July 1. Form 5630.5B must be filed with ATF.

All FFL holders who are structured as an LLC and have employees or are required to file ATF SOT returns must obtain an EIN. Even single-member LLCs without employees may need one for banking or state compliance.

Manufacturers and importers of firearms pay excise taxes under IRC § 4181. Most retail dealers (Type 01 FFL) are not subject to this tax unless they also hold SOT status. Form 720 must be filed quarterly.

ATF Form 4473 (Firearms Transaction Record) must be completed for every firearm transfer. Must be stored on-site or in approved electronic format. Subject to inspection by ATF at any time.

Report submitted via ATF Form 3310.4. Copies sent to local ATF field office and local law enforcement. Required for all FFL holders.

ATF Form 3310.11 must be submitted within 48 hours of discovering a theft or loss. Required for all FFL holders. Failure to report may lead to increased scrutiny or revocation.

All U.S. employers, including FFL holders, must verify identity and employment authorization using Form I-9. Applies to all employees regardless of citizenship. Subject to ICE audits.

Covers minimum wage, overtime pay, recordkeeping, and youth employment standards. Applies to FFL businesses with employees engaged in interstate commerce or producing goods for commerce.

Covers workplace safety standards. Alabama does not operate a state OSHA plan, so federal OSHA enforces standards. Employers must provide safe workplace, post OSHA poster, and maintain injury logs if over 10 employees.

Requires accessibility for customers with disabilities. Includes physical access, communication, and policies. Most FFL retail locations must comply if open to the public.

Applies to all businesses engaged in commerce. Prohibits deceptive advertising, false claims, and unfair practices. FFL dealers must ensure ads do not misrepresent firearm availability, pricing, or compliance status.

FFL holders must renew their license annually by submitting Form 7/3 by September 30. The renewal application is sent automatically by ATF approximately 60 days prior to expiration. Failure to renew on time results in loss of licensing authority.

All Alabama LLCs must file an annual report with the Secretary of State by April 15 each year. The report includes business address, registered agent, and management information. This is separate from federal FFL requirements.

While EIN itself does not require renewal, businesses with employees must file employment tax returns periodically. This includes Form 941 (quarterly), Form 940 (annually), and W-2/W-3 forms annually. These are ongoing compliance obligations tied to payroll.

ATF conducts periodic inspections of FFL holders to ensure compliance with 18 U.S.C. Chapter 44 and 27 CFR Part 478. Inspectors review acquisition and disposition (A&D) records, secure storage, and compliance with prohibited person transfers. No advance notice is required by law.

All firearms acquisitions and dispositions must be recorded in the A&D book. Records must be retained for at least 20 years and made available for inspection by ATF at any time. Electronic records are permitted if they meet ATF standards (e.g., cannot be altered after entry).

The original FFL must be displayed in a conspicuous location at the licensed premises accessible to the public. This is required under 27 CFR § 478.21(a).

FFL holders must display ATF Form 5300.11 (Warning Against Unlawful Sales) and any applicable state-specific firearms signage. These must be visible to customers at the point of sale.

Dealers in NFA firearms must pay the Special Occupational Tax annually by July 1. This is in addition to the standard FFL renewal. SOT registration allows the business to transfer NFA items without tax stamps on each transfer.

ATF requires all firearms to be stored in a secure container or area when the business is closed. While no specific lock type is mandated, the standard is that it must provide reasonable protection against theft. This is enforced during inspections.

Alabama does not charge a fee for sales tax license renewal. However, dealers must register with the Department of Revenue and file regular sales tax returns (typically monthly). The license remains active as long as filings are current.

FFL dealers in Alabama must file Form ST-100 monthly to report and remit sales tax collected. Even if no sales occurred, a 'zero return' may be required. Due date is the 20th of the following month.

Most FFL dealers (Type 01) are not subject to federal excise tax. However, manufacturers and importers must file Form 720 quarterly to report and pay excise taxes on firearms and ammunition. This does not apply to standard retail dealers.

Alabama law requires all employers with five or more employees to carry workers' compensation insurance. Coverage must be maintained continuously. Independent contractors are not counted.

Employers must file Form UIA 101 quarterly and pay unemployment insurance tax on the first $8,000 of each employee's annual wages. New employers are assigned a standard rate of 2.7%.

FFL dealers must report multiple sales of handguns using Form 3310.4. Reports are submitted monthly to ATF. Electronic submission via e3310 system is encouraged.

FFL dealers must submit Form 3312.05 to ATF within 5 business days of a denied transfer. This report helps law enforcement investigate potential illegal activity. The form is submitted electronically via the ATF eForms system.