Restaurant Permits & Licenses in Montgomery, AL

Required for all LLCs. Annual Report required separately (see below).

All LLCs must file annually with Secretary of State and pay Business Privilege Tax.

Must publish in county newspaper after filing. Valid for 10 years.

Required for all restaurants serving food to the public. Issued via county health departments.

Required before Food Service Permit issuance for new/modified restaurants.

Multiple license types (Lounge Retail, Beer/Wine). Local approval often required.

Restaurants charge 4%-10% sales tax on meals (state + local rates).

Required if paying wages to Alabama residents or non-residents working in-state.

Restaurants in Alabama must collect and remit sales tax on all prepared food and beverages. The current state sales tax rate is 4%, but local rates can add up to 7.5% or more depending on jurisdiction. Registration is done via the Alabama Taxpayer Access Point (ATAP).

Required for all employers in Alabama who withhold state income taxes from employee wages. Restaurants with employees must register for withholding tax even if only one employee is hired.

All employers with one or more employees must register. New employers are assigned a standard rate of 2.7% for up to three years until experience rating is established.

All businesses operating in Alabama, including LLCs, must obtain a Business Privilege License annually. This is a gross receipts tax administered by the state. The tax period is annual, but businesses may file and pay in installments quarterly.

Most cities and counties in Alabama impose a local business privilege or occupational license tax. For example, Birmingham requires all businesses to register and pay annually based on gross receipts. Check with the city or county where the restaurant is located.

While not a state tax, the EIN is required for federal tax reporting and often needed for state tax registration. All LLCs with employees or multiple members must obtain an EIN.

A multi-member LLC is treated as a partnership by default and must file Form 1065. A single-member LLC is disregarded unless it elects corporate taxation. This is not a registration per se but a compliance obligation based on entity structure.

Alabama repealed its corporate franchise tax effective January 1, 2021. It no longer applies to any business entity, including LLCs.

Some counties in Alabama, such as Jefferson and Mobile, impose a local tourism or hospitality tax on restaurant sales. These are in addition to state and local sales taxes. Registration is typically through the county revenue office.

Requires inspection of kitchen, storage, equipment, and food handling practices. Must submit application with floor plan. Renewed annually.

At least one employee (typically manager) must be certified in food protection (e.g., ServSafe). Certification must be current (valid for 5 years).

Requires inspection of grease traps and fire suppression systems. Must comply with NFPA 96. Local fire departments conduct inspections.

Required in every Alabama municipality per Ala. Code § 11-51-90. Restaurants classified under NAICS 7225. Fees vary by city code.

Mandatory for all restaurants serving food. Requires plan review, inspections for sanitation/equipment. Local county health dept enforces (find yours: https://www.alabamapublichealth.gov/county-offices.html). Fees vary by county; verify with your local health department.

Confirms property zoned for restaurant use (e.g., C-1/C-2 commercial). Required before building/occupancy permits. Check local zoning ordinance/map.

Required for kitchen buildout, ADA compliance. Submit plans to building dept. Includes ADA compliance verification (e.g., ramp slopes, counter heights) per ADA Standards for Accessible Design.

ADPH-required pre-opening review of floor plans, equipment layout, wastewater.

Covers extinguishers, exits, hood suppression systems (NFPA 96 for kitchens). Note: General fire safety inspection (exits/extinguishers) is separate from NFPA 96 suppression system certification.

Mandatory for all commercial cooking equipment. Required by local fire codes before opening and often annually. NFPA 96 compliance is distinct and enforced by fire marshals.

Verifies code compliance post-construction.

Regulated by local sign ordinance (size, lighting, setback rules).

Many cities require alarm registration to reduce false alarms.

Required if modifying septic systems or connecting to municipal sewers (common in new builds/renovations).

Mandatory for all employers with five or more employees in Alabama under the Alabama Workers' Compensation Act. Sole proprietors and partners may opt out, but corporate officers in LLCs may be counted toward the threshold. Agricultural and domestic workers are partially exempt.

While not statutorily required statewide, most commercial leases and health departments require proof of general liability coverage. Strongly recommended due to risk of customer injury or property damage.

Required under Alabama's Financial Responsibility Law (Code of Ala. § 32-7A-1) for any vehicle used for business purposes. Minimum liability limits: $25,000 bodily injury per person, $50,000 per accident, $25,000 property damage.

Not explicitly mandated by statute, but strongly required by common law (dram shop liability) and often enforced through ABC Board conditions. Alabama recognizes dram shop liability under case law (e.g., *Ex parte Beverage Co.*, 693 So.2d 428), making insurance critical for businesses serving alcohol.

A surety bond is required as part of the ABC license application process. The bond amount varies by license type (e.g., $10,000 for a standard restaurant license). Ensures compliance with state alcohol laws. Form ABC-301 must be submitted.

While single-member LLCs with no employees may not need an EIN (can use owner's SSN), obtaining one is recommended for liability protection and banking purposes. All multi-member LLCs must have an EIN.

LLCs are pass-through entities by default. Multi-member LLCs file Form 1065 (informational return); single-member LLCs report income on owner’s Form 1040 via Schedule C. Estimated quarterly tax payments may be required.

Includes maintaining a safe workplace, providing hazard communication training, posting OSHA poster (Form 2202), and recording work-related injuries (Form 300 if 10+ employees). Exempt from keeping logs if 10 or fewer employees or in certain low-risk industries (but still must report fatalities or hospitalizations).

Requires accessible entrances, restrooms, seating, and menus. New construction or alterations must meet ADA Standards for Accessible Design. Existing facilities must remove barriers if "readily achievable.

Restaurants must install and maintain grease traps/interceptors to prevent blockages and pollution. Must comply with local POTW (Publicly Owned Treatment Works) requirements under the Clean Water Act. Some cities require permits; federal oversight via NPDES.

Prohibits deceptive or misleading advertising. Also includes compliance with FTC’s Endorsement Guides. If applicable, must comply with FDA Menu Labeling (see separate entry). Applies to all public-facing marketing materials.

Requires payment of federal minimum wage ($7.25/hour), overtime (1.5x regular rate after 40 hours), proper recordkeeping, and youth employment compliance. Applies to all restaurants with annual sales over $500,000 or engaged in interstate commerce (which includes most restaurants using credit cards or out-of-state supplies).

Requires eligible employees (12 months, 1,250 hours) to be granted up to 12 weeks of unpaid, job-protected leave for qualifying events. Most small restaurants in Alabama do not meet the 50-employee threshold.

Must complete Form I-9 for every employee, verify identity and work eligibility using acceptable documents, and retain for 3 years after hire or 1 year after termination, whichever is later.

Restaurants are considered "food facilities" and must register with FDA. Registration is free and done electronically via the FDA Food Facility Registration module. Must renew every 2 years. Subject to inspection under the Food Safety Modernization Act (FSMA).

Requires calorie counts on menus and menu boards, statement about daily caloric needs, and availability of written nutrition information. Does not apply to standalone or small-chain restaurants in Alabama unless part of a national chain meeting the 20+ threshold.

Requires federal Basic Permit (Form 5630.1) in addition to Alabama state alcohol license. Must also comply with TTB labeling and advertising rules for alcoholic beverages.