Retail Store Permits & Licenses in Birmingham, AL

Mandatory for employers with five or more employees. Voluntary for smaller employers, but strongly recommended.

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

All LLCs must file annually regardless of activity level. Replaces former franchise tax.

Required if business uses trade name/DBA. Renew every 10 years for $30.

Paid via Secretary of State annual report for LLCs. Retail stores pay standard rate.

Mandatory for all retail sellers. File monthly/quarterly returns based on revenue.

Required if paying wages to AL employees. Quarterly/annual filings required.

Register online via Frances Online system. Quarterly wage reports required.

Retail stores must register for a sales tax account to collect and remit state and local sales tax. Registration is done via the My Alabama Taxes (MAT) system. Local sales taxes may also apply depending on jurisdiction.

Required for all employers in Alabama who withhold wages from employees. Registration is completed through the My Alabama Taxes (MAT) system. Employers must file Form WH-1 and deposit withheld taxes electronically.

Employers must register with the Alabama Department of Labor. The taxable wage base is $8,000 per employee per year. Employers file Form UCB-601 quarterly.

All Alabama LLCs must file an annual report and pay the privilege tax to remain in good standing. The tax is based on the value of authorized capital or assets. Paid via the Alabama Secretary of State’s website.

Many Alabama cities and counties require a local business privilege tax license. Examples include Birmingham, Mobile, Montgomery. Must be renewed annually. Registration typically handled through city clerk or revenue office.

Alabama imposes a gross receipts tax as part of its Business Privilege Tax. The rate depends on the business classification and total gross receipts. Filed annually using Form PPT-AM. Often integrated with state income tax filings for pass-through entities.

Required for all businesses operating within city limits

Must verify property is zoned for retail use (C-1, C-2, etc.)

Wall signs ≤200 sq ft; freestanding ≤100 sq ft

Alabama law requires employers with five or more employees to carry workers' compensation insurance. Sole proprietors and partners may opt out. Seasonal employees count toward the threshold if employed for 5+ days. Coverage must be obtained from an approved carrier or through the state fund.

While not mandated by state statute for all businesses, general liability insurance is strongly recommended and often contractually required. It protects against third-party bodily injury, property damage, and advertising injury claims.

Alabama law requires all motor vehicles operated on public roads to carry liability insurance meeting minimum limits: $25,000 bodily injury per person, $50,000 per accident, $25,000 property damage (25/50/25). Applies regardless of business structure.

Alabama does not universally require a surety bond for standard retail operations. However, certain localities or specialized retail activities (e.g., selling electronics, appliances) may require a bond as part of a business license or seller’s permit. The Alabama Department of Revenue may require a bond for sales tax compliance in high-risk cases.

Not legally required by Alabama law, but essential for retail stores selling goods. Covers claims of injury or damage due to defective products. Strongly recommended and may be required by distributors or landlords.

Mandatory for any retail store that sells alcohol. The Alabama ABC Board requires proof of liquor liability insurance (also called dram shop insurance) as part of the licensing process. Coverage typically starts at $250,000–$1,000,000 per incident.

Not mandated by Alabama law for standard retail operations. However, if the business offers services such as product installation, repair, or technical advice, E&O insurance may be contractually or practically necessary. Not typically required for general merchandise retail.

Not legally required by Alabama, but increasingly expected by payment processors and partners. Essential for protecting against data breaches and cyber incidents.

Required for all LLCs, including single-member LLCs that have employees or elect to be taxed as a corporation. Even if not legally required immediately, most banks require an EIN to open a business account.

By default, a single-member LLC is disregarded for federal income tax purposes and reports income on Schedule C of the owner’s Form 1040. Multi-member LLCs are treated as partnerships and must file Form 1065. If the LLC elects corporate taxation, Form 1120 or 1120-S applies. Alabama retail operations do not change federal classification.

Applies to all employers with employees in the U.S., including retail LLCs. Requires posting the OSHA Job Safety and Health poster, maintaining injury and illness records (if 11+ employees), and providing a workplace free from recognized hazards. Retail stores must comply with general industry standards (29 CFR 1910).

Retail stores must pass fire safety inspection covering exits, fire extinguishers, alarms, and sprinklers. Certificate may be required for business license renewal.

Retail stores are considered "public accommodations" under Title III of the ADA. Must ensure accessibility for customers with disabilities, including physical access (entrances, aisles, counters), accessible restrooms (if provided), and communication access. New construction or alterations must follow ADA Standards for Accessible Design.

Most general retail stores are not subject to major EPA permits unless they handle hazardous waste. If disposing of hazardous materials, must comply with Resource Conservation and Recovery Act (RCRA) standards. Retailers under the "conditionally exempt small quantity generator" (CESQG) threshold (≤1,000 kg/month hazardous waste) have reduced requirements but must still manage waste safely and use certified disposal facilities.

Applies to all businesses engaged in commerce. Retail stores must ensure advertisements are truthful, not misleading, and substantiated. Must disclose material connections and honor stated return/refund policies. Also includes compliance with the FTC’s Mail, Internet, and Telephone Order Rule if selling online or by phone.

Requires payment of federal minimum wage ($7.25/hour), overtime pay (1.5x regular rate for hours over 40/week), proper recordkeeping, and youth employment standards. Applies to retail employees including cashiers, stockers, and managers. Alabama does not have a state minimum wage, so federal law governs.

Requires eligible employees (worked 1,250 hours in past 12 months, at a location with 50+ employees within 75 miles) to be granted up to 12 weeks of unpaid, job-protected leave annually for qualifying medical or family reasons. Retail businesses meeting the employee threshold must comply.

All U.S. employers must complete Form I-9 to verify identity and work authorization for every employee hired after November 6, 1986. Must retain forms for 3 years after hire or 1 year after employment ends, whichever is later. Applies to all retail employees.

Requires a 3-day right to cancel written contracts for sales over $25 made at a location not the seller’s permanent place of business. Does not apply to in-store sales at a fixed retail location. May apply if the retail LLC conducts temporary off-site sales events.

Most retail stores do not require federal licenses. Exceptions include businesses selling alcohol, tobacco, firearms, or regulated health products. General merchandise retail in Alabama does not trigger federal licensing unless specific product categories are involved.

Retail food establishments (including grocery, convenience, or stores selling packaged food) are considered "food facilities" and must register with the FDA under the Bioterrorism Act. Registration must be renewed every 2 years. Does not apply to stores selling only non-food items.

Required for retail stores selling beer, wine, or spirits. Must also comply with Alabama state alcohol licensing. TTB Form 5630.5f must be submitted. Applies only if the retail LLC sells these products.

Most retail stores using unlicensed consumer radios (e.g., FRS/GMRS under 2W) do not need FCC licenses. However, if using commercial-grade radio systems (e.g., business band), a license may be required. Applies only if such equipment is used.

All domestic and foreign LLCs registered in Alabama must file an annual report each year. The report updates business information such as principal address, registered agent, and management structure.

Required for all businesses operating within a municipality. Must be renewed annually. Retail stores must display the license at the place of business.

Alabama does not require periodic renewal of the sales tax certificate (Seller’s Permit). However, businesses must keep registration active and notify ADOR of address or ownership changes.

Retail stores with employees must register for withholding tax. No annual renewal, but monthly or quarterly filings are required.

EIN is a one-time requirement. However, businesses must update IRS if responsible party, address, or entity type changes.

All retail stores collecting sales tax must file returns even if no tax was collected. Filing frequency (monthly/quarterly) depends on volume of sales.

Multi-member LLCs taxed as partnerships must file Form 1065. Single-member LLCs are disregarded entities and report income on owner’s personal return (Schedule C).

LLCs with income must file Alabama Form PPT or include income on owner’s individual return (Form 40).

Poster includes employee rights under OSHA, minimum wage, and family leave. Available free from OSHA website.

Includes Alabama Minimum Wage, Equal Employment Opportunity, and Workers’ Compensation notices. Available for download from ADOL website.

Retail stores must obtain a Certificate of Occupancy (CO) before opening. Some jurisdictions require periodic re-inspection.

Keep sales tax records for at least 4 years (Alabama requirement). Federal tax records should be retained for 3 years. Employment tax records must be kept for 4 years.

Retailers must keep valid exemption certificates (Form ST-4) for all tax-exempt sales. Digital copies acceptable if legible.

Self-employed owners must make quarterly estimated payments. Applies to profits passed through from the LLC.

Owners must make estimated payments if tax liability exceeds withholding and credits.