PermitDuePermits for a Contractor in Montgomery, Alabama
A contractor in Montgomery, Alabama needs 13 permits including alabama business privilege tax license, alabama home builders license, business privilege license, and more. Each has specific costs, deadlines, and renewal requirements.
We found 13 permits you’ll likely need. Costs, deadlines, and direct .gov links included.
13 permits found
For a Contractor in Montgomery, AL
Business License
Alabama requires businesses to obtain a privilege license (business license) from the county probate judge and/or municipal government. Alabama also imposes a state business privilege tax filed annually with the Department of Revenue.
License required for residential home builders in Alabama. Issued by the Alabama Home Builders Licensure Board. Application fee $100 (non-refundable), annual license fee $250. Requires passing trade and business law exams.
Alabama requires a business privilege license from the county Probate Judge or License Commissioner. License required in every county where business is conducted. Fee starts at $100, increasing with gross receipts (up to $750 for $250,000+). Renewed annually by December 31 via MAT portal.
License from Alabama Home Builders Licensure Board for residential construction, remodeling, repair, or improvement exceeding $10,000. Annual fee $250 plus $100 non-refundable application fee. Must pass exam and demonstrate financial responsibility.
Employment
Registration with the Alabama Department of Revenue for state income tax withholding and with the Alabama Department of Labor for unemployment insurance tax. Required for all employers with employees in Alabama.
Registration with Alabama Department of Labor for unemployment compensation tax. Required for employers with 1+ employees. Tax rate varies by experience; new employer rate approximately 2.7% on first $8,000 per employee.
Alabama requires workers' compensation for employers with 5+ employees (construction: 1+). Competitive-state system. Covers medical and wage-loss benefits for work-related injuries.
Alabama requires workers' compensation insurance for employers with 5 or more employees. Construction employers must have coverage regardless of the number of employees.
Signage
Local permit for business signage installation. Regulated by municipal and county zoning ordinances. ALDOT regulates outdoor advertising on state highways.
Tax
Registration with the Alabama Department of Revenue for collection and remittance of state and local sales tax. Required for all businesses making retail sales. Alabama state sales tax is 4% plus county/city taxes.
Registration with Alabama Department of Revenue for sales tax collection. State rate 4% plus county/city rates (total typically 8-10%). Required for all businesses selling tangible goods.
Registration with Alabama DOR for state income tax withholding. Alabama has graduated rates from 2% to 5%. Required for all employers with employees in Alabama.
Zoning
Certificate from local building department confirming commercial space meets building, fire, and zoning codes for intended use. Required before operating any business in new or renovated space.
Don't forget these deadlines
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From $12/monthTotal penalty exposure
$20 – $525
if you skip or miss these permits
Based on published penalty schedules. Your actual fines may differ depending on your city or county.
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Apply for your permits
- Alabama Business Privilege Tax License
- Alabama Home Builders License
- Business Privilege License
- Home Builders License
- Alabama Employer Tax Registration
View all 11 permits above
Filing guides
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