To obtain a City of Montgomery business license, a prospective business owner will need a U.S. government issued identification card/document (Driver License, State-issued I.D. or U.S. issued passport) and a completed City of Montgomery Business License application. 

If the business involves sales, submit a City of Montgomery Sales and Consumer Use application. If the business is an LLC or Corporation, a copy of the Articles of Incorporation/Articles of Formation approved by the Alabama Secretary of State Office is also needed.

If the business involves state regulated activities (i.e., General Contractor, Real Estate Brokerage, Landscaping, etc.), a copy of the state-issued regulatory license is needed as well.

Yes. For businesses with a physical (commercial) location within the City of Montgomery, the business must first obtain a Certificate of Occupancy from the City’s Inspection Department (334-625-2073). If the business is home-based, the applicant will choose “No Physical Location” on the business application, and the City’s Inspection Department will not need to be contacted.

If you made a mistake in reporting your gross revenues on your initial license application, there is no need to correct the mistake because during renewal of the following year (January), you will be asked to report your actual gross revenues; the cost of your license may be adjusted upward or downward – depending upon the gross receipts reported on the initial application.

Your Sales/Use tax Identification Number(s) for the City of Montgomery will be issued at the same time your City of Montgomery business license is issued at the City of Montgomery License and Revenue Department. For the State of Alabama Revenue Department and the Montgomery County Sales/Use tax Identification Numbers, please contact those jurisdictional tax authorities.

Your business privilege tax with the City of Montgomery is based on your projected gross receipts for new businesses. For established businesses, the business privilege tax is based on your businesses actual gross receipts. Actual Gross Receipts BEFORE taxes and overhead/expenses are deducted.

If a business changes the physical (commercial location), the business will need to first make certain your business license is up-to-date. Contact the City of Montgomery License & Revenue Department (334-625-2036) and obtain a “Change of Address” form for completion.

Next, contact the City of Montgomery Inspections Department (334-625-2073) to obtain a Certificate of Occupancy for the new location. Once you have obtained the Certificate of Occupancy, please submit the “Change of Address” form and the Certificate of Occupancy to the City of Montgomery License & Revenue Department for processing. The business will receive an updated business license reflecting the new name and location.

Yes. You will need to contact the City of Montgomery Inspections Department (334-625-2073) to obtain clearance, then complete the “Change of Business Name” form, and submit the form including the Articles of Incorporation/Articles of Formation to the City of Montgomery License & Revenue Department for processing.

For Home-based (“No Physical Location) businesses, please submit the “Change of Business Name” form and a copy of your U.S. government issued identification to the City of Montgomery License & Revenue Department. 

To renew your City of Montgomery Privilege/Business license is to receive the privilege and permission to lawfully continue to conduct business within the city limits of Montgomery for the new year. Our licenses are based on a calendar year and expire every December 31st. Renewal (without penalties and interest) is during the entire month of January.

Currently, in the City of Montgomery, a ‘No Physical location” business license can be issued within an hour of applying in person at 25 Washington Avenue if all requirements are met. If the business application, required documents and payment are mailed, a “No Physical Location” business license may take up to 2 weeks to be issued.

A business that has or will have a commercial business location within the City limits of Montgomery will take much longer because inspections will be required before your business can be licensed.

Generally, a business entity is an organization created to engage in the trade of goods and/or services. Although there are several types of business entities, there are three major types of business entities: 

• Sole Proprietorship/Partnership

• Limited Liability Company (LLC)

• Corporation 

In forming any business entity, it is advisable to seek competent legal and financial advice in deciding which business entity will better suit your needs and financial goals as well as your desired liability protections.

A business privilege license is a document usually issued by local governments (municipalities, counties/parishes) that gives a business entity the privilege of engaging in commerce/trade in a particular jurisdiction.