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Start a Business in Alabama

Costs, permits, taxes, and requirements for AL.

Cost Index

87%

13% below avg

Income Tax

2-5%

Sales Tax

4%

LLC Fee

$200

Business Guides for Alabama

Cleaning Business

$1,700 - $8,700

Lawn Care

$2,600 - $17,400

Pressure Washing

$2,600 - $17,400

Food Truck

$43,500 - $174,000

Photography

$1,700 - $26,100

Bakery

$17,400 - $130,500

Restaurant

$152,300 - $652,500

Coffee Shop

$69,600 - $304,500

Catering

$8,700 - $65,300

Landscaping

$4,400 - $43,500

Handyman

$1,700 - $8,700

Pool Cleaning

$1,700 - $13,100

Pest Control

$8,700 - $43,500

Carpet Cleaning

$4,400 - $21,800

Window Cleaning

$900 - $8,700

Junk Removal

$4,400 - $43,500

Moving Company

$8,700 - $87,000

HVAC

$17,400 - $87,000

Plumbing

$13,100 - $65,300

Electrician

$13,100 - $65,300

Auto Detailing

$4,400 - $130,500

Car Wash

$43,500 - $435,000

Pet Grooming

$4,400 - $65,300

Dog Walking

$400 - $4,400

Barber Shop

$21,800 - $130,500

Hair Salon

$43,500 - $217,500

Nail Salon

$34,800 - $174,000

Mobile Spa

$4,400 - $26,100

Bookkeeping

$1,700 - $13,100

Tax Preparation

$2,600 - $17,400

Notary Services

$400 - $4,400

Consulting

$900 - $17,400

Event Planning

$4,400 - $26,100

DJ Service

$2,600 - $21,800

Wedding Photography

$4,400 - $26,100

Web Design

$900 - $8,700

Graphic Design

$900 - $8,700

Social Media Management

$400 - $4,400

Personal Training

$1,700 - $43,500

Gym

$43,500 - $435,000

Tutoring

$400 - $4,400

Daycare

$43,500 - $435,000

Vending Machine

$2,600 - $26,100

Massage Therapy

$4,400 - $43,500

Yoga Studio

$13,100 - $87,000

Laundromat

$87,000 - $435,000

Florist

$8,700 - $43,500

Ice Cream Shop

$17,400 - $87,000

House Painting

$1,700 - $13,100

Tree Service

$8,700 - $43,500

Interior Design

$1,700 - $13,100

E-Commerce

$400 - $8,700

Pet Sitting

$400 - $2,600

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Business Requirements in Alabama

1

Register Your Business

File with Alabama Secretary of State. LLC fee: $200

2

Get Business License

Most cities require a general business license ($50-$300).

3

Get EIN

Free from IRS. Required for bank accounts and taxes.

4

Register for Sales Tax

State rate: 4%. Local taxes may apply.

5

Get Business Insurance

General liability protects from lawsuits. Often required by landlords.

Frequently Asked Questions

How much does it cost to start a business in Alabama?
Startup costs in Alabama are 13% lower than the national average. LLC filing costs $200, plus business license ($50-$300). Total varies by business type.
Does Alabama have income tax?
Alabama has a state income tax rate of 2-5%.
What is the sales tax in Alabama?
The state sales tax in Alabama is 4%. Local taxes may apply.
How do I form an LLC in Alabama?
File Articles of Organization with the Secretary of State (fee: $200). You'll also need an Operating Agreement and EIN from the IRS.

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