Mobile County Alabama Business License Explained (Simply)

Mobile County Alabama Business License Explained (Simply)

Starting a business in the Port City or the surrounding areas is exciting, but let's be honest: the paperwork is a headache. You’ve probably heard people use the term mobile county alabama business license like it's one single thing you check off a list. It isn't. In Alabama, "business license" is actually a catch-all term for several different permissions you need from various layers of government.

If you're opening a shop in Government Plaza or running a consulting gig out of a spare bedroom in West Mobile, you’re looking at at least two, and possibly three, different licensing bodies. It’s confusing. Most people get it wrong by thinking a city license covers the county, or vice versa. It doesn't.

The Difference Between City and County Licenses

Here is the thing most new entrepreneurs miss: the Mobile County License Commission and the City of Mobile Revenue Department are two totally different animals.

If your business is physically located within the city limits of Mobile, Prichard, Saraland, or any of the other municipalities, you basically need a license for the city and a State/County Privilege License.

The State/County Privilege License is what most people mean when they talk about a county license. This is handled by the Mobile County License Commission, currently headed by Nick Matranga. These licenses aren't just for "privilege"—they are a legal requirement under Alabama Code § 40-12-2. You have to get these before you even open your doors.

On the flip side, if you are within the city limits of Mobile, you’re dealing with the City's Revenue Department. They care about your gross receipts. They care about zoning. If you’re in the "Police Jurisdiction"—that grey area just outside city limits—you might only pay half the city's license fee, but you still have to pay it.

What You Need to Bring (Don't Forget These)

You can't just walk in and say "I'm a plumber, give me a license." The County License Commission is going to want specific documents.

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  • Your Federal ID (EIN): Or your Social Security number if you're a sole proprietor.
  • Articles of Incorporation: If you aren't just a "guy with a truck," they need to see your formal LLC or Corp paperwork.
  • State Tax Number: You get this from the Alabama Department of Revenue (ALDOR).
  • Driver's License: A real, government-issued photo ID.
  • Regulatory Permits: This is the big one. If you’re a contractor, you need your state board card. If you're selling food, the Health Department better have seen your kitchen first.

The Cost of Doing Business

How much? It depends. Honestly, it’s a sliding scale.

For the Mobile County Alabama business license (the privilege license), the fees are often based on the population of the area or the type of business. For example, a store license might be $15, but a "General Merchant" license could be hundreds. There is usually a $10 issuance fee tacked on to everything.

The City of Mobile is different. They usually charge a minimum deposit—often around $130 for the first year—and then they adjust it based on your gross receipts the following year.

Pro Tip: If you start your business after July 1st, Alabama law often lets you pay half the annual license fee. It’s a nice way to save a few bucks if you’re timing your launch.

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Where to Actually Go

Don't go to the wrong building. It’s a long walk in the Alabama humidity.

  1. For County/State Licenses: Head to the Michael Square office at 3925-F Michael Blvd. They also have a spot in the Downtown Courthouse Annex at 151 Government Street, but keep in mind that the Annex is traditionally closed on Wednesdays.
  2. For City of Mobile Licenses: You’ll need the Revenue Department in Government Plaza (205 Government Street) on the 2nd Floor of the South Tower.

Deadlines and Penalties

This is where it gets pricey.

State and County privilege licenses expire on September 30th every single year. You have the month of October to renew them. If you hit November 1st and haven't paid, you're looking at a 15% penalty plus interest.

City licenses usually run on a calendar year, expiring December 31st. You generally have until January 31st to renew those before the penalties start biting.

Special Exemptions

There are some breaks available, but you have to ask for them. Disabled veterans and certain blind persons may be eligible for exemptions or credits toward their license fees. You’ll need to provide your DD-214 or medical certification to the License Commission to claim these. They won't just offer it to you; the burden of proof is on you.

Actionable Next Steps

Don't wait until opening day to figure this out.

First, use the City of Mobile’s GIS map or call the Revenue Department at 251-208-7462 to verify if your address is inside the city limits or the police jurisdiction. This determines who you owe money to.

Second, contact the Mobile County License Commission at 251-574-8561 to find your specific "License Code." Every business type has one, and knowing yours will tell you exactly what the state/county fee will be before you drive over there.

Finally, ensure your Zoning Clearance is handled first if you are within city limits. The city won't issue a business license if your location isn't zoned for your specific trade. Get that signature before you sign a lease.