What it takes to legally operate in Alabama. Add your city for local permits.
2 items below — add your city to check local permits, and we're still verifying. We show what we've confirmed and flag what we haven't rather than guess.
Formation & federal100% verified
Form an LLC (or operate as a sole proprietor)Depends on your situation
Alabama LLC Articles of Organization filing fee is about $200; formation takes 1–2 weeks online.
$200Verified against the official source · Sep 2026Official source ↗
Alabama requires no ongoing LLC report. Alabama eliminated the Secretary of State annual report in Oct 2024; you still file a Business Privilege Tax return with the Dept. of Revenue by April 15, but the minimum tax is now $0
From our reference data — confirm on the official siteOfficial source ↗
Licenses100% verified
Tax Preparation occupational licenseRequired
Every paid preparer needs an IRS PTIN; e-filing requires an EFIN. A few states (CA, OR, NY, MD, CT) register or license preparers. The IRS requires a written information security plan (WISP).
Verified against the official source · Sep 2026
Local permits0% verified
Local permitsNot yet verified
Local permits (zoning, home occupation, signage, health) are set by your city/county — tell us your city for specifics.
Not yet verified — check the official source
Insurance0% verified
General liability insuranceRecommended
General liability insurance are expected for tax preparation work.
Not yet verified — check the official source
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