Huntsville businesses need two licenses — an Alabama state privilege license (filed with the Madison County Revenue Commissioner) and a City of Huntsville business license (filed directly with the City). Both are required before you open. The state license runs $15–$100+ depending on business type; the city license fee varies based on gross receipts.
The two licenses Huntsville businesses need
Unlike some Alabama cities, Huntsville has its own municipal business license requirement on top of the state. This catches many new business owners off guard — getting the state license alone is not sufficient to legally operate within Huntsville city limits.
- Alabama State Business Privilege License — filed with the Madison County Revenue Commissioner's office. Required for any business operating in Alabama regardless of city.
- City of Huntsville Business License — filed directly with the City of Huntsville Finance Department. Required for any business operating within Huntsville city limits.
If your business is outside Huntsville city limits but in Madison County — in areas like Harvest, Meridianville, or Madison city — you only need the state privilege license and may need a Madison city license depending on location. The city of Huntsville license only applies within city limits.
| State privilege license | Madison County Revenue Commissioner, 100 Northside Square, Huntsville |
| State license fee | $15–$100+ depending on business type |
| City license office | City of Huntsville Finance Department, 308 Fountain Circle |
| City license fee | Based on gross receipts — varies by business |
| Renewal | Both licenses renew annually by October 31 |
| Online filing available? | State: yes via ador.alabama.gov. City: check huntsvilleal.gov |
How to get a Huntsville business license — step by step
Form your business entity first
If operating as an LLC or corporation, form your entity with the Alabama Secretary of State before applying for licenses. You'll need your entity name and EIN. Sole proprietors can apply without a formal entity.
Get your Alabama state privilege license
Visit the Madison County Revenue Commissioner's office at 100 Northside Square in downtown Huntsville, or file online at ador.alabama.gov. Bring your business name, address, EIN, and business type. Fees start at $15 and go higher depending on business category.
Apply for your City of Huntsville business license
Contact the City of Huntsville Finance Department at 308 Fountain Circle, or visit huntsvilleal.gov for online options. The city license fee is based on your estimated gross receipts for the year. New businesses often pay a minimum fee for the first year.
Check for additional permits
Depending on your business type, additional permits may be required — health department permits for food businesses, building permits for home-based businesses in residential zones, contractor licenses for certain trades, and zoning approval. Contact the City of Huntsville Planning Department to confirm your location is properly zoned.
Renew both licenses annually by October 31
Alabama business licenses renew on a fiscal year basis — October 1 through September 30. Both the state privilege license and city license must be renewed by October 31 each year to avoid penalties and late fees.
Home-based businesses in Huntsville
Running a business from your home in Huntsville requires the same two licenses as any other business. Additionally, the City of Huntsville has zoning regulations governing home occupations — customer visits, signage, employees, and vehicle storage may all be restricted depending on your residential zoning. Contact Huntsville's Planning Department to confirm your home occupation complies with zoning before opening.
Huntsville vs. Madison County: If your business address is in unincorporated Madison County (Harvest, Meridianville, Hazel Green, New Hope, etc.), you only need the state privilege license — no city license applies. The city of Madison also has its own license. Verify your exact municipality before assuming which licenses you need.