Business Licenses

If you plan to operate a business in the City of Pelham, you must first meet all requirements:

• Submit your business license application and required documents (see below question for what all may be required). This step will need to be taken prior to your inspections. You will not be charged for the business license until you have completed and passed the inspection process. Click Here to Submit Your Application.
• Apply for a new business inspection with the building department. They will inspect the location to make sure there have been no changes to the building and that the building/space is up to code and the proper zoning for the type of business that is being applied for. Click Here to Apply for New Business Inspection. You must create an account first. 
• Once the inspection process is completed and signed off by the Building Official, we will continue the process of issuing you your business license. 

1.Business Structure:

 LLC/LLP, Corporation or Non-profit  - As an LLC/LLP, corporation or non-profit the documents below are required. You will be required to upload these documents as part of the online application process. All entities must be registered with the Secretary of State of Alabama. 

• Copy of your articles of formation stamped/recorded by probate court including certificate. Proof of registration with the Alabama Secretary of State is required.  
• Operating Agreement if your business is located within our city limits.
• Copy of the owner’s/officer’s current government issued photo ID or valid driver’s license.

 Sole Proprietor -As a Sole Proprietor the following documents are required. You will be required to upload these documents as part of the online application process. 

• Copy of your current government issued photo ID or valid driver’s license

2. Federal Employer Identification Number (FEIN):

 If your business is an LLC or corporation, you will have a FEIN associated with that entity. Sole proprietors may use their Social Security Number as their tax ID number; however, they may also apply for a FEIN if they choose to. 

3. Business Activity:

What is the business going to be doing? Providing a service? Selling a product? We will need a detailed description of the nature of your business as well as your NAICS code(s). Visit  https://www.naics.com/search/  to explore the classifications. 

 4. Location: 

• Commercial Property location in Pelham, you will need to apply for a new business inspection and be approved by the building department and zoning prior to your license being issued. 
• Home-Based location in Pelham, you will need to submit the business license application and sign the Home Occupation Acknowledgement Form to be approved by the zoning department prior to your license being issued. 

5. Certifications:

Does your business activity require certification or a permit from a state agency or regulatory board? If required, the certification or permit must be obtained and submitted with your application before a City of Pelham business license is issued. 

- The cost is based on the type of business you are doing in the city. - We have flat rate fees and fees based on your gross receipts.

- Each person going door-to-door will be required to complete and application and be identified by the Pelham Police Department. Each Door-To-Door Solicitors License is $514 for the year.

All business licenses expire on December 31.

Business licenses expire on December 31st of each year. Renewal notices are mailed to currently licensed businesses at the beginning of December. Licenses may be renewed through the end of January without penalty. 
  
 The City of Pelham’s annual license renewal period will begin on December 1st. The renewal form and payment should be mailed together to: City of Pelham, Finance Department, P.O. Box 1238 Pelham AL 35124. This address is for licenses only. Please do not mail payments for anything else to this address. 

Renewals may also be returned in-person at our office located at 3162 Pelham Parkway Pelham AL 35124. The office accepts cash, check, and/or credit cards. Please note that credit card payments incur a convenience fee of 3.95% or a minimum of $2.50 per transaction. Additionally, certain classifications require proof of State certification. Online renewals are not available at this time.

- Cash - Check - Credit cards - the credit card company charges a fee of 3.95% or a $2.50 minimum.

• Yes. The City of Pelham requires inspections by the Building, Fire, and Police Departments. Inspections are conducted annually prior to renewing or issuing a business license.
• The inspection fee is $75.00 for mobile food units. To set up an inspection, please call 205.620.6495.