Daycare / Child Care Center Permit Requirements in Birmingham, AL

1. EIN (Employer Identification Number)

   Required if you have employees or operate as an LLC or corporation. Free from the IRS.

   Official government source

   Free·Immediate (online application)

   Free

   Immediate (online application)

1. Alabama Department of Revenue - Sales Tax License

   Required for businesses making retail sales of tangible personal property in Alabama. Alabama sales tax is a privilege tax on retail sales; most services are not taxable, so service-only businesses may not need to register. Local city and county sales taxes are also due on top of the state rate and vary by jurisdiction - use ADOR's local tax rate lookup for your address. Register with the Alabama Department of Revenue via My Alabama Taxes (MAT); state and local returns are filed together through ONE SPOT.

   Official government source

   No registration fee is published by ADOR; registration is made through the My Alabama Taxes portal·Not published by ADOR; confirm current processing time with the Department of Revenue

   No registration fee is published by ADOR; registration is made through the My Alabama Taxes portal

   Not published by ADOR; confirm current processing time with the Department of Revenue

2. Alabama Background Check Requirement

   All staff, volunteers, and household members (for family daycares) in Alabama child care facilities must undergo criminal background checks through the state and FBI as part of DHR Child Care Services licensing.

   Official government source

   Per-person background check fees are not published on DHR's site; confirm current amounts with DHR Child Care Services·Not published; confirm current processing time with DHR Child Care Services

   Per-person background check fees are not published on DHR's site; confirm current amounts with DHR Child Care Services

   Not published; confirm current processing time with DHR Child Care Services

1. Alabama Department of Human Resources — Child Care Services Division Facility License

   Child care centers in Alabama must be licensed by the Alabama Department of Human Resources Child Care Services Division, which monitors and licenses child care centers and homes for compliance with state performance standards. Licensing includes criminal background checks and fire and health inspections, and centers must meet staff-to-child ratio standards.

   Official government source

   License fees are not published on DHR's site; confirm current amounts with DHR Child Care Services·Not published; confirm current processing time with DHR Child Care Services

   License fees are not published on DHR's site; confirm current amounts with DHR Child Care Services

   Not published; confirm current processing time with DHR Child Care Services

2. City of Birmingham Tax and License Administration Division — Business License

   Every person, firm, or entity doing business within Birmingham city limits must register with the City of Birmingham Finance Department and obtain a city business license from its Tax and License Administration (Revenue) Division, under the Business License Code (Ordinance No. 97-183, as amended). Apply on the Application for Tax Certificate (ATC) form in person at City Hall, Room TL-100, 710 North 20th Street, Monday–Friday 8:00 a.m.–5:00 p.m. The business address must first be zoning-approved by the Department of Planning, Engineering and Permits, and a home-based business must first execute a Home Occupation Certificate of Agreement with that department. Supporting documents vary by entity and activity — Articles of Incorporation for corporations, a Health Department permit for food and eating establishments, a Zoning Certificate of Operation plus a county or state license for day care centers, and proof of state licensure for regulated trades such as master electricians, master plumbers, and HVAC contractors. Each business location requires its own license. Licenses expire December 31; general business renewals are due February 15 (alcoholic beverage January 15, insurance companies March 4), and the license must be posted in a conspicuous place at the business. The city's Occupational Tax is a separate employer withholding obligation, not this license.

   Official government source

   Set by classification under the Business License Code (Ordinance No. 97-183, as amended); most Birmingham licenses are gross-receipts-based, calculated on twelve months of actual or annualized gross receipts, so there is no flat fee band or cap — a higher-revenue business pays more. A new gross-receipts business is generally issued a license in a minimum amount at application; after the first ninety days of business it must file a sworn affidavit of gross receipts for that period, which is annualized to compute actual license liability for the current and, in some cases, the second year, with amounts already paid credited and any balance billed. There is no proration if the business is discontinued. Confirm the rate and minimum for your classification with Tax and License Administration at (205) 254-2198.·New non-controlled license applications are taken and processed in person Monday–Friday during office hours, so a complete ATC package (including zoning approval and any required state or health documentation) is handled at the counter rather than over weeks; an incomplete application delays processing and issuance. Controlled licenses — alcoholic beverage, dance establishments serving alcohol, pool tables, junk yards, and solid waste facilities — are by appointment only and require separate approval, including by the Birmingham City Council, so they take substantially longer.

   Set by classification under the Business License Code (Ordinance No. 97-183, as amended); most Birmingham licenses are gross-receipts-based, calculated on twelve months of actual or annualized gross receipts, so there is no flat fee band or cap — a higher-revenue business pays more. A new gross-receipts business is generally issued a license in a minimum amount at application; after the first ninety days of business it must file a sworn affidavit of gross receipts for that period, which is annualized to compute actual license liability for the current and, in some cases, the second year, with amounts already paid credited and any balance billed. There is no proration if the business is discontinued. Confirm the rate and minimum for your classification with Tax and License Administration at (205) 254-2198.

   New non-controlled license applications are taken and processed in person Monday–Friday during office hours, so a complete ATC package (including zoning approval and any required state or health documentation) is handled at the counter rather than over weeks; an incomplete application delays processing and issuance. Controlled licenses — alcoholic beverage, dance establishments serving alcohol, pool tables, junk yards, and solid waste facilities — are by appointment only and require separate approval, including by the Birmingham City Council, so they take substantially longer.

3. City of Birmingham Building and Fire Safety Inspection

   Child care centers must pass building and fire safety inspections covering egress, ADA accessibility, fire suppression and child-proofing before state DHR licensing is completed. For a center inside Birmingham the inspections are handled by the city's Permitting & Inspection Division (permitting 205-254-2904, inspection scheduling 205-254-2211) together with the Fire Marshal; centers outside the city limits go through Jefferson County.

   Official government source

   No inspection fee is published by the division; costs depend on the scope of any permitted build-out - confirm with the Permitting & Inspection Division (205-254-2904)·Not published; confirm with the Permitting & Inspection Division

   No inspection fee is published by the division; costs depend on the scope of any permitted build-out - confirm with the Permitting & Inspection Division (205-254-2904)

   Not published; confirm with the Permitting & Inspection Division

Official Sources

• Alabama Department of Human Resources — Child Care Facility License
• City of Birmingham License and Revenue Division

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