Bookkeeping Permit Requirements in Montgomery, AL

Complete permit and license guide for starting a bookkeeping in Montgomery, Montgomery County, Alabama.

Verified 2026-09-03 6 stops $75–$250 est. 1–3 weeks to register business and obtain all required licenses
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Not legal advice. Requirements may change — always verify with your local government authority before applying. Key agencies and fees on this page were re-checked against official government sources on .

Federal — start here

2 stops

  1. EIN (Employer Identification Number)

    Required if you have employees or operate as an LLC or corporation. Free from the IRS, obtained instantly online. Sole proprietors without employees may use their SSN, but an EIN is recommended for privacy and professional credibility.

    Official government source

    FreeImmediate (online application)

  2. IRS Preparer Tax Identification Number (PTIN)

    Required for any paid preparer who prepares or assists in preparing federal tax returns for clients. If your bookkeeping practice includes any federal tax return preparation, you must obtain and renew your PTIN annually. Bookkeeping-only services (no tax return preparation) do not require a PTIN.

    Official government source

    FreeImmediate (online at IRS.gov)

State of Alabama

2 stops

  1. Alabama Secretary of State - Business Entity Registration

    Bookkeeping and accounting businesses operating in Alabama as an LLC, corporation or partnership must register with the Alabama Secretary of State. Sole proprietors are not required to file a DBA; trade name registration is optional. An LLC is commonly recommended for liability protection.

    Official government source

    $200 domestic LLC Certificate of Formation (Secretary of State); $150 to register a foreign LLC onlineNot published by the Secretary of State; online filing is offered for foreign LLCs, while domestic Certificates of Formation are filed on paper - confirm current turnaround with the office

  2. Alabama Sales Tax Registration (if applicable)

    Alabama sales tax is a privilege tax on the retail sale of tangible personal property; professional services such as bookkeeping and accounting are generally not taxed. If the business sells taxable tangible items - software on physical media, printed materials, or any retail products - register with the Alabama Department of Revenue's Sales and Use division through the My Alabama Taxes (MAT) portal and collect and remit state and local sales tax. Confirm your specific obligations with ADOR.

    Official government source

    No registration fee is published by ADOR; registration is made through the My Alabama Taxes portalNot published by ADOR; confirm current processing time with the Department of Revenue

City of Montgomery / Montgomery County

2 stops

  1. City of Montgomery Business License

    All businesses operating within Montgomery must obtain a general business license (occupational license) from the City of Montgomery Finance Department's License and Revenue Division. For a bookkeeping or accounting service this is a straightforward administrative registration - no specialized local certification is required beyond the standard business license. Renewed annually.

    Official government source

    Not published on the city's site (which blocks automated access); fees are set by schedule and can vary by business type and gross receipts - confirm with the License and Revenue DivisionNot published; confirm with the License and Revenue Division

  2. Montgomery Home Occupation / Residential Zoning Approval (if operating from residence)

    Bookkeeping businesses operated from a residence in Montgomery should confirm home occupation permit or residential zoning requirements with the City of Montgomery before operating. The city's website blocks automated access, so the administering office, restrictions and fee could not be confirmed from an official source - contact the city directly.

    Official government source

    Not published on the city's site (which blocks automated access); confirm with the City of MontgomeryNot published; confirm with the City of Montgomery

Terminus

Open for business — est. $75–$250 · 1–3 weeks to register business and obtain all required licenses

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