Real Estate Agent Permit Requirements in Montgomery, 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 Real Estate Errors & Omissions (E&O) Insurance

   Alabama real estate licensees should confirm current Errors & Omissions insurance requirements directly with the Alabama Real Estate Commission (334-242-5544). AREC's website could not be read programmatically to confirm whether E&O coverage is state-mandated or left to brokerage policy, and its 2025 licensing Blueprint does not mention it. Brokerages commonly require coverage regardless.

   Official government source

   Premiums are set by insurers, not by the state; no published figure - obtain quotes and confirm any required minimum coverage with AREC·Not published; confirm with AREC and your qualifying broker before activating your license

   Premiums are set by insurers, not by the state; no published figure - obtain quotes and confirm any required minimum coverage with AREC

   Not published; confirm with AREC and your qualifying broker before activating your license

1. Alabama Real Estate Commission - Salesperson or Broker License

   Real estate agents in Alabama must be licensed by the Alabama Real Estate Commission (AREC). A salesperson needs a 60 clock-hour AREC-approved prelicense course and must pass the license exam within 6 months of completing it; a broker needs a 60 clock-hour broker prelicense course plus an active salesperson license for 24 of the 36 months before applying. Applicants must be 19 or older, have a high school diploma or equivalent, and pass a fingerprint-based background check.

   Official government source

   Fees are not published as plain amounts on AREC's site; confirm current application, exam and license fees on the AREC license application instructions·No processing window is published; AREC's deadlines are 6 months from course completion to pass the exam and 90 days from passing the exam to file a complete application

   Fees are not published as plain amounts on AREC's site; confirm current application, exam and license fees on the AREC license application instructions

   No processing window is published; AREC's deadlines are 6 months from course completion to pass the exam and 90 days from passing the exam to file a complete application

2. City of Montgomery Finance Department, License and Revenue Division - Business License

   Montgomery requires a city business license (occupational license) for all businesses operating in the city, issued by the Finance Department's License and Revenue Division. Fees are set by schedule and vary by business type and, for many classifications, gross receipts. The license must be renewed annually and displayed at your place of business.

   Official government source

   Not published on the city's site (which blocks automated access); confirm the fee for your business classification with the License and Revenue Division·Not published; confirm with the License and Revenue Division

   Not published on the city's site (which blocks automated access); confirm the fee for your business classification with the License and Revenue Division

   Not published; confirm with the License and Revenue Division

Official Sources

• Alabama Real Estate Commission — Salesperson or Broker License
• City of Montgomery Revenue Division

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