Birmingham, AL Home Business: Home Occupation Permits (2026)

A home occupation in Birmingham is defined by the Zoning Ordinance as 'an activity carried out for financial gain by a resident, with an approved business license from the City, and conducted entirely within the resident's dwelling unit.' Before that business license issues, the operator must obtain an approved Home Occupation affidavit. Under Title 1, Chapter 4, Article IV, Section 1.F.12 of the Zoning Ordinance, 'Prior to a receiving a business license as a home occupation, an affidavit for a Home Occupation must be approved by the Department, which is to be included with the business license application.' The Department is the City's Department of Planning, Engineering and Permits (PEP). The ordinance also makes clear (Sec. 1.F.13) that the City license does not displace other required approvals: compliance with Jefferson County Health Department regulations, fire and safety codes, and building codes is still required. The underlying authority to require a municipal business license comes from state law - Alabama Code Sec. 11-51-90 authorizes Alabama municipalities to levy and collect a business license tax on every business, trade, vocation, occupation, or profession conducted within the city.