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State packet

Alabama Contractor Packet

What you need to start and run a trade business in Alabama, in one printable PDF: a first 30 days checklist, everyday forms, the rules in plain English, and a calendar of what’s due.

$17

Instant PDF download · 45 pages · Digital product, all sales final (policy)

What’s inside

Getting set up

  • First-30-days checklist
  • Which trades need a state license, and who to call
  • The workers’ comp decision, and what you have to file

Pricing and taxes

  • Who pays sales tax on your materials, and on your labor
  • A yearly calendar of filings and due dates

Forms and checklists

  • Business setup sheet and a before-your-first-job checklist
  • New job sheet, estimate, invoice and change order forms
  • Sub information sheet and a home contract checklist

If a customer doesn’t pay

  • What to collect on day one of every job
  • Your lien rights and deadlines, for when you need them
  • Printable job tracker

Where to check

  • The agencies and statutes behind the rules, with links
  • Checked November 3, 2026

What you won’t get from a quick search

  • A first 30 days checklist for Alabama, in the order to do it
  • Everyday forms you can copy and use: a new job sheet, estimate, invoice, change order and sub information sheet
  • Which Alabama license your job needs: the $2,500 roofing line, the $10,000 home builder line and the $100,000 general contractor line, plus the trades with no dollar floor at all
  • What has to go in your home contract: your license number, signatures and a written insurance disclosure, with a checklist you can use on every job
  • Why you pay sales tax at the supply house, and how to build it into your bid so it doesn’t come out of your pocket
  • Workers’ comp at five employees, the new single-family home exception that can catch you with fewer, and how you can count toward five yourself
  • The three lien filing deadlines (30 days, 4 months and 6 months), which one is yours, and the separate deadline to sue, worked out on real dates

What this packet doesn’t cover

We only state rules we could confirm. All sales are final, so here’s what’s not in it. The packet tells you who to ask.

  • How Alabama’s homestead protection limits a lien on a home. §6-10-2 sets dollar limits, but §6-10-4, §6-10-12 and the homestead provision of the Alabama Constitution aren’t covered here, so ask an Alabama construction attorney before trying to force the sale of a home.
  • Whether you can be liable for an uninsured sub’s injured workers. The comp sections covered here (§25-5-8 and §25-5-50) don’t answer it, so ask an insurance agent or the Workers’ Compensation Division.
  • Whether a contractor under five employees is covered when the state’s FAQ says “other than contractors” and the statute carves out only new single-family homes. Ask the Workers’ Compensation Division about your work, including whether a solo owner with no employees has to carry comp on new homes.
  • Whether an unlicensed general contractor, electrician or HVAC contractor can enforce a contract or lien. The penalty sections don’t say, so ask an Alabama construction attorney.
  • Which days count as legal holidays under §1-3-8, and whether a given office is legally closed on a Saturday, for moving a deadline. Ask the probate or circuit clerk’s office, and file early.
  • Trust fund rules, lien waivers, no-lien clauses and bond rights on public jobs. The lien division doesn’t address them, so ask an Alabama construction attorney.
  • The current text of the plumbing law, the home solicitation rules and the home repair fraud law. These come from state agency copies dated 2022, 2023 and 2024. Confirm with the plumbing board or an Alabama construction attorney.
  • City and county business licenses, local electrical licenses and local taxes. These vary by place, so ask your city and county.

Informational only. This packet should not be considered legal, financial, tax or business advice. Check with a licensed professional in your state before you rely on it.