Obtaining a Alabama Tax ID (EIN) is a process that most businesses, Trusts, Estates, Non-Profits and Church organizations need to complete. Even for businesses and entities that are not required to obtain a Tax ID (EIN) in Alabama, obtaining is suggested as it can help protect the personal information of the individuals by allowing them to use their Tax ID (EIN) instead of their Social Security Number in various activities essential to operating their business or organizaton including obtaining local Alabama licenses & permits. Any entity that answers yes any of the below criteria is required to obtain a Tax ID (EIN) in Alabama:
- Do you have employees in Alabama?
- Do you operate a business as a corporation or partnership?
- Is the organization a Trust, Estate or Non-Profit organization?
- Will you open a business bank account?
Virtually every type of business must obtain a State Sales Tax Number. If your business sells products on the internet, such as eBay, or through a storefront, and the item is shipped within the State of Alabama, sales tax must be collected from the buyer, and the sales tax must be paid on the collected tax to the State of Alabama.
Depending on the type of business and the amount of revenue, the state sales tax collected must be paid either monthly or quarterly.
Items shipped within State of Alabama are taxable. Items shipped out of the State of Alabama are usually not subject to state sales tax, if annual revenues are less than four million dollars.
Purchases for Resale regarding Alabama State Sales Tax
You are able to purchase certain items without paying Alabama State Sales Tax. When you buy an item for resale, you purchase the item without paying AlabamaState Sales Tax. Items must be for resale or qualified business use. If you purchase an item from a wholesale organization, or even another retailer, and are reselling the item, in most situations, you will be exempt from paying state sales tax.
Almost every wholesale company will require a sales tax number before selling an item or product for resale use. The same applies to opening most commercial resale accounts.
Wholesale trade shows and merchandise marts usually require a state sales tax identification number in order to allow your business to participate.
Alabama State Sales Tax Number Online Application
For fastest processing, please have the following ready to complete the online application for an Alabama State Sales Tax Number.
- Business Name, Address, & Phone Number
- Description of Business
- Responsible Party ( Usually Business Owner ) Information
- Payment Information
What are the substance sorts for an Employer Identification Number?
- Sole Proprietor or Individual
- Limited Liability Company (LLC)
- Estate of Deceased Individual
- Non-Profit Organization
- Personal Service Corporation
- Church Controlled Organization
Each Alabama Tax ID (EIN) Application requires a valid contact e-mail address and phone number. This information is needed to ensure that in the event that the application has errors or corrections needed, that we can reach you to properly process your application and issue a Tax ID (EIN).