Kristy · After Hours Wreaths And More · Elba, AL
Kristy asked: “I will make homemade crafts to sell.”
Hi Kristy, wreaths and crafts sold to the public are taxable, so you need the Alabama sales tax license, whether you sell at craft fairs, online or from home. The resale certificate showing your Alabama sales tax account number lets you buy materials tax-free when they become part of what you sell, such as ribbon, greenery and frames. Glue guns and tools you use up do not qualify. A DBA covers After Hours Wreaths And More if it is not an LLC's exact name.
Short answer: Buying Wholesale For Craft Making: Alabama doesn't issue a document called a "wholesale license." The registration suppliers ask for is the sales tax license, backed by an Alabama resale certificate.
Alabama calls its seller's permit the sales tax license. To buy for resale without paying sales tax, you give the supplier an Alabama resale certificate. Wholesalers making no retail sales may get a state sales tax certificate of exemption (Form STE-1) instead of a sales tax license. Many Alabama cities and counties levy their own sales taxes, some administered locally, so local registration can be needed too.
Industry code: NAICS 339999 (All Other Miscellaneous Manufacturing)
Get your sales tax license filed · Start your LLC, DBA and EIN · Business licenses
Kim · Kim Craft Store · Washington, PA
Kim told us: “I sell crafts and clothing on eBay.”
Hi Kim, eBay sales of crafts and clothing are taxable goods sales, so your Pennsylvania Sales, Use and Hotel Occupancy Tax License matters even for a home business. With it, suppliers will take the Form REV-1220 Pennsylvania Exemption Certificate when you buy materials or inventory for resale. A kitchen-table seller can start as a sole proprietor with an EIN, and Kim Craft Store would need a DBA.
Short answer: Wholesale License15301: in Pennsylvania, what most people call a wholesale license is the Sales, Use and Hotel Occupancy Tax License. With it, and a Form REV-1220 Pennsylvania Exemption Certificate for your suppliers, an online crafts and clothing business can buy inventory for resale without paying sales tax up front.
The Pennsylvania version of the seller's permit is the Sales, Use and Hotel Occupancy Tax License. Suppliers selling to you tax-free will ask for a Form REV-1220 Pennsylvania Exemption Certificate. Not a sales tax license. A business selling only to resellers applies for a wholesaler certificate instead; it cannot hold both. Pennsylvania issues a separate wholesaler certificate to businesses that sell only for resale; any retail selling requires the sales tax license instead.
Industry code: NAICS 453998 (All Other Miscellaneous Store Retailers), 459999 under the 2022 update
Get your Sales, Use and Hotel Occupancy Tax License filed · Start your LLC, DBA and EIN · Business licenses
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All Businesses Need a Elba Business License & a Trade Business Name ( Coffee County Trade Business Name required if using a trade name).
Retailers / Wholesalers, Need a Reseller Tax ID, & a Business License.
Employers Need a Federal Tax Id Number (EIN), a AL State Tax Id ( State EIN), & a Business License.
Corporations, & LLC Need a Federal Tax Id Number (EIN)& a Business License.
Partnerships Need a Federal Tax Id Number (EIN) & a Trade Business Name, but also need a Business License.
Sole Proprietors May Use a Federal Tax Id Number as a AL Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in AL or form a(n) AL LLC & You Will Not Need To File A DBA
The licenses below are required for all businesses including internet as well as home and businesses like Etsy etc.
1. Crafts Nearly all businesses need a(n) , Elba business tax id registration (business license).
2. Crafts All Businesses that use a business name to trade that is other than the surname and first name of a sole proprietor or a fictitious business name other than the LLC or Corporation legal name need a(n) Coffee County DBA ( doing business as ) fictitious business name.
3. In AL you may also need a tax id called a resale tax ID or seller's license if you are selling touchable items. ( A.K.A ALseller's permit, state id, wholesale, resale, reseller certificate).
4. You will need a federal and a state EIN if you will hire employees. I.e., a AL Federal Tax ID Number and a(n) AL State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in Elba, Incorporate in AL or form a(n) LLC.