Kristie · Lilly Bay Boutique LLC · Daphne, AL
Kristie wrote: “I sell online clothing and accessories. I am an online home-based boutique in Alabama and sell to all 50 states.”
Hi Kristie, you need an Alabama sales tax license, which suppliers treat as your wholesale seller's permit. They will also want the resale certificate showing the buyer's Alabama sales tax account number before selling tax-free. Lilly Bay Boutique LLC covers the name already. Selling to all 50 states may bring sales tax duties elsewhere once you pass those states' thresholds.
Short answer: In Daphne, Alabama, businesses are required to obtain licensing before they start operating. For an online home-based boutique, that means the sales tax license, a federal tax ID number (EIN) and a local business license, plus a structure and name registration.
In Alabama, the seller's permit goes by the name sales tax license. Suppliers selling to you tax-free will ask for 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 448120 (Women's Clothing Stores), 458110 under the 2022 update
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All Businesses Need a Daphne Business License & a Trade Business Name ( Baldwin 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
List of required licenses below include online as well as home or Amazon businesses.
1. Clothing Store The majority of starting businesses need a(n) , Daphne business tax registration.
2. Clothing Store Businesses with an trade firm name other than the owner's legal name are required to get a(n) Baldwin County DBA assumed business name certificate.
3. In AL you may also need a sales tax ID AKA seller's permit if you sell merchandise that is taxable. ( 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 Daphne, Incorporate in AL or form a(n) LLC.