Meredith · Creative Imagination · Daphne, AL
Meredith asked: “I am a new business currently working from home. I sell personalized merchandise and would like to expand my business to include other boutique-type merchandise.”
Hi Meredith, Personalized merchandise and boutique items are both taxable goods, so the sales tax license will cover them in Alabama. Add boutique stock and use the resale certificate showing the buyer's Alabama sales tax account number with your permit number to buy it tax-free from wholesalers. Creative Imagination should be registered as a trade name unless your LLC uses that exact name.
Short answer: For a personalized merchandise and boutique business in Daphne, Alabama, the essentials are the sales tax license, a federal tax ID number (EIN) and a local business license, plus an LLC or other structure.
In Alabama, the seller's permit goes by the name sales tax license. When you buy inventory to resell, the paperwork is 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 448150 (Clothing Accessories Stores), 458110 under the 2022 update
Get your sales tax license filed · Start your LLC, DBA and EIN · Business licenses
BACK TO TOP
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
The licenses below are required for all businesses including internet as well as home and businesses like Etsy etc.
1. Clothing Sales Nearly all businesses need a(n) , Daphne business tax id registration (business license).
2. Clothing Sales 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) Baldwin County DBA ( doing business as ) fictitious business name.
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.