Christina · Jasper, AL
Christina shared: “I hold online parties for a company as an independent contractor.”
Hi Christina, direct-sales consultants are a mixed bag for tax. Some companies collect and send the sales tax themselves, others leave it to you, so ask yours how it works. If you buy product to resell, Alabama's sales tax license is the registration to hold, and suppliers will want the resale certificate showing the buyer's Alabama sales tax account number. As a contractor, an EIN also keeps your Social Security number off paperwork.
Short answer: For an online party sales consulting business in Jasper, 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. 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 448310 (Jewelry Stores), 458310 under the 2022 update
Get your sales tax license filed · Start your LLC, DBA and EIN · Business licenses
Krista · Haus Of Turquoise Jewelry And Clothing · Muscle Shoals, AL
Krista shared: “I am a crafter and want to start a website. I will buy jewelry supplies, accessories, and clothing wholesale. I will sell on eBay, Etsy, my website, and to customers nationwide from my home.”
Hi Krista, with jewelry, accessories and clothing from eBay, Etsy and your site, the starting point is Alabama's sales tax license. Wholesalers will then take the resale certificate showing the buyer's Alabama sales tax account number for items you resell tax-free. Nationwide customers can mean owing sales tax elsewhere once you pass other states' thresholds, and Haus Of Turquoise needs a DBA unless it is your LLC's name.
Short answer: For an online jewelry and clothing shop in Muscle Shoals, 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. 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.
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All Businesses Need a Jasper Business License & a Trade Business Name ( Walker 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. JEWELRY Nearly all businesses need a(n) , Jasper business tax registration.
2. JEWELRY 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) Walker County DBA assumed business name certificate.
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 Jasper, Incorporate in AL or form a(n) LLC.