Amanda · Cuteebug Designs · Birmingham, AL
Amanda asked: “I make and sell children's clothing.”
Hi Amanda, since you make children's clothing and sell it, Alabama's sales tax license is the registration to start with, whether you sell online, at markets or to shops. Fabric and trims that become part of the garment can be bought tax-free with a resale certificate showing your Alabama sales tax account number, but your sewing machine and scissors cannot. A boutique buying from you wholesale will hand you its own certificate.
Short answer: Obtain Wholesale Id Birmingham: the key filing in Alabama is the sales tax license. Suppliers will ask for its number and an Alabama resale certificate before they sell to you tax-free.
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 315280 (Other Cut and Sew Apparel Manufacturing)
Get your sales tax license filed · Start your LLC, DBA and EIN · Business licenses
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All Businesses Need a Birmingham Business License & a Trade Business Name ( Jefferson 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) , Birmingham 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) Jefferson 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 Birmingham, Incorporate in AL or form a(n) LLC.