Janna · Flourishing Concepts · Wetumpka, AL
Janna told us: “I am an interior designer who needs to find ways to resell furniture and home accessories.”
Hi Janna, your design fees are a service, but the furniture and accessories you resell are taxable goods, so Alabama expects a sales tax license. Trade vendors will usually ask for it plus the resale certificate showing the buyer's Alabama sales tax account number before giving you wholesale pricing. With three employees you also need an EIN and state employer registration. Flourishing Concepts needs a DBA unless it is an LLC's exact name.
Short answer: Wholes Trade License: start with the structure (an LLC for most owners), then the sales tax license, a federal tax ID number (EIN) and a local business license.
Alabama calls its seller's permit the 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 541410 (Interior Design Services)
Get your sales tax license filed · Start your LLC, DBA and EIN · Business licenses
Jack · Ekro Interior Decorator · Columbia, SC
Hi Jack, a sole proprietor can run an interior decorating business with just an EIN and a DBA for Ekro Interior Decorator. A South Carolina Retail License is needed once you sell furnishings or decor, and then the Form ST-8A Resale Certificate lets you buy items from vendors tax-free for clients. Fees alone for design services are usually not taxed the same way.
Short answer: Wholesale Sole Proprietor: in South Carolina, what most people call a wholesale license is the Retail License. With it, and a Form ST-8A Resale Certificate for your suppliers, an interior decorating business can buy inventory for resale without paying sales tax up front.
South Carolina calls its seller's permit the Retail License. Suppliers selling to you tax-free will ask for a Form ST-8A Resale Certificate. A retail license is required for retail sellers; a business making only wholesale sales may not need one. South Carolina also accepts the multistate uniform certificate in place of its ST-8A form if it contains the same information. Supplies you use up in a service are usually taxed when you buy them, since they aren't resold.
Get your Retail License filed · Start your LLC, DBA and EIN · Business licenses
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All Businesses Need a Wetumpka Business License & a Trade Business Name ( Elmore 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. Interior Decorator Nearly all businesses need a(n) , Wetumpka business tax id registration (business license).
2. Interior Decorator 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) Elmore 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 Wetumpka, Incorporate in AL or form a(n) LLC.