Harvest, AL
A car trunk stuffed with clearance finds, a barcode scanner beeping through a garage shelf and tape guns squealing before the evening pickup.
Short answer: In Harvest, Alabama, businesses are required to obtain licensing before they start operating. For a retail arbitrage business, 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. 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. Items bought at clearance prices from stores are taxed at the register, so arbitrage sellers mostly buy retail and collect sales tax only when they resell online or locally.
Tip: Log what you paid and where, and keep every receipt; your future self filing taxes will thank you for it.
Industry code: NAICS 453998 (All Other Miscellaneous Store Retailers (except Tobacco Stores)), 459999 under the 2022 update
Get your sales tax license filed · Start your LLC, DBA and EIN · Business licenses
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All Businesses Need a Harvest Business License & a Trade Business Name ( Madison 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
Requirements below include websites as well as home-based or eBay Businesses.
1. Retail Arbitration 99% of new businesses are required to get a(n), Harvest business Id registration ( business tax registration or business permit).
2. Retail Arbitration Starting businesses using a company name other than the legal owner's name need a (n) Madison County DBA Doing Business As Trade Firm Name Registration.
3. In AL a business tax ID registration (occupationall business license ) and a DBA Doing Business As Fictious Business Name are ncessary for most businesses but if your business sells any taxable items, you will need a sales tax ID number. ( A.K.A ALseller's permit, state id, wholesale, resale, reseller certificate).
4. If you are thinking of hiring help, you will need a tax ID called a state EIN and an IRS tax ID number called an EIN Employer ID Number. 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 Harvest, Incorporate in AL or form a(n) LLC.