Alabama’s Acceptance of Home State Resale Certificates

Small business operators in Alabama might be concerned about the acceptance of resale certificates from their home states. Alabama does accept home state resale certificates, to address your question. This means that if you have a business license in another state and buy items to resell in Alabama, you can avoid paying sales tax by showing the Alabama vendor your home state’s resale certificate.

But it’s crucial to remember that the home state resale certificate needs to be legitimate and in good standing. Additionally, it must only be used to buy items for resale in Alabama; it cannot be used for personal use.

In Alabama, you must seek a business license from your neighborhood county probate office if you are beginning a small business. A small company license normally costs between $50 and $500, though this varies by county. Additional payments for zoning, health permits, and other municipal requirements can also be necessary in some counties.

Without a dealer’s license, you are permitted to sell up to five vehicles in Alabama each year. However, you must obtain a dealer’s license from the Alabama Department of Revenue if you are purchasing and reselling vehicles with the intention of making a profit. Payment and completion of a dealer education course are requirements for this license.

Does Etsy Require a Tax ID Number for Sales? Yes, if you are running your Etsy shop as a business, you will require a tax ID number in order to sell on the website. Your social security number or an employment identification number (EIN) acquired from the IRS are both acceptable sources for this tax ID number. Although you might not require a tax ID number if you are selling as a hobby, it is always advisable to speak with a tax expert to understand your precise tax liabilities.

Yes, you can sell on Etsy without having an LLC. Your Etsy store name can be either your given name or the name of your company if you are a lone proprietor. It is crucial to remember that running a sole proprietorship implies you are entirely responsible for any debts or legal problems connected to your business. To protect your personal assets, it could be advantageous to create an LLC or another type of legal business.