The IRS issues firms with an EIN (Employer Identification Number), a special identification number. It is used for tax-related things including recruiting staff, opening a business bank account, and filing tax returns. An EIN number can be obtained for free in Alabama online through the IRS website.
You must have a legitimate Taxpayer Identification Number (TIN) or Social Security Number (SSN) and a lawful company structure, such as a sole proprietorship, partnership, LLC, corporation, or non-profit organization, in order to apply for an EIN number. In addition, you must include details about your company’s legal name, physical address, and type of operation.
Many firms in Alabama additionally require a seller’s permit in addition to an EIN number. Any company that sells physical things in Alabama must have a seller’s permit, often known as a sales tax permit. You are able to obtain sales tax from customers and send it to the state using this. You can submit an online application for a seller’s permit on the website of the Alabama Department of Revenue without paying any fees.
You may need to obtain a DBA (Doing Business As) certificate if you intend to do business using a name different than your legal business name. For sole proprietorships and partnerships to use a name other than their own, a DBA certificate is necessary. Without having to establish a different legal body, it enables you to carry on business under a different name. A DBA certificate in Alabama costs between $15 and $50 on average, though prices vary per county.
Another thing that Alabama-based companies should think about is trademarking their company names. A trademark is a form of legal protection for a company name, logo, or tagline that you use to set your company apart from competitors. Even though it is not needed by law, trademarking your company name can offer legal protection in the event that someone attempts to use a name that is too similar. Depending on the kind of trademark you want to register and the level of protection you want, the cost will change. A few hundred dollars to several thousand dollars may be spent.
Last but not least, it’s critical to comprehend the distinction between an LLC and a trademark. An LLC (Limited Liability Company) is a type of business entity that shields its owners from personal liability. It does not provide protection for intellectual property. The name, logo, or slogan of your company is legally protected by a trademark, which is a type of intellectual property protection.
Finally, it should be noted that obtaining an EIN number in Alabama is free and may be done so online through the IRS website. A seller’s permit is also required if you intend to sell tangible products. You might need to obtain a DBA certificate if you intend to operate under a name different than your legal business name. Though it is not needed by law, trademarking your company name is an additional choice to take into account. Given that they offer various kinds of legal protection for your company, an LLC and a trademark require different understandings.