If you recently started or plan to start a business in Needham AL or have another taxable entity one of the first things you will want to do is obtain your Tax ID in Needham AL.
Obtaining a Tax ID Number (EIN)
When starting a business in Needham AL, serving as the administrator or executor of an estate, creator of a Trust or operating a Non Profit Organization obtaining a Tax ID (EIN) is a key responsibility. A Tax ID also known as an Employer ID Number (EIN) is a unique nine digit number that identifies your business or entity with the IRS for tax purposes, essentially like a Social Security Number for the entity. A Tax ID (EIN) is used for opening a business
bank account, filing business tax returns and in many cases is required when applying for business licenses. In most cases it is helpful to apply for a Tax ID (EIN) as soon as your start planning a business to ensure that there are no delays in obtaining the correct licenses, financing and opening a business bank account that would be needed to operate.
Information to Consider Prior to Applying
Before applying for your Tax ID (EIN) you may want to consider a few things before starting the application including:
- Determine which structure your business or organization will operate as
- Determine the individual or organization that will serve as the responsible party
- Determine the physical address the business/entity will use – A physical address is required for all Tax ID (EIN)’s and a separate mailing address can be specified
Definition of Entities
- Sole Proprietor – An individual who owns a company that is not incorporated or registered with the state as a limited liability company (LLC).
- Limited Liability Company (LLC) – A LLC is a structure formed by filing articles of organization which allows members limited liability protection and pass through taxation.
- Corporation – A person or group of people who establish a legal entity by filing articles of incorporation with the state’s secretary of state.
- Estate of Deceased – An estate (or decedent estate) or succession is a legal entity created as a result of a person’s death.
- Trusts – All types of trusts including conservatorships, custodianships, guardianships, irrevocable trusts, revocable trusts, and receiverships.
- Partnership – An unincorporated organization in which two or more individuals share the profits and liabilities of a business venture.
- Church – For tax purposes, a “church” refers to any organization claiming to be a church including temples, mosques, and other houses of worship.
- Non-Profit Organization – Includes public charities, educational organizations, PTA/PTO Organizations, Community Sports Teams, Homeowners/Condo Associates, etc.
Alabama State Tax ID
Outside of obtaining your Federal Tax ID (EIN) in Needham AL you will also likely need a Alabama State Tax ID. This ID is needed to pay business taxes, state income tax and/or sales tax on items you sell. Generally the State Tax ID is used for the follow:
- Sales and Use Tax
- Employee Income Tax Witholding
- Sales Tax Exemption Permits
- Excise Taxes for items like Alcohol, Tobacco, Firearms, Oil & Gas, heavy machinery, etc.
For specific detail refer to the Alabama State Website at https://revenue.alabama.gov/salestax/register.cfm
Cities in Alabama
- Toxey, AL
- Gilbertown, AL
- Melvin, AL
- Butler, AL
- Riderwood, AL
- Lavaca, AL
- Bolinger, AL
- Bladon Springs, AL
- Silas, AL
- Yantley, AL
- Lisman, AL
- Campbell, AL
- Jachin, AL
- Quitman, MS
- Thomasville, AL
- Morvin, AL
- Shubuta, MS
- Coffeeville, AL
- Nanafalia, AL
- Ward, AL
- Pennington, AL
- Frankville, AL
- Silver Cross, AL
- Yarbo, AL
- Aquilla, AL
- Healing Springs, AL
- Koenton, AL
- Copeland, AL
- Bigbee, AL
- Barlow, AL
- Millry, AL
- Russell, MS
- Mdn, MS
- Meridian, MS
- Meeham, MS
- Stonewall, MS
- Sweet Water, AL
- Wboro, MS
- Waynesboro, MS
- Myrtlewood, AL
- Buckatunna, MS
- Cuba, AL
- Toomsuba, MS
- Enterprise, MS
- Chatom, AL
- Bellamy, AL
- Dixons Mills, AL
- Pachuta, MS