Alabama Business Guide

All Businesses:

 

 • Contact the Internal Revenue Service in order to determine if:

· A Federal Employer's Identification Number (FEIN) is needed (Form SS-4).

· Requirements for Federal Estimated Income Tax are met (proprietors, partners, corporate

   shareholders, etc.), (Form 1040ES).

· Federal Self-Employment Tax is required.

· Request the following forms and/or publications: SS-4 (FEIN application form), W-

   4's (Federal Exemption Certificates), Circular E (Federal Tax Tables), 1040ES

   (Federal Declaration of Estimated Income Tax), Publication 334 (Tax Guide for Small

   Businesses) and/or other forms or publications.

For tax information, please call 1-800-829-1040.

For forms and publications, please call 1-800-829-3676.

 

•Contact the Alabama Department of Revenue's Taxpayer Service Center to determine what (if any)

      state taxes apply for the area.

     Auburn/Opelika Taxpayer Service Center

                 3300 Skyway Drive

              Auburn, Alabama 36830

                   (334) 887-9549

            Office Hours: M-F 8am-5pm

 

 •Determine if a privilige license is required (see below) and if so, purchase it.

       •County and State Licenses - Lee County Courthouse

       •City Licenses - Opelika City Hall

 

•Contact the local county tax assessor's office in the county or counties property is owned in

   order to meet all requirements of assessing real property and business personal property.

 

               Oline Price, Revenue Commissioner

                         Lee County Courthouse

                             215 South 9th St

                           Opelika, AL  36801

                         334-745-9786 or 9787

 

•Contact the Alabama Department of Revenue, Individual Income Tax Section at 334-242-1000

    to determine if requirements for Alabama Individual Estimated Income Tax

    (Form 40ES) are met (proprietors, partners, corporate shareholders, etc.).

  · Proprietors, partners and certain other individuals must report estimated earnings

     and remit the income tax on those earnings quarterly. (See Alabama Form 40ES and

     Federal Form 1040ES.)

•At year-end, individuals must file Alabama Form 40 and Federal Form 1040 to report

    actual yearly earnings. (See Forms 40, 1040, and Schedule C for instructions.)

 

•Keep all financial and accounting records clearly reflecting income

    expenses from three (3) to six (6) years.

 

If you are late with any tax return, contact the appropriate agency immediately.

    Intructions will be given as to what course of action you must follow.

    Reply to all correspondence from these agencies immediately.

 

•All Businesses with Employees:

 

•Contact the IRS in order to determine if federal withholding requirements apply (see previous).

 

•To Register for a withholding tax account number, please contact the Alabama Department of Revenue

  and request Form COM-101 (CombinedRegistration Form), A-4's (Alabama Exemption Certificates),

  and Alabama Withholding Tax Tables. These forms and tables can be obtained online or by contacting

  the Central Registration Unit: 334-242-1170.

 

•Contact the Alabama Department of Industrial Relations to obtain requirements for:

     Worker's Compensation Insurance at 334-242-2868 or 1-800-528-5166 

     State Unemployment Compensation Tax at 334-242-8830

 

•Contact the City of Opelika Revenue Department at 334-705-5160 for city occupational tax withholding forms.

     The City Occupational License Fee is 1.5% withholding of all wage earners who work within the City of Opelika.

     Form 0-1 (Quarterly Return) and Form 0-3 (Year End reconciliation) must be completed.

 

•All employees must complete Form A-4 (State) and Form W-4 (Federal). These must be kept on file.

 

•Withhold income tax from your employees according to the Alabama Withholding Tax Tables and the Federal

     Circular E using the information on the A-4 and W-4.

 

•Forward your Alabama Form A-1 with a check for Alabama income tax withheld to the Department of Revenue.

•Forward Federal Form 940 (Federal Income Tax Withheld, Social Security and Medicare)

     and Form 941 (Federal Unemployment) with checks  to the appropriate agencies. (See the appropriate forms and booklets

     for due dates, penalties, etc.)

 

•At the end of the year, complete Form A-3 (state) and Form W-3 (federal) and send

     them to the appropriate agency along with the proper copy of W-2's.

 

•Furnish each employee with a copy of the employee's W-2 on or before

     the last day of January.

 

Contact the Alabama Taxpayer Service Center for Verification of "Contract Labor"

 

All Retail Businesses: (Businesses which sell tangible personal property to the end user or the consumer)

 

•Check previous categories to determine if any apply.

 

•Request Form COM-101 (Combined Registration Form) from the Alabama Department of Revenue

    to register for a sales or seller's use tax license.

 

All Wholesalers (businesses which sell exclusively to retailers, manufacturers, or other wholesalers) and/or Manufacturers:

 

•Check with previous categories to determine if any apply.

 

•Contact the Alabama Department of Revenue, Sales, Use & Business Tax Division, or any other local Taxpayer

Service Center to determine if a Certificate of Exemption, Consumer's Use Tax License, or other registration is required.

 

All Corporations and Limited Liability Entities:

 

•Check previous categories to determine if any apply.

 

•Contact the Alabama Secretary of State's Office.

    · Foreign corporations (those that are incorporated in states other than Alabama)

    must qualify to do business in Alabama with the Alabama Secretary of State. Contact the

    Secretary of State's office at 334-242-5324 to obtain an application for certificate of authority (Form CD-2).

    Form CD-2 must be filed with the Secretary of State along with a $175 qualification fee and

    a certified copy of the articles of incorporation.

· Domestic corporations (those that are incorporated in Alabama) must incorporate

    by first reserving the corporate name with the Alabama Secretary of State and then filing

    articles of incorporation (original and two copies) and the certificate of name reservation

    with the probate judge of the county in which the corporation has its initial registered

    office, along with the appropriate filing fees ($50 for Secretary of State and a probate judge

    fee of a minimum of $35). Contact the Secretary of State's Office for more information.

 

•Contact the Alabama Secretary of State's Office for questions regarding organizing domestic

     (those that are created in Alabama) or registering foreign (those that are created in states other

     than Alabama) limited liability entities (Limited Partnerships, Limited Liability Partnerships and Limited

     Liability Companies).

 

•File and remit Alabama Business Privilege Tax.

 All corporations and limited liability entities (Limited Partnerships, Limited Liability

Partnerships and Limited Liability companies) are required to file and pay Alabama

Business Privilege Tax no later than 30 days after the taxpayer comes into existence, qualifies,

or registers to do business or commences to do business in Alabama. Contact the

Alabama Department of Revenue to obtain an initial Form PSA.