The steps to create a company in Alabama have to do with the registration of the company or business and with some other actions that you should take into account. We are going to know all the important elements for when you want to register a company in this State.
The first thing to remember is that some previous actions will be necessary, ranging from getting the license numbers, identification, and preliminary permits to obtaining the tax registration.
On the one hand, it should also be kept in mind that the most common taxes will be sales, use, income tax withholding, and unemployment tax. But, depending on the type of business or services to supply, other additional surcharges may apply.
The process for registering a business is done from the Alabama Business Tax Online Registration System itself. Therefore, at least initially, it is possible to perform all transactions through the Internet. On the other hand, it is also possible to access downloadable forms and the location of taxpayer service offices.
Obtaining business licenses in Alabama
Obtaining a business license in Alabama is essential when you want to start operating a business. It is not a linear license as the number of permits that each business or company may need will vary depending on what they do.
A food retailer will not have the same license as a demolition business. It is important to understand this as the costs also vary depending on the different types of permits you wish to apply for.
You can visit the Alabama Department of Revenue’s business licensing page for information on current legislation.
Another important section within licenses is that of local permits. Depending on the location of your company or business, local entities may request different types of permits or licenses. These are necessary for the start of commercial activities.
The most common permits are:
- Alarm permit
- Building Permit
- Commercial License or Tax Permit
- Sanitary Permit
- Occupational Permit
- Sign Permit
Who registers with the Secretary of State for Business Services?
Some businesses or corporations must register directly through the Alabama Secretary of State Business Services. The categories are as follows:
- Business corporations
- Non-profit entities
- Limited liability companies
What requirements will the company have as an employer?
An important aspect is the requirements necessary as an employer. These requirements can be met before but also after the establishment of the company.
As an employer, it will be necessary to keep payroll tax records for four years. This information must be on file, including employee personal data and tax deposit information. Other data such as employer IDs, salary, pension, and annuity payments are also required.
Generally, these records must meet basic IRS standards. The clearer and more accurate the forms are, the easier they are to track for internal accounting, but also for possible inspections.
Other important aspects can be new hire reports. These reports, including personal data such as name and social security number, are sent telematically. On the other hand, we should not forget that it is also necessary to show the worker’s eligibility within the country (I-9 form).
Finally, insurance requirements are another favorable aspect of registering and establishing a business in Alabama.
Companies based in Alabama must pay unemployment compensation taxes. This conversation is intended to provide certain assistance to the unemployed who are eligible for jobs.
Workers’ compensation insurance payments may also be requested. Insurance is intended for workers who have been injured on the job or have an illness related to their employment. Again, it is necessary to contact the State of Alabama Department of Industrial Relations.