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| Starting a(n) Home repair Business Licenses & Tax IDs |
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Hi, I'm Tech Service LLC
| Home repair's
WIFI ,Computers
Cat5 install
Web Sites, |
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As the majority of Home repair businesses, 99.9%, you will need an occupational business license even if you obtain a free LLC
filing or you incorporate. In addition, you may need a federal tax ID number, and if you sell any merchandise, you will need a resale tax ID number. Also note that all LLC
s need an occupational business license. Also, if the LLC
has more than one member, or you will file a tax return for the LLC
as a corporation as opposed as a disregarded entity, you will need a federal tax ID number for the LLC
.
Starting a Home repair business fist step is to choose the tax legal structure. There are three major ones:
1. Sole proprietor,
2. Partnership, and
3. Corporation or Limited Liability Company.
All Home repair small, home or web based businesses as well as big businesses must choose and register as on of the above. In addition, businesses must obtain a business tax registration occupational license receipt. If selling any Home repair taxable items,a business must also get a reseller ID number to buy wholesale and sell retail. Finally, if a business is an employer, it needs to get a federal EIN and a State EIN. |
1. SELECT LLC, DBA, CORP
From sole propr., AL LLC, AL partneship or AL Corp.: Each requires an entity certificate filing.
2. TAX IDs - PERMITS
All
Services
businesses/entities need a business license and an EIN.
3.
AL STATE SALES TAX ID.
Selling/Buying wholesale or retail
requires a AL seller's permit.
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You can choose to be a(n) :
- Sole Proprietor,
- LLC,
- Corporation or
- Partnership.
After you decide and select your business entity, you need licensing.
New Market Business Tax Registration (
Business License)
All businesses including home, online or mobile BUSINESS need a BUSINESS license because they are BUSINESSES.
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A(n) business doing business under an assumed business name in
Madison County
i.e. you are a business that uses a DBA doing business as trade name to trade that is other than the full legal (first and last -- full name) name of a sole proprietor or a name other than the LLC or Corporation business name need a(n)
assumed business name certificate.
E.g. you venture into a(n)
business and you give it a trade name such as "Excellence
& Associates". You will need to register an assumed business name certificate.
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In
AL
you need a resale ID ( AKA seller's permit) if you selling touchable items.
(A.K.A state id, wholesale, resale,
reseller certificate, about $39 for most states).
Seller's Permit
Note: All businesses need a federal tax ID number except sole proprietors that are not employers and are not independent contractors.
An independent contractor is a self employed business person that receives more than $600 per year from anyone of his or her clients.
IRS rule: The client must issue a 1099 form to the independent contractor and the independent contractor must have a federal tax ID.
However, even sole owners may obtain a federal ID and use it as a business tax ID instead of using their own social security number as a
business tax ID number.
However, all other licenses that apply to sole proprietors as discussed here are requited regardless of getting
a federal tax ID number.
Also keep in mind that employers will need to obtain a federal EIN and a State EIN tax identificattion number.
I.e., a AL Federal Tax Id Number ($29) and a(n) AL State Employer Tax Number
Instead of filing a fictitious business name DBA Filing (about $49 plus state and legal newspaper publication fees) in
New Market, Incorporate in AL or form a(n) AL LLC .
Filing a DBA is not required if you will set up an LLC or form a Corporation.
If you will do business under your first and last legal name you will not need to get a fictitious business name.
Using any language that connotes additional owners in the name of the business makes filing a fictitious business name mandatory.
If you do form an Services llc or incorporate (about $49 plus state fees for most states) your business instead of just filing a fictitious business name (dba),
that insurs that you don't have personal liability for debts and civile liabililty arising from your business dealings and you will not have to record the New Market business name.
In lieu of recording a Madison County trade company name (our filing service fee includes trade name registration and newspaper legal publication for 4 weeks) you can also form a corporation in
AL or form an AL LLC (starts @ $49 plus state fee for most states & includes bylaws for the corporation and Limited Liability operating agreement for the LLC that is required to open a business bank account). .
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