How To Sign Alabama Banking Permission Slip

How to industry sign banking alabama permission slip

hey guys Alex here from permitted and today I'm going to show you how to get a sales tax permit also known as a seller's use tax permit in the state of Alabama you need to get a sales tax permit in Alabama if you have a nexus there and you can get Nexus by having either people inventory or property in the state so you might have employees affiliates and contractors you might be buying renting or leasing a warehouse there or you might not have any physical contacts with the state you're just storing inventory there and even if you aren't doing those things you may also have Nexus if you visit Alabama frequently to sell or market your products but I don't want to go into too much detail on what will give you Nexus I want to actually show you how to get a sales tax permit once you do so the first thing you're going to do is head to the Alabama Department of Revenue website and I'll add a link in the description here on where to go and what you're going to do is click right here obtain a new tax account number and on this page all you're going to do is specify what type of business you have and for this example I'm going to do a limited liability company just keep in mind that if you have a corporation then I ask for additional documentation they're gonna ask for your F ein and I've got a fake FBI in here I'm gonna type in type Lee Ken Downey here and it's gonna ask you already have a tax account assuming you're getting your sales tax permit for the first time you're just gonna hit now go next alright so on this page there are a bunch of different options and really it's because Alabama is using their online web portal for you to register for multiple tax accounts if you need it we're really only interested in three of these boxes so you're either going to choose seller's use tax or going to choose sales tax so you choose sellers use tax if your business is not located in Alabama and you're going to click you're going to click sales tax if your business is located in Alabama and if you just highlight over it's kind of small here but it'll actually say your business further sorry for businesses that sell tangible personal property to Alabama consumers but do not keep inventory in Alabama required if you have Alabama sales reps agents or any significant recurring contact or Nexus within Alabama so the short of it is if you don't have a physical location at Alabama click sellers use tax if you do click sales tax but if you're an Amazon seller storing inventory it's laid out pretty clearly that you should be collecting sales tax and not sellers use tax hopefully that wasn't too confusing for everyone all right for my example I'm gonna click sellers use tax and they also require that you at least answer the questions for local taxes and that gets a little weird but we'll run through it together ok so we're just going to hit next and this is some pretty generic stuff they're just going to ask you for information related to the legal name of your business make sure you include LLC or Inc or whatever the full legal name is your trade name what type of business you're engaging in in this state secretary of state and the ID number is not required if your business is located in Alabama and you are registered with the Secretary of State you should add it if you click this link it'll take you to your web page where you can look it up if you don't have a written down all right entities subtype this is pretty important this is basically asking you what type of business you have so I already specified that I was an LLC but now it's asking me what form of LLC do I have and then your incorporation date it's also going to ask are you a foreign corporation in foreign isn't necessarily international it's just asking if you're not from Alabama I know I was pretty confused about that at first and also saying corporation doesn't necessarily mean our your corporation is your do you have a business that is not from Alabama and is from another state in the US so I'm going to say yes in this case and then the date I was qualified to do business in Alabama and the last question here is have you filled out your form 8832 so the 8832 year is a form that you would have filed with the IRS that is an optional form where you basically are electing to be taxed differently than just a standard LLC so an LLC is a pass-through entity but you can elect for your LLC to be taxed as a partnership or corporation if you have clicked yes and you're going to have to upload that document otherwise just click no and then oh last information here it wants you to enter the primary business location here the Alabama online form is kind of annoying because you have to actually click and then there's a separate pop-up that you have to fill out and it has to validate just make sure you click the click here to verify the zip plus for code B we'll be good to go they're kind of hidden so but all point amount as you go along all right and I'm going to type this information in real quick and I'll speed it up for you [Music] so I asked if the mailing address is different from the primary business address this is where your sales tax permit information is going to be mailed to and where they're gonna sell our son to any mailing records and the record address is just if you have an accountant or a warehouse or storage facility where you're storing all of your accounting information and this is just so that if you're ever audited they know where to go to get that information so I'm just going to click now is your business operating in multiple locations so if you're a store for example and you have multiple stores you're going to have to go through the same process I just did where you select or where you enter in the address information for each location and also get set up to collect local sales tax for each location but since we're an out-of-state business and we don't have multiple locations it's not really relevant to us so I'm gonna click no it's gonna ask what our year-end is this is just when you consider your year-end for your accounting financial statements most companies are going to be in December ok so this is where it gets weird it's going to ask us if we want to register for local taxes for city and county local taxes within Alabama this is technically optional there are local taxes in Alabama but let's say you're an online seller and you only have Nexus because you visit the state for sales and marketing purposes and you don't actually have local Nexus you would just enter in your home states information here so Alabama's application is very unique in that it lets you select your home state in your home county for your local taxes this is not going to make you pay your local Colorado or your local home state taxes to the state of Alabama it's just a really weird way that Alabama has decided to allow you to bypass the local tax setup if you're getting a sellers use tax permit because you're not based in Alabama the commend state here is going to be your effective nexus state and this is one of the fields that it will let you select a future date this is the date it isn't really matter here for me because I'm saying you know I'm registering for local taxes in Colorado and I'm Alabama but if you were registering for local taxes this is the effective date that they're going to expect that you begin collecting and remitting sales tax so I you typically recommend collecting remitting sales tax six weeks from now just because that'll give you enough time for the state to process your sales tax permit you can put it in the past but that will also trigger an audit from this date if you do if you should have been collecting tax in the state of Alabama so you can graphically in the past you should consider and join into what's called a voluntary disclosure agreement and a voluntary disclosure agreement is just going to the state of Alabama saying hey I owe you this much tax will you wait penalties and fees and that's something our company permitted can help you in okay so same question for your sellers use tax what is the state and the effective nexus state so when should you begin collecting sales tax in the state of Alabama and for a county just choose the county that you have the most contact and so for example if you're visiting a specific County they make you choose one there's no way around this I contacted them so just choose one that makes the most sense for your business it doesn't really matter because your local taxes would have registered you for the the local county taxes anyways what's really important here is it's a condensed state because this is when these state tax auditors are going to assume that you should be collecting tax by the state or rather beginning on this date if you put a date earlier then they're going to say a where's the money you are collecting so just just keep that in mind and again I recommend at least six weeks out to make sure that you have enough time that should give you more than enough time okay this next page is just going to ask you what your contacts have been within Alabama so do you have employees there do you maintain your place of business are you leasing or renting property what's the deal if you do select the second box you have an employee or independent representative there Alabama might make you register for withholding account so just keep that in mind which you should do if you have employees there but just remind there's probably going to be a few additional steps so I'm just going to say that I'm none of the above because I'm just an online business and I'm you know sending my goods to Alabama citizens and that's it I'm not going to hit submit here because this is a fake application but what you do is hit the submit button you would get a confirmation screen I recommend that you write down your confirmation number and also save it and the state will mail you your sales tax permit application they might also email it to I forget but that's it Alabama does require that you file sales tax permits online or sorry they may make you submit sales tax filings online every month by default you have to submit a return every month but based on your tax liability you might be able to only have to file once a quarter or once a year that's something that our business can help you with we can help you get sales tax permits we can help you automate sales tax filing so if you're interested in learning more check us out our website is sales permitted comm all right I hope you have a great day hope this helps bye