The Fundamentals of Alabama Business Law

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Business law in Alabama requires you to have a fictitious business name statement if you are starting a business under any name other than your own. This statement must be completed and put in a newspaper that is in general circulation, the statement must them be filed with the county recorder in the area where the business has been established. Of course, corporations are usually exempt from this law, as are businesses that already operate under the sole proprietor's true name. This law usually applies to persons using the "doing business as" statement.

Do I Need A Taxpayer Identification Number?

Business Law in Alabama requires you to have a taxpayer identification number only if you have employees. This number is also usually referred to as an EIN, or an employer identification number. Both an EIN for the state and the federal government is required. This number is required because certain taxes have to be taken out of the employee's pay and this is the number that tracks these taxes and makes sure that they are being paid.

Do I Need Business Insurance?

Whether or not you need some form of insurance for your business depends on the type of business that you are in. This usually has to do with any liability that you face from the activities that your business engages in. If you have employees, you will often need to have workman's comp insurance on them in case they are injured on the job. The common forms of business insurance include the following: commercial multi-peril policies, liability insurance on premises, activities, and products; business interruption insurance, surety and performance bonds, employee fidelity bonds, malpractice, and errors and omissions coverage.

What about Licenses and Permits?

Business law in Alabama requires you to have licenses and permits in certain situations only. Certain professions will require you to have a license or permit from the state such as: barbers, beauticians, doctors, lawyers, day care providers, contractors, and building tradesmen. Of course, some licenses and permits are not required by the state, but the city and county that the business is established in. Many local governments may require you to have a license or permit before you can begin your business as well. So make sure that you contact your local authorities to make sure that you have the licenses and permits required before you begin your business.
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By clicking "Find a Lawyer", you agree to the Martindale-Nolo Texting Terms. Martindale-Nolo and up to 5 participating attorneys may contact you on the number you provided for marketing purposes, discuss available services, etc. Messages may be sent using pre-recorded messages, auto-dialer or other automated technology. You are not required to provide consent as a condition of service. Attorneys have the option, but are not required, to send text messages to you. You will receive up to 2 messages per week from Martindale-Nolo. Frequency from attorney may vary. Message and data rates may apply. Your number will be held in accordance with our Privacy Policy.

You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

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