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.