So you live in Alabama? The alphabetical first state and the 22nd to officially join the union. It's a beautiful state, with the camellia as its flower and the monarch butterfly as its insect. And what state owns that Sweet Home song that all residents of the other 49 states wish they could call their own? That's you, Alabama.
Alabama is also a supportive and friendly environment to register your small escort business in. In this article you'll find clear step-by-step advice on how to register your escort business in Alabama. For more information on why it's important to register your business, refer to our article Don't get busted for tax evasion: Why registering your escort business is the only option.
Sole Proprietorship:
In Alabama you are not required to register "Jane Doe" or your DBA name with the state. However, you can choose to register your DBA name as a trade name with the secretary of state. For more information on if this is a good choice for your business, refer to our article Am I a Sole Proprietorship? (Name of article TBD)
To register your trade name in Alabama, you first need to have your business running and be able to provide three usages of it. These can be such as a visual from a website, a line from a contract or a name/logo used on a printed marketing material. Once you have these, you'll need to fill out and send an lat-1 form and include a check for $30 written to the Secretary of State. You can get more information and find the download at the website for the Alabama Secretary of State or download the lat-1 form directly.
Partnership:
Your business name is either the title of the partnership agreement or the last names of the partners. If you choose to register a DBA name, follow the guild-lines and instructions above.
Corporations:
You'll need to complete a Name Reservation form (sosnr-1) along with the required Articles of Incorporation form (sosdf-1) for the Alabama state government. You can fax the completed forms with a credit card slip for the $150 fee to 334-240-3138, or mail 2 copies of the Articles of Incorporation and one Name Reservation completed form with your check or money order (made payable to the Secretary of State) to Business Entities Division, PO Box 5616, Montgomery, Alabama, 36103-5616. These forms and more information are available at the website for Alabama's Secretary of State. The sosdf-1 can also be found directly here and the sosnr-1 here.
LLCs:
You'll need to register your business and business name with the Alabama state government through Articles of Organization (sosdf-8). You'll include your company name (which must end with ‘Limited Liability Company', "L.L.C" or "LLC"), how long the company plans to operate, the purpose of organization, the mailing address associated with the LLC, the names and addresses of the individual members and who is to manage the LLC. Two copies of the form and $150 in filing fees should be sent to the probate judge in your county. You can find the form at www.sos.state.al.us or download it directly form here.
For more information on registering all business models with the state of Alabama, go to www.sos.state.al.us/BusinessServices
Step five: Register for your Alabama State and Local City Taxes
There are four basic types of taxes small businesses may register for:
- Income Tax: you will have to pay this tax, possibly with your own personal tax returns depending on your business model. This means that all money you've made from escorting is your income, and a percentage of that goes to your federal and local governments. If you are part of a partnership, this means that you file an information return with your taxes, which you can find at revenue.alabama.gov.
- Employment Taxes: If you hire any employees, you'll have to pay the state for worker's compensation insurance, unemployment insurance and (sometimes) temporary disability insurance. These are paid quarterly through a 941 form, available at IRS.gov/formpubs. You'll also need to report all money paid to your employees at the end of the year with a W-2 form, downloadable at IRS.gov/formpubs. If you are a corporation, you definitely have to pay these taxes.
- Self-Employment Taxes: If you own and operate your business and are not paid as an employee, you'll need to file your own self-employment taxes for social security and Medicaid. You can download the 1040 form and get more information at IRS.gov/formspubs. If you're a sole proprietor, you'll have to do this. If you're a partnership and simply absorb the profits, you may not.
- Excise Taxes: Unless you're transporting and selling motor oil or gasoline, you don't have to pay these taxes. And if you are selling motor oil or gasoline, you're on the wrong website.
More detailed information on these taxes can be found at IRS.gov/business/small
You can register online for most taxes in Alabama at ador.state.al.us/salestax/register.html
For more information and to download brochures on specifics such as Withholding Tax Tables and Instructions for Employers and Withholding Agents go to revenue.alabama.gov
Step six: Get necessary licenses and permits
Each state usually requires at least one license for you to run your business. As an escort service in Alabama, you most likely won't need to be applying for building, zoning or health permits. But your city may require you to have general business license to operate your business.
For more information on licenses and permits specific to your area code go to business.gov/register/licenses-and-permits
Find out how to register an escort business in each state of the USA.
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Please note: Dating.com is not a legal service, nor are we tax advisors or accountants. We do offer you what we consider our best advice, but if at all in doubt, please consult a professional.
