How do I apply for a seller's permit?

How to Apply for a Seller's Permit in Alabama

In Alabama, a seller's permit is required for businesses that sell tangible personal property subject to sales tax. This permit allows you to collect and remit sales tax to the state.

Steps to Apply for a Seller's Permit

• Register Your Business: Before applying, ensure your business is properly registered with the Alabama Secretary of State if applicable (e.g., LLC, corporation).
• Gather Required Information: Prepare your federal Employer Identification Number (EIN), business address, contact details, and information about business ownership.
• Complete the Application: Apply for the seller's permit through the Alabama Department of Revenue (ADOR). As of 2026, this can be done online via the My Alabama Taxes (MAT) portal.
• Submit Supporting Documents: Depending on your business type, you may need to provide additional documentation such as your business license or proof of registration.
• Receive Your Permit: Once approved, you will receive your seller's permit number, which must be displayed on sales invoices and used for tax reporting.

Operational Considerations

• Sales Tax Collection: Use your seller's permit to collect the appropriate state and local sales taxes on taxable sales.
• Reporting and Remittance: File regular sales tax returns through the ADOR system and remit collected taxes on time to maintain compliance.
• Recordkeeping: Maintain detailed sales records and copies of your seller's permit for audits and bookkeeping purposes.
• Employee Training: Train staff on sales tax collection procedures and the importance of the seller's permit in daily operations.