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Alabama

Register your new business in Alabama by following essential tax guidelines and procedures.

Alabama New Business Registration Guide

Taxes You Must Register For

If you’re starting a business with employees in Alabama, you need to register for:

  1. Alabama State Income Withholding Tax
  1. Unemployment Insurance (UI) Tax
  1. Local Occupational Taxes (if applicable)

State Income Withholding Tax

Tax Agency: Alabama Department of Revenue (ADOR)

Tax Type: State Income Withholding Tax

Registration Steps

Step 1: Register for a withholding account number

  1. Go to the MyAlabamaTaxes portal (https://myalabamataxes.alabama.gov/_/#1)
  1. Click “Register a Business / Obtain a new tax account number”
  1. Enter entity type and Federal EIN; answer “No” for existing tax accounts
  1. Select Payroll Withholding Tax as a tax type
  1. Complete the remaining information, including contact and email
  1. Submit the application and print the confirmation page
  1. You’ll receive a Sign-on ID and Access Code by mail in 3–5 business days

Step 2: Create an ADOR login account

  1. Go back to the MyAlabamaTaxes site (https://myalabamataxes.alabama.gov/_/#1)
  1. Click “Create My Alabama Taxes Account”
  1. Enter your account number, Sign-on ID, and Access Code
  1. Set your username, password, and security questions
  1. Complete contact info and enable third-party access
  1. Submit to finalize account setup

Once you have your account number, update your payroll with it.

Need help?

  • ADOR Business Registration: (334) 242-1584

Unemployment Insurance (UI) Tax

Tax Agency: Alabama Department of Labor

Tax Type: Unemployment Insurance (UI)

Registration Steps

  1. Go to eGov registration page: https://labor.alabama.gov/egovregistration/
  1. Create a username, password, and security question
  1. Complete the employer registration form with your business info

➤ Must be completed within 20 days of hiring your first employee

➤ Once received, update Check with your Alabama UI account number

Need help?

  • Phone: (334) 954-4701
  • Email: eGov@labor.alabama.gov

Local Occupational Taxes

Tax Agency: Local municipal tax agencies

Tax Type: Occupational license taxes and fees

Registration Steps

  1. Contact each local agency where your employees work
  1. Ask for:
      • Payroll account registration for occupational license tax
      • Annual business license application (usually due Jan 1st)

If your jurisdiction is managed by Avenu Insights & Analytics:

  • Avenu will provide a single account number for all their managed localities

If NOT managed by Avenu:

  • The local jurisdiction will issue a tax ID (sometimes your EIN)

➤ Update Check with all local account numbers you receive

Disclaimer: This guide does not constitute legal or tax advice. Consult a CPA or attorney for official guidance.

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Last updated on May 17, 2025

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