This guide provides Alabama virtual assistants (VAs) with essential tax information for their LLCs in 2026. Understanding your tax obligations, from federal income tax to Alabama's business privilege tax, is crucial for financial health. As a VA, you likely handle sensitive client data, so forming an LLC with Lovie streamlines EIN registration, compliance, and registered agent services, freeing you to focus on your clients.
As a single-member LLC in Alabama, your VA business income is typically taxed as pass-through income. This means profits are taxed at the individual level. You'll file Schedule C with your Form 1040, reporting business income and expenses. Consider if S-Corp election is right for you. Alabama also has specific state tax requirements, including sales tax on certain services and a business privilege tax based on net worth. Lovie can help you manage these complexities.
Start your formation with Lovie — $20/month, everything included.