We purchased a small business: materials/machine to make wooden signage. We live in Ga and have a booth set up in Alabama. Sales go through Paypal. How do we handle this?

[scamy04]

Do we have to file an Alabama return or just Georgia? We will have a loss. 

[Cindy0H]

It depends on your Alabama income. You have a loss so you have no Alabama income. No, you dod not need to file in Alabama.

Nonresidents must file a return if Alabama income exceeds the allowable prorated personal exemption. Taxpayers using the Single and Married Filing Separately filing statuses are entitled to a $1,500 personal exemption. Taxpayers using the Married Filing Jointly and Head of Family filing statuses are entitled to a $3,000 personal exemption.

Alabama nonresident instructions:

https://revenue.alabama.gov/wp-content/uploads/2019/01/18f40nrbk.pdf

If you have other questions about this, ask in the comment section below.