The success and branding of your firm may be impacted by the name you choose for it. Check to see if the name is already taken in your state before deciding on it. Utilizing the business name database maintained by the Kentucky Secretary of State, you can look up available business names in Kentucky. To find out if a name is available, just type it into the search bar.
If the name you choose for your company already exists, you may need to think about other choices, such as differentiating your brand by include a special word or phrase. It’s crucial to remember that even if a business name isn’t already in use, it could still be too similar to another business name and cause legal problems. A legal expert should always be consulted before deciding on your company name.
A business that conducts business under a name other than its legal name is referred to legally as “Doing Business As,” or DBA. While using a DBA to do business can be inexpensive and productive for lone owners, there are some drawbacks to take into account. The fact that a DBA offers no legal or liability protection for the business owner is a significant drawback. This indicates that the owner’s personal assets may be at danger if the company is sued.
A DBA does not also provide any tax advantages or benefits. The business owner must still declare all earnings and outgoings on their individual tax return, and they might not be qualified for all tax breaks or credits that apply to other kinds of business companies.
Your unique business demands will determine whether you should choose an LLC or DBA. A DBA might be an excellent choice if you’re a lone owner or partnership and want to conduct business under a name other than your legal name. However, an LLC can be a preferable option if you want your company to have legal and liability protection. An LLC may offer tax advantages or benefits and affords personal liability protection for the owner’s personal assets.
With a DBA, business expenses can be deducted. The company expenses incurred by sole owners who use a DBA can be written off on their personal tax return. This covers costs for things like office supplies, technology, travel, and marketing. To ensure adequate deductions and receive advise on specific deductions, it’s crucial to keep thorough records of all business expenses.
All self-employment taxes, including Social Security and Medicare levies, must be paid by sole proprietors. The net income of the company is used to determine these taxes, which are then reported on the owner’s personal tax return. Additionally, depending on their location and business operations, sole proprietors can have to pay state and local taxes. For information on particular tax obligations and needs, it’s crucial to speak with a tax expert.
To sum up, while beginning a firm, it’s crucial to choose a name, decide on the legal structure, and comprehend your tax responsibilities. You can make sure that your firm is prepared for success by conducting your research and seeking advice from experts.
I don’t have access to the information in the article you refer to in your query because I am an AI language model. However, some typical drawbacks of being a sole proprietor include unlimited personal liability for business debts and legal issues, difficulty raising capital, constrained growth potential, and the potential for management issues if the sole proprietor falls ill or passes away. A legal or financial expert should always be consulted before making any business decisions.
In Kentucky, sole proprietors are exempt from the self-employment tax but may be forced to pay the unemployment insurance tax (UIT) for any employees they hire.