A sole proprietorship is one of the simplest and most common business structures to pick from if you’re looking to launch a business in Kentucky. An unincorporated firm run and owned by a single person is known as a sole proprietorship. It is the simplest, most adaptable, and least expensive sort of business that you can launch.
A step-by-step tutorial on how to launch a sole proprietorship in Kentucky is provided below: First, decide on a name for your company. The name you select should be original and not in use by another company in Kentucky. By using the online company name database maintained by the Kentucky Secretary of State, you may determine whether the name you have in mind is available. 2. Register your company name. You must register your company name with the Secretary of State’s office in Kentucky. You can do this via mail or online. You must provide your business name, your name, your address, and a succinct summary of your operation. 3. Acquire any required licenses and permits. You might need to apply for licenses or permissions from the state or local government depending on the nature of your firm. For instance, the health department will require that you seek a food service permit if you plan to launch a food service business. Fourth, get an EIN. Employer Identification Numbers, or EINs, are special nine-digit numbers given to companies by the IRS for tax-related reasons. To open a business bank account or file taxes, you will need an EIN even if you don’t have any workers. On the IRS website, you can submit an online application for an EIN. 5. Open a company bank account. It’s crucial to register a separate company bank account in order to keep your personal and professional finances distinct. Additionally, this will make it simpler for tax purposes to keep track of your business’s spending and revenue.
What distinguishes an assumed name from a dba doing business as?
DBA stands for “doing business as,” and an assumed name is another way of saying a made-up name or a business name. Both words refer to a name you use for commercial purposes that is distinct from your legal identity. For instance, if your name is John Smith and you are operating a landscaping company under the name “Smith Landscaping,” you would need to register your DBA, or assumed name. What is the name given to an assumed name?
What drawbacks does a dba have?
The biggest drawback of a DBA is that it offers no legal defense for your company. Any debts or legal problems resulting from your business are under your exclusive responsibility as a lone proprietor. Additionally, since a DBA is not a distinct legal organization, you can have trouble getting financing or building business credit if you use one.
A seven-digit number called the KY LLET number, or Kentucky Limited Liability Entity Tax Account Number, is given to companies doing business in Kentucky as LLCs, partnerships, or S corporations by the Kentucky Department of Revenue.
LLET stands for Limited Liability Entity Tax in Kentucky. Limited liability companies, such as LLCs, partnerships, and S corporations, as well as sole proprietors who have chosen to be treated as corporations, are subject to this annual tax. The LLET is calculated using either the entity’s total sales or the value of its tangible property in Kentucky.