Should you own the business completely by yourself and plan to be responsible for all debts and obligations, you may register for a sole proprietorship. Before you’ll be able to register your company, you should resolve what kind of entity it is. Your online business construction legally affects every thing from how you file your taxes to your personal legal responsibility if something goes flawed.
Check with the Kentucky One Stop Business Portal and your local metropolis and county clerks to find out if any special licenses are required for your corporation. A certificates of resale, also known as a seller’s allow, allows you to collect state gross sales tax on products offered. Firms, LLCs, or restricted partnerships usually register their business identify when the formation paperwork is filed.
Contact your state’s taxation department to learn if a state tax identification number is required in your state. Your small enterprise generally is a sole proprietorship, a partnership, a restricted liability company (LLC) or a company. If you will promote products, you need a seller’s permit. The enterprise entity you choose will impact many factors from your corporation title, to your legal responsibility, to how you file your taxes.
Other benefits of forming an organization or LLC embrace tax benefits and higher credibility with clients, distributors and enterprise partners. But even when you do not want an EIN, get one anyway: It’s free, takes minutes, and you’ll maintain your Social Security number private and reduce the prospect of identity theft, as a result of if you don’t have an EIN, your SSN identifies your enterprise for tax purposes.