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Question – I’m researching opening a handmade part time craft business from my home in KY. If I choose sole proprietorship, will be my business name be XYZ or will I have to have a DBA? Also, I’m not sure what order to do things in.. Do I get a tax number first, local business license, choose designation? I’m really confused on this. Thanks!
Our Response – If you are a sole proprietorship in Kentucky and want to register a business name other than your first and last name (in this case CC’s Handmade Wreaths) you will need to file a Certificate of Assumed Name with the county clerk in the county where the business is located. The cost is usually around $20. – Step 3 https://startingyourbusiness.com/kentucky/
You will want to register the business name first because if the name you want is already taken, you will have to refile your other registrations.
You may or may not need the FEIN. If you won’t have employees and are a sole proprietorship you will use your Social Security Number. Step 4 – https://startingyourbusiness.com/kentucky/
Since you are selling products are retail, you will need to get a Kentucky Sales Tax Account from the Department of Revenue. Step 5 – https://startingyourbusiness.com/kentucky/ This lets you sell at retail and collect sales tax.
Really the only other thing you should need to do is check whether you need a local business license. It’s unlikely since I assume you are doing business out of your home, but some towns require a business license for all businesses.