Wayward · Pikeville, KY
The owner asked: “I am an apparel designer starting an ecommerce shop. I will sell tees, hoodies, tanks, and accessories such as keychains, earrings, and license plates, starting online on Etsy, eBay, and my own online store.”
Selling tees, hoodies and accessories on Etsy, eBay and your own store still counts as selling taxable goods, so Kentucky expects you to hold the Sales and Use Tax Permit. Blank garments and items you resell can be bought tax-free with the Resale Certificate (Form 51A105), but shipping boxes and printing supplies you use up cannot. Once your sales into other states pass their thresholds, you may owe tax there too.
Short answer: Starting An Ecommerce Business In 41501: start with the structure (an LLC for most owners), then the Sales and Use Tax Permit, a federal tax ID number (EIN) and a local business license.
The Kentucky version of the seller's permit is the Sales and Use Tax Permit. To buy for resale without paying sales tax, you give the supplier a Resale Certificate (Form 51A105). Suppliers generally accept a resale certificate only from a buyer registered for sales tax, so even a business that mostly buys and sells wholesale usually registers. Kentucky is a Streamlined Sales Tax member state, so buyers may also use the uniform Streamlined certificate.
Industry code: NAICS 448140 (Family Clothing Stores), 458110 under the 2022 update
Get your Sales and Use Tax Permit filed · Start your LLC, DBA and EIN · Business licenses
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All Businesses Need a Pikeville Business License & a Trade Business Name ( Pike County Trade Business Name required if using a trade name).
Retailers / Wholesalers, Need a Reseller Tax ID, & a Business License.
Employers Need a Federal Tax Id Number (EIN), a KY State Tax Id ( State EIN), & a Business License.
Corporations, & LLC Need a Federal Tax Id Number (EIN)& a Business License.
Partnerships Need a Federal Tax Id Number (EIN) & a Trade Business Name, but also need a Business License.
Sole Proprietors May Use a Federal Tax Id Number as a KY Business Tax ID but also need a Business License.
Instead of filing a Trade Business Name, You Can Incorporate in KY or form a(n) KY LLC & You Will Not Need To File A DBA
The licenses below are required for all businesses including internet as well as home and businesses like Etsy etc.
1. Ecommerce Apparel Store Nearly all businesses need a(n) , Pikeville business tax registration.
2. Ecommerce Apparel Store All Businesses that use a business name to trade that is other than the surname and first name of a sole proprietor or a fictitious business name other than the LLC or Corporation legal name need a(n) Pike County DBA assumed business name certificate.
3. In KY you may also need a sales tax ID AKA seller's permit if you sell merchandise that is taxable. ( A.K.A KYseller's permit, state id, wholesale, resale, reseller certificate).
4. You will need a federal and a state EIN if you will hire employees. I.e., a KY Federal Tax ID Number and a(n) KY State Employer Tax Number.
5. Instead of filing a fictitious business name DBA Filing in Pikeville, Incorporate in KY or form a(n) LLC.