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Do I need an Assumed Business Name (DBA) for Precious Bundles Online Hair Selling in Indiana?
Keli asked: “I am a former cosmetologist and I sell hair bundles online. Which is better for me, an LLC or a DBA? If I file an LLC and open a bank account, would I still need a DBA?”
Hi Keli, congratulations on Precious Bundles Online Hair Selling! Before the sign goes up and the first invoice goes out, Indiana expects "Precious Bundles Online Hair Selling" to be on record through an Assumed Business Name. We cover the name registration, the tax IDs, and the licenses that let you open in Lowell, and finish with a quick recap.
Here is the quick split: a DBA only registers the name Precious Bundles Online Hair Selling, while an LLC is a separate entity that protects your personal assets. If you form the LLC under that exact name, the bank account can use it and no additional name filing is needed; if the LLC has a different legal name, the brand needs its own Assumed Business Name registration in Indiana. Publication in a newspaper isn't required in Indiana. For an online hair shop shipping bundles to customers, an LLC is the stronger shield when a customer disputes an order, and the name registration is the cheaper quick step.
How Indiana handles a business name
In Indiana, a business name other than your own legal name is registered as a Assumed Business Name, which you will also hear called DBA, assumed name, or fictitious name. Individuals and general partnerships using a name other than their real name file a certificate in each place where they have a business location, while entities file on a statewide basis for a name other than their registered name. An individual using their true surname is exempt.
Newspaper publication: Indiana does not require this name to be published in a newspaper.
How long it lasts: There is no expiration or renewal, but a notice is filed when the business ends.
What Precious Bundles Online Hair Selling needs
- Assumed Business Name – Registering "Precious Bundles Online Hair Selling" puts the name on the public record under your ownership, and it is what banks, suppliers, and landlords usually ask to see.
- Name check – Choose a name that is easy to spell and not confusingly close to a business already operating nearby. Registering a DBA announces your use of the name, but only a trademark gives you exclusive rights to it.
- LLC (limited liability company) – A DBA creates no separate legal entity and no liability protection; an LLC keeps business debts and lawsuits separate from your personal home and savings. If a client says a weave you installed pulled out her edges and sues, the claim is against the extension business rather than your personal paycheck. If you form the LLC under the exact name Precious Bundles Online Hair Selling LLC, the LLC filing itself protects that name and you will not need a separate DBA for it. Once profits grow, an LLC can elect S corporation tax treatment; ask a tax adviser when the numbers justify it. Non-US residents can own an LLC too; the EIN application simply follows a different path.
- EIN (federal tax ID number) – You plan on 1 employee, so the federal tax ID number (EIN) is required for payroll, and you will use it for the business bank account opened in the registered name.
- Indiana Registered Retail Merchant Certificate – You will be selling taxable goods, so register to collect sales tax before your first sale. It also lets you buy inventory for resale without paying tax on it.
- Indiana employer ID – With 1 employee, you need a state employer account number for payroll withholding and unemployment insurance. It works like the EIN, but for state payroll taxes.
- Business license – A business license puts Precious Bundles Online Hair Selling on the official map in Lowell, which landlords, banks, and many customers will expect to see before they sign anything. Home-based businesses often need a home occupation permit as well, which can limit customer visits, employees, and how much inventory you keep at home.
- Cosmetology license – Selling bundles needs no special license, but installing extensions or wigs on clients usually requires a cosmetology license.
By the numbers: Banks, insurers, and tax forms will ask for your industry code. For a hair extension shop it is NAICS 446120 (Cosmetics, Beauty Supplies, and Perfume Stores), 456120 under the 2022 update. With 1 employee planned, you are already creating jobs in Lowell. That makes 8 items on your list.
Tip: Post a clear policy on returns of opened bundles, since hygiene makes returns tricky and customers should know your rules beforehand.
To recap: Precious Bundles Online Hair Selling in Lowell, IN needs an Assumed Business Name, a name check, an LLC, an EIN, a sales tax permit, a state employer ID, a business license, and cosmetology license. Get those in place and you can spend your time on customers instead of paperwork.
We can file your business name registration and the other paperwork for you: start here. |