Kylie doesn't wear a collar b/c she has sensitive skin due to her rodent's ulcer condition and when she wears a collar even if it is loose, she gets big mats, and it rubs bald spots on her neck.
One time I had a collar on her and when I took it off it had grown into her neck and was starting to get infected. So by advice of my vet, she doesn't wear a collar. I am considering getting her microchipped.
I would definately advocate your kitty being an INDOOR only kitty.
They are safer, healthier and live longer. I know people here on PT have indoor/ outdoor kitties, and I hope I don't offend anyone, and I am not implying that if you have outdoor kitties you don't love them, b/c I know better than that. But if you live in the country you cat runs the risk of being attacked by wild animals.
(My sister's father in law lives in the city but his indoor outdoor kitty was attacked by a racoon and almost didn't survive the infections that the wounds got) And regardless where you live, it can be hit by car, attacked by dogs or other cats.
And I, myself, just couldn't stand to put a kitten outside when they are little!

Good luck.!!