HOW TO FORM AN LLC IN KENTUCKY
What is a Kentucky LLC?
A limited liability company (LLC) is a legal business entity that separates the assets of the individual from the debts and obligations of the company. LLCs are the newest legal business entity in the US and provide more flexibility than a corporation without sacrificing any asset protection.
How do I form an LLC in Kentucky?
Forming a Limited Liability Company (LLC) in Kentucky requires the completion and filing of the Articles of Organization with the Kentucky Secretary of State.
Once that is completed, in order to establish and maintain your LLC, you will need to:
- Draft and Finalize an Operating Agreement
- Obtain an EIN
- Open a Business Banking Account
- Apply For Any Required Business Licenses or Permits
- File an Annual Report
Kentucky Registered Agent LLC
LLC Formation Package
Stress-Free Formation for $189
Our Formation Service Includes:
- Completed Articles of Organization
- 365 Days or Registered Agent Service
- Access to a Safe and Secure Client Account
- A Custom Operating Agreement
- Annual Report Reminders
- Transparent Prices
Why should I hire Kentucky Registered Agent LLC to form my LLC?
Kentucky Registered Agent LLC is all about getting the job done so you can get down to business. We provide the fastest and most affordable LLC formation in the USA.
But if you want to save some money and do it yourself, we want to help with that too. Here’s a D.I.Y. guide to form an LLC in Kentucky.
TO FORMING AN LLC
IN KENTUCKY, USA
Forming an LLC in Kentucky starts with completing and filing the Articles of Organization. After that, there are a few more steps to making sure your LLC is ready for success.
Completing the Articles of Organization
Follow these steps to complete the Articles of Organization:
- Choose a Name
Your LLC name must be different from any other business entity on record with the Kentucky Secretary of State. You can check if the name you want is available by searching the Kentucky Business Entity Database.In addition to being unique, the name of your LLC must include one of the following identifying terms:
Limited Liability Company, LLC, or LC
Limited Company or LTD CO
- Choose a Registered Agent
To form an LLC in Kentucky, you are required to list a registered agent on the Articles of Organization. A registered agent is a third party individual or entity that is selected by the founder(s) of the LLC to receive any legal correspondence on behalf of the company.A registered agent is required to have a physical location and a legitimate street address in Kentucky. A PO box address is not sufficient. Before the Articles of Organization can be officially filed, the document must be signed by the registered agent.
You can be your own registered agent if you have a physical street address in Kentucky, however, this means that your personal information will be public record.
When you hire Kentucky Registered Agent LLC to form your LLC, 365 days of registered agent service is provided in the LLC formation package.
- List a Principal Office
The principal office is primary location where all financial and business related documents are kept. This can be the same address as the registered agent.
- Check Who Will manage the LLC
You must indicate whether your LLC will be managed by a manager(s) or its member(s).Member-managed LLCs vest all decision making power in the members of the company. This means that financial, structural, and business decisions are made by majority vote of the members.
If your LLC is manager-managed, the business decisions will be made by the manager or majority vote of the managers. A manager of an LLC does not necessarily have to be a member of the LLC, but being a member does not prevent someone from being the manager.
- Sign the Document
The Articles of Organization must be signed by at least one organizer and the registered agent.An organizer is an individual authorized by the founders of the LLC to sign the Articles or Organization.
Filing the Articles of Organization
You can file the Articles of Organization by mail, in person, and online. The fee is $40. If you are paying by check, make the check payable to “Kentucky State Treasurer.”
Filing by Mail
If you are filing by mail, send the original and an exact copy of the Articles of Organization with correct payment to:
Alison Lundergan Grimes
Office of the Secretary of State
PO Box 718
Frankfort, KY 40602-0718
There is no guaranteed filing time if you file the Articles via mail. Additionally, there is no option to expedite the filing. Remember, do not send cash through the mail.
If you are filing the Articles of Organization in-person, or via courier, deliver the document to:
Room 154, Capitol Building
700 Capital Avenue
Frankfort, KY 40601
8:00 AM – 4:30 PM
If you file the Articles in person you can pay with card, cash, or check and the document will be filed immediately.
If you file the Articles of Organization online, you do not need to provide two copies. Articles of Organization that are submitted online are filed immediately. You can pay via card or prepaid account.
Establishing and Maintaining Your LLC
Completing and filing the Articles of Organization is just the first step. To establish and maintain your LLC, there are a few more tasks ahead.
Draft and Finalize an Operating Agreement
One of the most important steps in establishing and maintaining an LLC is drafting and finalizing an operating agreement. An operating agreement is the agreement of all founding LLC members that outlines policy and procedures for how the company should operate. Topics that are usually addressed in the operating agreement include how to become a member of the LLC, what happens if a member dies or gets divorced, voting powers of members, how the LLC is managed, and any other relevant business related protocol.
This agreement is important because if your company is ever sued, the Court will take the operating agreement into consideration. Without an operating agreement, the Court will rule according to the default LLC laws. This may not be ideal for you or your business. It’s a better idea to be prepared and make sure that you have a finalized operating agreement.
When you hire Kentucky Registered Agent LLC to form your LLC, we provide a custom operating agreement.
Obtain an EIN
An EIN is a unique nine-digit number that is issued by the Internal Revenue Service (IRS). This number is used for federal taxation purposes. It is important to have an EIN because it is required if you plan on hiring employees or opening a business banking account. Getting an EIN is free, easy, and can be completed entirely online. Visit the IRS website for more information.
Open a Business Banking Account
One of the functions of an LLC is to keep the liabilities of the company separate from your personal assets. To affirm this, you will need to open a business banking account. Opening a business banking account typically requires a copy of the LLC’s operating agreement and an EIN. It’s a good idea to call the financial institute beforehand and make sure you have everything you need ahead of time.
Apply For Any Required Business License or Permits
Different industries require companies or individuals obtain business licenses or permits before operating. For example, if you are opening a garden center in Kentucky you are requires to have a Nursery License and a Nursery Dealer License. You can check what business licenses or permits you will need by visiting the Kentucky Occupational Licenses/Permits website.
File an Annual Report
All business entities in Kentucky are required to file an annual report every year after their formation. Annual reports can be filed between January 1 and June 30. If you miss the deadline, your LLC will be administratively dissolved.
The annual report must include a dated signature and a $15 filing fee. Additionally, you must confirm the principal and registered agent/office. You can file the annual report by:
• Returning the Annual Report Postcard
• Filing Online
• Sending a Printed Report via Mail
• Filing the Annual Report in Person
Kentucky Registered Agent LLC gets the job done, from step one to LLC. We know you’re in it to be the best. Why shouldn’t you expect the same from the people you hire to form your business?
Frequently Asked Questions
About Kentucky LLC Formation
How will my Kentucky LLC be taxed?
LLCs are “pass-through” entities. This means that all profit is passed through to the members and then is taxed as personal income. This differs from the corporate tax model where profit is taxed at a corporate level and then again as personal income once it is passed through to shareholders.
If you want, you can apply to have your LLC taxed as a corporation by filing Form 8832 with the IRS.
How do I contact the Kentucky Secretary of State Business Filings Division Office?
You can contact the Kentucky Secretary of State Business Filings Division Office at 502-564-3490 or through an online contact submission.
The Secretary of State Office is open from 8:00 AM – 4:30 PM and is located at:
Room 154, Capitol Building
700 Capital Avenue
Frankfort, KY 40601
How do I report changes to my LLC?
If your LLC’s registered agent or principal place of business changes, you are required to file paperwork with the Kentucky Secretary of State to make the changes official. To do so, visit the Kentucky Secretary of State Business Filing Forms website and select the correct document. Complete this document and then file it with the Secretary of State like you would the Articles of Organization.
What is the Limited Liability Entity Tax?
In Kentucky, LLCs must pay the limited liability entity tax (abbreviated as LLET). There minimum fee of $150, regardless if the LLC turned a profit. This tax is due on April 15th and can be paid online or via mail.