{"id":205817,"date":"2023-11-10T10:53:27","date_gmt":"2023-11-10T10:53:27","guid":{"rendered":"https:\/\/www.bizreport.com\/?post_type=informational_posts&p=205817"},"modified":"2023-11-10T10:55:38","modified_gmt":"2023-11-10T10:55:38","slug":"how-to-start-an-llc-in-kentucky","status":"publish","type":"informational_posts","link":"https:\/\/www.bizreport.com\/small-business\/llc\/how-to-start-an-llc-in-kentucky","title":{"rendered":"How To Start An LLC In Kentucky\u00a0 2024?"},"content":{"rendered":"\n
If you need to know how to get an LLC<\/a> in Kentucky, you\u2019ve come to the right place. It can be a difficult road to finally establishing your new LLC, but it’s an essential step toward legitimacy if you want to succeed as a business and limit your liability regarding your new business.\u00a0<\/p>\n\n\n\n Each state has its own unique requirements when starting an LLC. Some require a state filing fee to be paid, some require a registered agent<\/a> to be appointed. We\u2019ll dive into what requirements are placed upon LLCs in Kentucky in this article.<\/p>\n\n\n\n 6 Basic Steps To Start an LLC in Kentucky 2024<\/strong><\/p>\n\n\n\n If you don\u2019t know where to begin, here are 6 tried and true steps to start your Kentucky business<\/a> off on the right foot as an LLC.\u00a0<\/p>\n\n\n\n In Kentucky, your business name<\/a> has to be unique and not yet coined by another business owner. Naming your business won\u2019t be as simple as just thinking of a catchy name and buying a website.\u00a0<\/p>\n\n\n\n Before you start brainstorming what to name your new business, make sure you follow the state rules for LLC naming. First, you\u2019ll need to check the Kentucky Secretary of State website and make sure your desired name is available, then proceed with coming up with and using your new business name. <\/p>\n\n\n\n First of all, your LLC name must meet the requirements listed by the Kentucky secretary of state. Make sure you include the right abbreviations and follow the rules for naming your LLC listed.<\/p>\n\n\n\n There are several rules for forming LLCs in Kentucky, including naming requirements, requirements for any government agency, requirements for a foreign LLC, and more. Make sure you check out every article of requirement before proceeding with starting a domestic or foreign LLC in Kentucky.<\/p>\n\n\n\n Once you\u2019ve checked through these requirements, you can settle on your business name by searching the LLC name database provided by the Kentucky Secretary of State. It\u2019s an easy-to-use search bar that will help you determine if your business name idea is already taken.<\/p>\n<\/div><\/div>\n\n\n\n Next, you\u2019ll have to appoint a registered agent for your Kentucky business. You can use registered agent services and provide registered agent services information, or you can appoint someone within your business (including yourself) to act as the registered agent <\/a>or legal liaison.<\/p>\n\n\n\n To properly establish an LLC, articles of formation must be completed and submitted to the secretary of state. These articles include details like your business size, location, and name. <\/p>\n\n\n\n An operating agreement is exactly what it sounds like, it’s a document that includes the details of your business functions and who is responsible for them. A comprehensive operating agreement is an internal document that can be filed away or used daily. <\/p>\n\n\n\n You don\u2019t technically need an operating agreement to start your limited liability company in Kentucky. Still, it’s a good idea to draw an operating agreement<\/a> and have a conversation about who is in charge of what business function, and what each function entails to ensure that your business entity is running properly. Take our word for it and make sure you complete an operating agreement before starting your LLC.<\/p>\n\n\n\n If you have a single-member LLC, or a sole proprietorship (aka if your business is under you as an individual or business entity), you\u2019ll need to secure an employer identification number<\/a>. This will assist you in the case that you hire employees and have to secure a federal tax identification number.\u00a0<\/p>\n\n\n\n The employer identification number application can be found and completed online by single-member LLCs. This is an essential part of doing business in the US, and it\u2019s necessary for many business operations. <\/p>\n\n\n\n In the state of Kentucky, each LLC is required to pay a limited liability entity tax annually<\/a>.[1]<\/sup> Depending on your company\u2019s income, you\u2019ll have to pay either a flat tax or a variable tax computed by the state (it can be found here). LLC members, whether domestic or international, are liable to this tax and must pay it to the state.\u00a0<\/p>\n\n\n\n Think of it as a \u201csales tax\u201d for doing business in Kentucky. This sales tax ensures that you can legally do business in Kentucky year after year, and the Kentucky Department of Revenue will collect \u201csales tax\u201d from you annually. LLC members can set reminders to pay this tax when they file their annual reports. <\/p>\n\n\n\n Just as the name indicates, a limited liability company <\/em>is a business entity that enables LLC owners to limit their liability for their small businesses. In the case of a business failure, lawsuit, or unpaid business debts, an LLC<\/a> protects the business owner from ruin or full liability that might in another case require that their personal assets be seized.\u00a0<\/p>\n\n\n\n On the other hand, an LLC is different from an S corp<\/a> because the income you make through your LLC will be subject to the tax structure your personal income is taxed with. You must submit and pay taxes on your LLC at the same time you file your personal income taxes.<\/p>\n\n\n\n In Kentucky, business owners have unique responsibilities when they start an LLC. Like some other states<\/a>, they must choose a unique name for their Kentucky LLC, designate a registered agent, and file articles of organization.\u00a0<\/p>\n\n\n\n Then, while you\u2019re submitting your articles of organization for your Kentucky LLC, you\u2019ll have to pay the state filing fee<\/a>[2]<\/sup> of $40. Compared to other states\u2019 filing fees, this is very inexpensive.\u00a0<\/p>\n\n\n\n There are three main types of Kentucky LLCs: general LLCs, professional LLCs, and nonprofit LLCs. Each type has its own unique advantages and disadvantages.<\/p>\n\n\n\n General LLCs are the most common type of LLC in Kentucky. They offer a high degree of flexibility and pass-through taxation, but the members are personally liable for the debts and liabilities of the LLC.<\/p>\n\n\n\n Professional LLCs are designed for professionals who are licensed to practice in Kentucky. They offer the same liability protection as general LLCs, but they also have additional restrictions on the types of businesses that can be formed as PLLCs.<\/p>\n\n\n\n Nonprofit LLCs are formed for charitable or other nonprofit purposes. They are exempt from federal and state taxes, but they are subject to more regulations than other types of LLCs.<\/p>\n\n\n\n As we mentioned before, the filing fee for LLC formation in Kentucky<\/a> is lower than in most states. It\u2019s truly a great price to be able to do business in Kentucky. Another benefit to starting your domestic LLC in Kentucky is the fact that you\u2019ll have limited liability to do business in the state of Kentucky.\u00a0<\/p>\n\n\n\n If you currently own a business or have a business concept in Kentucky, Kentucky LLCs are the way to go. Limited liability provides you with personal asset protection in the case of any issues with your business. <\/p>\n\n\n\n We\u2019d highly recommend forming a limited liability company in Kentucky if you need legal protection for your business and you plan on doing business in the state of Kentucky. <\/p>\n\n\n\n Let\u2019s break down the steps to forming your Kentucky LLC a bit more in-depth. You\u2019ll have to complete the key steps below to ensure your Kentucky LLC is formed legitimately.<\/p>\n\n\n\n First of all, it is required in the state of Kentucky to designate a registered agent for your Kentucky LLC. You can act as your own registered agent or appoint a third-party registered agent service<\/a> to receive and send official legal documents on your behalf.\u00a0<\/p>\n\n\n\n The registered agent must have a physical mailing address in the state of Kentucky, and it can be your business address (just no PO boxes). <\/p>\n\n\n\n What is a registered agent? In short, a registered agent will receive and send legal correspondence. They should have some knowledge of legal proceedings, to avoid misunderstanding legal documents and missing important deadlines. <\/p>\n\n\n\n As mentioned before, you can appoint yourself as the Kentucky registered agent, you can appoint someone within your business, or you can hire a professional registered agent service. You\u2019ll provide the details for the registered agent you decide upon in your articles of organization for your Kentucky LLC. <\/p>\n\n\n\n In some states, new LLCs must choose a name that is unique and has never been registered before. In Kentucky, this is the case. <\/p>\n\n\n\n Make sure your name is available before filing your articles of formation for your Kentucky LLC. If not, you might need to rethink your LLC name. When checking out the name availability, you can go online to the Kentucky Secretary of State’s website and use their business name searching feature to see if yours is available. <\/p>\n\n\n\n Make sure to follow these important Kentucky LLC naming guidelines or your LLC application won\u2019t be approved. This is an essential part of forming an LLC in Kentucky.<\/p>\n\n\n\n In Kentucky, it costs $40 to form a new LLC with the Kentucky secretary of state. If you use an LLC formation service<\/a>, it might cost more than this to have assistance when filing your Kentucky LLC articles of organization.<\/p>\n\n\n\nHow To Start An LLC In Kentucky? <\/strong><\/h2>\n\n\n\n
Choose A Name For Your LLC In Kentucky<\/strong><\/h3>\n\n\n\n
Naming Rules In Kentucky<\/strong><\/h4>\n\n\n\n
Searching Available Name In Kentucky<\/strong><\/h4>\n\n\n\n
Choose A Registered Agent In Kentucky<\/strong><\/h3>\n\n\n\n
File Organizational Paperwork With The State<\/strong><\/h3>\n\n\n\n
Prepare An LLC Operating Agreement<\/strong><\/h3>\n\n\n\n
Obtain An EIN For Your LLC In Kentucky <\/strong><\/h3>\n\n\n\n
Annual Tax<\/strong><\/h3>\n\n\n\n
What Is An LLC?<\/strong><\/h2>\n\n\n\n
What Is An LLC In Kentucky?<\/strong><\/h2>\n\n\n\n
Types Of Kentucky LLCs<\/strong><\/h2>\n\n\n\n
Benefits Of Getting An LLC In Kentucky<\/strong><\/h2>\n\n\n\n
Requirements To Get An LLC In Kentucky<\/strong><\/h2>\n\n\n\n
Appoint A Registered Agent<\/strong><\/h3>\n\n\n\n
The LLC\u2019s Name Must Be Different From An Existing Business<\/strong><\/h3>\n\n\n\n
How Much Does An LLC Cost In Kentucky?<\/strong><\/h2>\n\n\n\n
Top 2 LLC Services In Kentucky<\/strong><\/h2>\n\n\n\n