Kentucky LLC Formation Guide

This guide will help you set up an LLC in Kentucky. It includes step-by-step instructions for obtaining tax IDs and filing company documents.

Overview

Because they are affordable to set up, offer flexibility for the owners and are simple to manage, LLCs are the most preferred business structure. Your LLC legalizes your business and limits your personal liability. It also allows you to have tax flexibility. As you go through this process, the following steps will guide you.

Step-by-Step Instructions for a Kentucky LLC

  1. Check Name Availability

    Your LLC’s legal name may not be in conflict with any registered name. You can search for the name you want to check availability.

    Name Search: Kentucky Secretary of State

    Name Search

    Name Reservation: Optional
    Suffix: A limited liability company’s real name must end with “limited liability company” (or “limited company”) or the abbreviation LLC or LC. However, a professional limited liability firm’s name should end with “professional limited liability corporation” or “professional limited company”, or the abbreviation PLLC or “PLC”. The name of a professional or limited liability company may include the abbreviation “Ltd.” while the term “Company” can be abbreviated to “Co.”

    KRS 14.3-010(3)

  2. Register an Agent

    Before you can file to officially create your Kentucky LLC, it is necessary to determine who your Kentucky registered agent is. A registered agent is the legal representative of a business that receives notices about lawsuits and other legal notices.

    Every LLC must have a registered agent as required by state law. When you file Kentucky articles, the registered agent is identified.

  3. Kentucky Certificate of Formation

    To create a limited liability company, file the articles of organization

    Agency: Kentucky Secretary of State
    Form:
    Articles for Organization
    Filing Method You can mail, in person, or on-line
    Agency Fee: $40. Veteran-owned LLCs are exempt from the fee
    Turnaround: It takes 3-5 days to file online or by mail. While you wait if you file in-person.
    Law:
    KRS RSS 275.020
    Notes:
    • Kentucky offers both Non-Profit LLCs as well as Professional Service LLCs. These have different forms and charges.
    • You can abbreviate “limited Company” by using the abbreviation, “LTD CO.”
    • A postcard stamped with a file will be sent to your principal office.
    • You must submit a copy of the original documents and the filing fee if you are filing by mail or in person.
  4. Establish Company Records

    Your LLC must maintain accurate and complete records. Your LLC’s first records will be your filed articles of organization. Other official records that your LLC may produce include:

    • Minutes of meetings
    • Operating agreement
    • EIN verification letter
    • Amendments to and other filings made by the LLC during its lifetime

     

  5. Make the Operating Agreement

    An Operating Agreement is the governing document of the LLC. This document outlines the rules and procedures for how the LLC will operate, such as holding an annual meeting. The agreement will be reviewed and approved at your organization meeting.

  6. Organise the Organizational Meeting

    The organizational meeting is the first meeting of members of an LLC. To conduct this meeting, you will need to have your filed articles of organisation and your operating agreement. Keep a record of the meeting and keep it in your company records book.

  7. Register for a Federal Employer Identification Number.

    An EIN is required for any LLC that has more than one member, or hires employees. A bank account opening requires an EIN.

    Agency: Internal Revenue Service (IRS).
    Form:
    IRS Form S-4
    Filing Method You can send mail, fax or online by phone.
    IRS fee $0
    Turnaround: Online or over the phone, immediately. 4 business days via fax. 4-6 weeks via mail
    Notes: Only certain hours are available for the IRS website. Before closing your session, print your EIN. Additional guidance is available at IRS Pub 1635, Understanding Your EIN.
  8. Kentucky State Tax Identification Numbers/Accounts

    Register with the Kentucky Department of Revenue within thirty days of creation to obtain applicable tax accounts

    Send your submission to:
    Kentucky Department of Revenue

    http://revenue.ky.gov/

    Form:

    Form 10A100 – Kentucky Tax Registration Application
    Filing Method
    Mail or online
    Fee:
    $0
    Turnaround:
    ~5-10 business days

    You might also need to submit other Kentucky Registration Applications.

  9. Consider Electing C-Corp Taxation or S-Corp Fiscal

    Your LLC will automatically be subject to pass-through taxation. However, the majority of LLCs maintain this tax classification. Some LLCs can choose to elect S-Corp and C-Corp tax treatment.

    • Owner-employees with more than $75,000 per annum can benefit from S-Corp to reduce self-employment taxes.
    • Double taxation is a problem for C-Corps: members pay taxes on distributions and the corporation pays taxes. You may be eligible for C-Corp tax treatment if your profits exceed $250,000 or you offer employee benefits.
  10. Get Business Licenses and Permits

    You must have the appropriate licenses and permits to run your business legally. It is easy to find the right licenses and permits for your state and federal business.

    Kentucky Business License

    NOT REQUIRED

     

    Kentucky does not require licensure for general business licenses.

    Kentucky does not have an overall business license at the state-level, but licenses from local authorities are required.

  11. You must continue to file for your LLC

    You are required to file both federal and state tax returns.

    To maintain good standing with the secretary-of-state, many states require that business entities file an annual report. The table below shows the requirements for Kentucky LLCs to file an annual report.

    Kentucky Corporation Annual Report Requirements:

    Agency: Kentucky Secretary of State
    Form: Simply sign the reminder postcard and return it to them.
    Filing Method Mail or online.
    Agency Fee: $15
    Due: Each year, June 30.
    Law:
    KRS.SS 14A.6-010.
    Penalties: No late fee. You will receive notice from the court that your business has 60 days to dissolve it or have it revoked.
    Notes:
    • A member, officer or partner should sign postcards. Online filing is possible for anyone with authority.
    • Signatures by an original are not required.
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