Register a Company in Kentucky
Kentucky Company Formation
In order to form an LLC in Kentucky, you must go through a couple of steps. The first steps involve naming your business and filing the certificate of formation with the Kentucky Secretary of State. You can file online or via mail. That goes for most of the legal documents necessary to start a business. Here's everything you need to know about starting an LLC in Kentucky.
Step 1: Name Your Business
First, you need to name your business. There are a few ways to go about this, including filing the name with an official state agency or business association.
You can check whether your chosen name is available by checking business name databases.
This can be done online, and you should check periodically for availability because business names change hands frequently.
However, the surest way to secure a business name is by filing it as a "Doing Business As" (DBA) or with your county clerk's office in Kentucky, where you will operate your business.
It's also possible to reserve an LLC name by paying a $25 fee to the Kentucky Secretary of State.
The reservation lasts for 180 days, after which the business name becomes publicly available again.
You should also make sure your business name complies with any regulations, or other rules business associations may have for business names in Kentucky, such as restrictions on what terms are allowed and whether it is necessary to include a disclaimer about their purpose.
Step 2: Find a Registered Agent
A registered agent is an individual or business entity who will receive important legal and tax documents on your LLC's behalf.
They can also be contacted if you run into problems with the Kentucky Secretary of State during business operations, such as getting fined for not filing a form on time.
You should consider hiring your own registered agent to handle these responsibilities.
You could also hire a registered agent service to take care of the job for you. However, you won't be getting a registered agent service free of charge.
In order to work as a Kentucky LLC registered agent, an individual must meet certain requirements and file paperwork with the Kentucky Secretary of State.
For one, they need to have a physical street address in the state. They also need to meet certain age and citizenship requirements, as well as pass a background check conducted by the Kentucky Bureau of Investigations.
Step 3: Submit Kentucky Certificate of Formation
A certificate of formation is a document that is used to create a legal business entity.
A certificate of formation must include the name, registered agent's name and address, its effective date or creation date, a NAICS code, email address, and a signature of a LLC manager, member, or organizer.
A Kentucky certificate of formation must include all of that information along with a filing fee of $50.
The processing time is about 5 days. Once you get your Kentucky LLC certificate, you will need to file it with the Kentucky Secretary of State.
Step 4: Put Together an LLC Operating Agreement
While an operating agreement isn't required in Kentucky, it is highly recommended.
Not only will an operating agreement make your business more organized and professional, but the terms of the operating agreement are legally binding.
The first thing you need to do when creating a Kentucky LLC operating agreement is to determine who needs to be included in this contract. Operating agreements should include the following information:
- The name of the LLC and the address
- A statement about all members' shares, voting rights, and equity interests in the company.
- What happens if a member leaves or dies (a buy/sell agreement).
These are only some of the things that usually appear on an operating agreement. After you draft your operating agreement, make sure to keep it updated as changes occur.
Operating agreements should help business entities and owners conduct business without complications down the line.
You should consider hiring an attorney if you need help creating your operating agreement, but there are also many online resources that can guide you through the process.
Always get legal advice from a professional if you run into any issues during the LLC formation process.
Step 5: Get an Employer Identification Number
Finally, you can get a federal employer identification number (FEIN or EIN) by visiting the Internal Revenue Service website.
On the IRS website, you'll find the online application you need to fill in. It's free of charge.
You don't need an EIN if you have no employees or if you're the only member.
However, if you want to have your Kentucky LLC taxed as a corporation instead of a sole proprietorship or want to hire employees, you won't be able to do so without an EIN.
Conclusion
Forming an LLC in Kentucky is a relatively straightforward process that you can complete on your own without too much trouble.
However, it's always best to consult with a professional if you're not sure how to do something (or about any other legal matter).
A lawyer or tax advisor will be able to answer all of your questions and help ensure the formation process goes smoothly, so you don't have any issues down the road. If forming an LLC sounds like something you need assistance with, you should definitely ask for help.
If you want to visit a company directory in other states, you can access the following website.