How to Start an LLC in Kentucky (KY LLC 2022)


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How to Start an LLC in Kentucky: If you’re interested in setting up a Kentucky LLC, you’ve come to the right place. Having an LLC not only protects your personal assets but also is less complicated than other business structures. Kentucky laws make it easy to establish your LLC in Kentucky. On this page, You’ll find all the steps that must be taken to ensure that your Kentucky LLC has been correctly established. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂

kentucky-llc

How to Start an LLC in Kentucky

An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection.

If you wish to start an LLC in Kentucky, you mainly have to file your Certificate of Formation with the State and pay a filing fee of $40. There are some more steps to follow to get your LLC established in Kentucky. The following steps explain everything you need to create your LLC in Kentucky in 2022. Let’s get started! It is always recommended to hire a professional LLC formation service in Kentucky to set up your LLC.

Step 1: Decide a Name for Your Kentucky LLC

Kentucky name your llc

The very first step while forming an LLC in Kentucky is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.

Kentucky LLC Naming Guidelines

There are a few specific requirements all the LLCs in Kentucky have to follow while naming their Company. Some of the most important requirements are as follows:

  • Your business name should be available and no other existing business in Kentucky can have the same name. Perform a name search from the below-mentioned source to be sure your name isn’t taken already.
  • “Limited Liability Company”, “Ltd. Liability Co.”, “Limited Company”, “Ltd. Co.”, “LC”, “L.C.”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
  • You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
  • Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Kentucky State Government are fulfilled.
  • (Optional) It’s better to name your business something for which your desired domain is available.
Important Links –Submit Offline Form to –
Kentucky Business Entity Search – Online Search
Name Reservation Form – PDF
Name Availability Standards – Guidelines
Kentucky LLC Name Search – Instructions
Division of Business Filings
Business Filings
P.O. Box 718
Frankfort, KY 40602

Reserve Business Name for Future

If you do not wish to file your LLC right now but want to hold the name you have decided then you can reserve your LLC name for 120 days. To keep the name, you have to file a name reservation application and pay $15 to reserve your name with the Kentucky Secretary of State.

Doing Business As (DBA) or Trade Name

Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Kentucky Secretary of State by submitting a Certificate of Assumed Name in Kentucky along with the filing fee of $46.

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TailorBrands offer DIY website templates and incredible logo designs. If you plan to get a website then it is wise to have a “.com” domain for your business but these days you can also use other TLDs like “.company”, “.xyz” etc. With TailorBrands, you can get everything you need at an affordable price.

Do I have to include LLC in my company email/domain?

It is not legally mandatory to use the word LLC in your domain name or email. If you want you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.

Step 2: Assign a Registered Agent in Kentucky

kentucky registered agent

The second step to forming a Kentucky LLC is to appoint a Registered Agent. A registered agent is a person or business entity that will act or work on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Kentucky. Hence, hiring a competent Kentucky Registered Agent for your LLC is necessary. 

Make sure your registered agent is a resident of Kentucky or has a physical street address. Their business address or the principal address should be in Kentucky. Most LLC formation companies also provide registered agent services. Below are two great LLC setup services, even if you buy their cheapest plan (normally $49/year) you also get registered agent service and other services at a reasonable price.

LLC Service

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These LLC formation services are recommended registered agent services as they are authorized to conduct business in Kentucky. Some LLC formation services offer standalone Kentucky registered agent services. You can purchase only Registered Agent services from them without purchasing any other LLC formation services.

Who Can Be a Registered Agent?

A person who is above 18 years of age and has a physical address in the state of Kentucky can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One who is responsible for handling all the legal documents.

Can I Be My Own Registered Agent?

Yes, you can be your own registered agent if you are a resident of the state of Kentucky and you are above 18 years of age. To become a registered agent you must have the authority to conduct any type of business in Kentucky.

Registered Agent Consent Application

In Kentucky, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. The filing fee of $10 should be paid for it. For more information on the same, read our guide on how to change a registered agent in Kentucky.

Step 3: File Articles of Organization in Kentucky

Kentucky certificate of formation

The third and most important step in forming a Kentucky LLC is to file the Certificate of Formation. This Kentucky Articles of Organization is a legal document needed to officially register your business with the Secretary of State. It costs $40 (by mail and $208 online) to file your formation certificate in Kentucky. (Read more on LLC cost in Kentucky).

The Certificate of Formation includes details like the name of the LLC, registered agent’s name, address, employees’ details, and structure of the company (member-managed or manager-managed). Before hiring employees in Kentucky LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) to Kentucky, then you need to register as a Kentucky Foreign LLC.

How to File Online

Go to the Secretary of State Online Service. You will get the online service page. If you are already a subscriber, then click on the “log in to Subscribe Account” option and log in with your credentials. If you’re not subscribed, then you can directly start filing your LLC by clicking on the “Online Filing” button below. Read more about the Kentucky Articles of Organization for online registration.

How to File by Mail

If you prefer filing real-life forms for your Kentucky LLC registration, then you can download Domestic LLC Formation Form. Read the form thoroughly, fill it out, and mail it to the following address,

Mailing Address: Michael G. Adams
Office of the Secretary of State
P.O. Box 718
Frankfort, KY 40602

In-person Drop-off: Room 154, Capitol Building
700 Capital Ave.
Frankfort, KY 40601

Processing Time: It takes 3-4 business days to form an LLC in Kentucky if filing by mail. It does not take any time for online filing. As soon as the payment is made the process starts. By paying an additional fee, it can be expedited.

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Step 4: Create Your Kentucky LLC Operating Agreement

Kentucky operating agreement

Moving on to the fourth step, filing your operating agreement. An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.

When it comes to filing a Kentucky LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation. Like Kentucky, there are other states that do not have a mandatory rule to file operating agreements. But, this document would be useful if you decide to dissolve Kentucky LLC later. Hence, having an operating agreement may not be necessary but it is definitely ideal.

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Step 5: Filing a Kentucky LLC EIN

Kentucky file EIN for llc

The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business for that matter. 

EIN is needed when the LLC hires employees. Hiring employees in Kentucky LLC requires following specific rules and regulations. On the other side, EIN for Kentucky foreign LLC should be obtained if your LLC is based in other states.

To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally complete the form and send it to the address given. You can also get an EIN Assistant who can help you with the process.

Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999

Fax: (855) 641-6935 | Fee: Free

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Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.


Congratulation, you are now done with all the necessary steps to form your Kentucky LLC. If you do it yourself, it should take you a long time to properly understand and do all the steps.

However, if you use TailorBrands, it should be way faster. You will always have a live chat option as well as phone support with experts for any help you need. Their worry-free service will make things easier for you.


After Starting Your Kentucky LLC

After forming your LLC, there are still some things that you will need. Take note of the following:

This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.

Cost of Kentucky LLC

Forming an LLC in Kentucky is no doubt more cost-effective than other structures of a business. There are some fees and charges one has to bear to form a Kentucky LLC. LLCs have pass-through taxation. Hence, your Kentucky LLC won’t bring you a massive tax burden. Here are some of the fees and taxes are needed to be paid while forming an LLC in Kentucky,

Fees/TaxAmount to be Paid
Name Reservation Fee (online)$15
Articles of Organization Fee$40
LLC Annual Fee$15
Sales Tax6%

In Kentucky, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 1 year without registering your LLC. It can be renewed by paying $15 30 days before the 120 days span is over.

In Kentucky, an Annual Report has to be produced every year. It costs $15. Also, the State of Kentucky requires to pay a Sales Tax of 6%. Read our guide on LLC costs in Kentucky for more information.

Kentucky Foreign LLC

If you are interested in forming a Foreign LLC in Kentucky, then you need to file the Certificate of Foreign LLC to the Kentucky Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Kentucky SOS to form your foreign LLC in Kentucky. To know more in detail, check out our guide on Kentucky Foreign LLC.

Reasons to Start an LLC in Kentucky

Kentucky is one of those states where having an LLC is easy and cost-effective. Other than the filing fee, there are not many tax liabilities. LLCs with employees or LLCs that want to hire employees may have to pay employment taxes. The LLC formation process. tax filing, amendment filing, and personal tax returns filing are easy in Kentucky. Alongside there are various business funding options for small businesses, especially if it is a woman-owned business, you will get long-lasting benefits.

There is a whole list of key benefits that a person will encounter if they are thinking of starting an LLC in Kentucky. Out of those detailed benefits, some of them are discussed in brief so that you can adequately make up your mind regarding the opening of your LLC.

The state tax rebate

If a small business is thinking of incorporating into Kentucky, their LLC gets enrolled with the Kentucky Small Business Tax Credit (KSBTC) program. It is specially designed to give benefits to the starting-ups. Under this program, the LLC who has to pay the state tax in Kentucky under the KRS 141.0401 act can apply for a tax return.

This value may range from $3,500 to around $25,000, which is more than efficient for a small startup to thrive and pay up its bills for several months. Read more on Kentucky’s classification of LLC tax.

Sales tax credit through tourism attraction 

The Kentucky Tourism Development Act mainly targets the startup LLC’s that are formed in the Kentucky province. If they help the state attract tourists and increase the income through tourism, then the state tax that they have to pay will be paid back to them in the form of an incentive. 

A direct loan is given to some essential businesses

According to the Kentucky state, the primary income source is agribusiness, tourist places, and the service industries. That is why they are giving very importance to a program that Kentucky Economic Development Finance Authority starts. The main aim of this program is to provide some long-term finances by providing them a direct loan. 

It means that if you are entering the Kentucky LLC, you can also avail of the services of loan, which are not readily available.

Kentucky Business Investment 

The KBI benefit is mainly available by the fuel-based industry dealing with energy-efficient fuels and companies producing alternative energy from non-renewable fuels. Such companies are provided an income tax credit under the KBI program. This rebate is that the government thinks that these industries are doing some good work towards environmental improvement.

Top Industries Operating in Kentucky

If you are an entrepreneur looking to start an LLC in Kentucky, you should know about the industry in detail. You should know their contributions and size in the state to take the help of the below-mentioned information.

Coal Mining

Coal mining in the state produces more than 100 million tons which is the combined production of underground mining and surface mining. According to the census, 442 coal mines were operating in the state in 2017 with 4,000 registered mine workers, which increased to around 6,257 in the year 2017 who are working in underground mines.

Logistics Business

More than 540 logistics centers are currently present in the state, employing more than 75000-80000 people. The logistics trade in Kentucky is the state is at a day drive for 65% of US residents, which makes it a perfect place for planning the logistics and distribution centers by businesses. There is a spend of around $600 billion in the country, out of which 70% is served by Kentucky state.

Manufacturing

If you look at the most significant share in GDP, it is of the manufacturing sector that is around 18% recently. In 2009, this value was half, which shows growth in the manufacturing business in the state. The state is raising jobs for more than 14% of the population living in the state currently.

This field has been the best for workers as the pay scale has increased to around $44,000 per capita worker, which is 10-15% higher than other states and businesses.

These are the business industries that are at the top of the state list. If you want to know some low-investment businesses, then here are the options.

  • Gift Basket business
  • Airbnb
  • Calligraphy teaching business

Kentucky LLC Formation Review

Time needed: 5 minutes.

Just to recap, here are the easy steps again when forming an LLC in Kentucky. Click on the steps in this list to read the full detail.

  1. Name your Kentucky LLC

    The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
    name your llc

  2. Choose a Registered Agent

    In Kentucky, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
    registered agent

  3. File a Formation Certificate

    Filing a formation certificate is necessary when forming an LLC in Kentucky. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
    articles of organization

  4. Create an Operating Agreement

    An operating agreement is not a strict requirement in Kentucky but something encouraged when you start an LLC to avoid future conflicts.
    operating agreement

  5. Get an EIN

    The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
    file EIN for llc

How Fast Can I Form an LLC in Kentucky

For immediate filing, you can opt for an online method as it takes 1 business day. Filing via mail can take upto 3-5 business days.

Whether you are starting a new business or need to incorporate an existing one, there are many things to keep in mind when answering the question how fast can I form an LLC in Kentucky. This user-friendly solution for small businesses is relatively inexpensive to form and is known for its simplicity. A single-member LLC can be formed in just a few weeks. If you want to form a multi-member LLC, it may be more complicated. You should consult a tax attorney or accountant to ensure that the decision you make will be right for your company.

If you plan to hire employees, you’ll need an Employer Identification Number (EIN). You can obtain this by filing a tax return with the IRS and paying a fee. Your EIN will be used to verify your tax filing status and pay your taxes. It will also be required when opening a business bank account. You can apply for an EIN online.

The state of Kentucky requires that every LLC maintain a registered agent. A registered agent is a person or company that receives legal documents for the LLC on its behalf. The agent must be a Kentucky resident or a business that is authorized to do business in the state. The registered agent must be available during normal business hours. In addition, the agent must be in possession of a Kentucky business license and have a physical address in the state.

The state of Kentucky also requires that every LLC file an annual report. An annual report is a simple document that provides updated information about the company. The report is due by June 30th of the year following the formation of the LLC. The report can be mailed or submitted in person. The fee for filing an annual report is $15.

Creating an LLC in Kentucky is easy and can be done in as little as a few hours. It’s also less expensive than creating a corporation. If you need to form a corporation, it’s recommended that you consult an accountant before proceeding. A corporation may not be right for everyone, especially if you are concerned about double taxation. It’s also a good idea to get a website set up for your company. This will help increase your brand’s reputation and help raise customer awareness.

The name of your LLC must include the word “limited liability company” or “limited company”. You can also incorporate the abbreviations “LLC” or “LC”. However, you cannot include the words “corporation” or “association”. You can reserve a name for up to 120 days. The name you choose must be unique. You may want to do a name search online or through the Kentucky Secretary of State’s business entity database.

The state of Kentucky also requires that your LLC have an effective date. This is the date the LLC will begin to operate. This date is important because it is the date that your business can begin to take advantage of tax benefits. If your LLC doesn’t have an effective date, it may be administratively dissolved.

F.A.Qs

Can I file an LLC in Kentucky by myself?

If you are a resident of Kentucky, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.

What is the cost of forming an LLC in Kentucky in a year?

Apart from the formation fee of $40 (domestic LLC) and $90 (foreign LLC), LLC cost in Kentucky includes $15 for Annual Reports every year. LLCs are liable to pay sales tax of 6% every year

How long does it take to get an LLC in Kentucky?

It takes no time (immediate) to get a Kentucky LLC if you file it online. For the mail filing, it takes 3 to 5 business days to get an LLC. If you hire a professional LLC service, then it might take less than that. We recommend TailorBrands which has impeccable turnaround time.

How to renew my LLC in Kentucky?

Every year all the LLCs have to submit an Annual Report and pay $15 to the Kentucky Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.

What is the tax structure for an LLC in Kentucky?

Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Kentucky Classification of LLC Tax.

In Conclusion

LLCs are easier to establish than other business structures. Small businesses, especially start-ups, can easily start their LLCs in Kentucky at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.

2 thoughts on “How to Start an LLC in Kentucky (KY LLC 2022)”

  1. Hola saludos. Estoy tratando de conformar una empresa para limpieza de alfonbras y ductos de aires podria conformarla como LLC. Ademas soy pastor e iniciador del Centro Cristiano Integral de Sanidad; Inc cual esta registrada como iglesia nomprofit. Podria de alguna forma asociar estas dos empresas? Gracias y muchas bendiciones

    Reply
  2. Hola, estoy pensando en conformar una empresa de servicios de mantenimiento general en Kentucky. Quisiera saber los costos totales (pagos al estado y pago de tramite) para revisar mi presupuesto. Gracias.

    Reply

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