Start an LLC in Kentucky in 5 Simple Steps
Step 1: Give Your Kentucky LLC a Name
Step 2: Select a Registered Agent
Step 3: Submit the Articles of Organization; Step 4: Draft an Operating Agreement
Step 5: Obtain an EIN
It is simple to form an LLC in Kentucky.
To establish an LLC in Kentucky, you must submit the Articles of Organization with the Kentucky Secretary of State, which costs $40. Apply online, via mail, or in person. The Articles of Organization are the legally binding documents that establish your Kentucky Limited Liability Company.
STEP 1: Give your Kentucky LLC a name.
The first and most critical step in forming your Kentucky LLC is deciding on a name. Make sure your name conforms with Kentucky naming regulations and is readily searched by prospective customers.
1. Follow the naming conventions:
The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
Your LLC’s name cannot include terms that may be confused with a government organisation (FBI, Treasury, State Department, etc.).
Restricted terms (e.g., bank, attorney, university) may need extra documentation and the participation of a licenced professional, such as a doctor or lawyer, in your LLC.
2. Does the name exist in Kentucky? Do a name search on the Kentucky Secretary of State’s website to ensure that the name you choose isn’t already used.
STEP 2: Select a Kentucky Registered Agent
You must name a Kentucky registered agent for your Kentucky LLC.
What exactly is a Registered Agent? A registered agent is a person or corporate organisation that accepts vital legal papers on your behalf. Consider your registered agent to be your company’s point of contact with the state.
Who is eligible to be a Registered Agent? A Registered Agent must be a Kentucky person or an organisation, such as a registered agent service, that is permitted to do business in Kentucky. You may choose someone from your organisation, even yourself.
STEP 3: File the Articles of Organization for your Kentucky LLC.
Form KLC – Articles of Organization must be filed with the Kentucky Secretary of State to register your LLC. This may be done in person, via mail, or online.
STEP 4: Draft an Operating Agreement for Your Kentucky LLC
Although an operating agreement is not necessary in Kentucky, it is a good idea to have one.
What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.
Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.
STEP 5: Obtain an EIN
What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security number.
An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).
Why do I need an EIN? An EIN is necessary in order to:
Establish a business bank account.
Filing and managing federal and state income taxes
Employ people
What if my single proprietorship already has an EIN? When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.
Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.
