How to Start an LLC in Kentucky: Everything You Need To Know

A limited liability company is a way to structure a business legally.

It incorporates the limited liability of a corporation with the flexibility and need of formalities provided by a partnership or sole proprietorship.

However, any business owner who seeks to limit personal liability for business debts and lawsuits should consider forming an LLC.

So, we have taken it upon ourselves to explain in detail the process involved in how to start an LLC in Kentucky.

Also, you will learn everything about how to start an LLC in Kentucky in this blog post.

How to Start an LLC in Kentucky

To start an LLC in Kentucky without stress, you should consider following the steps:

Choose a Name for Your LLC

The first thing to do under Kentucky law is to find a name for your LLC that must contain the words “limited liability company” or “limited company” or the abbreviation “LLC” or “LC.”

However, if you wish to abbreviate “limited company,” you must use the abbreviation “LTD CO.”

Also, your LLC’s name must be different from other business entities already on file with the Kentucky Secretary of State.

To be sure about the name you have chosen, you may check for availability by searching the Kentucky Secretary of State’s business name database.

In addition, you may reserve a name for up to 120 days by filing a Reservation or Renewal of Reserved Name (Form RES) with the Secretary of State.

This name reservation may be filed online or by mail. The filing fee is $15.

Appoint a Registered Agent

All Kentucky LLC must have an agent for service of process in the state.

However, a registered agent is an individual or business entity that agrees to accept legal papers on the LLC’s behalf if it is sued.

In addition, a registered agent may be an individual who resides in Kentucky or a domestic or foreign business entity authorized to do business in Kentucky.

More so, the registered agent must have a physical street address in Kentucky.

File Articles of Organization

An LLC in Kentucky is created by filing Articles of Organization for a Limited Liability Company (Form KLC) with the Kentucky Secretary of State.

However, the articles must include:

the LLC’s name

the LLC’s street address
the name and address of the LLC’s registered agent
the mailing address of the LLC’s initial principal office
whether the LLC is managed by members or a manager
the effective date of the articles
checked boxes showing the LLC’s size and general nature of business, and
signatures of the LLC’s organizer and registered agent.

Meanwhile, the articles may be filed online or by mail for $40.

Prepare an Operating Agreement

Even though an LLC operating agreement is not required in Kentucky, it is highly recommended.

An operating agreement is an internal document that establishes how your LLC will be run.

Also, it sets out the rights and responsibilities of the members and managers, including how the LLC will be managed.

In addition, it can help preserve your limited liability by showing that your LLC is indeed a separate business entity.

However, the state LLC law will govern how your LLC operates without an operating agreement.

Obtain an EIN ( Employer’s Identification Number)

You need to obtain an EIN if you form a one-member LLC.

Also, you must obtain an EIN for it only if it will have employees, or you elect to have it taxed as a corporation instead of a sole proprietorship.

However, you may obtain an EIN by completing an online application on the IRS website. There is no filing fee for this.

File Annual Reports

All LLCs in Kentucky must file an annual report with the Secretary of State by June 30.

However, when filing your first annual report, you must submit the names and addresses of your LLC’s members and managers.

Also, you must inform the principal and registered office/agent and sign and date the report. Subsequent annual reports must confirm the same information.

Meanwhile, the initial annual report is due between January 1 and June 30 of the year after the LLC was formed.

In addition, subsequent annual reports must be filed with the Secretary of State between January 1 and June 30 of the following calendar years.

Moreover, the report may be filed online by returning the annual report postcard your LLC will receive in January or by printing out and mailing the annual report.

The filing fee is $15.