How to Start an LLC in Kentucky

To start a Kentucky LLC, you’ll need to name your LLC, pick a registered agent, and file Articles of Organization with the Kentucky Secretary of State either by mail or online. It’ll cost $40 up front. After that, you’ll need to take a few more steps to get your LLC ready to do business in the Bluegrass State. Here’s how.

Start Your Kentucky LLC

Create a KY LLC in 5 Steps:

  1. Name Your Kentucky LLC
  2. Choose a Registered Agent
  3. File Kentucky Articles of Organization
  4. Set Up Business Operations
  5. File BOI Report

Step 1: Name Your Kentucky LLC

There’s one major rule to remember when you’re naming your LLC: no two businesses in Kentucky can have the same name. If your chosen business name is the same as or very similar to another business in Kentucky, your LLC’s paperwork will be rejected. So before you get too attached, do a search on Kentucky’s Business Entity Search.

The second most important rule? Include an entity identifier, like “Limited Liability Company” or “L.L.C.” Hint: most businesses just go with “LLC.”

Lastly, it’s not a legal requirement, but you’ll also want to check online to see if your business name is available as a domain name or if it might be federally trademarked. If you’re going to build an online presence, it’s smart to start early and register your domain name now.

How do I check if a business name is available in Kentucky?

ou can do a quick search on Kentucky’s Business Entity Search. Type in your desired business name. If the search returns no results, that means your desired name is available. If you’d like to make absolutely sure, you can search only a portion of your name (for example, the longest word in your name) and check the list of names that come up to see if any are close. If there are any that are very similar and you’re not sure if your name is unique enough, you can call the Kentucky Secretary of State’s office to ask.

Step 2: Choose a Kentucky Registered Agent

Next, you’ll need to appoint a Kentucky registered agent. This is required by law.

A registered agent is someone you appoint to accept important legal mail (like a subpoena or summons) in person on behalf of your LLC. Your registered agent should quickly and securely forward legal notifications to you. Registered agents serve an important purpose, giving the state and the legal system a reliable way to get in touch with your LLC.

At a minimum, your registered agent must:

  • Maintain a physical address in the state of Kentucky
  • Be present at that address during business hours
  • Consent to act as your registered agent and to list their address on the public record

Who can be a registered agent in Kentucky?

Your registered agent can be an individual who lives in Kentucky or a commercial registered agent company (like us) with an office in the state.

What’s the point of hiring a registered agent?

Hiring a professional registered agent (rather than acting as your own) can spare you from:

  • Exposing your home address on the public record
  • Risk being served a lawsuit in front of your clients or customers
  • Filing more paperwork and paying filing fees when you move

When you hire us to act as your registered agent, you get more perks, including a free operating agreement and annual report filing—all you pay is the state filing fee.

Step 3: File Kentucky Articles of Organization

Next, you’ll file the paperwork that forms your LLC: Kentucky Articles of Organization. It costs $40, and you can do it by mail or online. Kentucky is a pretty fast state—they’ll get your LLC approved immediately if you file online and within a business day of receiving it if you file by mail. To file online, you’ll visit Kentucky’s FastTrack Online Filing System.

To file your Articles of Organization in Kentucky, you’ll need to provide:

1

Business name
Make sure it’s available in Kentucky and includes some version of “LLC.”

2

Registered agent information
Remember that the address you list here needs to be a physical address in Kentucky.

3

Mailing address
This is where your LLC receives mail. It can be your place of business or a PO box.

4

Management information
Check a box to indicate whether your LLC will be managed by the members (owners) or a manager.

5

Organizer
This is just whoever is filling out and submitting the form for your LLC. When you hire us, we’ll list our information here.

Note: The information you list on this document will become part of the public record, posted online for anyone to find. To protect your privacy, we recommend minimizing the use of personal information (like home addresses) wherever possible.

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Step 4: Set Up Business Operations

Once your Articles are improved, you have an LLC. But you’ll need to take a few more steps to make sure your LLC ready to do business and protect your personal assets.

Adopt an operating agreement.
An operating agreement is an internal record, kept on record with your LLC, that defines how your LLC undertakes procedures like voting, allocating profits and losses, transferring membership, and eventually even dissolving. You’ll need it to open a business bank account.

An operating agreement can help prevent conflicts among owners and clarify how the business should work—how votes are taken, how profits are allocated, and how you’ll handle disputes. In the absence of an operating agreement, the state’s default LLC rules will apply to your LLC, and these might not suit your business. There’s no law in Kentucky requiring an LLC to keep an operating agreement. But that doesn’t mean you should skip it.

When you hire us, we provide a free operating agreement template written by our attorneys specifically for use in Kentucky. You can customize to suit your needs.

Get an EIN.
An EIN is a nine-digit tax ID number issued to your LLC by the IRS. You can apply and get one online for free. Most LLCs are legally required to get one, and it’ll come in handy for opening a business bank account and spare you from the need to give out your own personal social security number.

Open a business bank account.
This is crucial for maintaining your limited liability status, which is only as strong as the separation between you and your business. If you let your personal and business finances intermingle, you’re weakening your personal asset protection.

Obtain licenses and permits.
Kentucky doesn’t have a general state-wide business license requirement, but depending on what kind of business you’re engaging in, how your business might affect the public, and where you’re located, you might need licensing at the city, county, or even state level.

Step 5: File BOI Report

The Beneficial Ownership Information (BOI) Report is a mandatory federal filing that resulted from the passage of the Corporate Transparency Act, a law aimed at fighting money laundering and other illicit financial activity.The filing requires you to disclose information about your LLC’s “beneficial owners”—the people who own or control your LLC. This information goes into FinCEN’s database, where certain law enforcement agencies will be able to access it.

When you hire us, we can handle this federal filing for you for $25.

What is a beneficial owner?

Who counts as a beneficial owner under the Corporate Transparency Act is determined by two criteria: ownership and control. Owners who own or control at least 25% of the LLC’s membership interest are considered beneficial owners, but so are any individuals who wield substantial control over the entity (like senior officers, for example).

Frequently Asked Questions

How much does it cost to start an LLC in Kentucky?

Kentucky is one of the least expensive states to start and maintain an LLC. It costs $40 to file Articles of Organization in Kentucky, and $15 to file your annual report each year.

Do LLCs pay taxes in Kentucky?

At the federal level, LLCs are taxed as pass-through entities, which means the LLC’s profits “pass through” to the owners themselves, who report the profits on their personal tax returns. This is the default tax status, but LLCs can file paperwork with the IRS to apply to be taxed differently, either as an S-Corp or C-Corp.

Does Kentucky require a business license?

Kentucky does not require LLCs to obtain a general state-wide license. However, depending on your location or the type of business you’ll be doing, you may have to obtain a business license or permit at the city, county, or even state level.

How do I contact the Kentucky Secretary of State?

If you have questions about state filings or business in general, here’s how you can contact the Kentucky Secretary of State:

Phone: 502-564-3490
Fax: 502-564-4075

Physical & Mailing address:
Records Branch
PO Box 718
700 Capital Avenue, Suite 156
Frankfort, KY 40602

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