Legal Bueno

    How to Start Your LLC in Kentucky

    Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!

    Quick Summary:

    • Filing Fee: $40
    • Turnaround time: immediately

    How do I start an LLC in Kentucky?

    Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.

    If you want to check the name availability for Kentucky, visit https://www.sos.ky.gov/bus/business-filings/OnlineServices/Pages/default.aspx.

    After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.

    What are the costs & processing times of starting a business in Kentucky?

    Here's the rundown for Kentucky:

    • The filing fee is: $40
    • There are ongoing fees of $15 (every year)
    • It usually takes immediately if you're filing online or 1 business day (plus mail time) if by mail.

    Why Kentucky is a great state for your LLC

    Starting a company in Kentucky comes with a myriad of benefits that make it an attractive option for entrepreneurs. Here are some key advantages:

    • Central Location: Kentucky's geographical position offers easy access to major markets across the Midwest and the Southeast, enhancing logistics and distribution capabilities.
    • Robust Infrastructure: The state boasts strong shipping lanes and well-developed infrastructure, facilitating efficient transportation of goods.
    • Pro-Business Climate: Kentucky fosters a supportive environment for businesses with numerous incentives, tax credits, and financial programs designed to stimulate growth and innovation.
    • Kentucky Small Business Tax Credit: This program provides financial assistance ranging from $3,500 to $25,000 to qualifying small businesses that create jobs or invest in essential equipment and technology.
    • LLC Formation: Establishing a Limited Liability Company (LLC) in Kentucky is straightforward and beneficial. It offers:
    • Tax Advantages: Kentucky LLCs benefit from simplified tax filing processes and potential favorable tax treatment compared to other business entities.

    By leveraging these benefits, entrepreneurs can effectively navigate the challenges of starting a business while maximizing opportunities for success in Kentucky.

    Legal Requirements

    Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for Kentucky:

    Articles of Organization

    The articles of organization must include:1. A name for the LLC;

    1. The registered office and initial registered agent;
    2. The mailing address of the initial principal office of the LLC; and
    3. A statement that the LLC is to be managed by a manager or managers or that the LLC is to be managed by its members.

    The term of an LLC is perpetual unless a period of duration other than perpetual is set forth in the articles of organization.

    Ky. Rev. Stat. § 275.025

    Filing fee: $40

    Ky. Rev. Stat. § 275.055

    Filing Process

    After you've prepared the initial formation documents, you need to file it! Here is what Kentucky laws require for filing:

    Each document delivered by a domestic or foreign LLC to the secretary of state for filing must satisfy the requirements of Ky. Rev. Stat. § 14A.2-010 to Ky. Rev. Stat. § 14A.2-150.

    Ky. Rev. Stat. § 275.045

    A document for filing with the secretary of state must contain the information required by law and may contain other information if permitted by law. In addition:1. A document must be typewritten, printed, or electronically transmitted. If a document is electronically transmitted, the document must be in a format that can be retrieved or reproduced in typewritten or printed form.

    1. A document must be in English. A name may be in a language other than English if written in English letters or Arabic or Roman numerals. A document not in English must be accompanied by an English translation reasonably authenticated to the satisfaction of the secretary of state.
    2. A document must be properly executed.
    3. The person executing the document must sign it and state beneath or opposite the signature the person's name and the capacity in which the document is signed.
    4. If the secretary of state has prescribed a mandatory form for a document, it must be in or on the prescribed form.
    5. A document must be delivered to the secretary of state for filing. Delivery may be made electronically if permitted by the secretary of state. If the document is filed in typewritten or printed form, the secretary of state may require that up to two exact or conformed copies be delivered with the document.
    6. The required filing fee, organization tax, and any applicable penalty must be paid.

    Ky. Rev. Stat. § 14A.2-010

    A document delivered to the secretary of state for filing will be effective:1. On the date and at the time of filing; or

    1. At the time specified in the document as its effective time on the date it is effective.

    A document may specify a delayed effective time and date, and if it does so, the document will become effective at the time and date specified. If a delayed effective date but no time is specified, the document will be effective as of 5 p.m. prevailing time in Frankfort, Kentucky, on that date. A delayed effective date may not be more than 90 days after the date of filing; a document delivered for filing with a delayed effective date more than 90 days after the date of filing will be effective on the 90th day thereafter. A document cannot have an effective time or date preceding the document's filing by the secretary of state.

    Ky. Rev. Stat. § 14A.2-070

    After filing a document, the secretary of state must deliver to the entity or foreign entity or to the person delivering the document for filing or to another person as identified in writing a copy of the document with an acknowledgment of the time and date of filing.

    Ky. Rev. Stat. § 14A.2-100

    Additional Legal Considerations

    Here are some additional relevant laws that might be useful when operating your business in Kentucky:

    Enforcement of limitations on amendment of operating agreement

    Ky. Rev. Stat. § 275.177

    Operating agreement provisions on personal liability and indemnification

    Ky. Rev. Stat. § 275.180

    Certificate of existence

    Ky. Rev. Stat. § 14A.2-130

    Annual Report

    Ky. Rev. Stat. § 275.190; Ky. Rev. Stat. § 14A.6-010