Are you interested in learning how to start an LLC in Kentucky? Well, you came to the right place, in Hispanic Entrepreneurs We will tell you what are the steps you must follow to legalize this commercial structure in the bluegrass state. Read on, don't miss any details.
Why open an LLC in Kentucky?
Due to its strategic location, consolidated navigation routes and enormous infrastructure, the state is very attractive for entrepreneurs. Its business climate has business incentives, tax credits and other financial benefits that encourage business creation. For example, the Kentucky Small Business Tax Credit program provides between $3.500 and $25.000 annually.
But what advantages does the limited liability company offer? Homeowners prefer it because of how quick and easy it is to incorporate in Kentucky. It is excellent for small businesses and startups by providing protection to the personal property of its owners, among other benefits.
Plus, it has a low filing fee, easy tax regime, and some tax privileges. Besides, its registration, management, regulation and administration process is simple.
Learn how to start an LLC in Kentucky
1-Choose a name
The one you choose has to be available to use. To verify that it is not busy, go to the page of Name availability search from the Secretary of State or call (502) 564-3490. Remember that the name of being accompanied by “Limited Liability Company”, “Ltd. Responsibility Co.”, “Limited Company”, “Ltd. Co.”, “LC”, “LC” or “LLC”.
When you're sure it's free, do the reservation request to guarantee your availability long enough to complete registration (120 days), the fee is $15. You must be clear that this is not mandatory.
If you prefer a business or fictitious name, register it by submitting a assumed name certificate in Kentucky and paying $46.
2- Assign a registered agent
To receive the legal documents of the company it is essential to appoint a registered agent. This is the person or company that will work on behalf of the LLC, dealing with notices, lawsuits, and all official correspondence. You are required to be a Kentucky resident and have a physical address.
3-Present the articles of organization
As indicated by the laws of the Commonwealth of Kentucky, it is necessary to present the articles of organization by entering the commercial registration portal Fasttrack or mailing them to the secretary of state's office.
In case you decide to do it on paper, attach 2 copies of them. The sealed copies will be returned to you as evidence of the procedure that you must then file with the county clerk where the business is located. This step has a cost of $40, online it is immediate, but by mail it takes between 3 and 4 days.
Such documents include detailed company information such as name, who is the registered agent, address y structure. In addition, if it is managed by the partners or an administrator, date of presentation, nature of the business, the signature of the agent and the organizer. Upon approval of the paperwork, the state will issue a certificate confirming that the LLC exists.
4-Request an EIN
Another essential step is the processing of the Employer Identification Number to register the company with the department of income of the state, city and county. It is also required when you have employees and to open a business bank account. The process is free by filling out the form SS-4 from the IRS.
Generally, businesses in Kentucky pay payroll taxes, sales taxes (6%), and unemployment taxes.
Remember that an LLC can tax as a sole proprietorship, partnership (Partnership), C Corporation or S Corporation, so be very careful with double taxation. Before choosing, get advice from an accountant.
5-Get the licenses and permits
Depending on the type of business and location, you may need to apply for some local and state business licenses. To comply with those required in the state, consult the occupational licenses/permits category of Kentucky One Stop Business Portal, there you will find the information you need. For local ones check with the city clerk.
6-Hire insurance and open a bank account
When you have employees it is important to have workers' compensation insurance. As well as the commercial, general civil liability to be prepared for any setback that happens in the business.
It is also essential to open a business bank account to separate company money from personal money. This action facilitates record keeping and increases the credibility and trust of suppliers and customers.
7-Submit the annual report
In Kentucky it is standard to submit updated business information to the Secretary of State, either contact or administration. It is done between January 1 and June 30 of each year after the formation of the LLC. The fee for this procedure is $15.
We hope that with this guide you are ready to start your LLC. If not, we are here to advise you and help you understand the management. You only have to contact us To start work.