Form an LLC in Kentucky for Free with Tailor Brands
Tailor Brands is an LLC formation service provider that can help you through the process of establishing a business for FREE. Trusted by over 500k businesses nationwide, it is your best option.
Quick and Hassle-Free LLC Formation Service
Enjoy free LLC in Kentucky formation services with waived service charges and zero labor costs.
Have a team of experts thoroughly cross-check and file your paperwork to avoid any mistakes.
Get expedited, two-day LLC formation services in Kentucky, even with the free plan.
Things to Know Before Starting an LLC in Kentucky
Launching an LLC in Kentucky requires a thorough understanding of the rules, regulations, and compliance requirements involved in Kentucky LLC formation. This helps you prepare for the journey ahead.
Let’s briefly discuss some of these essential requirements.
- Before your LLC in Kentucky can be legally registered, you must file your Articles of Organization for a one-time fee of $40. This fee can be paid online or sent to the Kentucky State Treasurer as a check.
- If you already have an established business entity in a different state but want to establish one in Kentucky, you must file a Certificate of Authority for LLC formation, which costs a one-time fee of $90.
- Kentucky LLCs are required to submit a business report to the Secretary of State every year. Kentucky state law mandates a filing fee of $15 for this annual report, whether you submit it online or by mail.
- The state of Kentucky imposes a Limited Liability Entity Tax on all LLCs formed within the state. The exact tax rate depends on your business’s sales volume but must not be lower than $175 yearly.
Kentucky is among the best states to start an LLC due to its low costs and affordable filing fees. Although the process might seem overwhelming, the team at Tailor Brands will guide you through every step of the way.
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How to Form an LLC in Kentucky
The step-by-step process of starting an LLC in Kentucky can be tedious for new entrepreneurs who don’t know the ins and outs of business formation. However, this guide can make it a walk in the park for you.
Here’s a detailed breakdown of the processes involved in starting an LLC in Kentucky.
Research and Select a Business Name
Before you register an LLC in Kentucky, you must pick a unique business name that’s not used by any other business within the state. You must research to find if your chosen name is available and choose another name if necessary.
Kentucky laws also require adding “Limited Liability Company” to your business name. If you’d like, you can also add any of the variations; “LLC”, “L.L.C”, or “Ltd.Co”. Also, ensure your LLC name is easy to spell and remember.
Reserve a Business Name
If you are not yet ready to register your LLC in Kentucky but have found a business name that is not taken, you can reserve it. Although it is not mandated, Kentucky laws allow you to reserve a business name for up to 120 days.
If you are still not ready to proceed with your LLC registration after 120 days, you can renew your name reservation for another 120 days. Application for business name reservation or renewal can be filed at a flat fee of $15.
Appoint a Kentucky Registered Agent
Every LLC in Kentucky must have a local resident agent to represent the company. You or any member of your LLC can act as your registered agent, or you can outsource this service. However, your LLC cannot act as its registered agent.
Your registered agent will handle all legal, tax, and government correspondence relating to your company. Your registered agent must have a permanent street address within the state and be available during business hours.
Choose an LLC Type
Decide if you want your company to operate as a single-member LLC or a multi-member LLC. If you’re a solo entrepreneur, you’ll be running a single-member LLC and will be in charge of ensuring the company abides by Kentucky’s laws.
If you have business partners you’ll need a multi-member LLC. It can be member-managed, where the owners run the business operations, or manager-managed, where an appointed manager takes over the wheel.
Create an LLC Operating Agreement
An LLC operating agreement is a document that outlines the basic rules and guidelines for business operations. Although it is not required, creating an operating agreement is advisable as it helps streamline your operating procedures.
The operating agreement for your LLC in Kentucky should contain all essential information about your company and clearly define its structural features. If you wish to, you can keep this document confidential among the members of your LLC.
File Kentucky LLC Articles of Organization
To officially register your LLC in Kentucky, you must file your LLC Articles of Organization with the Secretary of State. It contains information about your company, like the business name, address, registered agent’s address, and more.
To form a domestic LLC in Kentucky, you can file your Articles of Organization for $40. If it is a foreign LLC, you must file a Certificate of Authority with the state at a flat filing fee of $90. You can file this online or send a check to the Kentucky State Treasurer.
Get an Employer Identification Number
A federal EIN is a tax ID assigned by the Internal Revenue Service (IRS) to each business. You’ll need an EIN to manage your taxes, hire employees, open a company checking account, and complete other critical business operations.
If you run a single-member LLC in Kentucky, you don’t need an EIN because you can use your Social Security Number instead. However, it is still advisable to get an EIN if you want to hire employees in the future, for tax purposes.
Open a Business Bank Account
It is important to keep personal and business finances separate, even if you run a single-member LLC. Opening a business account for your LLC in Kentucky makes tax preparation easier and streamlines the financial aspect of your business.
A business bank account also protects you and your LLC members from business debt liability. If you have a business account, you can build a good business credit history with time, which would be helpful if you ever apply for a loan.
Select a Tax Structure
Kentucky LLCs enjoy flexible taxation and can be taxed as a sole proprietorship, partnership, C-corp, or an S-corp. However, you must pay the Limited Liability Entity Tax (LLET) mandated by Kentucky state laws.
The LLET is a tax on pass-through entities that ranges between $0.095 per $100 or $0.75 per $100 of gross profits, depending on how much your LLC makes annually. If your LLC makes less than $3 million, you must pay at least $175 to the IRS.
Get an Assumed or Fictitious Name (Optional)
A DBA stands for “doing business as,” a fictitious name under which your LLC can operate. Although not necessary, you can apply for a DBA if you want to use a shorter, more memorable name than your legally registered business name.
To file for a Kentucky DBA, you must apply for a Certificate of Assumed Name via the Kentucky Secretary of State. This form can be filed online for a $20 filing fee or mailed with a check addressed to the Kentucky State Treasurer.
File the Beneficial Ownership Information (BOI) Report
A new Financial Crimes Enforcement Network (FinCEN) rule states that most business entities, including LLCs, must file a BOI report effective 1 January 2024. So, if you’re starting an LLC in Kentucky, you’ll need to file this report.
Your LLC’s BOI report should contain the full legal name, age, address, and other essential information about the beneficial owners of your company. You may also need to disclose your LLC’s legal business name, DBA, and EIN or SSN.
Get Business Insurance
Kentucky State laws mandate LLCs with one or more employees to acquire workers’ compensation insurance. It provides medical and disability benefits to your employees if they ever experience work-related injuries or illnesses.
Although it is not mandated, you can also get general liability insurance for your LLC in Kentucky. This is a broad insurance policy that protects your LLC from legal costs or financial losses that may occur due to property damage or accidents.
Create a Business Website
Although it is not required, creating a business website for your LLC in Kentucky is advisable. Your website domain should correspond with your registered business name or DBA name, to make it appear more professional and legitimate.
When creating your website, ensure that it is well-structured, easy to navigate, and engaging for your site visitors. Opt for a user-friendly design and use your brand color, logos, and other elements representing your unique brand identity.
Stay Compliant
After launching an LLC in Kentucky, remain compliant with the state laws to stay in good standing with the government. LLCs in Kentucky are required to file an annual report, which is due between January 1st and June 30th every year.
If you miss the deadline for filing this report, you may be charged a fine for late filing. If you fail to file the document, your LLC may be dissolved, and the Kentucky Secretary of State can revoke your license to operate.
Why Outsource the Formation of Your LLC in Kentucky?
Starting a Limited Liability Company (LLC) in Kentucky involves several steps and legal requirements that could make it a long and tedious process. Outsourcing this service can make things simpler. Here’s why.
Streamlined Process
When you outsource LLC formation, you simply need to fill out a form and provide the essential documents, and a team of professionals will take it up from there.
Why bother with long, complicated processes when professionals can do it for you?
No Errors
Even the tiniest mistake in LLC formation can delay the already lengthy process or cause legal issues, which may require significant time & money to resolve.
Outsourcing to experts will ensure there are absolutely no mistakes in your application.
Quick Filing
Starting an LLC involves filing many documents and tons of paperwork that can take a long time, especially if you’re a new entrepreneur doing it all by yourself.
Why spend all that time doing tedious paperwork when professionals can take the burden off you?
Benefits of Starting an LLC in Kentucky
Limited liability companies offer the personal liability protection of a corporation, while still providing the management flexibility of a sole proprietorship.
Let’s discuss these and all the other benefits of starting an LLC in Kentucky in detail.
Limited Liability Protection
One of the primary advantages of starting an LLC in Kentucky is the liability protection it offers. Unlike sole proprietorships and partnerships, your LLC’s finances are considered separate from your personal finances.
If your LLC acquires debt, you will not be held personally responsible for repaying it. Unlike a sole proprietorship, where the owner’s car or house can be seized to repay a loan, none of your assets can be used to repay the business debts.
Flexible Tax Structure
An LLC in Kentucky can adopt a taxation structure that works best for the business. It can decide to be taxed as a sole proprietorship, an S-corp, or a C-corp. You will not enjoy this flexibility with any other business structure.
LLCs in Kentucky also enjoy pass-through taxation, where their profits pass through to the owners. This means you won’t have to pay corporate taxes. The LLC members will pay personal income taxes on their income.
Affordability
Limited liability companies are less complex to form, so the initial costs of starting one are usually low compared to other business entities. You only have to pay the filing fee or the processing cost, which for Kentucky is just $40.
The flexible tax structure of an LLC in Kentucky also means it can avoid double taxation, which saves you money. That makes it a more affordable option for solo entrepreneurs, startups, and small businesses with limited resources and budgets.
Less Paperwork
The process of starting an LLC in Kentucky is straightforward and requires fewer legal documents than other business entities. Corporations, for instance, operate under stricter and more formal rules, which usually means more paperwork.
Corporations are typically required to hold board meetings and keep detailed records of meeting minutes, which can be tedious. LLCs are only required to submit a report annually or biennially, while some states do not even require this.
Ease of Management
Members of an LLC can decide how they want to run their company, whether member-managed or manager-managed. This means you can choose a management structure that aligns with your business needs and preferences.
Corporations have a board of directors and require voting to make decisions. LLC members can simply draft an operating agreement outlining how the company should be managed, streamlining day-to-day business operations.
Ownership Flexibility
Corporations have tight ownership restrictions that limit the number of shareholders their companies can have, but LLCs don’t. LLCs have a flexible ownership structure with no limits on the number or type of owners the company can have.
If you want more investors or members for your LLC, you can easily bring them in. As long as you abide by the requirements of your LLC’s operating agreement, your LLC can be owned by individuals or corporations of your choosing.
Ability to Hold Assets
An LLC provides limited liability protection, meaning that the company is considered independent of its owners. As such, an LLC in Kentucky can acquire assets in its own name without needing any of the members to co-sign the agreements.
This ability of an LLC to hold assets keeps the members’ personal assets safe. In contrast to other business structures where the owner’s assets are at risk, you can rest assured that your personal assets are not in danger.
Ability to Enter into Contracts
An LLC is recognized as a legal entity that reserves the right to enter into contracts with individuals and other business entities. An LLC’s rights are regarded as separate from its owners, which makes business dealings more efficient.
The ability of LLCs to enter into contracts also gives them the flexibility to adapt to various business scenarios. If the LLC fails to meet the contract terms, the owners will be protected from legal action, and only the company will be held liable.
Tailor Brands Kentucky LLC Services: Pricing
For over 10 years, Tailor Brands has provided businesses with professional services for forming a business. It is capable enough to help you get your business off the ground, no matter what your business needs are.
Let’s check out what you’ll get with each plan.
Lite
Tailor Brands’ Lite Plan offers Kentucky business owners a simple, no-cost LLC formation solution with professional guidance and minimal complexity. It’s ideal for savvy entrepreneurs looking to launch their businesses efficiently.
- LLC Formation: Tailor Brands manages all essential legal documentation and complex paperwork to ensure your LLC in Kentucky is set up accurately.
- Speedy Processing: With Tailor Brand, your LLC in Kentucky can be formed in just two business days, so you can start business operations immediately.
- Business Coaching: Get expert guidance on topics like tax compliance, digital marketing, and operational strategies to help your business thrive.
- Legal Framework for LLC: Tailor Brands provides a solid legal foundation to ensure your LLC in Kentucky is fully compliant with state-specific regulations.
Choosing the Lite Plan lets you strategically and cost-effectively lay the legal foundation for your LLC in Kentucky, allowing you to focus on growth. While it lacks comprehensive compliance support, it remains a practical, budget-friendly option.
Price: Free
Essential
The Essential Plan combines swift processing with a robust suite of supportive features. It’s ideal for entrepreneurs looking to build a strong business foundation when establishing their LLC in Kentucky.
- Expedited LLC Formation: Tailor Brands fully establishes your LLC in Kentucky within two business days, allowing you to start business activities.
- Annual Compliance Support: Tailor Brands simplifies LLC maintenance by handling mandatory report filings and notifying you of critical deadlines.
- Operating Agreement Assistance: Access to expert resources to enable you create a customized operating agreement for your LLC in Kentucky.
- Business Coaching Program: Receive expert advice on tax compliance, marketing strategies, and operational planning, available in all plans.
- $30 Amazon Gift Card: A small but thoughtful bonus to help offset initial startup costs or purchase essential supplies for your new Kentucky business.
The Essential Plan is an exceptional choice for first-time business owners forming an LLC in Kentucky. It particularly appeals to entrepreneurs who prefer professional support in managing critical tasks like compliance and document creation.
Price: $199/year
Elite
Tailor Brands’ Elite Plan is the ultimate package for entrepreneurs looking to establish their LLC in Kentucky and build a strong brand presence.
- Everything from the Essential Plan: Enjoy all Essential Plan offerings, including expedited LLC formation in Kentucky and compliance support.
- Upgraded $50 Amazon Gift Card: The Elite Plan has an even larger bonus to offset startup expenses or invest in key tools for your LLC in Kentucky.
- Digital Business Card: This plan allows you to easily share the contact information of your LLC in Kentucky with a single professional link.
- Free Domain for One Year: Secure a free professional web address that establishes your online identity and credibility for your Kentucky LLC.
- DIY Website/Online Store Builder: Create a stunning digital presence with customizable templates designed to meet your Kentucky business needs.
- Social Media Post Maker: Generate engaging, branded social media content for your LLC in Kentucky that resonates with your online audience effortlessly.
- Eight Free Professional Logo Designs: Select from a curated collection of professional logos to craft a consistent and memorable brand image.
- Business Card Design Tools: Develop custom business cards that make a lasting, professional impression for your LLC in Kentucky.
The Elite plan provides everything an entrepreneur needs to establish an LLC in Kentucky and build a strong, professional brand identity. With this plan, you can establish a strong legal foundation and a standout brand.
Price: $249/year
Additional Services
Tailor Brands offers comprehensive solutions to ensure your LLC in Kentucky operates smoothly and legally. Here are some of the additional service offerings.
- EIN Registration: Obtain your Federal Tax ID quickly when forming your LLC in Kentucky. This essential identifier allows you to hire employees, open business accounts, and manage tax obligations efficiently for your business.
- Business Licenses and Permits: Navigate the complexity of local and state requirements. Get professional guidance in identifying, applying for, and securing all the necessary operational permits for your LLC in Kentucky.
- Taxes and Bookkeeping: Maintain accurate financial records and ensure tax compliance for your Kentucky LLC with expert bookkeeping services, including tax preparation and financial reporting support.
- Business Bank Account: Seamlessly separate personal and business finances for your LLC in Kentucky. Receive support in setting up a dedicated business bank account, complete with merchant services integration.
- Business Insurance: Protect your LLC in Kentucky with comprehensive coverage options tailored to your specific industry needs. These include liability protection, property insurance, and worker’s compensation solutions.
Your LLC in Kentucky deserves comprehensive support beyond formation. These services help ensure your business operates efficiently and remains compliant.
Why Choose Tailor Brands to Form an LLC in Kentucky
Tailor Brands has catered to the needs of over 500k businesses nationwide, and it has been doing this for over 10 years. It’s an excellent choice if you’re looking for an LLC formation service provider with a team of professionals who know what they’re doing. Here’s why.
100% Free Service
Unlike other companies, which charge a lot of money to provide this same service, Tailor Brands does it completely free.
Tailor Brands is more interested in seeing your business thrive, so it waives its service charges, and all you have to pay is the state filing fee.
Unmatched Expertise
With Tailor Brands, you’ll be working with a top-notch, experienced team of professionals who are the best in their respective fields.
You will get unrestricted access to banking specialists, tax consultants, business advisors, and other professionals to help your business grow.
Hassle-Free
Why should the endless paperwork and complex process keep you up at night when you can simply outsource it to a professional?
Tailor Brands makes the LLC formation process a breeze. You can focus on other important tasks while the experts at Tailor Brands handle everything.
FAQ
To start an LLC in Kentucky, you must pay filing fees and processing costs. It costs $40 to file the Articles of Organization for a domestic LLC in Kentucky and $90 for a foreign LLC. You must also file a business report by June 30th every year, which attracts a $15 filing fee.
Other additional costs may include a name reservation fee and tax deductibles. To reduce your financial burden, Tailor Brands waives its service charges and labor costs, so all you have to pay is the filing fee, and you can start an LLC in Kentucky for next to nothing.
Here’s the step-by-step process for establishing an LLC in Kentucky.
- Research and select a business name: Conduct research to find a unique business name and choose one that is relevant to your business.
- Reserve a Kentucky business name: If your LLC formation process is still in the works, you can reserve your business name for up to 120 days for $15.
- Appoint a Kentucky registered agent: Choose a registered agent with a permanent mailing address in Kentucky who will handle legal correspondence on behalf of your LLC.
- Choose a type of LLC: Your LLC in Kentucky can be member-managed or manager-managed, or single-member or multi-member. Choose a structure that is most beneficial for your business plans.
- Create an LLC operating agreement: Create an operating agreement to guide how your LLC in Kentucky will carry out its day-to-day business operations.
- File your Kentucky Articles of Organization: Register your LLC with Kentucky State by preparing your Articles of Organization and filing them with the Secretary of State.
- Get an Employer Identification Number (EIN): Acquire an EIN as it is necessary to open a business bank account or for tax payment purposes.
- Open a business bank account: Keep your personal and business finances separate by opening a business checking account for your LLC in Kentucky.
- Select a tax structure: Your LLC reserves the right to be taxed as a sole proprietorship, partnership, S-corp, or C-corp, but Kentucky laws mandate a Limited Liability Entity Tax on all LLCS.
- File for a DBA name (optional): If you want to use a fictitious name for your business, you can file for a Doing Business As for $20.
- File for BOI report: Going by the new FinCEN rule, most LLCs must file a BOI report containing the names and addresses of their owners.
- Create a website (optional): Although not required, it is advisable to create a business website that can be used to market your products and services effectively.
- Stay compliant: Remember to abide by Kentucky’s ongoing compliance requirements and file your financial reports on time to remain in good standing with the government.
The key benefits of starting an LLC in Kentucky include the following.
- Liability protection: If an LLC in Kentucky ever runs into financial trouble, its members will not be held liable. LLCs provide liability protection that keeps your personal assets from being sold to repay a business debt.
- Flexible tax structure: Unlike sole proprietorships and corporations with rigid tax structures, you can decide if you want your Kentucky LLC to be taxed as an S-corp, C-corp, or a corporation.
- Affordability: If you’re starting an LLC in Kentucky, you only have to pay the state filing fees. It is more affordable to establish an LLC in Kentucky than a corporation, which has a more complex structure.
- Less paperwork: Unlike S-corps and C-corps, LLCs conduct business under flexible rules with less rigid operational complexities. This means that less paperwork is required.
- Ease of management: An LLC in Kentucky is generally easier to manage because company members can decide the management structure that aligns with their business needs.
- Ownership flexibility: While sole proprietorships have strict restrictions on the number and type of owners they can have, LLCs can be owned by an unlimited number of individuals or businesses.
- Ability to hold assets: An LLC in Kentucky is legally considered independent from its owners. This gives it the right to acquire assets in its name without putting its owners’ personal assets at risk.
- Ability to enter into contracts: Besides holding assets, an LLC in Kentucky can also enter into contracts with clients, vendors, and other business partners when necessary.
Mail filing approvals and processing time for Kentucky LLCs usually take 10 to 12 business days. However, with Tailor Brands’ plans, you can enjoy expedited filing that can be done within two days.
An LLC in Kentucky is required to pay the Kentucky Limited Liability Entity Tax (KY LLET), which depends on how much income it realizes in a year. The LLET tax rate is usually $0.095 per $100 or $0.75 per $100 of gross profits, whichever is less.
If a Kentucky LLC decides to be taxed as a corporation, it must pay the 21% federal corporate tax rate and the Kentucky corporate tax rate of 5%.
Form an LLC in Kentucky for Free with Tailor Brands
Starting an LLC in Kentucky is a long and tedious process that may seem daunting to entrepreneurs, but Tailor Brands is here to help!
Outsource your LLC formation services to Tailor Brands to make things simpler for yourself.
$0 + State Filing Fees