Form a Kentucky LLC for Free with Inc Authority

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. 

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.

All LLCs 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.

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.

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. 

An LLC operating agreement 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. 

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, 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. 

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.

It is important to keep your 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. 

LLCs in Kentucky 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. 

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. 

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.

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.

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.

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.

Here are the free services offered by Inc Authority:

• Business name search: Inc Authority provides a free name search tool to help you quickly search for available business names. All you need to do is enter your desired name, and it will let you know if it’s available.

• 1-year registered agent services: You won’t have to find a credible registered agent because Inc Authority provides this service. You can get access to registered agent services for up to one year at no cost. 

• Online document storage: With Inc Authority, you can store all important documents relating to your LLC in Kentucky on an online database and easily access them through your account when needed.

• Tax advisory: Inc Authority helps you plan and file your taxes by offering a team of experts to provide tax planning services. They’ll guide you into adopting a beneficial tax structure that maximizes your LLC’s tax savings.

• LLC formation: The primary service Inc Authority is known for is LLC formation. Its experts will be available at every step of the application process to ensure you successfully launch a legally registered LLC in Kentucky.

• S-corp election filing: If you decide that your LLC in Kentucky should be taxed as an S-corp, you must fill out an S-election form. Inc Authority’s professionals can help you review and submit this paperwork.

• Business funding analysis: Inc Authority provides business funding analysis to help you determine how much you need to grow your business. It also goes one step further by recommending trusted funding options if necessary. 

Inc Authority’s free plan gives you all the basic services you need to start an LLC in Kentucky, but its paid plans offer more personalized services.

Price: Free

Here’s what you can expect with this plan:

• LLC operating agreement: By providing professional templates and expert guidance, Inc Authority will help you create a comprehensive operating agreement that clearly defines how your LLC will conduct business. 

• Tax ID Application: Getting an EIN is one of the most important steps when opening an LLC in Kentucky. Inc Authority helps you through the process of obtaining an EIN as quickly as possible.

• Corporate forms and document package: Establishing an LLC in Kentucky involves tons of paperwork. Inc Authority takes the administrative burden off you by providing templates to help you draft business documents.

• Annual compliance notifications: Inc Authority’s team is dedicated to ensuring you don’t miss any deadline or legal compliance requirements. You’ll get regular reminders to ensure you file your documents in good time. 

• Detailed tax consultation: The free plan offers general tax advisory, but the Starter plan provides more in-depth tax consultation. Inc Authority’s experts will analyze your business needs and map a befitting tax structure for you.

• Web domain + 5 business email addresses: If you choose Inc Authority’s Starter plan, you get a custom web domain and up to five business email addresses to help you kickstart the digital marketing aspect of your business.

Price: Custom

Here are the additional services you’ll get over the Starter plan:

• Customer success advisor: The Fasttrack plan is the top-tier plan that the company offers. It comes with a dedicated advisor who will guide you through the LLC formation process. If you’re unclear about anything or run into speed bumps along the way, your customer success advisor will always be available to answer your questions.

• Private banking specialist: Opening a business bank account for your company is a crucial step in establishing an LLC. Inc Authority understands this and provides a banking specialist specially assigned to all its priority clients. Your private banking expert will help you find the best banking options tailored to your LLC’s unique needs.

• Personalized business advisory: With the Fasttrack plan, Inc Authority will not only help you establish an LLC in Kentucky but also help you make an effective business plan. Inc Authority’s team of business experts will meet one-on-one with you to analyze your business goals and create a marketing plan to help you achieve them. 

• Expedited preparation and filing: Establishing an LLC in Kentucky can be a lengthy process that could take days or weeks. However, this can easily be avoided with Inc Authority’s Fasttrack plan. You’ll get access to a team of experts who will help you review and submit same-day applications to ensure you get priority service.