Forming an LLC in Kentucky is straightforward and quick, so long as you have the correct information and help that you need. We’ve outlined everything to help you create and register an LLC. Read on if you intend to form an LLC in the state of Kentucky.
Is an LLC Operating Agreement Required in Kentucky?
While an LLC operating agreement isn’t required in Kentucky, it’s highly recommended, as it clearly defines the structure of your LLC and how the financial decisions are made. You’ll need your LLC operating agreement, especially when there are new investors — the document can help them review how your LLC is managed before making any major financial commitments.
Kentucky Operating Agreement Laws
In Kentucky law, an LLC operating agreement allows the members to create rules or the terms and provisions on how the LLC operates. The operating agreement must state each member’s responsibilities, how to accept new members, how current members are transferred or terminated, how to divide profits and dividends, and the process for changing the operating agreement. You can read the laws in § 275-180.
How Much Does it Cost to Form an LLC in Kentucky?
The filing fee for an LLC in Kentucky is $40 — this is for filing your articles of organization with the Kentucky Secretary of State. However, if you already have an LLC registered in another state and you’d like to expand operations in Kentucky, the fee is $90, and you will need to register your business as a foreign LLC in Kentucky.
How to Form an LLC in Kentucky?
Below are the detailed steps on how to set up an LLC in Kentucky:
Step 1 – Choose a Name for your Kentucky LLC
Ensure that you adhere to Kentucky’s guidelines to avoid problems when choosing an LLC name. Your business name also has to be unique and easy to remember. Ensure that you also follow government regulations when choosing an LLC name.
Add LLC or limited liability company to your official business name. You can also use LC, limited company, or LTD Co. As soon as you have chosen a name, consider the option to reserve it so that no one else uses it. The state of Kentucky allows you to reserve it for up to 120 days for a fee.
Step 2 – Choose a Registered Agent in Kentucky
You need to appoint a Kentucky registered agent responsible for receiving legal notices and submitting important documents on your behalf. The registered agent serves as the third party between your LLC and the Secretary of State.
Know that all LLCs in Kentucky are required to appoint a registered agent, be it an individual or a registered agent service. Should you decide to hire a registered agent service, do make sure that they have a physical address in Kentucky and not a PO box address.
An LLC member may also decide to be their own registered agent. While this is allowed, we highly encourage you to hire someone else instead. Hire an individual familiar with how LLCs in Kentucky work and the paperwork needed for the business.
Step 3 – File Your Articles of Organization
You need to fill out the Kentucky articles of organization form to register your LLC officially. Some information you need to provide include:
- Official LLC name
- Kentucky registered agent’s name and address
- Business address
- Management structure of your LLC
- LLC size and industry
- Partner and registered agent’s signature
The articles of organization must be filed with the Kentucky Secretary of state. You can do this either online or through the mail.
As soon as your LLC is approved, ensure that you safely store all essential documents, including the operating agreement, contracts, member certificates, transfer ledger, etc. If possible, make soft copies of these and store them in the cloud.
Step 4 – Create your LLC Operating Agreement
Although not required, consider creating an operating agreement for your LLC in Kentucky. This document clearly outlines your company’s structure, addresses how disputes are dealt with or resolved, and also creates rules for your business. An LLC operating agreement protects members or managers from personal liability of the LLC.
Step 5 – Get an EIN
The last step is to apply for an EIN or Employer Identification Number with the IRS. With your EIN, it allows the government to identify your LLC and can help you open business accounts. It’s easy to acquire an EIN — you can do this through the Internal Revenue Service website, fax, or mail.
To sort out finances, ensure that you have a separate business account for your LLC. It’s difficult to manage your finances and work on your taxes if your business finances are deposited into your personal bank accounts.
Kentucky LLC Operating Agreement Template
Use our LLC operating agreement template below to get started:
LLC Operating Agreeement