Starting your own company in Kentucky can seem intimidating. But, knowing the right LLC paperwork requirements and understanding the process can help you get started.
Forming a Kentucky LLC With The Correct LLC Paperwork
Choosing to form a limited liability company (LLC) in Kentucky is a good decision for many new business owners. This business entity structure is ideal for small- and medium-sized startups. With the benefits that it can offer, you can focus on growing your business knowing that you will have a certain degree of protection as an owner.
An LLC limits and separates the personal liability of the company owners, who are known as members, from the debts and liabilities that the business incurs. It also offers flexibility in taxation. Additionally, the filing, management, administration, and compliance aspects of an LLC are easy to understand.
Articles of Organization
The requirements to register a business vary depending on the state where you want to form the company. In Kentucky, the registration process requires the submission of formal LLC paperwork and paying corresponding fees.
You have to file the Articles of Organization with the Division of Business Filings of the Secretary of State. You can do this by mail, in-person, or online. The filing fee is $40. This document will formally create your LLC in Kentucky.
If you submit by mail, use the following address:
Office of the Secretary of State
Records Branch
P.O. Box 718, 700 Capital Avenue, Ste. 156
Frankfort, Kentucky 40601
If you opt for in-person filing, go to the following address:
Room 155, Capitol Building
700 Capital Avenue
Frankfort, Kentucky 40601
Normally, the processing of LLC Articles of Organization is done the same business day. However, it can take up to 3 business days.
Necessary Information
Completing the Articles of Organization form requires you to disclose certain pieces of information related to your LLC.
- Business Entity Name – You have to think of a distinguishable company name. You cannot use a name that another business entity in Kentucky already uses. So, you will have to do a name availability search beforehand. Your name should also include the proper designator. You can use any of the following:
- Limited Liability Company
- Limited Company
- Ltd. Liability Company
- Ltd. Liability Co.
- Limited Liability Co.
- LLC
- L.L.C.
- LC
- L.C
You cannot use any term that could confuse your company with a government agency. If you use any of the restricted words, such as the word bank, attorney, or university, you will have to submit additional paperwork and have a licensed individual as part of the LLC.
If you want, you can also reserve the company name for 120 days to make sure that no other business entity in Kentucky uses it while you are preparing for the business formation. You will have to submit an application and pay $15.
- Registered Agent and Office Address – Kentucky requires all LLCs to nominate and maintain a registered agent in the state. You can choose an individual or a commercial registered agent. Aside from the name and address of the registered agent, you also need to include their signature on the Articles of Organization. This signature will serve as proof that the registered agent you chose consented to the position. Read this to find out more.
- Principal Office Address – You have to inform the state where your main business office is located. It is where the state will send all official mail, besides the legal notifications. Make sure that it is a street address.
- The Organizer of the LLC – You need to include the name of the person who is in charge of organizing the business in Kentucky and filing the LLC paperwork. It can be a member of the LLC. You can also choose to appoint a third-party organization like DoMyLLC.
- Effective Date – If you have a specific date in mind as to when you would want to officially start your business, then you have to include that date in the Articles of Organization. However, it cannot be more than 90 days after the date you filed the Articles. If you leave this portion blank, then you can start the business upon filing.
- LLC Management Structure – You have to decide on the management style you will use in running the operations of your business. You can either choose to be a member-managed LLC or manager-managed.
- Member-managed LLC – If you want all members of the LLC to participate in the decision-making process, then a member-managed LLC may be right for you. In this type of management, each member will serve as an agent of the company. Every owner also has a vote in all business decisions, which can be made by reaching a consensus.
- Manager-managed LLC – You can also choose to authorize certain members to serve as managers or hire external parties, such as an individual, another LLC, or a corporation. They will be the agents of the company and are in charge of the day-to-day operations of the business.
Operating Agreement
Another document you may need to prepare is an operating agreement. While the state does not require you to have one, it is highly advisable. This internal document will help establish how you will run your LLC. It will also help prevent future disagreements by setting out the rights and duties of each member and manager.
An operating agreement will also preserve the owners’ limited liability by showing that the LLC is a separate entity. If you do not have an operating agreement, LLC laws in the state will govern the way your LLC will operate.
Getting Help With LLC Paperwork
If you want to start an LLC in Kentucky, you will need to complete the multi-step process. That includes the preparation and submission of LLC paperwork. There will also be other compliance obligations that you have to take care of. If you need help in handling business filing and compliance requirements, contact a reliable third-party organization like DoMyLLC. Our team of experts will make sure that the whole experience will be hassle-free for you.
Business Filing Section