When it comes to forming a limited liability company (LLC), each state has different laws. That means the rules and regulations depend on the state where the LLC will be organized. A new company that plans to operate as an LLC in Kentucky will have to understand the business formation process and requirements. That includes LLC paperwork and fees.
Articles Of Organization
To formally register an LLC in Kentucky, a company has to file a completed Articles of Organization form with the Secretary of State. This document officially creates the business and legalizes the company’s operations in the state.
Here is a simple step-by-step guide on how to handle this form:
Step 1: Get a copy of the form.
There are two options in filing the Articles of Organization. First, companies can opt to file it online by creating an account on the website of the Secretary of State. Second, they can download a copy of the form from the same website.
Step 2: Complete the Articles of Organization.
The next step is to fill out the correct LLC paperwork form. To do this, the company will have to disclose some basic information related to the business.
- LLC Name – While having a creative name is important, it is also necessary for a company to ensure compliance with the naming regulations of the state.It has to include the phrase “Limited Liability Company” or “Limited Company,” or one of their abbreviations like “LLC,” “L.L.C.,” “LC,” or “L.C.” The word “limited” can also be abbreviated as “Ltd.” Meanwhile, the word “company” can be abbreviated as “Co.” An LLC name cannot include the term “cooperative” unless it obtains approval. Any word that could confuse the LLC with a government agency is prohibited.Additionally, a business cannot use a company name if another entity in Kentucky is already using it. To check the distinguishability of the desired name, the company will have to do a name search on the website of the Secretary of State.
- Address – The LLC should inform the state of its mailing address for its principal office. It can either be a street address or P.O. Box Number.
- Registered Agent And Office – All business entities in Kentucky have to appoint a registered agent for services of process. The agent will be accepting and sending all legal and government correspondence on behalf of the company. For a more detailed discussion on the state qualifications, check out our article Kentucky Registered Agent.
- Management Structure – The state allows LLCs to choose how they will manage their operations. There are two options: member-managed and manager-managed.
- Member-Managed – This structure is for LLCs wherein all members are directly involved in managing the operations of the business and making day-to-day decisions. Each member has an active role.
- Manager-Managed – If there are members who would rather be passive investors, then this structure may be right for the LLC. In that case, the LLC can choose to appoint a member or few members as managers to be in charge of the daily operations of the company while the other members do not have the same responsibility. Other companies also opt to hire non-members to serve as LLC managers.
Step 3: File the form.
Submit the completed Articles of Organization to the Secretary of State, along with the $40 filing fee. As stated earlier, there are two ways to file the form. For online submissions, the company should create an account on the website of the Secretary of State and complete the form there. Otherwise, the company will have to download the document and submit it in paper form. Use the following addresses:
Office of the Secretary of State
Division of Business Filings
P.O. Box 718
Frankfort, Kentucky 40602
700 Capital Avenue
Frankfort, Kentucky 40601
The office of the Secretary of State usually processes the documents on the same day they receive them. However, they may also take up to three business days during busy periods.
Other Possible LLC Paperwork
- Name Reservation – If the desired entity name is available but the company is not yet ready to register with the state, there is an option to reserve the name. Submit a completed Reservation or Renewal of Reserved Name form to the Secretary of State. The filing fee for this paperwork is $15. Doing this will reserve the name for 120 days.
- Assumed Name – The state allows business entities to use a name that is different from the legal name stated in the Articles of Organization for its operations. In that case, the company will have to file a Certificate of Assumed Name form with the Secretary of State. The filing costs $20. This optional step can only be taken by an LLC after it officially registered its business with the state.
- Operating Agreement – This legal document is not required paperwork in Kentucky. However, having one will be beneficial for the LLC. The operating agreement outlines the roles, powers, duties, and responsibilities of members. It also sets the processes in running the business. For more information, check out this article.
- Employer Identification Number (EIN) – LLCs with multiple members will need to obtain an EIN from the Internal Revenue Service (IRS). This serves as the social security number of the company and will be used for tax filing purposes.However, certain circumstances may also require a single-member LLC to have an EIN. That includes the hiring of employees and the opening of a business bank account. Application for an EIN can be done through the IRS website. A company can also opt to submit the paperwork via fax or by mail.
- Business Licenses And Permits – An LLC should also determine if it needs to acquire certain business licenses and permits. It is best to check with federal, state, and local governing agencies to prevent any problems.
Completing LLC paperwork is only one part of the business formation process in Kentucky. A company may have to take care of other requirements and obligations. It is necessary to be familiar with the various rules and regulations that the state has set.
Having a reliable third-party organization like DoMyLLC can help. Our team of experts is knowledgeable about and experienced in handling various state processes that will ensure compliance. Contact us today to find out more.
Business Filing Section