Start your business
To start your LLC in Kentucky, you’ll begin by registering your new company with the Secretary of State. This allows your business’s information to become public to Kentucky, allowing the government to reach out regarding new regulations or important business communications.
Before you can file this paperwork and register your LLC, you’ll need to do some legwork. You’ll start by deciding on your LLC’s official name and reserving it through the Secretary of State’s office. You’ll also want to choose a registered agent to handle communications from the Kentucky government, create an Operating Agreement to dictate your company’s operating structure, and set up your business with the IRS.
We’ll take you through each of these requirements for setting up a Kentucky LLC below.
One of the most important decisions you’ll make when launching your Kentucky LLC is deciding on your company’s name. Your name needs to achieve a few goals: It should be distinct and memorable, quickly sum up what your product or service offers, and follow all Kentucky government regulations.
You may already have a name in mind. We recommend making a list of three to five names (or more) that you might like to use for your business. Even if you’re sold on one name, you’ll need to research to find out if another company in Kentucky has already secured this name.
In Kentucky, your LLC name must be unique, so you’ll need to check existing business names to ensure there are no conflicts. To do this, you’ll use the Kentucky Secretary of State Name Availability Search. Type in your company name, and the database will let you know if another business has already taken it. Once you’ve found a name that’s available, move on to the next step. (You can also learn more about naming guidelines in Kentucky here, including what words are and aren’t allowed.)
In Kentucky, you must add an LLC designation to the end of your official company name. This means that you’ll need to add a designation like “LLC” or “Limited Liability Company” to the end of your business name. You can find a full list of all acceptable designations below.
Once you’ve decided on a name and designation, you can reserve it to ensure that no one else registers it before you. To do this, you’ll fill out a Reservation or Renewal of Reserved Name form on the Kentucky Secretary of State’s website. This will reserve your name for up to 120 days.
You can file this form via mail for $15.
You’ll likely want to use your LLC name on a website, too. Double-check through a domain name search on whether it is available, and have someone like ZenBusiness reserve your website domain name once you’ve made your choice.
A couple other things you want to think about are trademarks and a DBA. Visit the United States Patent and Trademark Office website to see whether your business name or logo is trademarked at the federal level. Trademarks happen at the state level as well. Look here to find out more about trademarks in Kentucky or to file for a trademark there.
If you want your LLC to operate under a name other than its legal name, you’ll need a DBA or “Doing Business As” name. To see if the DBA you want is available, use the same process above. Then file a Certificate of Assumed Name with the Kentucky Secretary of State.
Kelly wanted to name her bakery “Kelly’s Kakes” but found that a similar name, “Kelly’s Cakes,” already existed in Kentucky. Instead, she opted for an available name, “Kelly’s Sweets.” She chose the LLC designation “LC,” making her full company name “Kelly’s Sweets, LC.”
Now that you’ve named your LLC, you’re ready to assign a Kentucky registered agent. Your registered agent will act as a third party between you and the Secretary of State’s office, passing along important communications and paperwork.
All Kentucky LLCs must assign a registered agent. You can work with an individual or company, as long as they have a registered office located in Kentucky and can be found during normal business hours. This must be a physical Kentucky address and not a P.O. box.
Sometimes, LLC members decide to act as their registered agent. While that’s perfectly legal under Kentucky law, it’s not always recommended. Since registered agents can be served legal documents, like subpoenas or service of process, this means that when acting as your agent, you could receive subpoenas and summons in front of clients. When you act as your registered agent, you might also have to make some of your information public.
For these reasons, many LLCs decide to partner with an outside registered agent service that can receive paperwork on your company’s behalf and ensure you remain in good standing by completing any paperwork with a hard deadline. Hiring a registered agent in Kentucky is generally affordable, as well.
Some other benefits of working with an outside registered agent include:
Kelly decided to team up with ZenBusiness and use their registered agent service to protect her private information from becoming public. Kelly also wanted her legal paperwork to be sent to an address separate from her public-facing bakery.
Now that you have your official LLC name and designated registered agent, you’re ready to register your business with Kentucky. To officially register your LLC, you’ll need to fill out the Kentucky Articles of Organization LLC form.
To complete this form, you’ll need to provide the below information:
You’ll also need to pay a $40 fee when filing online or via the mail.
For those who choose to mail it in, you can send it to:
Alison Lundergan Grimes
Office of the Secretary of State
PO Box 718
Frankfort, KY 40602
Kelly decided to fill out her Articles of Organization online through the Kentucky Secretary of State business portal. Since she has another partner, Shawnee, both partners signed this form. They used the bakery address as their primary operating address. They also had their registered agent sign electronically before submitting the completed form.
In Kentucky, Operating Agreements are highly recommended but are not required. Your Operating Agreement clearly defines how your LLC is owned and structured, detailing how financial decisions are made and how employees are managed.
Even if you’re forming an LLC where you’re the sole member, it might be good to construct an Operating Agreement. This agreement can protect you if you’re incapacitated or unable to run your business for any reason. Without an agreement, you’ll default to Kentucky LLC law, which might not reflect your LLC’s best interests.
Let’s look at a few other key benefits of creating an Operating Agreement for your LLC.
While you don’t have to file your Operating Agreement with Kentucky, you should still make sure it covers all your bases.
You can get some help in creating a foolproof Operating Agreement. ZenBusiness can get you started with templates that allow you to customize and speed up the process, all at an affordable cost.
Even though Kelly and Shawnee agree on how their bakery should be run, they decide to draft an Operating Agreement to prevent future disputes and protect their company. They reach out to ZenBusiness to provide a customizable template that makes it easy for them to craft an agreement that suits their LLC.
Now that you’ve registered your LLC in Kentucky and created your Operating Agreement, you’re ready to register with the Internal Revenue Service (IRS). You’ll start this process by registering for an Employer Identification Number (EIN).
Think of your LLC’s EIN as your company’s Social Security number. It allows your LLC to be easily identified by the government and lets you file taxes, hire new employees, and open business bank accounts.
Sometimes a single-member LLC with no employees isn’t required to secure an EIN, providing they fall within the IRS’s parameters. But even those who aren’t legally required to have an EIN can benefit from having one, because using an EIN can build business credit and help protect against identity theft, as you won’t be using your Social Security number for business purposes.
You can apply for an EIN online by visiting the IRS website. You should receive your EIN right after you submit your request. There’s also no charge for this service.
Kelly applies for an EIN online and receives her number in minutes. Already having an EIN in place comes in handy later when she wants to hire her first employee for Kelly’s Sweets, LC.
| Do-It-Yourself (DIY) | ZenBusiness Starter Plan |
|---|---|
| Articles of Organization (state filing fee) | |
| $100 | $100 |
| ZenBusiness filing | |
| N/A | $49 |
| Average Filing Time | |
| ??? | 2-3 weeks |
| Registered Agent | |
| +$159/yr |
|
| Operating Agreement | |
| +$35 |
|
| Name Reservation | |
| +$10 |
|
| Accuracy Guarantee | |
|
|
|
| TOTAL COST | |
| Do-It-Yourself (DIY) | ZenBusiness Pro Plan |
|---|---|
| Starting Price | |
| state fee | $199 + state fee |
| Average Filing Time | |
| 2-3 weeks | 5-8 business days |
| Registered Agent | |
| +$99/yr |
|
| Operating Agreement | |
| +$35 |
|
| State Compliance Help | |
| $119/yr |
|
| EIN | |
| +$70 |
|
| DOMAIN NAME | |
| +$25 |
|
| DOMAIN PRIVACY | |
| +$10 |
|
| BUSINESS WEBSITE | |
| +$100 |
|
| BUSINESS EMAIL ADDRESS | |
| +$25 |
|
| SHOW ALL DETAILS | |
| Do-It-Yourself (DIY) | ZenBusiness Pro Plan |
|---|---|
| Starting Price | |
| state fee | $199 |
| Average Filing Time | |
| 15 business days | 5-10 business days |
| Registered Agent | |
| +$249/yr |
|
| Operating Agreement | |
| +$99 |
|
| State Compliance Help | |
| $280/yr |
|
| EIN | |
| +$60 |
|
| DOMAIN NAME | |
| +$25 |
|
| DOMAIN PRIVACY | |
| +$10 |
|
| BUSINESS WEBSITE | |
| +$100 |
|
| BUSINESS EMAIL ADDRESS | |
| +$25 |
|
| SHOW ALL DETAILS | |
We hope this guide has helped shed light on the LLC formation process. Use these steps as you navigate through forming your LLC, and be sure to reach out to ZenBusiness with any questions along the way.
Are you interested in learning more about starting a business in Kentucky? Contact ZenBusiness today to learn more about how we can help you launch and grow your new company.
Are you already a Kentucky small business owner? Find out how ZenBusiness can help you manage or grow your Kentucky small business!
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Additional tax and regulatory requirements may apply to you
Additional tax and regulatory requirements may apply to you
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