Creating an LLC in Kentucky separates the business from the owners (members) of the business. One of the primary benefits gained by Kentucky LLC members concerns personal asset protection. Business creditors of the LLC may not pursue the personal assets of LLC members in an attempt to recover business debts or obligations. Kentucky LLCs must file the appropriate documents with the state of Kentucky as a condition of formation.
Choose a name for the LLC. LLCs in Kentucky must select a business name that is not in use or held on reserve by another business entity in the state. In addition, Kentucky LLCs must include the words "limited liability company," "limited company," or the appropriate abbreviation. Check business name availability online, in writing or by phoning the Secretary of State's office at 502-564-3490. In addition, LLCs may reserve a business name in the state of Kentucky by completing an application for reserved business name.
File articles of organization with the Kentucky Secretary of State's office. Include the name and address of the LLC, as well as the name and address of the Kentucky resident agent in the articles of organization. The person (18 years or older) or business named as the resident agent in the articles of organization must maintain a physical residence in the state of Kentucky. A Kentucky resident agent has the responsibility of accepting legal process on behalf of a Kentucky LLC. You can file articles of organization online or in person at the Kentucky Secretary of State's office. As of 2010, the fee was $40 to file articles of organization with the state of Kentucky.
Create written bylaws for the LLC. Kentucky state law doesn't require Kentucky LLCs to file articles of organization with the Secretary of State's office. Written bylaws should be kept at the company's place of business. Written bylaws will help govern the Kentucky LLC by including measures, such as the voting rights of the LLC members, how and when meetings will be held, as well as the duties of LLC members.
Request a federal employer identification number (FEIN) from the IRS. You may obtain an FEIN by phone, fax, mail or online. If you choose to apply online or by phone, you will receive an FEIN for immediate use. If you opt to fax Form SS-4 to the IRS, you may wait up to 4 business days to receive an FEIN. Mailing Form SS-4 may cause a delay of up to 4 weeks to receive an FEIN.
Obtain all licenses and permits needed to operate an LLC in the state of Kentucky. The licenses and permits needed will depend on the nature of the business. For example, a Kentucky LLC that plans to sell goods to the public must register the LLC with the Kentucky Department of Revenue in order to obtain a sales and use tax permit. All Kentucky LLCs will be required to obtain a general business license from the city or county clerk's office where the LLC operates. Furthermore, Kentucky LLCs that provide services such as barber, accounting or legal services must obtain the appropriate occupational license from the state of Kentucky. Kentucky LLCs with a retail location may be required to obtain zoning permits, depending on the location of the business. Contact the city or county clerk's office in the county where the business resides to ensure full legal compliance.
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