Price to Form an LLC in Kentucky: Various Costs REVEALED for Kentucky LLC
This is an exciting time for your business if you’ve decided to register a limited liability corporation (LLC) in Kentucky.
The basic cost of forming an LLC with the Kentucky state is $40. When the LLC’s Articles of Organization are filed with the Kentucky Secretary of State, this fee is paid.
However, before you get started, you should be aware of all of the fees and other costs associated with incorporating a Kentucky LLC.
Most business owners are aware that they will have to pay a fee to the state in order to register their LLCs. However, we’ve found that some customers aren’t aware of all the possible extra costs, such as LLC formation fees, registered agent fees, Annual Report fees, taxes, and so on. Let’s take a closer look at all of the probable costs associated with incorporating a Kentucky LLC.
- Get Professional Help When Starting a Kentucky LLC
- Forming LLC in Kentucky: Quick Costs Summary
- Permits and Licenses for Businesses
- Total Costs for Kentucky LLC Breakdown & Best Options
- How to Form a Kentucky LLC on Your Own?
- Step 1: Choose a Name for your Kentucky LLC [Price: $15]
- Step 2: Choose a Registered Agent [Price: $0 or $39 on its 1st yr.]
- Step 3: File the Articles of Organization With Kentucky State [Price: $40]
- Step 4: Create an Operating Agreement [Price: FREE]
- Step 5: Obtain an Employer Identification Number [Price: FREE]
- Steps to Take After Creating a Kentucky LLC
- Employee Recruitment in Kentucky
- FAQ: Kentucky LLC – Various Costs
- Get Professional Help For the Best Price When Forming an LLC in Kentucky
- In Conclusion
Forming LLC in Kentucky: Quick Costs Summary
|Fee for Filing an LLC With Kentucky State||$40|
|Kentucky Annual Report Fee||$15|
|Fee for Registered Agent||$0-$39 on its 1st yr.|
|Cost in Kentucky to Form a Foreign LLC||$90|
|Reservation of the Kentucky LLC Name||$15|
|DBA (Doing Business As) Name||$20|
|Certified Document Copies||$5 + $0.50/pg.|
|Certificate of Good Standing||$10|
$40 – Fee for Filing an LLC Online in Kentucky
The $40 price to submit your LLC’s Articles of Organization online with the Kentucky Secretary of State is the most expensive part of incorporating an LLC.
$15 – Kentucky Annual Report Fee
LLCs must file an annual report with the Secretary of State in Kentucky. This form is available on the Kentucky Secretary of State’s website. It must be submitted by June 30th.
$39 on its 1st yr. – Fee for Registered Agent
You may be your own registered agent in Kentucky, but choosing a registered agent service keeps your firm in compliance and reminds you of critical filing dates so you don’t have to pay late fines.
Registered agent fees start at $39 USD for the first year. We propose that you use:
$90 – Cost to Form a Foreign LLC in Kentucky
If you currently have an LLC established in another state and want to extend your business into Kentucky, you’ll need to register it as a foreign LLC. The cost of forming a foreign LLC in Kentucky is $90. A Certificate of Authority is required to register a foreign LLC in Kentucky (Form FBE).
Permits and Licenses for Businesses
Your business may require federal, state, and municipal permits/licenses to lawfully operate in Kentucky, depending on your industry and geographic area. This is true whether you create a limited liability company (LLC) or any other sort of business entity.
Total Costs for Kentucky LLC Breakdown & Best Options
|Who forms the LLC?||Total fees|
|You form the LLC in Kentucky yourself||$80+ ($40 State Fee + $15 Annual Report + $25 LLC Name +$10 Certificate of Good Standing)|
|by using ZenBusiness||$49+|
|by using Northwest Registered Agent||$39/mo|
|see our other top-rated LLC service providers||varies|
Other Fees for Starting a Kentucky Limited Liability Company
There are a few extra costs involved with forming an LLC:
$15 – Reservation of the Kentucky LLC Name
By completing a Reservation or Renewal of Reserved Name (Form RES) and paying the $15 filing fee, you can reserve your name for up to 120 days prior to the creation of your LLC.
$20 – DBA (Doing Business As) Name
To create a name different than your official LLC business name, file a Certificate of Assumed Name (Form ASN) and pay the $20 filing fee.
$5 + $0.50/pg. – Copies of Certified Documents
Order certified copies of your Kentucky business records from the Secretary of State for $5 + $0.50 for the additional pages above five.
$10 – Existence Certificate
This document, also known as a Kentucky certificate of good standing, can be obtained by contacting the Secretary of State and paying the $10 cost. Banks and financial institutions frequently demand proof of existence.
How to Form a Kentucky LLC on Your Own?
To incorporate an LLC in Kentucky, you must file Articles of Organization with the Kentucky Secretary of State for a fee of $40. You can submit your application online, by mail, or in person. The Kentucky Limited Liability Company’s Articles of Organization are the legal documents that establish the company. In Kentucky, there are five basic steps to forming an LLC:
Step 1: Choose a Name for your Kentucky LLC [Price: $15]
Before founding a Kentucky LLC, all businesses should conduct a Kentucky business search.
1. Follow the Kentucky Naming Rules
Before you finish your company name search, make sure your business name complies with the standards.
The first and most significant step in forming an LLC is deciding on a name. Make sure your name conforms with Kentucky’s naming guidelines and is easily searched by potential customers.
Make sure you stick to the following naming conventions:
- The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
- Your LLC’s name cannot contain any words that may be mistaken for a government organization (FBI, Treasury, State Department, etc.).
- Restricted terms (e.g., bank, attorney, university) may necessitate additional documentation and the inclusion of a licensed professional in your LLC, such as a doctor or lawyer.
2. Conduct a business name search in Kentucky
You can check the availability of your selected name using the Kentucky Business Name Search before completing your name reservation request. Enter the entity name you want to use, omitting identifiers like “LLC,” for the most successful search. This will return any entities with names that are the same or similar.
If the name of your corporate organization is more than two words, you may limit your search to the first two words to guarantee you find all potential comparable names.
3. Perform a domain name search to see what’s available
Another key factor to consider when choosing a business name is whether or not the web domain name you want is available. It’s critical to have a URL that matches your company name exactly. This apparently insignificant activity can have a significant impact on how potential clients locate your company.
The simplest approach to find out if your chosen URL is accessible is to use your favourite domain registration, such as GoDaddy, to search for it online.
4. Choose a name for your Kentucky business entity
All LLC name inquiries and requests are handled by the Kentucky Secretary of State’s Business Services Division. For a period of 120 days, business names can be reserved.
You must submit an application by mail to reserve a business entity name. There isn’t a way to do it online. To avoid rejection, undertake a thorough search before submitting your application.
You will have to pay a filing fee when reserving your name. In order to file, checks must be made payable to the “Kentucky State Treasurer.”
KENTUCKY APPLICATION FOR RESERVATION OF A BUSINESS ENTITY NAME
File by Mail
Division of Business Filings
P.O. Box 718
Frankfort, KY 40602
Do I need a “Doing Business As” or an Assumed Name for my company?
A DBA isn’t required for most LLCs. The LLC’s name can also be used as your company’s brand name, and you can take cheques and other forms of payment under that name. If you want to do business under a different name, you might want to register a DBA.
Step 2: Choose a Registered Agent [Price: $0 or $39 on its 1st yr.]
What is the role of a Registered Agent? A registered agent is an individual or corporate organization that is in charge of receiving significant legal papers on your behalf. Consider your registered agent to be your company’s point of contact with the government.
Every formal business in Kentucky is required by law to have a Kentucky registered agent. A registered agent receives any official documents from the state of Kentucky, as well as any service of process that may be served on a business in the course of litigation.
We’ll go over everything about what a registered agent is, what they perform, and how to choose one in our Kentucky Registered Agent guide.
A Kentucky registered agent is an individual or corporate organization that serves as your company’s point of contact for:
You must name a Kentucky registered agent for your Kentucky LLC.
Who is eligible to serve as a Registered Agent? A Registered Agent must be a Kentucky resident or an organization allowed to conduct business in Kentucky, such as a registered agent service. You have the option of electing someone from your organization, including yourself.
Is it possible for me to act as my own registered agent in Kentucky? Yes, any business owner or employee who is above the age of 18 and has a Kentucky street address can serve as the company’s registered agent in Kentucky. You might even elect a member of your LLC, or even a trusted friend, as long as they match these standards as well.
What Does it Cost to Hire a Registered Agent? The annual cost of using a registered agent service is normally between $50 and $300. When you consider how much time you’ll save, this is a modest amount to pay – it’s definitely worth it.
Is it worthwhile to hire a Registered Agent?
Using a professional registered agent firm to manage your LLC’s federal filings is a cost-effective option. The benefits of utilizing a professional service far surpass the annual expenditures for most firms.
Step 3: File the Articles of Organization With Kentucky State [Price: $40]
The Kentucky Articles of Organization is the LLC formation form that you fill out and submit to the state.
We’ll walk you through the Kentucky LLC Articles of Organization in three simple stages.
- Get Your Articles of Organization Forms
- Fill out the Articles of Organization
- File the Articles of Organization
Stage 1: Get Your Articles of Organization Forms
You have the option of filing your Kentucky Articles of Organization by mail or online. Choose your chosen technique for this initial step from the options below.
GET YOUR KENTUCKY ARTICLES OF ORGANIZATION FORMS
Option 1: Create an account on the Kentucky Secretary of State’s website to file your Articles of Organization. Select “Register a New Business” from the user dashboard after authenticating your new account and following the procedures.
– OR –
Option 2: Access the Articles of Organization PDF from the Kentucky Secretary of State website. This form will need to be mailed to the Kentucky Secretary of State with the filing fee.
Stage 2: Fill out the Articles of Organization
To complete the form, you’ll need the following information:
- Name and location of the entity
- Registered Agent Name and Registered Office Address
- Regulatory Authority
- Date of Inception
Name and location of the entity
It’s crucial to have a distinctive and clever business name, but it’s not as important as having a legally proper name.
When selecting a name for your company, be certain that the name:
- The name complies with Kentucky’s naming regulations.
- isn’t being used by another company in Kentucky.
Check Availability of Name
Is your given name legal in Kentucky? Do a name search on the Kentucky Secretary of State’s website to be sure the name you choose isn’t already used.
Obtain Your Domain Name
It’s a good idea to examine whether your company name is accessible as a web domain. Even if you don’t intend to create a company website right now, you may wish to purchase the URL to prevent others from doing so.
Registered Agent Name and Registered Office Address
A registered agent is a person who receives and sends legal paperwork on behalf of your LLC. Your registered agent and registered office must be listed when you register your Kentucky LLC.
Any Kentucky resident over the age of 18 can serve as your registered agent. During regular business hours, your registered agent must be present in the registered office.
You must specify whether your LLC will be run by management or by the members.
Date of Inception
Unless you specify a later effective date, your Articles of Organization will take effect immediately after filing.
Stage 3: File the Articles of Organization
You must file the Articles of Organization with the Secretary of State in order to register your LLC.
You can file your Articles of Organization in one of two ways:
- Fill out the forms online.
- Send or deliver a physical copy of your application via mail or in person.
FILE THE KENTUCKY ARTICLES OF ORGANIZATION
Option 1: Log in or create an account on the Kentucky Secretary of State’s website. Then, from the user dashboard, click “Register a New Business,” fill in the needed details, and submit.
– OR –
Option 2: The Articles of Organization PDF can be downloaded and mailed in at the Kentucky Secretary of State’s website.
State Filing Cost: $40
Office of the Secretary of State
Division of Business Filings
PO Box 718
Frankfort, KY 40602
700 Capital Avenue
Frankfort, KY 40601
Turnaround Time: Documents are typically processed the same day they are received, although it may take up to three days.
What is the difference between a domestic and a foreign Kentucky LLC?
When an LLC does business in the state where it was founded, it is referred to as a “domestic LLC.” Normally, when we talk about an LLC, we’re talking about a domestic one. When an existing LLC wants to expand its operations to another state, it must incorporate a foreign LLC.
Step 4: Create an Operating Agreement [Price: FREE]
An operating agreement should be in place for every Kentucky LLC owner to secure their company’s activities. While an operating agreement is not legally needed by the state, it will create clear norms and expectations for your LLC while also establishing your legitimacy as a legal company.
What is a Kentucky Operating Agreement for an LLC?
An LLC’s ownership structure and running processes are outlined in an operating agreement, which is a legal document.
Whether you’re forming a single-member or multi-member LLC, your operating agreement should include all of the topics listed below. Some of these rules will have minimal effect on the day-to-day operations of a single-member LLC, but they must be included for legal reasons.
- Organization: Consider when the LLC was officially formed, who its members are, and how ownership is allocated. Multi-member LLCs may have equal ownership or may assign various “units” of ownership to different members.
- Voting and management: Determine whether the LLC will be controlled by its members or by appointed management, and how members will vote on business issues. Each member typically has one vote, although you may want to delegate more authority to specific members than others.
- Capital Contributions: The amount of money each member invests in the company. This is also the time to consider how you will raise additional funds in the future.
- Distributions: Profits and losses will be paid among members based on the distributions. The most common strategy is to split profits evenly. If you want them distributed differently, you should state how in your operating agreement.
- Membership Structure Changes: How will roles and ownership be transferred if a member leaves the organization? It is vital to clearly out the method for buying out and/or replacing a member in the LLC’s governing document.
- Dissolution: If all of the members of your LLC decide that you no longer wish to do business, you should properly dissolve it. A critical component of your operating agreement is the mechanism for possibly terminating your firm.
What are the Benefits of having a Kentucky LLC Operating Agreement?
You’ll need an operating agreement regardless of the sort of Kentucky LLC you’re forming. This is why:
Is it necessary for me to submit my operating agreement with the Kentucky state government?
No. The operating agreement is a private document that you should save for future reference. Many states, on the other hand, make it mandatory for LLCs to have an operating agreement in place.
Step 5: Obtain an Employer Identification Number [Price: FREE]
What is an EIN number? Employer Identification Number (EIN) is an acronym for Employer Identification Number. The Internal Revenue Service (IRS) assigns EINs to businesses to assist them be identified for tax reasons. It’s essentially a business’s version of a Social Security number.
A Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN) is another name for an EIN (FTIN).
What is the purpose of having an EIN? An EIN is necessary for the following purposes:
What if my single proprietorship already has an EIN? When changing to an LLC, the IRS requires sole proprietorships to get a new EIN.
Where can I obtain an EIN? The IRS will provide you with an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or through mail.
APPLICANTS FOR AN EIN FROM OUTSIDE THE US: An EIN can be obtained without the need of a Social Security number.
OBTAIN AN EIN
Option 1: Request an EIN from the IRS
– OR –
Option 2: Apply for an EIN by Mail or Fax
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
If I don’t have a Social Security number, how can I acquire an EIN?
Obtaining an EIN does not necessitate the use of a Social Security number. You can just leave section 7b blank on the IRS Form SS-4. Then, to finish your application, call the IRS at (267) 941-1099. Find out more about how to apply as an overseas student.
What tax structure should I choose for my limited liability company?
When you apply for an EIN, you will be told of the many tax categorization options accessible to you. The default tax status is chosen by the majority of LLCs.
Some LLCs, on the other hand, can lower their federal tax liability by electing the S corporation (S corp) classification.
Is an EIN required for my LLC?
An EIN is required for an LLC with employees or more than one member. The Internal Revenue Service (IRS) requires this.
Steps to Take After Creating a Kentucky LLC
Keep your personal and business assets separate.
If your personal and company accounts are combined, your personal assets (such as your house, vehicle, and other possessions) are at danger if your Kentucky LLC is sued. This is referred to as penetrating the corporate veil in business law.
You may begin safeguarding your LLC in Kentucky by taking the following steps:
1. Open a business checking account:
- This separates your personal assets from those of your firm, which is required for asset protection.
- It simplifies bookkeeping and tax reporting.
2. Obtaining a business credit card:
- Assists in categorizing and separating all business costs for tax purposes at the end of the year.
- Aids in the development of your business credit score, which is a necessary step in obtaining a line of credit or a business loan in the future.
- Allows you to keep track of department spending by giving your staff various cards (each with a different budget).
3. Hiring a business accountant:
- Avoids overpaying taxes and helps you avoid penalties, fines, and other costly tax mistakes by hiring a company accountant.
- Allows you to concentrate more time on your expanding business by simplifying bookkeeping and payroll.
- Improves the management of your company’s funds by identifying areas of unanticipated loss or profit.
Employee Recruitment in Kentucky
If you want to hire staff, follow these measures to keep in compliance with the law:
What is Kentucky’s minimum wage? Kentucky’s minimum wage is $7.25 per hour.
When do I have to pay my employees? Wages must be paid at least twice a month in Kentucky.
FAQ: Kentucky LLC – Various Costs
Is it necessary to pay for a Kentucky LLC on a yearly basis?
Yes, Kentucky LLCs are required to pay a $15 yearly report fee.
Is it really required to form an LLC?
An LLC offers limited liability protection. This implies that in the case of a business loss, such as a lawsuit or unpaid debt, an LLC protects your personal assets.
Any small firm with even the tiniest degree of risk or liability should incorporate an LLC, according to us.
What is the most cost-effective approach to form an LLC?
By completing the formation procedure yourself, creating your own operating agreement, acting as your own registered agent, and obtaining your own EIN, you may save money on an LLC.
What is the bare minimum cost of forming an LLC in Kentucky?
The most affordable LLC creation fee in Kentucky is $40, which includes the cost of submitting the Articles of Organization for a domestic LLC. All additional costs associated with forming a Kentucky LLC are optional.
What is the cost of forming a corporation in Kentucky?
In many states, incorporating a firm as a corporation is more expensive than forming an LLC. The Articles of Incorporation (the document that legally registers a corporation with the state) in Kentucky, on the other hand, cost the same as the Articles of Organization: $40.
How long does it take to incorporate a Kentucky LLC?
It all relies on how your formation paperwork are filed. Online filings are normally processed in real time by the Secretary of State’s office, although mail-order filings take longer. For $50, expedited processing is possible.
In Kentucky, how much does annual LLC maintenance cost?
It all relies on your company’s licensing requirements, as each industry has its own set of renewal procedures. However, every LLC will have at least one recurring yearly expense: the $15 annual report cost.
Where can I get additional information regarding Kentucky LLC expenses?
On this page, the Kentucky Secretary of State gives a full list of every imaginable business form (together with the associated costs).
In today’s Kentucky, how many small enterprises are there?
In Kentucky, there are around 356,000 small companies functioning, accounting for all but 0.7 percent of all firms. A total of 44 percent of Kentucky’s workforce works for one of these companies.
What are the most important official state resources for business owners?
The Kentucky Small Company Development Center is an excellent resource for entrepreneurs across the state, offering services such as business planning, coaching, training, and more for low or no cost. Kentucky One Stop also helps local small companies with financial support.
Get Professional Help For the Best Price When Forming an LLC in Kentucky
It can be difficult and time-consuming to form a Kentucky LLC. It might be beneficial to have some assistance, and we’ve compiled a list of two of the top LLC creation services available.
#1 – ZenBusiness can help you form an LLC in Kentucky
ZenBusiness provides LLC creation services at a low cost and with several useful features. Most LLCs will benefit from two of these aspects. All ZenBusiness’s products include a year of complimentary registered agent service. With their Pro and Premium Packages, they offer ensure worry-free compliance. ZenBusiness will file your yearly report and notify you if there is anything further you need to do to follow the state under this assurance. For $119 per year, those with the basic package can purchase worry-free compliance.
They have a customer satisfaction rating of 98 percent and over 4500+ verified reviews.
We also encourage you to read our full ZenBusiness review here.
Review count: 4500+
Form an LLC today with ZenBusiness for only $49. They Have 98% customer satisfaction rating and over 4500+ verified reviews.
#2 – Create an LLC in Kentucky Using Northwest Registered Agent
With decades of expertise, Northwest Registered Agent is an exceptional LLC creation service. They deliver excellent, well-informed customer service. Their biggest benefit, though, is the seclusion they provide. They don’t outsource any of their services to third parties, don’t sell your information, and even build their own code.
Northwest can help you form an LLC in Kentucky right now. They have a customer satisfaction rating of 95% and over 4150+ verified reviews. They’ll come with a complimentary year of registered agent service!
From $35+State Fees
Review count: 4150+
Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!
Forming an LLC in Kentucky isn’t that expensive or hard. Especially when there are professional services that can help you with all the legal aspects.
In addition, starting a Kentucky LLC isn’t as expensive as it seems.
The total cost shouldn’t exceed:
- $49 if you’re forming a basic LLC with all the basic options with ZenBusiness.
- $39/mo if you’re forming a top-notch LLC with Northwest.
- ~$80+ if you’re forming an LLC yourself.
As you can see — there are many options and affordable ways to create your LLC in Kentucky. From our and other’s experiences – most people tend to choose professional LLC formation services instead of doing everything themselves. Since that saves a lot of time and headache.
Good luck with your new business endeavours in Kentucky!