Last Updated on June 13, 2022 by Fair Punishment Team

A limited liability company is a type of business structure that is specific to private limited companies throughout the United States. While they are one of the most common types of companies to create

The best part about the Limited Liability Company business plan is that you do not need to be a US citizen in order to open up a business in the USA.

So, regardless of whether you’re an American citizen looking to start a business or you want to extend your business over in the States, an LLC is a great way to start.

In particular, if you’re looking to start an LLC in Kentucky, then rest assured that you have clicked on the right article. `

Below, we are going to be talking you through everything you need to know about starting an LLC in Kentucky. From a registered agent to an operating agent, we’ve made sure to cover all bases. 

So, whenever you’re ready, just keep reading to discover how to start an LLC in Kentucky.

1. Name Your Kentucky LLC

If you’re going to be starting an LLC, one of the most important aspects of your business (as well as one of the most important) is going to be the name.

Besides being one of the first impressions that your customers are going to have, the name of your LLC is going to need to be unique so that it stands out from competitors in your market, while also being able to give your potential customers a clear picture of what it is that you’re going to be offering. 

Along with all of that, you are also going to need to make sure that the name that you choose to use is completely legal.

When you are setting up your LLC in Kentucky, you will need to make sure that you are choosing a name that meets the rules of your state. 

In order to choose the name for your LLC, we recommend that you take some time to brainstorm some ideas of names that you might potentially like to give your new business.

If you want, you could consider checking out the names of some of the top competitors in your industry, as this will help to give you some inspiration on how you can name your LLC! 

Once you feel that you are beginning to settle on a name (or at least, have a shortlist of options that you like) we recommend that you run yourself through the following points to check that the name is going to be the right choice for your LLC:

• Is it legal? As we have already mentioned, it is very important that you make sure the name you are using for your LLC is completely legal. With this being said, it is important that you make sure that you aren’t using any words that are deemed to be “restricted”. Along with that, as you are going to be opening up an LLC in Kentucky, keep in mind that you are also going to need to make sure that you are also listing in the name that it is an LLC. For example, after you have settled on the name of your company, you could then place “limited liability company” on the end of the overall name.
• Have you left out restricted words? Alongside making sure that the name you are using is going to be completely legal in Kentucky, you are also going to need to make sure that you aren’t using any restricted words. To discover what words are restricted in Kentucky, you will need to make sure that you are referring to the list of prohibited words provided by Kentucky, and these can usually be found on the official State business website.
• Is it catchy? Last but not least, the final consideration that you are going to want to make is whether or not it is memorable! As we have already mentioned above, this is one of the most important things that you’ll need to get right! The name of your LLC is one of the first impressions that your potential customers will get of your company, so it needs to be both catchy and clear.

2. Choose A Registered Agent 

After you have settled on a name, the next thing that you are going to want to do is to get yourself a registered agent. When you start your LLC and you are trying to establish it is to appoint a registered agent.

If you’re not already aware, a registered agent is a person that will be appointed to receive all important and legal documents regarding your LLC.

Regardless of whether you are opening an LLC in Kentucky or elsewhere, getting a registered agent is one of the easiest parts of the LLC process. Essentially, all you will need to do is hire someone that works in your area and has an office to be able to receive the mail.

In addition to this, the registered agent will also serve as a legal representative and point of call for your LLC, so it’s imperative that you choose the right one for your LLC.

To make sure that you are able to get the very best registered agent for your LLC, it’s important to make sure that you are investing in a professional who is going to be able to offer you a specialized service and plenty of reliability.

Even though the role of a registered agent might seem pretty simple and as though anyone can do it, it’s important to make sure that you are working with an accredited professional who has experience operating as a registered agent.

By investing in a registered agent, you will be sure that your LLC is going to receive a professional server that will be able to handle documents and serve as a  first point of call for any potential legal issues that might come your way. 

With that being said, while searching for a registered agent in your state, you should be sure to go with someone who is going to be able to excel in this role and be able to handle your documents in a timely manner to guarantee the smooth running of your LLC. 

3. File The Articles Of Incorporation 

Moving on, another important aspect of setting up your LLC is going to be to make sure that you have filed the Kentucky articles of incorporation.

After you have filed for this document and it has been approved by Kentucky, you will then have your LL’s name secured, as well as creating the legal entity aspect of your LLC.

It is absolutely essential that you file for this document, as without your articles of incorporation, you will not be able to apply for any business tax IDS, officially give out and sign contracts, as well as be able to obtain important business licenses! You can apply for it here.

Following on from this, making sure that you file the articles of incorporation will also offer your LLC a multitude of different benefits. For starters, incorporating artiles will be able to limit the liability of any potential directors or shareholders.

Along with this, filing your articles of incorporation will also ensure that the statutory requirements of registering your LLC’s business name are met, while also being able to provide your LLC with credibility in the eyes of your state,as well as with potential customers, investors, officers and more.

After you have filed for your articles of incorporation, you will usually need to wait for a period of around 3-5 days before finding out whether or not it has been approved.

4. Create An Operating Agreement 

Next up, you are going to need to create an operating agreement. If you’re not overly familiar with this term, an operating agreement is essentially a document that is designed for internal use of your organization, and will allow you to regulate and outline how your LLC organization is going to operate.

In addition to this, an operating agreement also contains information about the various rights and responsibilities that the different members of staff or your LLC will have, which will help to ensure that the limited liability is protected as your operating agreement will prove that your LLC is a business entity.

Keep in mind that if you do not take out an operating agreement, your LLC will be governed by the state of Kentucky.

As a side note, even though Kentucky does not currently require LLCs to need to have operating agreements in order to operate, it is strongly recommended that you do so.

This is because by making sure that you take out an operating agreement will help your LLC to protect its limited liability status.

Thanks to this, it means that besides being able to help prevent any sticky business misunderstandings that can be easily avoided (such as financial or managerial issues) taking out an operating agreement will also mean that you are able to have the freedom to be able to control the rules of how to govern your LLC, instead of being controlled by Kentucky’s regulations if it were to fall to default.

5. Get An EIN Number 

After you have set up your LLC, you are then going to need to obtain an EIN, which is an Employee Identity Number. This is especially important if you are going to be electing for your LLC to be taxed as a corporation instead of a sole proprietorship.

This means that your LLC will be classified as a disregarded entity. In order to get an EIN in Kentucky, it will be entirely free of charge in the state of Kentucky and you can do so by filling out an online application, which you can find here.

6. Decide If You Need A BIN 

Last but not least, the final consideration that you are going to need to make when setting up an LLC is whether or not you need a BIN – which stands for a Business Identification Number.

If you’re not too familiar of what this term refers to, your business ID number will essentially be able to provide your state (in this instance, Kentucky) with a unique number that will allow them to be able to easily identify your LLC in the event that they needed to be able to contact you or conduct general business. 

Even though a BIN is generally recommended and a requirement across most states, a BIN is not always necessary, so you’re going to need to decide whether or not your LLC is going to need one or not.

With that being said, if you happen to be the sole proprietor or your own LLC without any current employees (and no current plans to hire any) then you won’t need to get a BIN.

However, keep in mind that if you are planning to file your LLC with the IRS as a corporation, then you will be legally required to to get a BIN so that your LLC can be recognized by Kentucky and its government. 

Frequently Asked Questions 

Do I Need A Business License? 

In the majority of states across the country, starting an LLC doesn’t necessarily mean that you are going to be legally required to also take out a business license.

The main reason for this is that when an LLC is started, it has to be registered with the relevant state anyway, which often means that a business license just isn’t necessary to get the business up and running.

However, while this might very well be the case, it should also be noted that, despite the fact that LLCs don’t always require the owner to get a business license, the majority of LLC owners often find themselves filing for a business license in order to be able to begin operating the business. 

In the case of Kentucky, it should be noted that the regulations are quite unique. This is because, unlike other states across the country, Kentucky does not actually have a statewide business license that can be used to begin operating a business.

Instead, Kentucky’s regulations require certain types of businesses (including LLCs) to have a special permit that allows them to legally operate the LLC business.

In addition to this, if you are going to be opening an LLC business in Kentucky and plan to operate the business there, you are going to make sure that you are meeting all of the requirements, as it is very common to have more than one license. 

What Are LLC Tax Requirements?

If you are going to be setting up an LLC in Kentucky, it is very important that you make sure to follow the tax requirements relevant to both Kentucky and America as a whole. Generally speaking, an LLC is often treated as an entity when it comes to federal income tax purposes.

With all that being said, it means that when an LLC is taken out, the LLC will not pay out any taxes on the business. Instead, the members of the LLC will be required to pay taxes on the share that they make from the overall profits of the LLC that has been set up.