Start a Business in Kentucky
Corporate Compliance by Local Corporate Guides®
Starting a business in Kentucky can and should be easier than you think. You file simple forms with the secretary of state, and your business is formed! Obviously there’s a few more things than that, but if you’d like to start your own business yourself, you will find it easy to hire us as your registered agent and you’ll find all the forms you could file to start a business in Kentucky, along with great filing instructions on the quickest and cheapest ways to start your business in Kentucky.
How to Start a Business in Kentucky
You file articles of incorporation for a Kentucky corporation or articles of organization for a Kentucky LLC with the KY Secretary of State.
You obtain a federal tax ID number (FEIN or EIN) with the IRS after you have confirmation and filed articles from the State of Kentucky showing your approved Kentucky business.
Opening a business banking account under your new Kentucky business name should be easy with these two items.
Register with the Kentucky Department of Revenue and the Kentucky Labor Cabinet if you will have employees or withhold taxes.
Kentucky doesn’t have a general state business license requirement, but certain businesses do need specific state licenses. For example, if you need a trade or professional license, you do that at the state level. Licensing information and links are in your online account.
Some local cities or counties have a general business license, but most don’t. You obtain a local trade license if the city or county you’re going to be working in requires it.
If you’re going to have an office or shop you might need an approval from the city zoning for your type of business in that location.
If you get overwhelmed, just get your business pulling in money and worry about regulations later.
Are You A Do-It-Yourselfer? You Can Save Some Money:
If you want to start a business in Kentucky yourself, you can just hire us as your Kentucky registered agent, and you’ll instantly have the Kentucky LLC or corporation forms to file along with filing instructions on the quickest, cheapest, and most efficient way to incorporate a Kentucky corporation or form a Kentucky LLC. You’ll get the ongoing support of our online tools, reminders and the support of a professional Kentucky registered agent service.START YOUR KENTUCKY BUSINESS TODAY
Kentucky LLC vs Corporation
Most business owners that choose to start a corporation are seeking to grow large companies and want the option of selling stock to investors. Also, the well-established management structure of a corporation can be very appealing. LLCs are great for small businesses because they’re easier to maintain. Plus, LLCs offer flexible management and great tax options.
But, what about Kentucky? Any pros and cons for a Kentucky LLC vs a Kentucky corporation?
In terms of initial filing fees, Kentucky LLCs cost slightly less than Kentucky corporations—$40 vs $50. Plus, if your corporation decides to authorize more than 1000 shares, you’ll more than likely end up paying even more. Other filing requirements are similar. Both entities are required to submit annual reports ($15) and list officer/director or member/manager information.
During tax season, Kentucky LLCs and corporation are treated fairly equally. Although corporations are typically subject to double taxation, the rates for corporate and personal income taxes are low. Taxes for corporations top out at 6% and personal income tax is a flat rate of 5%. Note that Kentucky also imposes a Limited Liability Entity Tax, which applies to both corporations and LLCs. Thankfully, the minimum tax is only $175 and shouldn’t get higher—unless you’re generating a multi-million dollar revenue.
The Kentucky LLC is user-friendly and ideal for small to medium-sized businesses. They’re less expensive and provide flexible management. However, the Kentucky corporation is your best choice if you’re wanting to grow substantially and attract strong investors.
If you want a corporation, you file Kentucky Articles of incorporation:
The Kentucky articles of incorporation cost $40 (plus an organization tax based on the number of shares) and must be filed with the Kentucky Secretary of State.
We custom draft your Kentucky articles of incorporation when you hire Northwest to start your Kentucky business. The basic requirements of Kentucky corporations are:
- An incorporating Kentucky ending such as Inc, corporation, or incorporated
- The class and number of Kentucky corporation shares you would like to authorize
- The corporations principal office address
- The name, address, and signature of the Kentucky incorporator(s)
- The corporations Kentucky registered agent
- KY articles of incorporation are effective when filed unless you state a later date
Kentucky does not require original signatures on new KY corporation filings. A stamped postcard will be sent to the KY corporations principal address.
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If you want a LLC, you file Kentucky Articles of organization:
- The business name must have a limited liability company ending or variation of it
- New Kentucky LLCs name must be different than already registered Kentucky companies
- The LLCs principal office address
- Whether the LLC is managed by members or managers
- The articles of organization are effective when filed unless you state a later date
- The Kentucky registered agent and the physical address
- The Kentucky organizer’s name and signature
Kentucky does not require original signatures on new KY LLC filings. You’ll get a stamped postcard mailed to the principal address after the state approves your filing.