Starting an LLC in Kentucky is beneficial for many reasons. Firstly, the cost of starting an LLC in Kentucky is cheaper compared to other states. Secondly, the state has a lower minimum labor cost due to its cheaper cost of living, which allows business owners to generate higher profits. Thirdly, the state offers multiple tax incentives and financial assistance programs that entrepreneurs can find helpful. Moreover, the low-cost living combined with education and housing reforms also makes Kentucky a great place to live, own a business, and enjoy life.
So without further ado, let’s find out the steps required to start an LLC in Kentucky:
Name Your Business
The first step to finding a business is brainstorming some business name ideas. While you may already have a name for your business, you must ensure that it complies with the state’s business name regulations and is available for registration.
If naming your business overwhelms you, use the tips in this guide to develop business name ideas. You can also take help from a business name generator.
Reserve the Business Name
Starting an LLC in Kentucky is not a one-day process. Therefore, reserving the business name you have decided on can save you from repeating the first step.
You can file the application for Reservation of a Business Name through the Kentucky Secretary of State website. It only costs $15 to file the application and reserve the name for 120 days, which is more than enough time to start an LLC in Kentucky. You can also apply again for the reservation renewal if you need more time.
Obtain a Business Address
Every Kentucky LLC requires a business address. While you cannot use a P.O. Box address as your LLC address, you can use a residential address, a commercial address, an out-of-state address, or even a virtual mailbox address. The address you provide will receive all the official documentation from the Kentucky Secretary of State, so ensure you have complete access to it.
Choose a Registered Agent
A registered agent is an entity or a person who deals with the business’s documentation and represents it on its behalf. For choosing a registered agent in Kentucky, you must ensure that they fulfill the following criteria:
Must be authorized to conduct business
Must have a physical street address in the state
Must be available during business hours
Anyone, such as you, your business partner, or a registered agent service firm, can be named as a business’s registered agent. The chosen entity or person must officially accept their position to complete this step.
Submit Articles of Organization
Articles of Organization refers to a form requiring essential information about the LLC's establishment. The information required by the form includes, but is not limited to:
LLC name and address
LLC size and management structure
LLC duration (if not perpetual)
Registered agent name and address
Names and addresses of LLC members
Registered agent signature
Name and signature of the person filing the form
Filing this form is essential for starting an LLC in Kentucky. Therefore, make sure you prepare it attentively and ensure timely filing.
Prepare an LLC Operating Agreement
An operating agreement outlines a business’ details and operational framework, regulations, and processes. While you don’t need an operating agreement to start an LLC in Kentucky, preparing one can significantly help.
An LLC operating agreement can include details and a framework for profit sharing, voting rights, ownership, governance, business regulations, meeting regulations, member contribution, member elimination or addition processes, business dissolution terms, etc. With all these details written down and accessible to every business member, the LLC operating agreement ensures smooth business operations, promotes growth, and prevents unwanted claims.
Receive Certificate of Establishment
Once the articles of organization you filed for your LLC is approved, you will receive a certificate of establishment for your LLC through the mail. This certificate will allow you to register your business with the IRS and obtain an Employer Identification Number (EIN). The EIN you receive will allow you to hire employees, open a bank account, and report and file taxes.
That’s it! These are the seven steps required for starting an LLC in Kentucky. However, if you want your Kentucky LLC to be successful, you need to complete one more step, i.e.:
Get a Website and Market Your Business
Getting a website and marketing the business will allow you to reach the audience and convert them into customers. It is no secret that people simply Google whatever they need these days but are also skeptical of businesses due to widespread scams on the internet. Since a website provides a legitimate online presence to your business, it builds trust with your audience and helps convert them into customers.
However, building a website and marketing the business are multi-step processes requiring several skills and expertise. If you don’t have prior experience with these and don’t have the budget to hire full-time employees to do it for you, head to Trady.com.
Trady.com is a website-building service dedicated to trades and home services companies. Building a website with Trady.com is super cheap, fast, and easy. It brings exclusive features to websites, such as booking appointments, generating invoices, following up with clients, scheduling, service management, and making payments online. These features make your business look legitimate and play a significant role in converting your audience into customers.
Its end-to-end marketing services also attract audiences and convert them into customers easily. The marketing services of Trady.com utilize social media, digital, and traditional marketing techniques to reach all potential customers. With Trady.com, you can update and manage your website and business marketing in minutes with only a few taps on your smartphone. The complete services by the platform will lighten your responsibilities of running the business online and attracting new customers, allowing you to focus on work with greater freedom and authority.
In short, Trady.com makes attracting the right audience and customers as easy as the rest of the process of starting an LLC in Kentucky. Enjoy the 14-day free trial by Trady.com to get started.