Kentucky LLC

Kentucky LLC

Form a Kentucky LLC

At LawInc we are Kentucky LLC formation experts who can help you form a Kentucky LLC, the right way. We file the Kentucky LLC Articles of Organization with the Kentucky Secretary of State Corporations Division and prepare a customized operating agreement. We can also obtain the Kentucky LLC’s EIN, in an quickly as 24 hours. Let LawInc guide you through the process of forming your Kentucky LLC.

Let LawInc walk you through the Kentucky Limited Liability Company formation process. Our clear, concise and easy to use website, helps keep things simple.

Kentucky LLC Name

The first step in forming a Kentucky Limited Liability Company (LLC) is selecting the business name. Kentucky LLC names:

  • Must contain the words must contain the words “Limited Company” or “Limited Liability Company” or the abbreviation “L.C.” or “L.L.C.”
  • The name of a Kentucky LLC must be distinguishable on the records of the Kentucky Sec. of State.

An available Kentucky LLC name may be reserved for 120 days. permits you to choose up to three names and will conduct a name search for your Kentucky LLC, prior to filing.

Kentucky LLC Formation

Kentucky LLC Filing Procedure: When forming a Kentucky LLC, the Kentucky Articles of Organization must be filed with the Kentucky Secretary of State. The Kentucky Articles of Organization must state:

  • The Kentucky LLC name.
  • Name and address of each Kentucky LLC organizer.
  • Street address of Kentucky registered agent.
  • Street address of principle place of business.

Kentucky LLC Organizers: An Kentucky limited liability company can be formed by one (1) or more organizers.

Kentucky LLC Members: Kentucky LLCs require 1 or more members. There is no residence or age requirement. Kentucky LLC members are not required to be listed in the Articles of Organization.

Kentucky LLC Duration: The period of duration of a limited liability company shall be perpetual unless the Kentucky Articles of Organization place a limitation on the company’s existence or until dissolution or termination.

Kentucky Registered Agent: An Kentucky LLC must maintain a registered agent and office to receive service of process in Kentucky. The Kentucky registered agent should be available, at an Kentucky physical address, during normal business hours to accept important legal and tax documents on behalf of the Kentucky LLC. The registered agent can either be (1) a domestic entity or a foreign entity that is registered to do business in Kentucky or (2) an individual resident of the state. A Kentucky LLC may not act as its own agent.

Kentucky LLC Operating Agreement: After filing, it is highly advised that an operating agreement is drafted which dictates the LLC internal affairs and management. There is no set criteria, but an Kentucky LLC operating agreement should reference how the Kentucky LLC is managed, allocation of profits and losses and member capital contributions. The Kentucky LLC operating agreement does not need to be filed.

Kentucky LLC Post-Filing Requirements

Kentucky LLC Annual Report: Kentucky LLCs must file an annual report which is due on June 30th of every year.

Kentucky LLC Taxes

Kentucky State Income Tax: The LLC tax rate for Kentucky is variable, depending on Kentucky taxable net income.

Federal Income Tax: An advantage of the LLC is its tax flexibility. LLC members are allowed to select how the entity will be taxed. An LLC may be classified for federal income tax purposes as either a:

  • Sole proprietorship
  • Partnership, or
  • Corporation.

Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on Kentucky LLC net income must be paid just as you would with any self-employment business.

Most Kentucky multi-member LLCs elect to be treated as partnerships by the IRS and file IRS Form 1065. On this form, Kentucky LLC profits are reported and allocated to each of the owners according to the Kentucky LLC’s operating agreement. Each owner is given a Schedule K-1, which shows each owner’s share of LLC income or loss. The owner then reports and pays taxes on this income on the owner’s annual 1040 income tax return. It is important to note that as with sole proprietorships, all Kentucky LLC profits are taxed to the owners, even if they are not actually distributed by the LLC. This situation can arise when the LLC needs to use its profits to pay ongoing expenses.

If pass-through taxation is not desired, an LLC may elect to be taxed as a corporation by completing IRS Form 8832. If this election is made, the LLC is taxed as a C corporation by the federal government. Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to the taxable income of non-corporate taxpayers, it is possible a net income tax savings can result from this tax election. Additionally, an LLC can be taxed like an S corporation by filing IRS Form 2553.

Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. An EIN is typically required if the Kentucky LLC has more than one owner, or any employees.

Kentucky LLC Dissolution/Cancellation

Kentucky LLC Dissolution/Cancellation: In order to dissolve or cancel an Kentucky LLC, the members or managers must file a Articles of Dissolution with the Kentucky Secretary of State.

Acts Triggering Kentucky LLC Dissolution: A Kentucky LLC can be dissolved upon the happening of one of the following:

  • At a time specified in the Articles of Organization or operating agreement;
  • Upon occurrence of events specified in the Articles of Organization or operating agreement;
  • Consent by the specific number or percentage of members indicated in the operating agreement;
  • At any time there are no members; or
  • Judicial decree to dissolve by a Court.