You might want to think about creating a S Corporation if you wish to incorporate in Kentucky. A corporate type that permits pass-through taxation is a S corporate, commonly referred to as a Subchapter S Corporation. In other words, the corporation’s income is transferred to its shareholders, who then declare it on their personal tax forms. The procedure of forming a S Corp in Kentucky is rather simple and consists of numerous parts.
To create a S Corporation in Kentucky, you must first decide on a name for your company. The name must be original and unclaimed by any other Kentucky-based corporations. By conducting an online search for the Kentucky Secretary of State, you can determine whether a business name is available. You must register your selected name with the Kentucky Secretary of State’s office after making your decision.
Second step: submit articles of incorporation The Kentucky Secretary of State’s office must receive the Articles of Incorporation as the following step. The legal documents that create your S Corporation as a legal entity are called the Articles of Incorporation. They contain details like the corporation’s name, its mission, the names of its directors and executives, and the total number of shares that have been approved. The articles of incorporation can be submitted online or by mail.
Obtain a Kentucky Withholding Number in step three. You will require a Kentucky withholding number if you intend to hire staff for your S Corporation. You report and pay Kentucky income tax withholding on behalf of your employees using the Kentucky withholding number. By registering with the Kentucky Department of Revenue, you can get a Kentucky withholding number. Obtain an EIN in Step 4
For tax purposes, the IRS issues a unique nine-digit number known as an Employer Identification Number (EIN) to identify your S Corporation. If you intend to file taxes, create a bank account, or hire staff, you must have an EIN. Applying online at the IRS website will get you an EIN.
No, CBI (Central Business Identifier) and EIN (Employer Identification Number) are not the same thing. All corporations that are registered in Kentucky are given a CBI, which is a special identification number, by the office of the Kentucky Secretary of State. While an EIN is a special nine-digit number that the IRS assigns to identify your S Corporation for tax purposes.
Depending on the sort of LLC you wish to form, different fees apply in Kentucky. A domestic LLC must pay a $40 filing fee, whereas a foreign LLC must pay a $90 filing charge. The cost of expedited processing or other services could be extra, though.
Finally, there are various processes involved in forming a S Corp in Kentucky, including naming your company, filing articles of incorporation, obtaining a Kentucky withholding number, and obtaining an EIN. Although the process can seem difficult, it is really rather simple and can be finished in a short period of time.