Making the decision to establish a limited liability corporation (LLC) may be the best course of action for you if you want to launch a business in Kentucky. An LLC is a sort of business entity that shields its owners from personal liability, ensuring that their assets are kept apart from those of the firm. In this post, we’ll walk you through the steps involved in creating an LLC in Kentucky, including how to get your operating agreement, articles of incorporation, and certificate of good standing.
Select a Name for Your LLC in Step 1 The first step in creating an LLC in Kentucky is to give your business a name. It must be a brand-new name that hasn’t already been registered with the Kentucky Secretary of State. On the Kentucky Secretary of State’s website, you can see if the name you want is available. Once you’ve decided on a name, you can reserve it with the Secretary of State for up to 120 days by submitting a name reservation application.
Step 2: Submit Your Articles of Incorporation You must submit your articles of organization to the Secretary of State in order to create an LLC in Kentucky. The name of your LLC, its purpose, and the names and addresses of its owners are all described in the articles of formation, which are legal documents. Your articles of organization can be submitted online or by mail. For online submissions, the filing fee is $40; for mail-in filings, it is $50.
Create an operating agreement in Step 3
Although an operating agreement is not required for Kentucky LLCs, having one is strongly advised. A legal document known as an operating agreement describes the ownership structure of your LLC, how revenues and losses will be divided, and how the business will be run. To prevent misunderstandings or disagreements among the LLC’s owners, an operating agreement should be written. Obtain a Certificate of Good Standing in step four.
A certificate of good standing serves as proof that your LLC complies with all state laws and is legitimate to conduct business in Kentucky. Requesting a certificate of good standing from the Secretary of State is possible. $10 is the cost of a certificate of good standing.
Depending on the form of filing, Kentucky LLC filings take different amounts of time to process. Mail filings might take up to 10 business days to be processed, whereas online filings are typically within 24 hours. It can take more time to have your LLC approved if your application is refused. Therefore, before filing your articles of organization to the Secretary of State, you should make sure that they are accurate and comprehensive.
Finally, picking a distinctive name for your LLC, submitting your articles of incorporation, drafting an operating agreement, and obtaining a certificate of good standing are all necessary steps in the formation of an LLC in Kentucky. Although it can sound complicated, the procedure is rather simple and can be completed online or by mail. You can start your business with confidence knowing that your personal assets are shielded from any liabilities of your company by taking the measures outlined here.
No, an LLC and articles of organization are not the same. A limited liability corporation (LLC) is a type of corporate entity that restricts the liability of its owners and is founded by filing the articles of organization with the state. Articles of organization are a legal document that establishes the establishment of an LLC.