A crucial first step in securing your personal assets and creating your company as a distinct legal entity is to incorporate your firm. Here is a step-by-step guide to get you started if you want to incorporate in the state of Kentucky.
The first step in incorporating in Kentucky is to pick a distinctive company name and confirm that it is available. Through the website of the Kentucky Secretary of State, you can determine whether your preferred business name is available. It is crucial to remember that your company name must adhere to the state’s naming regulations and stand out from any other business names that have been registered there.
The second step is to select a registered agent. A registered agent is a person or organization chosen to accept legal documents and official notices on your company’s behalf. In Kentucky, a registered agent must be either a state resident or a company that is legally permitted to operate there. You have the option of acting as your own registered agent or working with a reputable registered agent firm.
Articles of incorporation must be filed in step three. You must submit Articles of Incorporation to the Kentucky Secretary of State in order to formally incorporate your firm in the state. This document contains crucial details concerning your company, like its name, registered agent, and mailing address. Additionally, a $50 filing fee is required.
Get an Employer Identification Number (EIN) in step four. The IRS issues a unique nine-digit number called an Employer Identification Number (EIN) to identify your company for tax purposes. By submitting an online form on the IRS website, you can get an EIN for your Kentucky corporation.
An organization may operate under a name other than its legal name by using a DBA (Doing Business As) name, which is a fictional name. As long as they are not engaged in the same business activity, Kentucky permits two companies to share the same DBA name. It’s crucial to remember that using a DBA name does not give your business name legal protection. The distinction between an LLC and a DBA is explained here.
A DBA is merely a made-up name that a company employs to conduct business under a name other than its legal name. In contrast, an LLC (Limited Liability Company) is a sort of corporate company that shields its owners from personal liability while still granting them access to specific tax benefits. An LLC is regarded as an independent legal company that is able to own property, enter into contracts, and incur debt in its own name, whereas a DBA is not recognized to be a separate legal entity from its owners.