How to Set Up an LLC in Kentucky: A Step-by-Step Guide

Setting up a limited liability corporation (LLC) is one of the first steps you must do if you want to launch a business in Kentucky. A common business structure that offers owners some tax advantages as well as protection from personal liability is an LLC. A step-by-step tutorial for creating an LLC in Kentucky is provided here.

Select a Name for Your LLC in Step 1 To create an LLC in Kentucky, you must first decide on a name for your company. The name of your company must set it apart from other companies in the state and must finish with “LLC” or “Limited Liability Company.” The online business name database maintained by the Kentucky Secretary of State can be used to determine whether a name is available.

Step 2: Submit Articles of Incorporation Articles of Organization must then be submitted to the Kentucky Secretary of State. This paperwork establishes your LLC formally and contains crucial details about your company, like its name, registered agent, and management structure. There is a $40 filing fee and you may submit your articles of organization either online or by mail.

Step 3: Designate a Registered Agent

Every LLC in Kentucky needs to appoint a registered agent, who will accept legal and tax correspondence on the company’s behalf. Your registered agent must reside in Kentucky, have a physical address, and be accessible during regular business hours. You have the option of appointing yourself as the registered agent for your LLC or using a reputable registered agent service.

Obtain an EIN from the IRS as the fourth step. Employer Identification Numbers, or EINs, are special nine-digit numbers given out by the IRS to identify your company for tax-related purposes. An EIN is required to open a business bank account, submit taxes, and apply for business licenses and permits, even if you don’t have any workers. The IRS website offers a free EIN service.

Depending on the things you’re selling and the location where you’re selling them, you may or may not need a business license in Kentucky to conduct internet business. You’ll probably need a sales tax permit from the Kentucky Department of Revenue if you’re selling tangible things. You could require a professional license from the Kentucky Board of Licensure if you’re selling professional services. If you are unsure whether you require any further licenses or permits, check with your local government.

Use your Social Security number as your tax ID number if you’re a lone entrepreneur selling on Etsy. However, you’ll need an EIN from the IRS if you’re selling as an LLC or another kind of company entity.

Depending on where you reside and what you’re selling, you may or may not require a business license to sell on Etsy. To find out if you require any licenses or permits to operate a business in your region, contact your local government. In addition, you could require a sales tax permit from your state’s tax authority if you’re selling tangible things.

How Can I Receive a Free Tax ID Number? The IRS website offers a free EIN, also known as a tax ID number. The procedure is straightforward and can be finished online. Download Form SS-4 from the IRS website and send it to the correct address or fax number if you’d rather apply by mail or fax.