Should you form your LLC in Kentucky? We've collected the relevant information that will help you make this decision.

Pros

  • Taxed as a partnership
  • Low cost of doing business
  • Low labor costs

Cons

  • Owner disclosure in periodic report

Cost of doing business

  • $40 filing fee / $15 periodic report

Privacy

  • Owner disclosure in periodic report

Forming an LLC in Kentucky

The name
In order to communicate to the public that your new business is an LLC, its official name will need to end with one of the following signifiers (or abbreviation of): “Limited liability company”, “LLC”,  “Limited Company”, “LC”, “L.C.”, or “L.L.C.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. There are also restrictions placed on certain terms common to the engineering industry. Do a FREE name search now.

Ownership
The owners of an LLC are called “members.” The following information must be required regarding your LLCs members:

  • Required number of members
    Kentucky LLCs must have at least one member or manager listed in their incorporation documents.
  • Age restrictions
    LLC members in Kentucky may be of any age.
  • Residence restrictions
    There are no residence restrictions imposed on LLC members in Kentucky.
  • What information needs to be included in the Articles of Organization?
    Outside of the principal member, LLC Members in Kentucky are not required to list their name or addresses in their Articles of Organization.

Requirements for the Articles of Organization

The Articles of Organization is a document that must be filed during the LLC formation process in every state. Here is the information that must be included in this document when filing in Kentucky:

Registered agent information
All Kentucky LLCs must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.

Additional Kentucky filing requirements

Many states have steps in the LLC formation process that are unique to that state. These can also vary at the municipality or county level as well. Here are the steps required throughout all of Kentucky:

County-level filing
Kentucky requires all new LLCs to file a copy of their Articles of Organization with the county in which their registered agent is located.

If your business is a professional practice
Professional service companies are permitted to form under the professional limited liability company (PLLC) structure.

Kentucky LLC taxation and fee requirements

There are several tax and fee requirements that must be addressed by LLCs in Kentucky. They are as follows:

Taxation
All states have complex taxation requirements. For more information regarding taxes in Kentucky, it is advised that you visit the state’s official business related website. 

Annual report requirements
LLCs in Kentucky are required to file an annual report every year before June 30th. The cost of this filing is currently $15. Learn more about annual reports.

Tax identification numbers
Kentucky requires an EIN (employee identification number) for all LLCs that will have employees, and most banks will require one to open accounts. Kentucky also requires LLCs to obtain state tax ID numbers. Learn more about EINs.

Business license requirements

The business licenses and permits required in Kentucky vary wildly depending on the county or municipality in which your new LLC is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.

Other formal requirements

Kentucky also requires LLCs to keep the following information on record with the state:

Member info
If your LLC is member-managed, Kentucky requires you to keep a name and address on file for each member/manager. 

Registered agent information
All LLCs in Kentucky must keep all relevant contact info for their designated registered agent on file, and up-to-date, at all times. This includes the individual’s name, phone number, and address (which cannot be a PO box). Learn more about registered agents.

Need a Kentucky corporation instead? Click here.