How to Form a Company in Kentucky
Introduction
If you’re ready to start up a business, there are plenty of options available in Kentucky. You can choose from any type of business structure: sole proprietorship, partnership, or corporation. But before you choose one over another, you’ll need to understand how they work and what’s involved in forming each type of entity. Fortunately, it’s not difficult to form a company in Kentucky at all! Here are some basic steps you should follow when forming your new business:
The company name must contain one of these words: Assn., Assoc., Co., Corp., Inc., Ltd. or LLC.
The name of the new corporation must contain one of these words: Assn., Assoc., Co., Corp., Inc., Ltd. or LLC.
The name cannot be misleading to the public and should not contain the words ‘limited’, ‘ltd.’ or ‘limited liability’. The following abbreviations are also prohibited for use in company names: Corp.; Inc.; Ltd.; LLC; Co. So, for example, if you want your business to be called “Alan’s Ice Cream”, you could not use “Alan’s Ice Cream Company” as your company name (it would need to be Alan’s Ice Cream). However, if you only wanted people to know that your business was an ice cream stand (and didn’t care what type of entity they thought it was) then “Alan’s Ice Cream Stand” would be fine (because even though there is no ‘company’ mentioned in its name).
The name cannot be misleading. Check the database to make sure there are no other organizations with your chosen name.
Once you’ve decided on a name, it’s best to check with the Secretary of State Corporation Division to make sure it’s not already taken by another business. You’ll find the database at www.sos.ky.gov/corps/.
If you see a name that sounds similar to yours, don’t worry—you can still use your preferred name if it is available after contacting the company with the registered name and asking them whether they would be willing to release their rights in exchange for some compensation (usually $50-$100).
Complete a “Reserved Name Application” and pay the $10 fee if you want to reserve a name for 120 days.
- The next step after you have chosen your company name is to complete a “Reserved Name Application” and pay the $10 fee if you want to reserve a name for 120 days.
- You can also reserve your name for three years by paying an additional $200 fee.
- If you don’t want to pay any fees at all, but would rather just wait until it’s available, that is possible too.
Submit the Articles of Organization to the Secretary of State’s office. Use a form provided by the state and include the name of an organizer and registered agent, as well as information about the management structure and mailing address.
It’s important to submit your articles of organization to the Secretary of State’s office. You will need to fill out a form provided by the state and include information about the management structure, mailing address and name of an organizer and registered agent. The organizer is the person who starts the company.
Direct LLCs must also include a description of their purpose and provisions relevant to dissolving, distributing assets or winding up its activities in the Articles of Organization.
You will also need to include in your Articles of Organization the provisions relevant to dissolving, distributing assets or winding up its activities. These provisions are likely already included in your state’s LLC laws. If not, you may want to consult with an attorney who specializes in business law before filing your Articles of Organization with the Secretary of State.
In addition to filing for a name for your business and filing for an EIN (if required), it’s important that you file for an assumed name certificate (if required) before doing any advertising or setting up bank accounts. An assumed name certificate is like a “dba,” which stands for “doing business as.” It allows businesses with multiple owners to use one surname if they want so they don’t have duplicate names on their bank accounts or in advertising materials. When forming an LLC company, Kentucky requires businesses operating under an assumed name certificate must have at least one owner listed as part owner on that certificate; however this owner does not have voting rights within the LLC corporation itself (aside from perhaps being involved in decision making processes).
Operating agreements are required for LLCs, but not corporations. It should have details about how the company is managed and how profits are distributed among members. Keep this document private; it does not need to be submitted to the Secretary of State’s office.
An operating agreement is a document that outlines the rules and regulations under which a business will operate. It typically includes details about how profits are distributed among members, how much money each member contributes to the company, how decisions are made, and what happens if one party wants to leave or sell their share of the company.
An operating agreement is required for limited liability companies (LLCs), but not corporations. If you’re forming an LLC, you can obtain an operating agreement from your state’s Secretary of State website or from legal professionals who specialize in small business formation services.
Operating agreements are private documents that don’t need to be submitted to the Secretary of State’s office.
Corporations should adopt bylaws at an initial meeting of directors. They may need to be altered in order for them to conform with state laws or corporate regulations. This document does not need to be submitted either, but it should be kept with corporate records because it is important for maintaining a legal corporate status.
Corporations should adopt bylaws at an initial meeting of directors. They may need to be altered in order for them to conform with state laws or corporate regulations. This document does not need to be submitted either, but it should be kept with corporate records because it is important for maintaining a legal corporate status.
The bylaws should contain provisions that address the following items:
- Purpose of the corporation and its activities
- Membership requirements and rights
- Committee structures and their duties
- Procedures for calling meetings, electing directors, amending the bylaws, etc., as well as any other matters deemed necessary
The tasks involved in forming a company in Kentucky can be completed fairly quickly despite all the paperwork involved.
The tasks involved in forming a company in Kentucky can be completed fairly quickly despite all the paperwork involved. You can hire an attorney to help with the process, or you can use online resources for assistance. There are many different types of businesses that you can choose from when forming your business.
Conclusion
We’re sure that you’ll find this guide helpful when you go to form a company in Kentucky. If you have any questions or concerns, don’t hesitate to reach out to us! We are happy to help you with your business needs at any time.
