Learn about the Kentucky LLC & Kentucky Corporation
The Great State of Kentucky, is known worldwide for the Kentucky Derby horserace, and the Kentucky Wildcats. But more than these wonderful attractions, we have the excitement of corporation statutes and state laws surrounding LLCs and Corporations. In all seriousness, the Corporate Law inside of Kentucy is similar to many of the US states in the offerings of corporate entities. When filing the LLC or corporation they have many similarities and some differences between the entity types. Learning how to form an LLC in Kentucy or Incorporate your first business is very exciting. We take pride in providing you helpful information to get you moving toward your goal of filing. Let's get into our introduction.
Form a Kentucky LLC
The LLC structure is newer entity type than the Corporation. It continues to evolve and get amended over time, but it's general shape remains the same. To start off before you form a Kentucky LLC, you'll need to prepare some information and do some research.
First, you'll need to do some searches to find a Kentucky business name. The business name is going to have to be available in the state, and to do this checking you'll need to rely on the states website using the link we provide at the bottom of this page.
Next you'll need to have a physical address of a resident agent who is willing to receive mail on your behalf. A registered agent needs to be a person, or registered business, who is willing to perform this duty for the company.
Next, the business must provide information about the members & managers of the company.
Next, you'll need to provide a mailing address for the principal place of business.
Next, you'll need to provide the county, the industry the business is in, and the size of the company.
If you aren't sure if the LLC, or limited liability company, structure is right for you, you should do a few important things. First you should seek the advice of an Attorney or a CPA, or Both. Next you'll want to read on to learn some information about the corporate entity type. Here are a couple of benefits for the Corporation in Kentucky:
limited liability protection - your corporate structure is totally separate from your personal assets, so only your business is responsible for their debts and obligations. So in the uneventful situation that you get sued, you're limit of loss should be held to what is in the corporation. This is a great benefit until your corporation overtakes your personal assets, and then you have some more planning to do.
You can choose to file either a C-Corporation or an S-Corporation. Either entity type has their advantages. The class C Corporation has a tax status of a separate entity or a stand alone individual. The business is solely responsible for their tax obligations, similar to a real person. The S-Corporaiton on the other hand is a pass through, where the income flows directly to the shareholders personal tax return based on their pro rata share.
Corporations can issues shares and also sell or trade them for value. Thus, the company can raise money be either selling or issuing shares to new shareholders.
Naming a Kentucy Corporation
The name you give to your corporation must be unique/available in the State. You can do the search for possible names by using the search link below. Here are some specific tips for naming:
The corporation name must end in "Corporation", "Incorporated", "Inc", "Corp"
The name cannot use any protected words. These words are typically associated with regulated industries and banking and medical are good examples.
This is a site dedicated to Small Businesses and dedicated to saving you both time & money. We specialize in content, and research, and saving money. So, we spend our time finding the best resources for small business owners to help them accomplish their goals in the most efficient and cost effective way. If you are looking to form a corporation or LLC, we encourage you to visit our pages regarding these two important topics. We have information about all 50 states, as well as tips, guides, forms, and links to help you file online or in the privacy of your home.