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Kentucky Incorporation Frequently Asked Questions
Do I need to reserve a corporate name?
No, but it is recommended to reserve a name prior to filing to ensure that it remains available during the incorporation process.
How do I reserve a corporate name?
The reservation of your corporate name will be handled by IncParadise and is included in the price of our service.
Do I have to renew my name registration?
No.
How do I incorporate in Kentucky?
When using our service, IncParadise will file, on your behalf, the required administrative forms and articles of incorporation with the appropriate Kentucky agency.
Is a registered agent required?
Yes. The registered agent must be either (1) a resident individual of Kentucky whose business office is the same as the registered office or (2) a corporation, limited liability company or limited partnership with authority to transact business in this state whose business office is the same as the registered office. As part of our ongoing service, IncParadise does provide a registered agent service option that you can select during the online registration process.
How many Incorporators are required to form a corporation in Kentucky?
One or more.
How many Directors are required to start a corporation in Kentucky?
One or more to be defined in the bylaws.
Are corporations in Kentucky required to file an Annual Report?
A report must be filed each year, except for the first year of incorporation. This report must be filed each year before the end of the month in which the corporation was originally incorporated.
Didn’t find answer to your question? Email as at info@incparadise.com
Why Kentucky?
Why incorporate in Kentucky?
Business Information & Rankings
- Kentucky ranked 3rd for its workforce training programs. (Expansion Management magazine, 2005)
- Kentucky ranked 4th on Site Selection’s Annual Competitiveness Award. (2005)
- Kentucky ranked 9th in the nation on the Annual Business Climate Rankings. (Site Selection, 2005)
- In 2004, new business investment in Kentucky totaled nearly $2.3 billion with the creation of just over 16,600 new jobs.
Cost of living
| For Lexington, KY (2005): | Index Score |
|---|---|
| Composite: | 96.3 |
| Housing: | 90.3 |
| Utilities: | 101.7 |
| Misc. Goods & Services: | 98.9 |
Crime Rate
Kentucky has the 8th lowest crime ranking in the U.S. (F.B.I., 2004)
Fees & Taxes
Business Inventory Tax
Business inventory is taxed.
Corporate Income Tax
Kentucky is the only state that requires a physical presence requirement in order to be subject to the corporation income and license tax.
| First | $25.000 | 4.0 % |
| Next | $25.000 | 5.0 % |
| Next | $50.000 | 6.0 % |
| Next | $150.000 | 7.0 % |
| Over | $250.000 | 8.25% |
Personal Income Tax
Kentucky’s personal income tax system consists of five brackets with a top rate of 6% starting at $8,000.
Personal Property Tax
Taxable. The state imposes a tax on intangible personal property. Kentucky is one of the 38 states that collect property taxes at both the state and local levels.
State Sales and Use Tax
Base Rate: 6%
Machinery Rate: none
There is an exemption for machinery for new and expanding industry. This excludes repair, replacement or spare parts.
Unemployment Insurance
Kentucky new employers’ rate is 2.7% for 3 years.
Incorporate in Kentucky
Incorporate in Kentucky
What makes incorporation in Kentucky a really smart business move? The commonwealth of Kentucky with a dollar GDP of $202.5 billion as at 2017 has a business climate that is simply perfect for any type of business. In 2017, the real GDP of the state grew 1.8%. The top industries driving this economy include agriculture, manufacturing of machinery; coal, natural gas, and petroleum mining, and service industries.
Why Choose Kentucky for Incorporation?
The big brands of today like Toyota Motor Engineering & Manufacturing North America Inc., and GE Appliances have set up companies in Kentucky because the state provides businesses with a competitive platform that enables high growth.
Now let’s take a look at some of the salient benefits that are responsible for fueling growth of small businesses:
- The Kentucky Opportunity Zone is a program under which individuals and corporations can invest in different types of economic development projects in specific zones. Company incorporation in Kentucky opportunity zones, which comprise of low-income, distressed and contiguous districts, will provide businesses with several benefits like temporary tax deferral for capital gains, permanent exclusion from taxable income of capital gains, and special opportunity funds. List of opportunity zones
- The Kentucky Business Incentives & Financial Programs targets at all types of businesses with the aim of providing income tax credits, small business tax credits, and funds or grants to promote their growth, advancement, or expansion.
How do you incorporate in Kentucky?
What is the process through which you can set up a company in Kentucky? What type of documentation is required? Can the registration documents be filed online? If you are confronted with these questions then the following steps will help you understand how incorporation works in Kentucky:
Type of Business
What type of business do you want to form? You can choose to form a domestic or foreign Corporation or any other business like a domestic or foreign limited liability company, partnership, Limited Partnerships (LP), Limited Liability Partnerships (LLP), and Business Trusts. The first step towards company incorporation in Kentucky is choosing the type of business you want to form.
Business Entity Name
What is the next step towards company incorporation in Kentucky? The next step is to identify and reserve a name and this can be done as follows:
- Naming Requirements: According to KRS 14A.3-010, a corporate name should contain the words “corporation,” “company,” or “limited” or abbreviation “Corp.,” “Inc.,” “Co.,” or “Ltd.” etc.
- Business name search: You need to search for a business name that is not currently in use. You can conduct a name availability search here.
- Name Reservation: Once you have identified a business entity name, you can reserve the name with the Secretary of State pursuant to KRS 14A and KRS 271B, 273, 274, 275, 362 or 386.
- Name Registration: If you are a foreign entity planning to set up a company in Kentucky then you will be required to register a business name with the Secretary of State pursuant to KRS 14A and KRS Chapter 271B, 273, 274, 275, 362 or 386.
Choose a Registered Agent
According to KY Rev Stat § 5.5-010 (2014), a domestic or foreign corporation or LLC in the state of Kentucky will be required to maintain a registered agent. We are one of the respected registered agents in Kentucky and will be responsible for initiating incorporation in Kentucky through processing of all your documents including “Articles of Incorporation” for domestic corporations and “Certificate of Authority” for foreign corporations.
Articles of Incorporation and Certificate of Authority
You will be required to file “Articles of Incorporation” pursuant to KY Rev Stat § 2.2-020 (2014), if your business is a domestic corporation. You will have to file a “Certificate of Authority” pursuant to KY Rev Stat § 14A.9-030, if it is a foreign business entity. In order to streamline the process of incorporation in Kentucky, we can file documents on your behalf through the online process or through an expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Kentucky, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Kentucky Incorporation
What would it cost to set up a company in Kentucky? Check Fees here!
Kentucky LLC and Corporation Registration and Formation
Kentucky LLC and Corporation Registration and Formation
Does Kentucky have a positive business climate, one that supports the growth and expansion of businesses? In the last few years, Kentucky has made progressive efforts towards creating a pro-business climate and as a result an astounding 40,000 jobs have been created in industries like manufacturing, service and technology. This is one of the many reasons why people have started to form corporations in Kentucky.
The dollar GDP of Kentucky in 2017 was $202.5 billion and exports reached $30.8 billion, which is 5.8% higher than what it was in 2016. Industry centered on Aerospace Products and Parts topped the list in March 2018 with exports worth $ 11,700,275 while Motor Vehicles following closely have witnessed a percentage change of 7.9%.
We are one of the top Kentucky registered agents and are familiar with all processes pertaining to the Kentucky State and can provide information and assistance for successful set up of your business!
Let’s take a look at how you can form a Kentucky business LLC or Corporation.
Kentucky LLC Registration and Formation
LLC company formation in Kentucky is governed by Chapter 275 of the 2011 Kentucky Revised Statutes. The procedure for registration and formation of LLC is as follows:
Step#1: Hire a registered agent
According to KRS 14A.4-010, a domestic or foreign LLC is required to continuously maintain a registered agent in the state. The primary role of a registered agent is to help you form a Kentucky business and to ensure all processes of entity registration are smooth. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Kentucky.
We are in compliance with all regulations in the State of Kentucky.
Step#2: Name Reservation/Registration
In the state of Kentucky, a domestic entity or a foreign business can operate or file Articles of Organization and Certificate of Authority only after the process of reservation or name registration is complete. A business entity name can be reserved under KRS 14A and KRS 271B, 273, 274, 275, 362 or 386. Foreign business entities will be required to register their name pursuant to KRS 14A and KRS Chapter 271B, 273, 274, 275, 362 or 386. LLC company formation in Kentucky naming requirements, highlight the fact that the chosen business name should be distinguishable from the name of any other entity on the records of the secretary of state.
Step#3: Articles of Organization and Certificate of Authority
If you are planning to form a Kentucky business LLC then the most important step is to prepare and file the right registration or business formation documents. In the state of Kentucky, a domestic LLC can be formed and operated pursuant to KY Rev Stat § 275.025 (1996 through Reg Sess). A domestic business entity will be required to file “Articles of Organization” with the secretary of state. On the other hand, a foreign limited liability company can be formed by filing “Certificate of Authority” pursuant to KY Rev Stat § 275.380 (1996 through Reg Sess).
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.
In case, you have any questions regarding how to form a Kentucky business, feel free to call us on 702-871-8678.
Kentucky Corporation Registration and Formation
What is the procedure for company formation in Kentucky? There is a process through which you will be able to incorporate your business in the state. The process is as follows:
Step#1: Maintain a Registered Agent
According to KRS 14A and KRS 271B, KRS 273 or KRS 274, a Corporation will be required to continuously maintain a registered agent in the state. Whether you are a domestic Corporation or a foreign business entity, a registered agent is necessary to ensure the process of incorporation is faster and easier.
We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Kentucky. We are in compliance with all regulations in the State of Kentucky and will assist you to form a corporation in Kentucky.
Step#2: Name Reservation/Registration
In the state of Kentucky, a domestic entity or a foreign business can operate or file Articles of Incorporation and Certificate of Authority only after the process of reservation or registration of name is complete. A business entity name can be reserved under KRS 14A and KRS 271B, 273, 274, 275, 362 or 386. Foreign business entities will be required to register their name pursuant to KRS 14A and KRS Chapter 271B, 273, 274, 275, 362 or 386. Company formation in Kentucky naming requirements, highlight the fact that the chosen business name should be distinguishable from the name of any other entity on the records of the secretary of state.
Step#3: Articles of Incorporation and Certificate of Authority
If you are planning to form a corporation in Kentucky then the most important step is to prepare and file the right registration or business formation documents. In the state of Kentucky, a domestic corporation can be formed by filing “Articles of Incorporation” pursuant to KY Rev Stat § 2.2-020 (2014). On the other hand, a foreign business entity can be formed by filing “Certificate of Authority” pursuant to KY Rev Stat § 14A.9-030.
We can help you streamline the process of company formation in Kentucky by filing documents on your behalf through the online process or through an expedited process.
If you have any questions regarding Kentucky incorporation or LLC formation, you can simply visit the Kentucky Business formation page.
Kentucky Business License
Kentucky Business License
Once you have decided to form a business in the Bluegrass State, you need to ask yourself: what else do I need to make my business operational? Apart from the registration of your business, you will require a business license to operate in the state. The licenses, their fee, and issuing authority vary according to the type of business or industry and the physical location of your business.
It is important to know that the state of Kentucky does not have a statewide business license or one license that applies to all types of businesses. There are specific business types that would require a special permit or license to legally operate in the state. Depending on the type of business, you may even require more than one license.
Kentucky Business License Requirements
What are the requirements for obtaining a business license in Kentucky? Which business entities require a license and which requires permits? Who is the issuing authority for these licenses? These are some of the important questions that you might be confronted with and hence, we have created a guide that will help answer some of these questions.
The most important step towards acquiring a Kentucky company license is identifying the type of business.
The Industry or Business Type
Which industry is your business entity a part of? In the state of Kentucky, the requirement for a permit or business license is dependent on the type of industry.
Let’s look at an example to understand this well.
Type of Business or Industry – Automobile
- Issuing Authority – Kentucky Motor Vehicle Commission
- License or Permit – If you are planning to start an automobile business then you require a business license in Kentucky. Some of the common license types issued by the Department of Alcoholic Beverage Control include:
– Motor Vehicle Dealer/Dealership
– Automobile Manufacturer
– Motor Vehicle Distributors - Application for License – You can download Kentucky company license application and submit at the office of the Motor Vehicle Commission along with the fee. You can also submit or renew your license online.
- Fee – This type of business license fee will depend on the type of dealer like the fee for “New Motor Vehicle Dealer” is $100.
Type of Business or Industry – Alcohol Sales
- Issuing Authority – Department of Alcoholic Beverage Control
- License or Permit – If you are planning to set up a pub, bar, manufacturing facility, alcohol distribution hub etc., then you will require a business license in Kentucky. Some of the common license types issued by the Department of Alcoholic Beverage Control include:
– Restaurant Drink Liquor License
– Temporary Retail Beer License
– Wholesale Liquor and Wine License
– Brew on Premises License
– Caterer’s License - Application for License – You can download a Kentucky company license application and submit at the office of the Department of Alcoholic Beverage Control along with the fee. You can also submit or renew online.
- Fee – There are different types of business licenses issued and the fee will depend on the type of license you require. For instance the fee “Brewer’s License” is $2,580 for one year while that of a “Distributor’s License” is $520 for one year.
Note: You can even apply for a half yearly license or even pay for two years.
Apart from this, there is another aspect that you need to consider – location of your business! There are some businesses for which a license or permit will not be issued by the state. Instead the issuing authority will be the city or county your business is situated in.
There are certain businesses where you will be required to get an approval from the county licensing authorities or board prior to applying for a state business license. In the City of Winchester, if you are planning to start a business that requires a “liquor by the drink license” then you will need the approval of the local licensing board governed by Ord. No. 864, § 3, 11-17-90, prior to applying for a license with the State Department of Alcoholic Beverage Control.