Incorporate In Kentucky

Kentucky, the “Bluegrass State” is full of natural and historical attractions and is home to the highest number of turkey and deer in the US.

The state is ranked as the nation’s most productive coalfield and is also known for its energy fuel production, automobile manufacturing and, of course, for “Kentucky Fried Chicken.”

Benefits of incorporating in Kentucky:

Protection of personal assets

Foreign entrepreneurs incorporating in Kentucky should rest assured knowing that their personal assets are well protected. Corporations and limited liability companies separate the assets and liabilities of companies from the personal assets of the business owner.

Enhanced credibility

Whether starting a new business or incorporating an existing one, incorporation makes a business appear more credible to potential customers, suppliers and investors. You also have the security of operating under US law.

Ability to Open a Bank Account

In many instances, forming a company is the first step for a non US resident to open a bank account. A US bank account gives businesses access to a debit card, and the potential to open a merchant service account. Internet commerce is made much easier with a US bank account because companies like PayPal, Amazon and EBay considers you more qualified as a vendor.

Your corporate name can boost your brand

Kentucky requires that a C corporation or an LLC must not have a name that is the same or could be confused with a business already in existence. To make sure your business name is eligible Inc. Plan can help you select a unique C-Corp or LLC name. A distinctive corporate name enhances your company’s reputation and also helps protect the identity of your brand.

Tax flexibility and benefits

In Kentucky, the type of business entity you choose determines the nature of the charges your incorporation will be subject to. C corps are assessed taxes based on the net income of the business. LLCs are subject to taxes based on its members’ personal income return.

Residency Requirements

Kentucky does not have any residency requirements. Owners and directors do not need to live in state to legally operate a Kentucky company. However, before your firm is legally eligible to operate, make sure you possess all the required business licenses, permits, and tax registrations. Inc. Plan can help you stay in compliance with state law.

Other incorporating requirements

C corps and LLCs must have at least one member/owner. Kentucky law does not require the names and addresses of directors to be listed in the Articles of Incorporation. Kentucky does require that all businesses have a state tax identification number. There are no age restrictions on who may own a C corp or LLC.

Requirements for forming an LLC in Kentucky:

When forming a Limited Liability Company certain steps must be taken to keep the business in compliance on an ongoing basis.

Name requirements for LLCs

Kentucky LLCs must contain the terms “Limited Liability Company”, “Limited Company” or the abbreviations “LC”, “L.C.”, “LLC”, “L.L.C.”, “Ltd.” or “Co.”. The words “Engineer” or “Survey” are restricted and need approval from the Kentucky Board of Licensure for Professional Engineers and Land Surveyors.

LLC filing requirements

If you decide to form an LLC in Kentucky then you must file a formation document called the Articles of Organization. Kentucky LLCs must file an annual report due between January 1st and June 30th.

Required information for the Articles of Organization

The Articles of Organization must contain the name and address of a registered agent who resides in Kentucky, and who is available to manage legal and tax business documentation. For more help with the incorporation filing or for registered agent services feel free to contact Inc. Plan (USA).

LLC taxes and fees

Kentucky LLCs are subjected to two types of taxes: a limited liability entity tax (LLE Tax) and an income tax based on its member’s personal revenue. LLCs are not subjected to the state corporate tax unless they choose to be taxed as a C corporation.

Requirements for forming a C corporation in Kentucky:

Each of the 50 American states has its requirements for incorporating. The essential requirements for C corporations established in Kentucky are as follow:

Name requirements for C corporations

Kentucky allows organization names that include the terms “Company”, “Corporation”, “Incorporated” or “Limited”, along with their abbreviations. However, it restricts the terms “Engineer” or “Survey” unless the company obtains an approval from the Kentucky Board of Licensure for Professional Engineers and Land Surveyors. Additionally, the designation “Cooperative” is prohibited in this state.

Filing requirements in Kentucky

To form their corporations, entrepreneurs in Kentucky must file Articles of Incorporation with the Secretary of State. Businesses are also required to file annual report due between January 1st and June 30th.

Required information for the Article of Incorporation

Articles of Incorporation must list the company’s authorized shares along with their assigned par value. The articles of incorporation must also include the address of a registered agent with a physical Kentucky address. The capital structure will affect the initial filing fees. Inc. Plan (USA) can help you complete all necessary filings and provide qualified registered agent service.

Taxes and fees requirements

Domestic and foreign corporations are subjected to the Kentucky corporate tax at a minimum 4% rate and a “limited liability tax for pass-through entities”. Both taxes are calculated based on the company’s net income. Additionally, several Kentucky local authorities may require a municipal or county tax. If you plan on hiring employees, Kentucky requires you to obtain a tax identification number (EIN).

If you are ready to get started you can fill out our application or call 1-302-428-1200 for a Free 30 Minute Live Consultation.

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