Forming an LLC in Kentucky (Preliminary information)
In this article, we discuss in detail the costs of forming an llc in Kentucky, how you can form your company at the most affordable price, and the steps you need to take.
The state of Kentucky is a state that attracts the attention of foreign entrepreneurs for forming an LLC company, especially due to its low annual franchise tax. Foreigners who do not live in Usa can form an llc remotely in the state of Kentucky.
Kentucky is a state with less formality and an asset protection system. Amazon has recently become more preferred for remote entrepreneurs such as Dropshipping, online marketing, and digital product and service sales.
Each year, more than 14,000 new LLCs are formed in Kentucky. Kentucky has more than 70,000 active LLCs. The U.S. Chamber of Commerce ranks Kentucky as the fourth best state for new companies in terms of taxes, survival rate and cost of living.
in Kentucky are quick and simple to set up. Maintenance requirements are low, you can also pay for your annual filing online through the portal. It has various options and flexibility regarding taxation. It allows multi-member LLCs from single-member businesses, which is why it's so popular.
In the state of Kentucky, the annual filing fee is $15. this online through the state portal by June 30. In the initial setup, the state charges the entrepreneur a $40 filing fee, but each subsequent year the company owner must pay the state $15. In terms of setup and annual expenses, Kentucky LLC is the cheapest state in the US.
Costs
LLC Company Formation Prices
| Service | Price | One-Time Payment | Annual Payment |
| Fee to be Paid to the State During LLC Company Formment | 40$ | ✔ | – |
| Annual Filing (Franchise Tax) | 15$ | – | ✔ |
| Phone Number $2/Month | 20$ | – | ✔ |
| Total: | 40$ | 35$ |
Registered Agent Selection
When you decide to form an LLC in Usa, you have to get the service of a Registered Agent. These organizations are authorized by the state. There are many companies that do this job and each agency offers different prices and services.
Below is a list of the most formed and reliable ones. You can also read a review of all of them by clicking on them.
Agency List
Northwest ($39, Address included) *Recommended
Inc Authority (Free)
MyCompanyWorks ($79)
CorpNet ($79)
the full list and detailed review page of Registered Agent companies that establish LLCs from this link .
Additional Costs
* EIN is available free of charge through the IRS. You can fill out a form called SS4 yourself and fax it to the IRS. There is a detailed explanation in this article . If you wish, registered agents can obtain the EIN for you during installation for a fee, and you can add the service to the installation for an extra fee.
** Company setup fee varies depending on the Registered Agent company.
*** In America, the virtual address is not included in most Registered Agent packages. When you receive service through Northwest Registered Agent, the address is included in the package and you do not have to pay an extra annual address fee. this company for the address for $15 (one-time payment), or there are different economical solutions in the article Companies Providing Virtual Addresses in America
How to Form an LLC in Kentucky? Steps
You can form a remote LLC online in the state of Kentucky. For installation, you need an agent, a US mailing address and a phone with a US area code, details are below.
I recommend you to read this guide to establish your LLC company in the state of Kentucky for $55 all-inclusive,
- Determine Your Company Name: First, you must determine the name of your LLC company. There should be no conflicts with company names already in the state database. So do a search on the state website Choosing a Name for an LLC for name rules .
- Get a Domain Name for Your Company: Check if the website domain name you will create for the business name you choose has been registered before. With Namecheap you can quickly register an llc domain name so that no one else can get and use your domain name in the future.
Find a domain name starting from $0.88
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- Get a Phone Number with an American Area Code (Not Required): Zadarma for the virtual number . It has the ability to receive SMS and mobile application support. There is a monthly fee of $2. Zadarma from this link and start using it by installing their mobile application.
- Choose a Registered Agent: Choose a Registered Agent to set up your company and keep it active. There is a lot of information and pricing on the review page here
- Prepare an Operating Agreement: This is an operating agreement that determines the management style and rules of the company. It is not required to be created in many states, and it is not required in this state either. It is recommended to create a contract, but you do not need to mail this contract to the state, just keep the contract you prepared and signed. Zenbusiness or Northwest this operating agreement document for you free of charge during company establishment . If you have established your company for free from an agency such as Incfile and do not want to pay for documents, you can create one yourself for free, details and how to do it in this article .
The approval period for an LLC company takes a maximum of 1 week for the state of Kentucky. Sometimes transactions can be completed earlier. However, if you want faster installation and are in a hurry, you can shorten the process by paying extra to the Registered Agent. Incfile will set up your company in 2 days for $50.
After completing the installation process, your company installation documents will be delivered to you by e-mail or from the agency's panel. No passport or ID is required for LLC company setups.
What happens after your LLC company is approved in the state of Kentucky?
- After the company is formed, your agency will deliver your company formment document to you digitally, or you can ask your agency to mail the original signed copies for an extra fee. You can select this option during installation.
- Once the company is incorporated and you receive the documents (digitally), obtain a Federal Identification Number (EIN) from the IRS. Without EIN, you cannot open a bank account or register in payment systems. If you want an EIN, you can get it from the agency by paying an extra fee during the company establishment phase, or you can fill out the SS4 form yourself and fax it to the IRS. the guide here .
- To maintain the health of your LLC after formation, file your annual filing with the state and pay registered agent fees each year.
State Requirements and Taxes
Federal Taxes: As previously mentioned, LLCs are taxed as individuals unless otherwise noted. This means that LLCs do not pay income taxes directly to the federal government. In this case, company owners indicate their business income and losses in their personal statements. LLCs are flexible in their tax structure; you can choose to be taxed like a corporation if you wish. In this case, you will need to submit a separate corporate tax return.
State: At the state level, the state of Kentucky taxes LLCs that do physical business there. These vary by business and license type.
Commonwealth Taxes: Commonwealth income taxes act like federal taxes unless LLCs elect to be taxed as corporations. Kentucky imposes a Limited Liability Asset Tax, but only on LLCs with annual gross profits of more than $3 million. The amount of this tax is based on income, but the minimum is around $175.
Sales Tax: If you sell to residents within the state, Kentucky LLCs must collect and remit sales taxes to the state ( In case you exceed the limits ). The average sales tax rate in Kentucky is 6%. You can manage your LLC's tax and license-related processes through the One Stop Portal. See also: Register Kentucky LL at One Stop Portal
If You Have Employees: LLC owners who have employees will be required to pay Withholding and Unemployment Taxes.
Extra Taxes: Additionally, depending on the location of your LLC (if you have an established brick-and-mortar business), local taxes may apply by city, municipality, or county. You can check the state website to find out.
For more information about taxes, you can check out the article Taxation in America
These special guides may also attract your attention.
- , I recommend you to read this guide to establish your LLC company in the state of Kentucky for $ 55 all-inclusive
8 Comments . New Comment
Greetings, I am trying to pay the annual filing fee but it gives an error every time, I have tried with dozens of cards and the result is the same, do you have any ideas about this?
You probably used prepaid cards, government units do not accept that type of cards, if you switch to using a normal bank credit card, there will be no problem.
If you still have problems,
Support@startupsole.com and we will try to provide you with information about solving the problem.
Hello, I founded my company on 05.02.2022 and 1 year has passed. I received an llc EIN number but did not engage in any business activity. I would like your help on how to proceed with the renewal process and whether I need to file a tax declaration. Thanks.
Yes it is necessary, the declaration must state that there is no activity. Otherwise you will receive a penalty letter.
I understand, I formed the company with INC, can I continue the company with only the tax fee without paying them a renewal fee?
That payment is a separate situation, your agency must continue or your company will be terminated by the state. Annual prices in Inc have increased, so Northwest makes more sense, you can move to Northwest.
Greetings,
my LLC company was established in Kentucky. Then they direct me to a platform called Kentucky One Stop Business Portal. Do you have any information about this platform? Can you help?
Hello,
If you search our blog, you can find an article on the subject.