Considering the number of successful companies stationed in Kentucky, it’s no wonder why business owners chose to register in this state. But as you may already know, every perk has a corresponding obligation. That’s why in this post, our business team will comb through all Kentucky LLC annual fees you must cover to help maintain your company’s good standing.
Formation Costs for a Kentucky LLC
Business Name Reservation
As a new business owner, you must know that selecting a unique trade name to represent your company is an integral part of the formation process. And according to state law, you can only claim a business name if it’s not taken by any existing businesses operating within Kentucky.
This dilemma is usually resolved by immediately filing your articles of organization once you confirm that your desired LLC name is available. However, in the event you’re not ready to submit yet, you have the option to pay for $15 reservation fee to gain exclusive rights to the said name within 120 days.
Articles of Organization
When you form an LLC, one of the first documents you should prepare is your articles of organization. This submission allows the state to record all your company’s basic information, including LLC name, members, business address, and many more.
This one-time filing can be made online or via mail, along with a $40 filing fee payable to the Kentucky Secretary of State’s office.
Despite not being mandatory, our business experts could attest to the importance of having an LLC operating agreement. This internal document has terms, provisions, and regulations needed when facing crucial management decisions .
Although you can craft it yourself without any fees, seeking assistance from legal professionals is among the best suggestions our team could recommend considering the crucial role of operating agreements in running your business.
If you intend to open a business bank account or hire employees, requesting an Employer Identification Number (EIN) from the IRS is the next step you should definitely do. This state requirement, also used for tax documents, can be obtained without any charges.
Your LLC’s registered agent is among the essential state requirements you should maintain to be in good standing with the state. As this role deals with receiving time-sensitive documents on your behalf, you may think that electing yourself is a great idea — except not all the time.
If you’re planning to focus on operating your business, taking on this role could be burdensome as it has its own set of demands and obligations.
Should you decide to hire a professional company for this role, you can expect annual fees ranging from $0 – $300.
(For services online, we also have a list of top-performing online incorporation service providers here)
Like in other states, not all Kentucky LLCs are obliged to obtain business licenses or permits. These state requirements solely depend on the nature of your business. For example, if your company engages with professional services, you may need to meet licensure standards before you can operate legally.
On the other hand, if you intend to lease or sell properties, merchandise, or services, you’ll need to apply for a sales tax permit or seller’s permit by signing up online on Kentucky Online Gateway.
Certificate of Good Standing
While commencing business, there will be a time when you’ll encounter important transactions like seeking funds from banks and lending institutions. These procedures will require you to obtain a Certificate of Good Standing as proof of being compliant with the law.
You can request this document from the secretary of state via mail or online and pay the filing cost of $10.
Foreign LLC Registration
For existing businesses who want to expand their company in Kentucky, you must register as a foreign LLC and submit a Certificate of Authority (Form FBE). This filing alone costs $90.
LLC Formation Services (Optional)
While it’s commendable for business owners to handle all formation procedures, there’s no shame in seeking help from LLC professional services. Not only do these providers do the legwork for you, but everything is faster than you think it is. Upon signing up for their packages, you may expect subscription fees ranging from $0 – $300.
Kentucky Annual LLC State Fees
Moving on to Kentucky LLC annual fees, your company will be obliged to submit an annual report as soon as your articles of organization have been processed. This periodic submission aims to update business details and costs $15 for paper filing and $30 for online filing. This is aside from the overall LLC formation cost that you will be paying.
How much does an LLC cost in Kentucky?
An LLC in Kentucky costs $40 to submit and process your articles of organization to the secretary of state. This expense calculation excludes optional procedures like registered agent services and LLC formation services. Besides that, your company is obliged to file annual reports, which cost $15 for paper filing and $30 for online filing.
Upon reading this guide, you’re probably now aware of the importance of complying with all Kentucky LLC annual fees. Although it may appear confusing at first, keep in mind that these state requirements will maintain your good standing with the state, which will continue to allow your business to leverage limited liability protection.