Starting an LLC in Kentucky is more paperwork than most people expect, but none of it is complicated once you know the order to do things in. Here's the process from filing to your first tax return.
The first step is filing Articles of Organization with the Kentucky Secretary of State. The filing fee is $40, and you can file online through the Secretary of State's website. This is what legally creates your LLC and puts your business name on record with the state.
Next, get a federal Employer Identification Number (EIN) from the IRS. It's free, takes a few minutes online at IRS.gov, and you'll need it to open a business bank account, file taxes, and run payroll if you have employees.
Once you have your EIN, register with the Kentucky Department of Revenue through the KY One Stop Business Portal at onestop.ky.gov. That's where you set up whatever tax accounts your business actually needs, sales tax, employer withholding, and so on, depending on what you sell and whether you have employees.
Don't forget the Annual Report. Every Kentucky LLC has to file one each year by June 30, starting the year after you formed, along with a $15 fee. It's easy to lose track of this one since it isn't tied to your tax filing deadline, and missing it can put your LLC into bad standing with the state.
How your LLC gets taxed depends on how many owners it has. A single-member LLC is a disregarded entity by default, meaning the income flows to your personal return on Schedule C. A multi-member LLC is taxed as a partnership by default. Either way, you can elect S-corp tax treatment later if it makes sense for your situation, that's a separate decision from the LLC formation itself.
Setting up an LLC the right way from day one saves you cleanup work later. If you're forming a new LLC in Kentucky and want help thinking through the tax setup, book a consultation and we'll walk through it together.
