Key Takeaways
- Kentucky doesn’t mandate an LLC Operating Agreement, but it’s often beneficial.
- Our all-inclusive templates for Kentucky LLC Operating Agreements are designed to simplify establishing your LLC in Kentucky and safeguard your commercial interests.
- To form an LLC in Kentucky, you’ll need to file Articles of Organization with the Kentucky Secretary of State, appoint a registered agent, and satisfy the necessary filing fee.
Kentucky LLC Operating Agreement Templates by Type
Single Member LLC
Basic Single Member LLC Operating Agreement
Used 4,920 times
Are you required to uphold your limited liability corporation status in accordance with state law? If the business is sued, the owner’s assets may be safeguarded by this agreement.
Use this operating agreement template in Kentucky when there is only one owner of the LLC.
Multi Member LLC
Multi-Member LLC Operating Agreement Template
Used 4,872 times
Ensure that your newly formed LLC is run the right way by having a multi-member operating agreement in place.
Utilize this operating agreement template in Kentucky when multiple individuals or entities co-own the LLC.
50/50 LLC
50/50 LLC Operating Agreement Template
Used 4,872 times
This free 50/50 LLC Operating Agreement template for businesses with equal ownership.
Employ this operating agreement template in Kentucky when two equal partners equally share ownership and management responsibilities within the LLC.
Member-managed LLC
Member-Managed LLC Operating Agreement Template
Used 4,919 times
A manager is chosen by the firm owners to oversee day-to-day operations in a manager-managed LLC. Use this Member-Managed LLC Operating Agreement Template right away.
Opt for this operating agreement template in Kentucky when the LLC’s management responsibilities are delegated to appointed members.
Legal Requirements
Without an LLC agreement in Kentucky, disputes default to state law (KRS Chapter 275). This may be unsuitable for complex business structures or those desiring more operational flexibility.
- The agreement aids in distinguishing personal and business matters, which is crucial for single-member LLCs’ limited liability.
- Business partners, investors, and financial institutions often expect a formal agreement. This helps them understand the Limited Liability Company’s operation and dispute resolution, even if it’s not state-required.
How to Form LLC in Kentucky
Setting up a Limited Liability Company in this state is a straightforward process.
- Select a Name:
- The first step is to choose a unique name for your LLC that complies with Kentucky’s naming requirements.
- The name should include “limited liability company,” “LLC,” or “LLC” and must be distinct from existing businesses in the state.
- You can check the availability of a name on the Secretary of State’s website.
- Appoint a Registered Agent:
- State law requires you to designate a registered agent for your Limited Liability Company. This individual or entity is authorized to receive legal documents and notices on behalf of your LLC.
- The agent must be at a physical location in Kentucky and accessible during normal business hours.
- Prepare and File Articles of Organization:
- The subsequent measure involves getting ready and submitting the Articles of Organization.
- This document includes essential information about your Limited Liability Company and officially registers your business with the state.
- Obtain an Employer Identification Number (EIN):
- The Internal Revenue Service (IRS) uses an EIN, a Federal Tax Identification Number, to identify businesses for tax purposes. Apply for it online on the IRS website.
Kentucky LLC Laws
- Annual Report: All company entities must file annual reports with the Secretary of State’s office by June 30 each year. Failure to file the annual report by June 30 results in the entity being listed in bad standing and could lead to administrative dissolution or revocation of authority to do business in the state.
- Articles of Organization: The Articles of Organization is a legal document establishing your Limited Liability Company. It includes vital information about your business, such as its official name, Registered Agent, members’ names, and their respective ownership percentages. Any changes to your LLC’s structure should be updated in the Articles of Organization to comply with the state’s ongoing requirements.
- Operating Agreement: While not legally required in Kentucky, an Operating Agreement is highly recommended. This document outlines the operating procedures and ownership of the LLC. It provides a framework for organizing the operations within the company and helps maintain a clear separation between personal and business affairs.
- Licenses and Permits: Depending on the nature of your business, you may need to obtain specific licenses and permits to operate legally in the state. The requirements vary based on your industry and the locality of your business. The Kentucky One Stop Business Portal provides a search tool to help determine if your business needs an occupational license or permit.
- DBAs (Doing Business As): In Kentucky, all sole proprietorships, general partnerships, trusts, corporations, limited liability companies (LLCs), limited partnerships (LPs), limited liability partnerships (LLPs), or out-of-state companies that regularly transact business in the state under a name different from their legal name must file a DBA with the Kentucky Secretary of State.
- Taxes: LLCs in Kentucky are considered pass-through entities for tax purposes. This means the company doesn’t pay income taxes. Instead, the profits and losses “flow through” the Limited Liability Company and go on the members’ returns. However, depending on the nature of your business, you may be required to pay other taxes, such as sales, payroll, and property taxes.
