General Guide to Company Incorporation in Kentucky
Updated on Tuesday 23rd January 2018
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Kentucky is the 26th most populated state in USA and it is known as the Bluegrass state for its fertile soil that helped the agriculture to develop. Because Kentucky is bordered by three rivers, Big Sandy, Mississippi and Ohio, the state has a multitude of connections with the other states in the USA through its maritime sector. We have prepared a general guide to company incorporation in Kentucky and we remind foreign entrepreneurs that they can establish their operations with complete support offered by our team of specialists in company formation in USA.
Registering an LLC in Kentucky
Among business entities that are suitable to the needs of an entrepreneur, the limited liability company represents the proper form to consider in Kentucky. The Secretary of State of Kentucky and particularly the Business Division oversees the registration process of LLCs in the state made by both local and foreigners. The procedure starts with drafting the Articles of Association which must contain all the information about the future business, such as:
• the name of the company;
• the owners;
• the board of directors;
• the business address;
• the activities;
• the name of the registered agent.
Besides opening a limited liability company in Kentucky, business persons might be interested in limited partnerships, sole proprietorships, non-profit organizations or corporations. Starting a business in USA requires complete attention to all aspects involved, considering a name verification and applying for tax purposes in the chosen state.
The registered agent for your business in Kentucky
Opening a company in USA is subject to varied requirements among which we mention the registered agent. The entrepreneur has the possibility of appointing an individual with full responsibilities on the legal documents of the firm or can engage another company as a registered agent for his or her business. This is a mandatory condition at any kind of company incorporation in USA, including in the state of Kentucky.
Applying for EIN
All trading activities of a company in Kentucky must be registered under the EIN which is the Employer Identification Number necessary for paying taxes in the state. The IRS (Internal Revenue Service) in USA controls the tax activities for companies through local offices, including in Kentucky. Additionally, businesses in this state must register for employment taxes if they will consider hiring staff.
Paying taxes in Kentucky
Just like in most American states, the sales tax in Kentucky is set at 6%. As for the income taxes, these range between 2% and 6% in accordance with the registered profits. It is good to know that a property tax is levied for particular assets, but exemptions might be specified in this sense.
A business plan for your company
No matter the domain in which you wish to activate in Kentucky, it is suggested to create a business plan and meet the demands of the American market. This, in most cases, requires a settled budget, a marketing strategy, a development plan, advertising methods and related radio and TV campaigns. If you are interested in obtaining a bank loan for future investments in your company, you might want to prepare and provide a marketing plan in this direction.
The economy of Kentucky
The exceptional farming conditions where the tobacco and corn industry play significant roles made Kentucky a favorable destination for doing business. Frankfort is the capital of Kentucky and leading financial center in the state due to satisfactory business conditions for investors. Louisville, Bowling-Green, Covington, Lexington-Fayette, Florence, Georgetown, or Richmond are among important cities in the state of Kentucky and representative municipalities from an economic point of view. Kentucky is recognized for its coal production and the supply of bourbon whiskey on an international plan.
Investors can choose Kentucky for company incorporation and can contact our team of company formation agents in USA for comprehensive support and guidelines.