HOW TO FORM A KENTUCKY FOREIGN LLC ONLINE
What is a Kentucky Foreign LLC?
In the United States, just because you are registered to do business in one state does not mean that you can legally do business in another state.
If you want to transact any serious business in a state other than the state in which your LLC is registered, most likely you will
have to register with the state in which you want to do business before you can legally conduct business there.
For example, a LLC that is registered in California wants to do business in Kentucky.
The California LLC is a "Domestic" LLC in California and will be a "Foreign" LLC in Kentucky.
The California LLC needs to register with the Kentucky Secretary of State as a Kentucky Foreign LLC.
The use of the term Foreign in this case refers specifically to individual US states.
The US government, including the IRS, considers a Foreign company to be a company that is registered outside
of the United States.
What is Kentucky Foreign LLC Foreign Qualification?
explain
You want to do business in the state of Kentucky but are registered as a LLC in another state.
In order to legally conduct business in the state of Kentucky you must register with the Kentucky Secretary of State as
a
Foreign LLC.
The process of registering as a Foreign LLC in Kentucky is called
Kentucky LLC Foreign Qualification.
The process of Kentucky LLC Foreign Qualification is similar to the process of forming a Domestic LLC in Kentucky.
Your original home LLC formation documents (frequently called Articles of Organization) and By Laws apply to your Kentucky Foreign LLC.
The Officers and Directors of your home LLC will have the same roles in the Kentucky Foreign LLC.
Specific requirements to qualify as a Foreign LLC in Kentucky are explained below.
Once you have made the decision to Qualify as a Foreign LLC in Kentucky,
a Kentucky lawyer can file your documents and act as a middle man for a few hundred dollars an hour;
or you can use an online service provider like All Business Documents to perform these services.
Put the money you save with All Business Documents right where it belongs: into your new Kentucky Foreign LLC.
Do I need a lawyer to Form a Foreign LLC in Kentucky?
explain
The short answer is no.
The state of Kentucky does not legally require a lawyer to form a
Kentucky Foreign LLC.
Our detailed
Foreign Qualification page may help you understand some
of the implications of forming a
Kentucky Foreign LLC.
However, if there is
anything about forming a Foreign LLC in Kentucky
that you're not sure about you should seek the advice of a competent Kentucky lawyer, a Kentucky accountant,
or both
before you form a Foreign LLC in Kentucky.
Once you have made the decision to form a Foreign LLC in Kentucky, a Kentucky lawyer
can file your documents and act as a middle man for a few hundred dollars an hour; or you can use an online service provider like All Business Documents
to perform these services and
save money that you can use in your new Kentucky Foreign LLC.
Do I have to Reserve a Company Name before I Form a Foreign LLC in KY?
explain
You are not legally required to reserve a Company Name for a new Kentucky LLC Corporation before you submit your application to Form a Foreign LLC
in Kentucky.
The LLC name that you have registered in your home state may or may not be available in Kentucky.
In that case you need a different name your Kentucky Foreign LLC.
Whether or not you need to reserve a company name for your new Kentucky Foreign LLC depends entirely on your business situation.
The Kentucky Secretary of State uses LLC names on a first come first served basis.
So if you think that someone may snatch the Company Name that you have in mind, you may want to reserve that Kentucky Foreign LLC Name.
What if the Kentucky Foreign LLC Name I want is already taken?
explain
If the Name you have chosen for your new Kentucky Foreign LLC is already in use by a currently active
Kentucky Corporation or LLC then you will have to register a DBA Name with the Kentucky Secretary of State. "DBA" is an abbreviation for "Doing Business As."
We verify that the Name you have chose for your new Kentucky Foreign LLC is available before we submit
your Foreign LLC filing to the Kentucky Secretary of State.
If necessary we can register a DBA Name in Kentucky for you so that you can open your new Kentucky business as quickly as possible.
What do I have to do to Form a Foreign LLC in Kentucky?
explain
- Choose a name for your Kentucky Foreign LLC
- File Registration Documents with the Kentucky Secretary of State
- Determine how you want your Kentucky Foreign LLC to be taxed
- Choose a name for your Kentucky Foreign LLC
You can use the same name in Kentucky that you use in your home state, however, if the name of your Domestic LLC is not available you need to choose another name.
Your Kentucky Foreign LLC name can identify the type of products and services your business will provide;
or it may be the name of the founder; or it can be a combination of the two or something else.
In any case, the Kentucky Foreign LLC name that you choose must be distinguishable from the name of any other registered Kentucky LLC or other
business entity and the name must also be different from any reserved names on record with the state of Kentucky.
Your Kentucky Foreign LLC name must not imply that it was formed for a purpose other than that stated in the
Articles of Organization for your Domestic LLC and your Kentucky Foreign LLC name must not be a name that is likely to mislead the public.
The name of a Kentucky Foreign LLC must include the word "Limited Liability Company" or
or the abbreviation "LLC" or "L.L.C.".
It's important to choose a good name for your Kentucky Foreign LLC because if you want to change it after you qualify you
will have to file amended documents with the Kentucky Secretary of State (and pay a fee).
We will check to make sure that your requested Kentucky Foreign LLC name is available and conforms to all state of Kentucky
Limited Liability Company naming regulations.
- File Registration Documents with the Kentucky Secretary of State
In order to Qualify as a Foreign LLC in Kentucky you must file Registration Documents with the Kentucky Secretary of State.
In Kentucky the registration documents are named "Certificate of Authority".
The registration documents must include certain specific information about your Kentucky business.
If the LLC Registration Documents do not conform exactly to state of Kentucky Foreign LLC requirements they will be rejected. 
If you need to change any of the information on your registration documents after your Kentucky Foreign LLC has been approved,
you may amend the registration documents for your Kentucky Foreign LLC but you will have to pay a fee to the state of Kentucky in order to make the changes official.
- Determine how you want your Kentucky Foreign LLC to be taxed
The Kentucky Corporate Income Tax Rate is variable depending on the annual net income of the Kentucky Foreign LLC.
Kentucky Corporate Income Tax Rates vary from 4 to 6%.
You may choose that your Kentucky Foreign LLC is to be taxed as a C Corporation or S Corporation.
A C Corporation is what you may think of as a traditional Corporation like General Electric or Ford.
C Corporations pay a Corporate income tax to the state if that state taxes Corporations.
You may choose to have your Kentucky Foreign LLC taxed as a S Corporation.
S Corporations "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable personal rate.
S Corporations do not pay any Kentucky Corporate Income Tax.
The Corporate Tax structure in the state of Kentucky consists of three tax brackets:
- 0-$50,000 - 4%
- $50,001-$100,000 - 5%
- Over $100,000 - 6%
If you form a Single Member Kentucky Foreign LLC and do not specify to the IRS how you want to be taxed your Single Member Kentucky Foreign LLC
will be taxed as a Sole Proprietorship.
If you form a Multiple Member Kentucky Foreign LLC and do not specify to the IRS how you want to be taxed your Multiple Member Kentucky Foreign LLC
will be taxed as a Partnership.
Click here for more Kentucky Corporate Tax Information .
If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Kentucky Foreign LLC and include it with
your final Foreign LLC documents.
What do I have to do to after I Form a Kentucky Foreign LLC?
explain
- Obtain Business Licenses from the cities and counties in which you plan to do business
- File the required reports for your Kentucky Foreign LLC
- Keep proper records of your Kentucky Foreign LLC on file
- Pay your taxes to the state of Kentucky
- Obtain Business Licenses from the cities and counties in which you plan to do business
Note that forming a Kentucky Foreign LLC doesn't take the place of obtaining a local business license, tax
registration certificate, or other required business permits.
A Kentucky Foreign LLC merely creates an ownership structure that limits the owners' personal liability.
You may still need to take care of getting set up to do business with your local government.
Depending on the nature of the business and the location of your Kentucky Foreign LLC within Kentucky you may need to get one or more local
business licenses or permits.
The business licenses or permits that are required for your Kentucky Foreign LLC vary depending on your business activities
and the specific locations within the state of Kentucky in which you want to conduct business.
If your Kentucky Foreign LLC will be selling products in Kentucky you may be required to obtain a Reseller's Permit from the appropriate
Kentucky state agency.
If your Kentucky Foreign LLC will be selling products in Kentucky you will also be responsible for all applicable local and state of Kentucky
sales taxes if there are any.
We have the expertise to find out exactly which state and local permits that you need for your specific business.
- File the required reports for your Kentucky Foreign LLC
The Kentucky Annual Report includes basic information about your Kentucky Foreign LLC including information on your business location as well as the names of the Officers and Directors.
Failure to submit a properly completed Kentucky Annual Report to the Kentucky Secretary of State on or before the
due date may subject the Kentucky Foreign LLC to being administratively dissolved in the state of Kentucky or having its authority to
transact business in the state of Kentucky revoked by the Kentucky Secretary of State.
Penalties may accrue if you fail to file any Kentucky Foreign LLC Annual Report to the Kentucky Secretary of State by the due date.
- Keep proper records of your Kentucky Foreign LLC on file
Keep the following records on file and available at the principal business office of your Kentucky Foreign LLC:
- Names and addresses of all Members and Managers of the Kentucky Foreign LLC
- Foreign LLC formation documents and any Amendments to them
- Kentucky Foreign LLC Operating Agreement and any Amendments to them
- Copies of any LLC Resolutions which have been adopted by the Kentucky Foreign LLC
- Copies of all tax returns and Annual Reports for the Kentucky Foreign LLC for the last 3 years
- Pay your taxes to the state of Kentucky
Foreign LLCs that either do business in the state of Kentucky or that derive income from sources within the state of Kentucky are subject
to Kentucky and federal tax laws.
If you are engaged in intrastate business and derive income from other states besides Kentucky, you must allocate the amount of income derived
from the state of Kentucky in order to determine your Kentucky state taxes.
What information do I need in order to Form a Foreign LLC in Kentucky?
explain
In order to Form a Foreign LLC in Kentucky you'll need the following information about your LLC:
- The name of your new Kentucky Foreign LLC along with your second choice of a name in case the name that you want is not available
- Physical address of the Foreign LLC office in Kentucky (not a PO Box)
- A description of the nature of the business you are planning to operate with the Kentucky Foreign LLC
- When the Kentucky Foreign LLC will start and when it will cease to exist (normally the Foreign LLC starts on the date the application is filed and will exist perpetually)
Remember -
ALL the information that you provide when you Form a Foreign LLC in Kentucky becomes part of the public record.
Our data entry forms include the
absolute minimum amount of information that is required in order to Form a new Foreign LLC in Kentucky.
How long does it take to Form a Foreign LLC in Kentucky?
explain
Processing times for new Kentucky Foreign LLC applications vary depending on the work load of the
Secretary of State's staff.
We've found that normal processing of new Kentucky Foreign LLC applications takes the state around 5-7 business days.
Add 2-3 days for the time period for shipping the final documents by mail.
Choosing our Express Mail option can shave a couple of days off the total processing time for your new Kentucky Foreign LLC.
PLEASE NOTE: WE CANNOT GUARANTEE KENTUCKY SECRETARY OF STATE PROCESSING TIMES.
The Kentucky Secretary of State reserves the right to extend expedite periods in time of extreme volume, staff shortage or
equipment malfunction.
We are dependent on, and have no control over, the staff and systems of the Kentucky Secretary of State.
In our experience 5-7 business days is the time it
usually takes the Kentucky Secretary of State to process
a new Kentucky Foreign LLC application.
We get your Kentucky Foreign LLC application to the KY Secretary of State ASAP.
Once it is at the state we have no control over the new Kentucky Foreign LLC application process.
How much does it cost to Form a Foreign LLC in Kentucky?
explain
The state of Kentucky charges $102.00 to Form a Foreign LLC in KY.
If you choose All Business Documents to help you Form your Foreign LLC in Kentucky our processing fees are $145.00.
This includes:
- Same day processing in of your new Kentucky Foreign LLC order
- KY Name Check and Reservation
- Prepare Certificate of Authority
- File Formation Documents with the Kentucky Secretary of State
- Certified Copies of Formation Documents
- Kentucky Foreign LLC Checklist
- Priority Mail Delivery
- Unlimited Customer Support
KENTUCKY FOREIGN QUALIFICATION COST ESTIMATOR
Our KY Foreign Qualfication Services include:
(These services are included in our processing fees)
Optional Kentucky Foreign Qualification Services
(Choose options, cost is updated automatically)
- Express Mail - $35
explain
If you really need your original approved Certificate of Authority in your hands quickly, the
Express Mail option can cut the delivery time in half.
The Express Mail option has no effect on the Kentucky Secretary of State's processing time.
-
S Corporation Election - $50
explain
S Corporations are taxed differently than C Corporations.
With an S Corporation, business profits may be "passed through" directly to the shareholders.
This avoids the double tax on both corporate and shareholder profits.
S Corporations do not pay any Kentucky Corporate Income Tax.
We can prepare the S Corporation Election form for you and include it with your final Foreign LLC documents pakage.
-
KY Registered Agent - $135
explain
Every Kentucky Foreign LLC is required to have an address within the state of Kentucky where
official and legal correspondence can be delivered.
The individual or company that is registered with the state of Kentucky to receive all correspondence
on behalf of the Foreign LLC is called a Registered Agent.
You may act as your own Registered Agent, however, many Foreign LLCs hire a Registered Agent because they don't have a physical address within
Kentucky or to provide a distinct level of privacy.
We can act as your Kentucky Foreign LLC Registered Agent.
This is an annual service.
We will forward all correspondence to you and will remind you when it is time to renew your KY Registered Agent services.
-
KY Good Standing Certificate - $43
explain
A Kentucky Good Standing Certficate is proof of the existence of your new Kentucky Foreign LLC.
The Certificate is issued by the Kentucky Secretary of State and is proof that your KY Foreign LLC is not behind on any
of its Kentucky Secretary of State Corporate obligations.
A Kentucky Good Standing Certificate is often required for loans, to apply for business licenses, or for tax or other business purposes
in the state of Kentucky or in any other state.
We can get your Kentucky Good Standing Certificate immediately after the Kentucky Secretary of State has approved your Foreign LLC filing.
-
Federal EIN - $65
explain
An FEIN is like a Social Security Number for your Kentucky Foreign LLC.
We can get your FEIN on the same day that your Certificate of Authority are approved by the Kentucky Secretary of State.
You can get your FEIN before your articles are approved by the Kentucky Secretary of State but it's a good idea to wait until
after approval.
Your filing may be rejected or the Foreign LLC name that you want may not be approved.
Changing information on an FEIN filing is not a trivial exercise with the IRS.
-
Foreign LLC Kit and Seal - $99
explain
While you're not required to have a Foreign LLC Kit and Seal for your new Kentucky Foreign LLC they do come in handy.
The KY Foreign LLC Kit consists of a beautiful customized binder, stock certificates, a stock ledger
and your custom Foreign LLC Seal.
The Foreign LLC Seal is used to emboss important company documents, such as stock certificates.
The binder also includes dividers so you can use it for all of your Kentucky Foreign LLC record keeping.
-
Business License Research - $175
explain
Most new Kentucky Foreign LLCs are required to get some kind of state, regional or local permits or business licenses.
The task to figure out exactly what you need can be daunting.
We can determine exactly which forms you need to fill out, fill them out for you and file the forms with the appropriate government agency
where possible.