How Do I Sign Kentucky Banking Work Order

How to industry sign banking kentucky letter of intent

today we're talking about how to start an llc in kentucky my name is eric and i'm going to walk you through three different ways that you can do this one is through the state website the second is using a free online legal tool and the third is hiring an attorney but for the attorney i'm going to give you a tip on how you can get a free 15-minute consult so you're not immediately running the meter but even more important than that is i want you to be aware of terms such as piercing the corporate fail registered agent and commingling funds now a lot of people may not be familiar with these terms but they are really important when it comes to your llc because what you'll find is there's certain ways you can set things up where you're creating a crack in your llc and that is not good for you or your business so before we get to that why don't we jump in first into the state website now if you go to google and search kentucky llc the first organic listing here is the state website i will say that even though it looks nice here this is a tough state website for this because what you're going to want to click on is the articles of incorporation but before we get to that why don't i explain the difference between a domestic corporation and the foreign now if you're setting up an llc if your business is in kentucky you're going to be setting up a domestic llc but if your original business address where say in ohio but you also do business in kentucky your domestic llc would be in ohio and your foreign llc would be in kentucky so that is what the difference is between those 99 of people you're going to be setting up with domestic and what you do is click on articles of incorporation the unfortunate part is through the state website there's no way that you can file online and just be done with it they make you do kind of these archaic methods of filling out a form and sending it to them the other thing i don't like about this is they kind of gloss over a lot of details so right here you can see it and it said then the name and initial the name of the initial registered agent at that office is and you're like okay what is a registered agent exactly it doesn't really explain it and this is really important to your business so before i explain what a registered agent is i want to take a moment to talk about what an llc is and what it is not sometimes people think you're setting up an llc to save on taxes that is not the case at all you don't set up an llc to save on taxes you set it up to limit your liability if you take a look at the screen here on the left hand side you have your business and your business assets that could be your retail space your furniture all the different assets that you have in your business and on the right hand side you have your personal assets your personal home personal bank accounts personal cars now what an llc does is it draws a division between these two asset classes and that division is known as the corporate veil now if you were to be sued and you have a proper llc there's no cracks in your llc the person suing you is only going to be able to come after your business assets but if that attorney that's suing you is able to pierce the corporate veil which is essentially legal jargon meaning they found a crack in your llc that division between those two assets disappears the corporate bill is no longer there they pierced it and now they're going to be able to go after not just your business assets but your personal assets as well so that's why it's so important to set up a proper llc for your business now one of the things it's talking about on the screen here is the registered agent at that office you're like well what is a registered agent you're like i don't know like uh that's my buddy i'm gonna save a few dollars i'll put my friend down the street in here and he's gonna be my registered agent you don't wanna do that you wanna make sure you know what a registered agent is and what they're gonna be doing for your business this is a nice article on inkfile it's a free online legal tool to set up an llc but they explain it pretty well here in these five bullet points the registered agent is like a third party that exists between you and anybody sending documents to your business so that could be official letters and correspondence from your secretary of state service of process notice is very important if you're sued making sure you're appearing in court official federal government correspondence information notifications tax forms requests for payments request to complete permits company filings or reports so they're making sure that your business is compliant so it's really important two things one that you have a professional registered agent and two that they are in your state you can have a registered agent outside of your state it has to be within your state and that is true for all 50 states when you're setting up an llc going back to the state website that's why i don't really love these because they just kind of blast through a lot of this information i think a lot of people make mistakes as they're getting their llc set up right now would be a good time to let you know too that a lot of the resources that i'm mentioning are going to be in the link in the description below uh if any of them are paid links i will make note of that but most of them are free resources so you know what to do when you're setting up your llc for yourself now if you're to go use a service like ink file right uh if you uh start at the top here you'll see that there are 500 000 businesses launched and one of the reasons i recommend inc file is they're going to walk you through the process better than the state website will they'll allow you to do it all online and this is kind of cool you can do it for as little as zero dollars plus your state fee now you might be wondering like how do they do that i'm gonna explain where there are any hidden fees or anything like that but if you click launch my business i'm gonna start over here so i've selected llc eighty percent of all new entities set up our llc's and kentucky now when we go down here in the silver package that is where you're gonna see it's zero dollars for your package fee and then it's forty dollars for the state fee this is one of the lowest state fees that you'll find out there um there's no way around this fee if you go through the state website you do it yourself you go through this tool you go through an attorney you're going to pay 40 to the state to set up that llc but again that's very low i've seen 10x that in other states of what you're going to pay now what they'll do is preparing and filing those articles of organization unlimited name searches that's important you want to make sure that you have a unique name for the type of service that you're providing now as you imagine with kentucky wildcats there's gonna be a lot of businesses named wildcats of different variations but if you had some very unique name you're going to do is go through those name searches on here to make sure that you have one that is not taken already and now this is really important too free registered agent service for a year if we go back to this article what i want to do is because this is where you might consider it kind of a hidden fee is it's free for the first year but then what you'll see is it's 119 annually after that for ink files registered agent servers and this will be a registered agent within your state of kentucky so year two it's 119 year three it's 119 but again as you're registering and getting set up that person is going to be dotting your eyes and crossing your t's making sure you have a legit llc so somebody can't sue you and take your personal car it's really important that you have a legit uh registered agent on file now some people may want to go up into the gold and platinum package it really depends on your situation and what you're looking for perhaps you need an expedited filing but i think for people that are looking at the gold package the ein business tax number is really helpful so when i set up my llc i did the ein business tax number myself and i'll admit it was a pain in the butt and i should mention i'm not a cpa and an attorney i'm just somebody who's done a lot of research in the space and gone through the headaches of doing things themselves i'm trying to give you as much information as i can give you so you can make the decision that serves you best now if you wanted to do this yourself what you do is you go to this link on the irs website and this is going to walk you through all the questions you may have around ein and then you can apply for an ein it is a pain in the butt but if you want inkfile to take care of that for you they will do that for you another thing i wanted to highlight on here is the business banking account this is really important again all these links are in the description below if you need that one for the irs website right in the description below is that link um the business banking account currently they do that through bank of america and this is really important because if you recall the beginning of the video i talked about commingling funds now what that means is some people will set up a business account and they'll never get a business banking account so they start running expenses and uh incomes through that personal bank account and then it's called co-mingling funds and again this is a crack in your llc so if you're sued that attorney might be able to pierce the corporate bail because they say this person's co-mingling funds this isn't even a legit business we're going to go after your personal house because of whatever happened in the past so that is why it's so important to have that separate bank account and also when it comes to accounting and tax time it's a lot easier if you have a business bank account because then you can just export all of your expenses and incomes into another software or to your cpa it just makes it way easier when it comes to tax time so i wanted to be aware of those two things now lastly i want to talk about why you might hire an attorney if you get an attorney the downside is it may cost you 803 grand to get set up with an llc the upside is is if you have a specific issue or something that is unique about your business one of those things may be that you have a business that is higher liability now if you had you know uh i don't know like a bakery or versus uh you know a roofing company a roofing company is going to have more liability than a bakery as you'd imagine people can fall off a roof so you may want to consult with an attorney if you think you have a high liability business or if you're already making money and you're making you're doing sales in and out of state that may be something you want to consider as well one service i like is a service called avo and as you can see i already have kentucky limited liability lawyers up here and there's 12 results and again this link will be in the description below for you i'm not affiliated with the service in any way i just like it but if you click free consultation down here what it's going to do is it's going to reduce your list to five results so now what you're seeing are attorneys in kentucky that can consult with you on llc's and the first 15 minutes are free so that's just a nice added little feature and that's why i like this service the last thing i want to talk about is taxes now in the video on the screen over here the ink file review at about the 2 30 mark i cover an s corp tax calculator this is something that you should be aware of even if you're not making money today because down the line you may want to transition from an llc to an s corp and it's just good information to know today so again guys thank you for using my links in the resources below and i'm going to catch you in that next video