What You Should Know About A Kentucky LLC Operating Agreement
Are you thinking about forming an LLC in the state of Kentucky? Although the rules are similar in each of the 50 states, there are certain aspects of creating a limited liability company in Kentucky that you need to be aware of. In particular, the operating agreement for that LLC needs to be crafted in a specific way. Depending upon the nature of the company you are creating, and the size that it will be, you need to include some of this information in it. Here is an overview of how you can structure an LLC operating agreement for the state of Kentucky so that you are in full compliance with the state.
What Is An LLC Operating Agreement?
One of the best ways to protect yourself when you are going into business is to form a limited liability company. Most people think of simply finding the name of that business, and filings and papers, and then they don’t have to do anything else. However, there are numerous other papers, and different activities that you must participate in, to have a fully legitimate LLC. This includes having a registered agent, forming your articles of organization, and finally creating your LLC operating agreement. This is a document that is designed to protect your business. It will not only protect you but all of the members that will be part of your company. It will protect them from personal liability in case your company is ever sued. If you don’t have this, it is really no different than having a sole proprietorship.
What Is In The Operating Agreement?
These are simply documents that will be anywhere from a couple of pages to up to 20 pages in length. There are several things that must be included. The document will state with the voting rights are, as well as the responsibilities, for all of the members included. Each of the members will have a percentage of ownership and that will be stated in this document as well. It will also list the duties and the powers that each of the members, as well as the managers, will have as part of the business. In regard to profits and losses, the distribution of those figures will be disclosed, plus it will say when holding meetings will occur. Finally, it’s going to state the buyout rules, as well as the buy and sell rules, which referred to who gets the company in the event of one of the members leaving or if they are deceased.
How To File This In The State Of Kentucky
The first order of business is to fill out a form that will contain the Articles of Organization. These are going to be submitted to the Kentucky Secretary of State. There is a $40 fee for doing so. It is also possible to apply online if you want to. However, if you are close to the office of the Secretary of State, you can even deliver it in person. This legal document is what efficiently creates your LLC, and with that, you are going to include your operating agreement and list your registered agent.
How Long Will It Take To Form Your LLC?
In most cases, it will take a minimum of three weeks, and a maximum of five weeks, for the LLC to be formed. The reason that it takes a long is because of the process of evaluating the paperwork that you are turning into the Secretary of State. On the other hand, if you can work with the company that can do this for you, they will have everything set up to submit your paperwork as fast as possible. You could see your LLC formed in the span of a week or two, and best of all, you will not have to worry about errors or turning the paperwork in on your own.
What If You Don’t Have Your Operating Agreement Completed?
It is absolutely necessary to double-check every document that you are turning in when creating an LLC. If you make mistakes, such as leaving the names of people in the business out, it will delay the entire process. They can only process the paperwork, in any state, if all of the forms are filled out properly. That’s why you may want to consult with the company that can help you during this process to ensure that your LLC is formed as quickly as possible.
Now that you know what is in the operating agreement of an LLC in Kentucky, you can obtain this paperwork and start the process. While you are obtaining this, also get all of the other papers that will need to be filled out and filed. Once you have submitted them to the Secretary of State, and you have paid your applicable fees, they will then approve your company pending no similarities in the name of your business and others that exist. This process can also be accomplished by businesses that will do all of this for you, eliminating the stress that is often involved in filling out and filing this paperwork.