“Does Kentucky allow LLC domestication?” Many LLC owners who plan to move their business to Kentucky (KY) ask similar questions such as, “How to domesticate an LLC in Kentucky? or “Is Kentucky LLC domestication a good choice?”
If you are one of such business owners, keep on reading. This Kentucky LLC domestication guide has all the information that you seek.
What is Kentucky LLC Domestication?
LLC domestication in Kentucky means changing the location or domicile of your LLC from any state to Kentucky. In other words, if you want to move your Georgia LLC to Kentucky, for instance, LLC domestication is the best way to do so.
By LLC domestication, you change the governing laws of your LLC. Domesticating your LLC into Kentucky will have the following benefits over other methods of moving your LLC to Kentucky:
- LLC domestication allows you to maintain previous business relationships.
- No need to renew contracts made in the previous state.
- No need to change bank accounts and credit ratings.
- You can retain your EIN (Tax ID Number).
- No need to rehire employees.
- No need to transfer assets.
How to Domesticate your LLC in Kentucky
There’s always something new to learn in the ever-changing landscape of business, and this same goes for LLC domestication in Kentucky. While you plan to move your LLC from any state to Kentucky, Kentucky Cabinet for Economic Development assists you in this process.
Below, we explained the process of transferring an LLC from any state to Kentucky via KY LLC domestication in 4 simple steps.
Acquire a Certificate of Good Standing
A certificate of good standing is also called a certificate of existence or certificate of status in some states. It is a legal document issued by the state authorities, usually the secretary of state.
In Kentucky, the certificate of Good Standing is not mandatory to domesticate your out-of-state LLC in Kentucky. However, you may need this document while terminating (LLC Dissolution) in the previous state.
Moreover getting a Certificate of Good standing will be better as you are moving your business out from the LLC’s home state, so you should have a record that you have paid all the debts, state taxes, LLC annual fees, and other fees in the state where you initially registered your LLC.
After getting a certificate of good standing, you will have proof that you have timely paid your LLC taxes, submitted LLC annual reports and fees, and follow the state laws in all business operations. Hence, this document will verify that your business is in good standing with the state.
To prove that your LLC is up to date on all important business marks, you need to submit a certificate of status.
Your LLC Needs to be Qualified as Foreign LLC in Kentucky
Before you file articles of domestication with the Kentucky Department of State, your LLC needs to be qualified as Foreign LLC in Kentucky.
For Kentucky Foreign Qualification also known as Foreign LLC registration in KY click the following link.
Once you register your LLC as a Foreign entity in Kentucky, you then convert it into Kentucky Deomestic LLC by filing an Amended Certificate of Authority with the Kentucky Secretary of State.
File an Articles of Domestication Kentucky
To formally move your LLC from the LLC’s home state to Kentucky, you need to file articles of domestication known as Amended Certificate of Authority with the Kentucky Secretary of State.
Filing the Kentucky Amended Certificate of Authority changes the domicile of your LLC. After the approval of these certificates, you may need additional forms such as a statement of change of the registered agent and/or registered office address or principal office address if needed.
To download both forms, click on the link below:
Finally, depending on the LLC management structure mentioned in your LLC operating agreement, you need the signature of the authorized person to sign the Kentucky LLC domestication form. After completing all the information, send the complete forms to:
Secretary of State
PO Box 718
Frankfort, KY 40602-0718
In Person Filing Address:
Room 154, Capitol Building
700 Capital Avenue
Frankfort, KY 40601
Hours of Operation: 8:00 AM-4:30 PM ET
Dissolve Your LLC in Previous State
After the approval of articles of domestication or Amended Certificate of Authority, you must dissolve your LLC in the previous state. Click on the following link to terminate your previous LLC.
Select your state and follow the state-specific guide.
Requirements to Complete Kentucky Articles of Domestication Form
As mentioned earlier that Kentucky articles of domestication are filed with the Kentucky articles or organization; the following information/documents will be needed to complete the LLC domestication process:
- The date on which the entity received authority to transact business in Kentucky as a foreign LLC
- Name of the domesticating entity (The name of your LLC with which you used to operate your business in the previous state)
- The name of the previous state where your LLC was registered
- The date when your LLC was formed initially
- Management Structure
- Signature of the authorized person to initiate LLC domestication
Kentucky LLC Domestication Fee (Cost)
To convert an out-of-state LLC into a Kentucky LLC, you need to pay the following fee to the Kentucky Department of State along with the Kentucky articles of domestication:
Articles of Domestication/ Amended Certificate of Authority: $40
Alternatives to LLC Domestication Kentucky
If you do not plan to move your LLC to Kentucky permanently, or for any other reason Kentucky LLC domestication does not seem suitable, the followings are the alternative to Kentucky LLC domestication:
What Next After Kentucky LLC Domestication?
Once the state of Kentucky domesticates your LLC, the laws of the previous state will no longer apply to your LLC.
Now your LLC will be governed under the LLC statute of Kentucky. Now, to remain compliant with the laws of Kentucky, you need to:
- Make sure you pay outstanding LLC federal taxes or debts in the previous state.
- Keep your registered agent information up to date. If you don’t have one, you can review top registered agent services here.
- Follow your LLC operating agreement.
- Acquire licenses and permits specifically required by the new state.
- Regularly submit annual reports and fees.
- Pay Kentucky sales tax.
Moving an LLC out of Kentucky
The Kentucky Department of state allows an LLC to move out of Kentucky via LLC domestication. However, the law of the other state must permit LLC domestication in its statute.
For the states that allow LLC domestication, you need to submit a Kentucky certificate of status to domesticate your LLC there. Click on the following link to get a Kentucky certificate of status.
FAQs on How to Domesticate an LLC in Kentucky
Aisha Noreen is an owner of a small business with more than 9 years of experience in the marketing industry. With the wisdom of an old soul, she always seeks innovation and mind-blowing ROI techniques. Her unique approach helped many small businesses thrive and she can surprise you in many ways as well. Believe it or not, her energy, passion, and creativity are contagious enough to transform your business and take it to another level.