With the growing population and low cost of labor, Kentucky is a top choice for many entrepreneurs looking to start a new business. But taking that step isn’t without challenges, and business ownership requires serious planning and preparation.
Some things that may sound simple can involve numerous steps and regulations, including choosing the name of your business. Your name needs to convey your value, stand out to customers, and also serve as a legal name for the state. This means that the name must be unique across Kentucky. Read on to learn how to ensure you choose a name that fits the bill.
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How to check business name availability in Kentucky
When you’re ready to check on name availability, you’ll run a business name search. Here’s how:
1. Visit the Kentucky Secretary of State website
Visit the Kentucky Secretary of State website to run your business name through an entity search. The state website has a public search tool that you can use.
2. Enter keywords
Just like you’d conduct a search on Google, you’ll run a search for the business name that you want to use.
3. Run the search
Just like with Google, you’ll get search results. If there’s a business listed in the search results that match the name you wanted – it’s taken. If you run a search and don’t see the name in the results, the name is available.
Kentucky law says no two businesses can have the same name, not even a similar name. So, you can’t just make a business name plural, for example, and claim it as your own. Every business name in the state must be distinguishable. That way, if state officials need to get in touch with the owner, they can do so without confusion.
4. Consider reserving a name
After running a Kentucky business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
Kentucky allows business owners to reserve a name for 120 days for $15.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of Kentucky, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your Kentucky business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your Kentucky company?
As you research available business names in Kentucky, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your Kentucky business
Ready to set up your business in KY? Here’s what you do:
1. File your Articles of Organization
Visit the Kentucky Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in Kentucky, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In Kentucky, the cost is $40.
4. Wait for approval
Kentucky will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
Kentucky small business facts
Before you start considering business name availability in Kentucky, take a look at these small business statistics from the U.S. Business Administration:
- Kentucky small businesses employed 712,477 people, or 43.8% of the private workforce, in 2017.
- Firms with 20 to 99 employees have the largest share of small business employment. Figure 1 provides further details on firms with employees.
- The number of proprietors increased in 2018 by 2.3% relative to the previous year.
- In the fourth quarter of 2019, Kentucky grew at an annual rate of 2.3%, which was faster than the overall US growth rate of 2.1%. Kentucky’s 2019 overall growth rate of 1.1% was down from the 2018 rate of 1.4%.
- In April 2020, the unemployment rate was 15.4%, up from 4.3% in April 2019. This was above the April 2020 national unemployment rate of 14.7%.
- Private-sector employment decreased 17.5% during the 12-month period ending in April 2020. This was below the increase of 0.6% during the prior 12-month period.
- The median income for self–employed individuals at their own incorporated businesses was $49,404 in 2018. For self– employed individuals at their own unincorporated firms, median income was $21,934.
- Small businesses created 23,339 net jobs in 2019. Firms employing fewer than 20 employees experienced the largest gains, adding 12,334 net jobs. The smallest gains were in firms employing 100 to 499 employees, which added 4,617 net jobs.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in Kentucky:
Why is it so important to check on business name availability?
Kentucky will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
Do I need business insurance in Kentucky?
Kentucky requires that any business with 5 or more employees, including LLC members and officers, obtain workers’ compensation insurance. While this is the only type of insurance that is mandatory, many business owners choose to have other types of insurance as well. Any small business, including a home-based one, can purchase general liability policies. Professional liability insurance is also available for businesses that sell professional advice or services, like consulting and accounting firms.
What licenses do I need for my Kentucky business?
Kentucky does not require a business license statewide to operate. However, cities often require licenses and certain industries can have permit requirements. Most businesses will need at least one license or permit to fully operate. This may include environmental permits, professional licensing, or health permits. Without the proper licensure, a business can be stopped from operating, so it is critical to understand all rules that apply to your business.
How do I register for business taxes in Kentucky?
You will need to register for both state and federal taxes when you start a business.
If you will have employees or sell goods, you need to register with the Kentucky Revenue Cabinet in order to withhold taxes properly. You may need to register for other types of taxes like Limited Liability Entity Taxes or Motor Vehicle Tire Taxes as well.
You will also need to register with the IRS for federal taxes. To do so, you need an Employer Identification number, which you can get through the IRS website.
What’s an EIN used for?
An EIN will be used to pay and track federal taxes. You will also need an EIN to open any bank or credit accounts in your business’ name. Think of the EIN as a business equivalent to a social security number.
Is my business name legally protected?
Kentucky will not allow you to register a business under a name that is already in use. However, that does not mean that other states will prevent the same thing from happening, so someone elsewhere could use the same name.
In order to gain nationwide protection of your name and the right to sue someone who uses it, you will have to apply for a trademark through the U.S. Patent and Trademark Office. The USPTO manages all trademarks across the country.
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