Kentucky is affectionately known as the Bluegrass State, and is a great place to raise a family. It is also facilitative for business, and many new companies start up in the state.
There are 3,500 businesses across Kentucky, serving the huge number of tourists that visit the state. These include hotels, motels, resorts, restaurants, marinas, museums, historic sites and race tracks. In business terms, Kentucky has one of the lowest overall costs of doing business in the United States, so it is not surprising that Kentucky is proving a popular destination for investors looking to set up a new company.
Additional benefits of choosing Kentucky as the location for your business include:
• Its location at the geographic centre of eastern America.
• Situation within 600 miles of 60 % of the nation’s population.
• Serviced by two major shipping hubs- UPS based in Louisville and DHL in Erlanger.
• Excellent river and railway access – services are available from the Great Lakes to the Gulf of Mexico.
• 8 public universities, over 25 private universities, and 16 community and technical colleges state-wide.
• One of the most competitive tax structures in the region.
• One of the most affordable costs for electricity in the nation.
• A great transportation infrastructure including 5 commercial airports, 4 major railways, 7 public river ports, 14 interstates and parkways.
The procedures for starting a business involve the following steps:
- 1.Firstly, you must choose the most appropriate legal structure for your business. Obtaining the advice of a local accountant is advised before choosing the structure as the right choice could save you money and offer more protection of your personal assets.
- 2.You need to decide on a name for your business. This must be available for use and not already on file with the Office of the Secretary of State.
- 3.Register your company – most company forms of foreign businesses can be registered online in Kentucky, although general partnerships, sole proprietors or entities that have the words trust, bank, insurance, land survey and engineer in the name must be registered in person.
- 4.Register your company for federal tax – many businesses need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service. Some sole proprietorships with no employees can use the owner’s social security number as the federal tax number.
- 5.Register for state taxation – many businesses in Kentucky should start this process starts by completing a Kentucky Tax Registration Application.
- 6.Complete local formation requirements – many states require a local business license, occupational tax, or other type of tax doing business within their jurisdiction. You should contact the city or county government where your business is to be located to find out what is required of you.
- 7.Application for relevant federal licenses or permits – if your business is involved in activities that are regulated federally you may need a federal license.
- 8.Obtain a building permit if required – new business locations may be subject to state building codes, local zoning requirements, and Americans with Disabilities Act public access requirements. These regulations will vary depending on the type of business, location, number of staff, public access and type of structure.