Are you interested in learning about Kentucky corporation law? Are you interested in starting a business in the Commonwealth of Kentucky but unsure of the requirements? This comprehensive tutorial will teach you all you need to know in an easy-to-follow step-by-step format. First, we’ll go through the fundamentals, such as picking a name for your company and submitting the necessary paperwork. Then, we’ll move on to more sophisticated issues, such as shareholder agreements and winding up operations.
This blog will accommodate your needs, whether you are just getting started or are interested in brushing up on previous knowledge. You have a fiduciary obligation under Kentucky corporation law to act in the business’s best interests while preserving its legal rights and duties. This duty requires you to always behave in the company’s best interests. The following is a list of easy actions that you may take to get started:
Choose The Right Business Structure
When you’re just starting, it may seem like there’s a lot to learn that has nothing to do with your company. However, if time is of the essence and you must prioritize, you should get started on your company’s legal structure. If you’re here, you’ve presumably already begun investigating the many business structures available to you. It might be more confusing if you haven’t a clue what “LLC,” “sole proprietorship,” and “S corporation” are, all of which you may have heard thrown about.
It is essential to know that there are two primary legal structures for doing business: corporations and partnerships (which can be general or limited). The major difference between a corporation and a partnership business organization is that a corporation has limited responsibility. You may have heard the word “corporation” in political discussions or seen it on your paychecks, but you may not know why someone would create a company.
Appoint Directors and Officers According To Kentucky Corporation Law
Competent management is essential before forming a corporation and launching a firm. Unlike its owners or managers, a business has its own identity under Kentucky corporation law. As such, before launching your company, you must choose an individual or individuals to serve as corporate officers and directors. The company’s office is the executive in charge of the company’s operations. The term “President” is often used to describe this individual. The President’s role is crucial, and they must be qualified to carry it out (for instance, the President’s name will appear on all papers if an investor sues the firm for breach of contract).
When starting, it’s often easiest to hire a single individual who fits the bill regarding availability and expertise. But after you’ve moved beyond that phase, it’s a good time to explicitly allocate jobs to people based on their skill sets and limitations and promote those who have shown themselves to be valuable to the company.
Draft Bylaws and Articles Of Incorporation
Your Kentucky corporation’s bylaws will determine how the company is run on the inside, including who holds executive positions and how often meetings are held. You may want to talk to a lawyer about this because of the finer points that may make a significant difference, such as whether shareholders can alter the bylaws without calling a meeting or whether they must call a special meeting to have anything amended.
However, some of the most important issues you’ll face when creating your bylaws aren’t legal issues at all; they’re merely practical matters, such as whether or not shareholders will receive any additional information about corporate actions between meetings (i.e., borrowing money or selling stock), or when a quorum for board meetings should be set. You are fortunate in that you may seek advice from others who have successfully formed companies in Kentucky, such as your attorney.
Hold Your First Board Meeting
People living in large cities typically picture a multinational powerhouse like Boeing or Apple when they hear the term “company.” And although there are companies, the word “corporation” is used to describe a wide variety of organizations beyond just them. In Kentucky, a company may be formed and used as a separate legal entity from its owners. However, even though it exists only on paper (or in pixels), it still requires effort to establish. Meeting as a board of directors for the first time is the next stage after creating a company and deciding what sort of business you want to form (more on this in a bit). This implies that all shareholders must be present.
Are you thinking about forming a Kentucky Corporation but are unsure how to go about it? Are you looking for the right step-by-step guide? If so, you’ve come to the right place. Our friendly staff will walk you through all the details and answer your questions as we work with you to set up your business. We can also assist you in filing Articles of Incorporation with the Kentucky Secretary of State or help you with any other legal concerns that may arise throughout your business’s journey. Contact us today at (800) 580-4870 for more information.