Kentucky Articles of Incorporation

Kentucky articles of incorporation form a corporation by filing Form PAI with the Secretary of State for a 50 dollar minimum fee, setting the name, agent, and shares. Attorney review available.

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Introduction

Kentucky sets its formation cost with a 50 dollar minimum, a 40 dollar base fee plus a 10 dollar minimum organization tax, paid when you file Articles of Incorporation (Form PAI) with the Kentucky Secretary of State to create the corporation as a separate legal entity. Filing brings the corporation into existence so it can own property, sign contracts, and give its owners limited liability for the corporation debts. Kentucky law requires the articles to set forth the corporation name, the number of shares the corporation is authorized to issue, the initial registered office and registered agent, and each incorporator (KRS 271B.2-020). The minimum fee paid to the Secretary of State is 50 dollars, which is a 40 dollar base filing fee plus a 10 dollar minimum organization tax for 1,000 or fewer authorized shares. The corporate name must contain a word such as Corporation, Incorporated, Company, or Limited, or an abbreviation. After the corporation is formed, Kentucky charges no traditional corporation franchise tax, but corporations owe a Limited Liability Entity Tax (LLET) with a 175 dollar minimum, collected by the Kentucky Department of Revenue (KRS 141.0401). Every corporation must also file an annual report with the Secretary of State between January 1 and June 30 each year, with a 15 dollar fee (KRS 271B.16-220). DocDraft builds your Kentucky articles of incorporation from your facts, with attorney review available before you file. These fee and tax figures come from two agreeing grounded sources and should be re-confirmed against the Secretary of State fee schedule before filing.

Key Things to Know

  1. 1

    Filing Kentucky's Articles of Incorporation (Form PAI) with the Secretary of State creates the corporation as a separate legal entity, at a 50 dollar minimum made up of a 40 dollar base fee plus a 10 dollar minimum organization tax.

  2. 2

    You file the articles with the Kentucky Secretary of State. The minimum fee is 50 dollars, made up of a 40 dollar base filing fee and a 10 dollar minimum organization tax for 1,000 or fewer authorized shares.

  3. 3

    Kentucky requires the articles to set forth the corporation name, the number of authorized shares, the initial registered office and registered agent, and the name and mailing address of each incorporator (KRS 271B.2-020). The name must include a word such as Corporation, Incorporated, Company, or Limited, or an abbreviation.

  4. 4

    The corporation must continuously maintain a registered office and a registered agent in Kentucky to receive service of process and official documents (KRS 271B.5-010).

  5. 5

    After formation, Kentucky charges no traditional corporation franchise tax, but corporations owe a Limited Liability Entity Tax (LLET) with a 175 dollar minimum, collected by the Kentucky Department of Revenue (KRS 141.0401).

  6. 6

    Every Kentucky corporation must file an annual report with the Secretary of State between January 1 and June 30 each year, with a 15 dollar fee (KRS 271B.16-220). Missing the June 30 deadline can lead to administrative dissolution.

  7. 7

    Articles of incorporation form a corporation. To form a Kentucky limited liability company you file articles of organization instead, and corporate bylaws are a separate internal document the corporation keeps rather than files.

Key decisions before you file

Before you file a Articles of Incorporation in Kentucky, a few decisions shape the document: which option to choose and what each one means. The Articles of Incorporation guide walks through them.

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ARTICLES OF INCORPORATION OF [CORPORATION NAME] (Kentucky For-Profit Corporation, Form PAI)

The undersigned incorporator, for the purpose of forming a corporation under the Kentucky Business Corporation Act (KRS Chapter 271B), adopts the following articles of incorporation.

Article 1. Name. The name of the corporation is [CORPORATION NAME]. The name includes a corporate designator such as Corporation, Incorporated, Company, or Limited, or an abbreviation of one of those words, and is distinguishable from other entity names on file with the Kentucky Secretary of State.

Article 2. Authorized Shares. The corporation is authorized to issue [NUMBER] shares. The articles authorize at least one class of shares with unlimited voting rights and at least one class entitled to receive the net assets of the corporation on dissolution. If more than one class or series is authorized, the designation, number, and relative rights, preferences, and limitations of each are: [DESCRIBE, OR STATE ONE CLASS OF COMMON SHARES] (KRS 271B.6-010).

Article 3. Registered Office and Agent. The street address of the initial registered office of the corporation is [REGISTERED OFFICE ADDRESS, CITY, KY ZIP], and the name of the initial registered agent at that office is [AGENT NAME]. The corporation continuously maintains a registered office and registered agent in Kentucky under KRS 271B.5-010.

Article 4. Principal Office. The mailing address of the principal office of the corporation is [PRINCIPAL OFFICE ADDRESS].

Article 5. Incorporator. The name and mailing address of the incorporator signing these articles is [INCORPORATOR NAME], [INCORPORATOR ADDRESS]. The incorporator does not have to be an owner, director, or officer of the corporation.

Article 6. Purpose. The corporation is organized to engage in any lawful business for which a corporation may be formed under KRS Chapter 271B, other than any activity that Kentucky law requires be conducted under a separate or special statute.

Article 7. Director Liability and Indemnification. The liability of the directors of the corporation for monetary damages is eliminated to the fullest extent permitted by the Kentucky Business Corporation Act. The corporation is authorized to indemnify its directors, officers, employees, and agents to the fullest extent permitted by Kentucky law and the corporation bylaws.

Execution and filing. The incorporator signs and files these articles with the Kentucky Secretary of State (Form PAI) with the 50 dollar minimum fee, which is a 40 dollar base filing fee plus a 10 dollar minimum organization tax for 1,000 or fewer authorized shares. After the Secretary of State files the articles, the corporation must file an annual report with the Secretary of State between January 1 and June 30 each year, with a 15 dollar fee (KRS 271B.16-220). Kentucky charges no traditional corporation franchise tax, but the corporation owes a Limited Liability Entity Tax with a 175 dollar minimum, collected by the Kentucky Department of Revenue (KRS 141.0401). The corporation should also adopt bylaws and hold an organizational meeting of its board of directors.

Dated: ____________


[INCORPORATOR NAME], Incorporator

This Kentucky document follows the Kentucky Business Corporation Act and the Secretary of State Form PAI. For the generic template and other states, see the Articles of Incorporation hub.

Kentucky Requirements for Articles of Incorporation

File Form PAI With the Secretary of State

A Kentucky for-profit corporation is formed by filing Articles of Incorporation (Form PAI) with the Kentucky Secretary of State. The minimum fee is 50 dollars, made up of a 40 dollar base filing fee plus a 10 dollar minimum organization tax for 1,000 or fewer authorized shares. The corporation legally exists once the Secretary of State files the articles.

Corporate Name With a Designator

The corporation name in the articles must include a word such as Corporation, Incorporated, Company, or Limited, or an abbreviation, and must be distinguishable from other entities on file with the Kentucky Secretary of State (KRS 271B.2-020).

Registered Office and Agent

The articles must state the street address of the initial registered office and the name of the initial registered agent at that office. The corporation must continuously maintain a registered office and agent in Kentucky (KRS 271B.5-010).

Name and Address of Each Incorporator

The articles must set forth the name and mailing address of each incorporator, and the incorporator signs the articles. The incorporator does not have to be an owner, director, or officer of the corporation (KRS 271B.2-020).

Authorized Shares

The articles must state the number of shares the corporation is authorized to issue, and must authorize at least one class of shares with unlimited voting rights and one class entitled to the net assets on dissolution (KRS 271B.6-010).

File the Annual Report by June 30

Every Kentucky corporation must file an annual report with the Secretary of State between January 1 and June 30 each year, with a 15 dollar fee (KRS 271B.16-220). Missing the June 30 deadline can lead to administrative dissolution.

Limited Liability Entity Tax Instead of Franchise Tax

Kentucky charges no traditional corporation franchise tax. Corporations owe a Limited Liability Entity Tax with a 175 dollar minimum, collected by the Kentucky Department of Revenue (KRS 141.0401). Confirm the amount with the Department of Revenue.

Corporation Versus LLC

Articles of incorporation form a corporation. To form a Kentucky limited liability company you file articles of organization instead. Corporate bylaws are a separate internal document the corporation keeps rather than files with the state.

Frequently Asked Questions

In Kentucky, articles of incorporation are the founding document you file with the Secretary of State to create a corporation. Filing them makes the corporation a separate legal entity that can own property, sign contracts, and shield its owners from personal liability for the corporation debts. A for-profit corporation is formed by filing Articles of Incorporation (Form PAI), which sets out the corporation name, the number of authorized shares, the registered office and agent, and each incorporator (KRS 271B.2-020).

In Kentucky, articles of incorporation create a corporation, which has shareholders, directors, and shares of stock and files Form PAI. Articles of organization create a limited liability company (LLC), which has members instead of shareholders, issues no stock, and files its own form. Both are filed with the Kentucky Secretary of State and both form a separate legal entity, but they create different kinds of entities under different parts of Kentucky law. Choose the one that matches the entity you want.

You file the Articles of Incorporation (Form PAI for a for-profit corporation) with the Kentucky Secretary of State. The minimum fee is 50 dollars, made up of a 40 dollar base filing fee plus a 10 dollar minimum organization tax for 1,000 or fewer authorized shares; the organization tax rises with more authorized shares. Once the Secretary of State files the articles, the corporation legally exists in Kentucky. Re-confirm the current fee on the Secretary of State fee schedule before you file.

Kentucky requires the articles to set forth the corporation name, which must include a word such as Corporation, Incorporated, Company, or Limited or an abbreviation; the number of shares the corporation is authorized to issue; the street address of the initial registered office and the name of the initial registered agent at that office; and the name and mailing address of each incorporator (KRS 271B.2-020). The incorporator signs the articles.

Every Kentucky corporation must continuously maintain a registered office and a registered agent in Kentucky (KRS 271B.5-010). The registered agent can be an individual who resides in Kentucky or a business entity authorized to do business in the state, and the agent must have a Kentucky street address where legal papers can be delivered. The agent receives service of process and official documents for the corporation.

Kentucky does not charge a traditional corporation franchise tax. Instead, corporations owe the Limited Liability Entity Tax (LLET), which has a minimum of 175 dollars and is otherwise computed on Kentucky gross receipts or gross profits (KRS 141.0401). The LLET is collected by the Kentucky Department of Revenue and is owed in addition to any corporate income tax. This is general information, not tax advice; confirm your amount with the Department of Revenue.

Every Kentucky corporation must file an annual report with the Secretary of State between January 1 and June 30 each year after the year of incorporation, with a 15 dollar fee (KRS 271B.16-220). The report updates the state on the corporation officers, directors, and registered agent. Filing on time keeps the corporation in good standing; missing the June 30 deadline can lead to administrative dissolution.

In Kentucky, articles of incorporation are the short public document you file with the Secretary of State to create the corporation. Bylaws are a longer internal document the corporation adopts and keeps in its own records, not filed with the state, setting the rules for how the corporation is run, such as how directors are elected and how meetings are held. You need the Kentucky articles to exist as a corporation and the bylaws to govern it day to day.