If you’re forming a limited liability company or corporation in the state of Kentucky, you’ll need to designate a registered agent.
A registered agent is the individual or business entity that receives legal documents from the state, and then forwards them to your business address. But why is this a requirement, and who should you designate as your registered agent in Kentucky?
In this guide, we will break down all the details you need to know about Kentucky registered agents.
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What is a Kentucky Registered Agent?
One of the most common questions we receive from entrepreneurs in Kentucky is why a registered agent is required to form an LLC or corporation. While it might seem like an unnecessary middle-man type of role, the registered agent fills a vital role.
The registered agent’s job is to provide a reliable way for the state to contact an official representative of your business at any time, which is especially important if your business is ever sued. If you didn’t have a registered agent, a lawsuit could progress through the courts without you even knowing about it, which is obviously far from ideal.
While Kentucky does not provide a recommended list of registered agent services, we reviewed the top options and compiled a list of the best Kentucky registered agent services based on price and overall value.Who Can Be a Kentucky Registered Agent?
According to the Kentucky Secretary of State, the registered agent’s office must be located within Kentucky, and must have a physical street address ― post office boxes are not sufficient. The registered agent can be an individual Kentucky resident, or a business located in Kentucky. Finally, foreign businesses that are authorized to transact business in this state are also allowed to serve as registered agents.
Aside from the legal requirements, an important aspect to discuss is who should be your registered agent. You have the right to declare yourself as your own registered agent, which has its pros and cons.
On the positive side, you can save some money by not paying anyone to serve as your agent, but you’ll also likely need to make your home address a matter of public record, which is not ideal. Additionally, you’ll need to be physically present at your business during all standard operating hours (9-5, M-F).
Some entrepreneurs like to have a friend or family member serve as their registered agent, but if that person doesn’t have experience in this position, they might not know what is expected of them. In addition, designating your lawyer or accountant as a registered agent can work, but these options are usually quite expensive.
Our preference is to hire a professional registered agent service, which provides a combination of convenience, affordability, and peace of mind that is unrivaled by any of these other options.
How Do Kentucky Residents Get Served?
The most important part of a registered agent’s role is being served a summons.
In the state of Kentucky, this happens when the Secretary of State receives two copies of the signed and dated summons, two copies of the complaint (attested by the court clerk), the address of the defendant being served, and either a $10 fee (if service is by certified or registered mail) or a $15.10 fee (if service is by restricted certified mail).
If these steps are all taken correctly, the state of Kentucky will then serve a summons to the defendant’s registered agent.
How to Designate a Kentucky Registered Agent
The answer to this question depends on what type of business you’re starting, but with either a corporation or an LLC, you’ll need to designate your registered agent when you form your company.
If you’re forming a Kentucky corporation, you can designate your registered agent and office in Article III of the articles of incorporation. For LLC formations, you’ll do this in Article II of the articles of organization.
With either type of company, you’ll need to get your Kentucky registered agent’s signature on the bottom of the first page in order to make their designation official.
How Can I Change My Kentucky Registered Agent?
If you would like to change your registered agent for any reason, the process is pretty simple.
All you need to do is fill out the Statement of Change of Registered Agent with the Kentucky Secretary of State. This form can either be completed online, or you can print out this pdf file and mail it to the Division of Business Filings.
Considering that the fee for changing a registered agent in Kentucky is just $10, it really is a painless process in every way. It should be noted though that the Statement of Change of Registered Agent is the only way to change your registered agent in Kentucky ― you cannot do so by filing an amendment to your articles of organization, or in your annual report.
How Does a Kentucky Registered Agent Resign?
Sometimes, a registered agent may have to resign from their position.
To do so, they’ll need to fill out the Kentucky Statement of Resignation of Registered Agent. This is a very simple, one-page document that indicates the registered agent’s identity and the business entity they are resigning from. There is no filing fee for this form.
Why Should You Hire a Professional Kentucky Registered Agent Service?
Hiring a professional registered agent is basically the best of both worlds between serving as your own agent, and designating a lawyer or accountant.
Privacy
The biggest benefit in our opinion is the privacy protection this allows, as you will be able to keep your personal address private. There’s also a major advantage compared to having an attorney or accountant serve as your agent, namely the fact that registered agent services are almost always much cheaper.
Professional Service
Another reason we like this option is that these companies specialize in providing quality registered agent service. They know exactly what’s expected of them, and there are rarely any issues to speak of.
Nationwide
The other major benefit of hiring a registered agent service is that most of them operate in all 50 states, so that if you ever want to expand your business into another state, you won’t need to hire an additional registered agent. Your same registered agent will be able to provide the coverage you need in your new state, while still providing the same service in Kentucky. If you hired a lawyer or accountant, they would only be able to help you expand to a new state if they have another physical office in that state.
You Stay Compliant
Finally, most professional registered agents operating in Kentucky offer some sort of compliance calendar. With this service, your registered agent helps you keep track of due dates for ongoing LLC maintenance requirements like annual reports, which is a valuable bonus.
The top registered agent service providers include some other appealing attributes, including access to their extensive customer support networks. Some of them include a full year of registered agent service with any business formation package, which can be a real money-saver. Another welcome attribute is that some registered agent services provide volume discounts if you require service in multiple states, or if you prepay for multiple years.
What Is the Penalty for Not Designating a Registered Agent in Kentucky?
You need to have a registered agent to form your limited liability company or corporation in Kentucky in the first place, but if you let your registered agent service lapse, there could be some serious consequences.
Failure to maintain a registered agent could lead to your business losing its good standing with the state of Kentucky, and the state also has the right to officially dissolve your LLC if they choose to.
Another issue would be the difficulty of being served if your business is sued. If the state cannot get ahold of your registered agent, a court may decide to go ahead with the lawsuit without your knowledge, which could even lead to a judgment against you. This can happen not just if you fail to designate a registered agent, but also if your agent is not present during business hours to accept the document delivery.
Conclusion
As you can see, the task of designating a registered agent for your Kentucky business isn’t quite as easy as just writing down your own name.
There are significant downsides to just about every option in our opinion, but we recommend hiring a professional registered agent service because that option has the fewest disadvantages. They charge affordable rates, and you never have to worry about losing your good standing, having your LLC or corporation dissolved, or having a lawsuit proceed in your absence.
If you have any further questions, you can contact the Kentucky Secretary of State:
Alison Lundergan Grimes
Office of the Kentucky Secretary of State
700 Capital Ave., Suite 152
Frankfort, KY 40601
(502) 564-3490