12 Steps

STEPS IN ESTABLISHING A BUSINESS IN KENTUCKY

The Cabinet of Economic development operates the Business Information Clearinghouse which prepares packets of needed information for establishing a small business. These packets can be ordered by calling toll free (KY only) (800) 626-2250 or (502) 564-4252/4202.

The arrangement of the following steps does not imply a required sequence of events but suggests a convenient progression. For more information on a particular step just click on the text.

1. If the business is to be incorporated, file Article of Incorporation with the Secretary of State (or Certificate of Authority, If corporate headquarters is out of state). Limited partnerships must also file with the Secretary of State:

   Kentucky Secretary of State
   Corporate Division
   Capital Building, Room 152
   Frankfort, KY 40601
   Phone (502) 564-3490
   Fax (502) 564-5687

2. Obtain an Employer Identification Number (EIN) from one of the U.S. Internal Revenue Service District Offices in your area. This is needed if you're planning to form a corporation or partnership,maintain a payroll, or planning to perform commercial or government jobs. Ask for form SS-4.

   Local IRS Walkin in Service
   845 5th Ave.
   (Old Post Office)
   Huntington, WV
   Hours: 8am - 4pm
   
   Internal Revenue Service
   601 Broadway, 550 Main Street
   Louisville, KY 40202
   Toll Free (866) 816-2065

3. File a Kentucky Tax Registration Application (Form 10A100) with the Kentucky Revenue Cabinet in your area:

   Ashland Taxpayer Service Ctr.
   Kentucky Revenue Cabinet
   134 - 16th Street, Greenup Ave.
   Ashland, KY 41101
   (606) 920-2037
   
   Kentucky Revenue Cabinet
   200 Fair Oaks Lane
   Frankfort, KY 40602
   (502) 564-7456

4. File state license applications, as required, for businesses or professions with the appropriate state government agency. Information on all state licenses and permit requirements may be obtained from the Business Information Clearinghouse:

   State Licenses Business Information Clearinghouse
   Division of Business & Entrepreneurship Development
   Cabinet for Economic Development
   Frankfort, KY 40601
   (502) 564-4252/4202 or (800) 626-2250
   Email Craig Kelly

5. Register with the Kentucky Department for Employment Services (Form U11) to establish a state unemployment insurance account:

   State Unemployment Insurance Tax
   Division for Unemployment Insurance
   275 E. Main Street
   Frankfort, KY 40601
   (502) 564-2900

6. Check with the local city or county planning and zoning commission to assure that the location of the business is in compliance with existing local zoning regulations:

   Maysville
   (606) 564-9419 ext. 321
   
   Fleming County
   (606) 845-1223
   
   Buffalo Trace Area Development District
   (606) 564-6894
   
   **Bracken, Lewis and Robertson Counties has no zoning regulations.**

7.  Obtain a local business license from the city clerk (where required in municipal locations) or from the county clerk (where required outside of city limits):
   
   *If the business is located in Maysville city limits or Mason County, contact:

   Maysville City Building Mason Co. Clerk
   216 Bridge Street P.O. Box 502
   Maysville, KY 41056
   (606) 564-9419 ext.310 (606) 564-3341

   *If the business is located in another city or county, contact any of the below offices for specific city and county business license requirements.

   Bracken County Clerk (606) 735-2952
   City of Brooksville (606) 735-2501
   
   Fleming County Clerk (606) 845-8461
   City of Flemingsburg (606) 845-5951
   
   Lewis County Clerk (606) 796-3062
   City of Vanceburg (606) 796-3044
   
   Robertson County Clerk (606) 724-5212
   City of Mt. Olivet (606) 724-5816

8. Obtain certain permits, when applicable, before construction of any facility or occupancy of any existing facility.

   a) Permits to build and operate in compliance with environmental regulations from the KY Department for Environmental Protection. If you need information about air, water, land uses, solid waste and hazardous materials call or write:

   One Stop Environmental Permit Coordinator
   Office of Commissioner, Dept. for Environmental Protection
   14 Reilly Road
   Frankfort, KY 40601
   (502) 564-2150

   *Air pollutions sources, including large parking areas:

   Division for Air Quality
   803 Schenkel Lane
   Frankfort, KY 40601
   (502) 573-3382

   Kentucky Business Environmental Assistance Program (KBEAP) provides free and confidential air quality assistance to small businesses with 100 or fewer employees.

   KBEAP
   227 Gatton College of Business and Economics
   University of Kentucky
   Lexington, KY 40506-0034
   (800) 562-2327

   *Sewage systems discharging into KY waters, withdrawl o f water exceeding 10,000 gallons per day from public waters, and building sites in a flood plain:

   Division of Water
   14 Reilly Road
   Frankfort, KY 40601
   (502) 564-3410

   *Solid and Hazardous waste:

   Division of Waste Management
   14 Reilly Road
   Frankfort, KY 40601
   (502) 564-6716

   b) Approval of construction plans for compliance with building, electrical, plumbing and boiler codes by the KY department of Housing, Buildings and Construction:

   *Building Codes: Division of Building Codes Enforcement Office

   *Electrical and boiler codes: State Fire Marchall's Office

   (both offices located at)
   Sea Hero Road, Suite 100
   Frankfort, KY 40601
   (502) 573-0364

   c) Apply for a Building and sewer connection (where required) from the city or county government. The construction contractor usually accomplishes this.

9. Obtain Worker's Compensation coverage for employees, by either:
1. Buying insurance from a private carrier.
2. Joining an approved self-insurance group.
3. Becoming qualified as a self-insured employer by the KY Labor Cabinet.

Worker's compensation premiums are based on employee salaries. Very few insurance carriers will write worker's compensation policies unless you maintain other forms of business or personal insurance with their company. Contact your current insurance carrier to obtain worker's compensation insurance rates. For more information concerning Worker's Compensation coverage for your employees: (502) 564-7456 or visit the KY Workforce Investment website.

10. Post state required posters in a conspicuous location at the place of business:
• Kentucky Wage and Hour Law
• Kentucky Child Labor Law
• Nondiscrimination of Wage Payments based on sex
• Safety and Health Protection
• Equal Employment Opportunity and Americans with Disabilities Act
• Unemployment Insurance Benefits
• Equal Service in Business establishments
• Equal Houseing Opportunity (only in businesses selling or leasing housing)
  

All businesses with employees are required to comply with state and federal regulations regarding the protection of employees. OSHA outlines specific health and safety standards adopted by the U.S. Department of Labor. For information contact:

Kentucky Labor Cabinet
Occupational Safety & Health
1047 U.S. 127 South
Frankfort, KY 40601
(502) 564-3070

A set of posters that include all required state and federal mandatory postings are available from the Kentucky Chamber of Commerce at a cost of $18.75 for Chamber members or $25.00 for non-members. These can be ordered by mail from:

The KY Chamber of Commerce
464 Chenault Road
Frankfort, KY 40601
(502) 695-4700

11. Americans with Disabilities Act (ADA)
    For assistance or clarification with the ADA:
    (800) 669-3362

12. Free one-to-one confidential small business counseling and free and low-cost training seminars are available to individuals who wish to run and operate a business in Bracken, Fleming, Lewis, Mason and Robertson Counties in Kentucky. Call to schedule an appointment or to receive a packet of information describing the services provided by the Morehead State University/Small Business Development Center.

    M.S.U./Maysville SBDC
    201 E. Third Street
    Maysville, KY 41056
    Phone: (606) 564-5534
    Fax: (606) 564-5535