My last post gave you an overview of the different business entities you could use to establish your business. Out of the 10 listed, I narrowed that list to four – Sole Proprietorship, Limited Liability Corporation (LLC), Subchapter C Corporation (Sub C Corp) and Subchapter S Corporation (Sub S Corp). I chose to operate, initially, as an LLC, thus I established JClouse Business, LLC.
For myself it was a little more complicated. While I live in Kentucky, I plan to retire in Florida in a couple of years. I decided to form my business under Kentucky law, rather than out of state, as it would be easier since this is my residence. However, I referenced Florida Small Business Practices to form my business with a view to my future life in Florida.
As an attorney, I am well aware of the litigious nature of our society. Personal responsibility is often eschewed in favor of blaming others for your stupidity or irrational behavior and portraying yourself as a victim and suing them. Thus I ruled out Sole Proprietorship because I do not want personal asset exposure to my business. Due to the complexity of the filing and reporting requirements of a Sub C Corp, as well as its unfavorable tax treatment for a sole owner/shareholder, I ruled out Sub C Corp.
I decided against Sub S Corp initially as this is the first year of my business, I am a sole owner, I am not concerned about issuing stock, and I am not a fan of its filing and operating requirements. Accordingly, that left the Limited Liability Company. So I decided to form my business as an LLC, with the intent to change to a Sub S Corp after I move to Florida in a couple years (hopefully 2026) and establish my business there.
The very first thing I did was go to the Kentucky Secretary of State’s website at https://www.sos.ky.gov. From there I selected the Business Services section, which had an easy to follow list of topics I would need to explore.

Here is what I did to establish my LLC in Kentucky. Remember, this is state specific so make sure you research your respective Secretary of State’s site:
1. I conducted a business name search. JClouse Business was available. Yah!
2. I decided to act as my own Registered Agent rather than pay someone else. A Registered Agent is a person or company that receives legal documents and official communications on behalf of an LLC. This was an easy decision since I am an attorney and do not want to pay someone else to do this simple task.
3. I established a business address because I did not want my home address to be listed on all the public documents for my company. This would also be the address for the Registered Agent to receive service of process (legal documents).
- You cannot use a PO Box for a business address.
- The US Post Office does offer a business address service but I did not like the cost.
- I chose to use iPostal1 as it was relatively inexpensive, it would send me an email notice of any mail received and I could look at my mailbox remotely to see what correspondence arrived. I created an account and my business address was established, which is located inside a local Staples store.
- After I had my business address, I went to the US Postal Service website and printed out their Form 1583 – Application for Delivery of Mail Through Agent. This allows the Post Office to send my business mail there to Staples (the Agent). I had to print the form because it needed to be notarized, which my bank did for free.
4. Now that I had this basic information, I completed the KY online form for a new LLC and submitted that. Normally the fee is $40, but it was waived as I am a Veteran and this is a Veteran owned business.
- This form was the input form for my Articles of Organization so when I submitted the form, I was simultaneously submitting my Articles of Organization as the Founding Owner.
- I printed the one-page Articles of Organization for my records.
Note: I believe in keeping records so every form I file for my business I print out and keep it in my business record book.
I now had my Kentucky LLC. This completed the first part of the basic establishment of my business organization. Little did I know the fun was about to begin.
After my business was registered with Kentucky, I received a welcome notice from the Kentucky Secretary of State that included a very helpful Next Steps Checklist, showing everything I needed to do to finish setting up my LLC. I will continue the numbered steps from above:
5. I did not have to file a Certificate of Assumed Name because I was not doing business under any name other than JClouse Business.
6. I then went to the IRS website and chose the Business & Self Employed section to obtain a federal employer identification number (FEIN) because I did not want to use my social security number for my business. It was pretty straightforward.

- I navigated to the How to Apply for an EIN page and I clicked on the link to the online Internet EIN application.
- I completed the form and submitted my application and received my EIN (Form SS-4) shortly afterwards.
- In completing my application I listed my business as Internet, and my principal products/ services as Internet Sales.
7. Next I went to the Kentucky Department of Revenue to establish my state tax account and commonwealth business identifier.

- This required me to create a Kentucky Business One Stop account. I operate my business on my iMac and was unable access that site because it requires Google Chrome. So I downloaded the Chrome app and was able to access it and create an account.
- Next I clicked on the link to Register a new business with the state.
- This was a very lengthy online form to fill out and I needed quite a bit of information to do so. Patience is key here because it is bureaucracy.
- Before I submitted the form it gave me the option to print my application, which I did. When I am applying for something, especially with the Government, I always print the application out before I submit it. This gives me a record of everything I listed in my application in case there is a question or issue later.
- After I submitted that form, I received my KY limited liability entity tax account number document several days later. Now I was state tax legitimate 😮
Now that I established my business as an LLC and registered with the Federal and State tax authorities, I was ready to proceed with the next steps. However, this is already a long post. For ease in understanding I will stop here and finish the remaining steps in next week’s Blog post.
As you can see, establishing your business as anything other than a Sole Proprietorship (even just a single member LLC) is a complicated process, requiring many steps to be legally established with the Federal and State agencies. It is not for everyone. Many people are uninterested in forming a company or corporation and instead are happy to just operate their business as a Sole Proprietor. There is nothing wrong with that. You do what works best for you.
I am not suggesting you form your business as an LLC or anything else. I decided to because I understand business and taxes, as well as the legal system. The last thing you need to worry about is filing, reporting and tax requirements while operating your business. Being a Sole Proprietor and filing a Schedule C with your Federal 1040 is a very straightforward way to go. I want you to succeed in your business so do what you feel comfortable with. These series of posts are to show you what I did in creating my business entity and everything I went through so you can make an informed decision on what you want to do.
If you are not already signed up to get my newsletter, I invite you to join so you can get the latest updates and detailed information only for those Voyager Newsletter members. You can join here. Now let’s continue on my voyage through the bureaucratic jungle of business creation, which is a necessary evil, but once done, requires much less time and involvement. I will see you next week!
Jordan,
You sound very oragnized, and I like the depth you went into in this topic. Tax considerations and liability considerations get more and more important as our online businesses are more successful.
Thanks, Scott. Tax is a daunting subject but necessary to understand for business. Which is why I joined the FLBar Tax Law Section – to increase my knowledge for my own business and hopefully be of benefit to others.
Navigating the world of business entities can feel like a labyrinth, but you’ve laid out the steps so clearly—thank you! It’s interesting to see how your plans for the future influenced your decision to set up an LLC in Kentucky, and I appreciate your candidness about the complexities involved. Sole proprietorship vs LLC is always a tough question, and then if you choose an LLC how do you want to be taxed? I live in California, so there is also the mandatory $800 LLC yearly fee : ( So important to do your research!
Thanks, Alison. You are so right on doing your own research for your particular state and locale. I can give general guidance but we all need to know the specifics for our location. I do not envy you in CA with the taxes and fees, especially as you keep achieving success in your business. I’m enjoying watching you grow.
Hi Jordan,
Thanks for sharing this detailed insight into your journey of establishing an LLC! Your breakdown of the thought process behind selecting the right business entity is incredibly helpful, especially for anyone contemplating the same decision.
I appreciate your emphasis on the importance of legal protection and the complexities involved in the setup process. Your experiences highlight how crucial it is to do thorough research and maintain good records as you go through each step.
I also found your choice of using iPostal1 for a business address particularly interesting; it seems like an efficient way to keep your personal address private while still receiving business correspondence.
Looking forward to reading Part 3 and learning more about the next steps in your business formation process. Your approach serves as a great model for others navigating the bureaucratic side of entrepreneurship!
Best,
Ezequiel Wells
Thanks, Ezequiel. Yes, when I decided to do this, I was amazed at everything involved, especially getting a business address. If I can help others with my posts such that they don’t go through the headaches I did, I will have succeeded.
Hi Jordan,
I appreciate you sharing your journey and the detailed steps you took to establish your LLC. It’s helpful to see the considerations you made for your future plans in Florida while navigating the complexities of business formation in Kentucky. Your experience highlights the importance of choosing the right business structure for liability protection and tax implications. Looking forward to your next post!
Meredith
Thanks, Meredith. Yes, I decided to organize for both my present situation and my view of the future. Each state has their own specifics so I focused on KY for now.
Hi Jordan – This post was exceptionally beneficial for me. I am not an attorney and have been confused and worried about what I should do next to officially establish my business. I took a gamble and registered an LC. After reading your post I am so glad that I did as I followed the steps almost identical to what you did after receiving advice from someone not only a lot smarter than me but also knowledgeable in these tasks. Your post confirmed for me that I completed the steps I needed to do in my state which are very similar to the state that you live in. I plan to use my LLC for various businesses, so my LLC name is very generic. With that in mind, I have the goal of establishing DBA’s as needed. All of this is very new to me, but I do want to do it right and I do want to protect my assets and my family. I truly appreciate this post! Have a great week and here’s to your continued success!
Thanks, Ernie. I’m glad this helped you confirm you chose the right one. Not an easy task, but it seems you did well.