This is the third and final part of my 3-part series in establishing my business. Part 1 gave you a general overview and Part 2 (last week) took you through the steps I followed to create my Kentucky LLC business and register with Federal and State taxing authorities. Today I complete the final steps is establishing my business. The end is near.
Yes, it has been a lengthy process and I had to do a lot of research and went through a bit of trial and error. The purpose of this 3-part series was to save you that research and trial error and explain what I went through so you can make an informed decision on what type of business you want to have. If you want to establish your business as anything other than Sole Proprietorship, remember it is state specific so make sure to follow your state’s Secretary of State guidance. At least you’ll have an idea of the process now before you even get started.
With that, let’s finish setting up my business. After I established my state tax account (Step 7), I continued following the Next Steps Checklist:
8. I reviewed the Kentucky local occupational license fee information for the county where I live and my business is located.
- This is a business license fee, not an income tax.
- Under Kentucky statutes, each entity or individual that conducts taxable business activities are subject to this fee based on either gross receipts or net profits.
- Like a tax return, it is for the calendar year and due by April 15th of the following year.
- Accordingly, I did not have to complete or file anything right now. I will complete this form and submit it by April 15 next year, whether I made a profit or a loss. The county government wants their money too 🤨
- Since this is a required form due every year, I saved the pdf form, along with instructions, to my business file on my computer for easy retrieval.
9. I then went to the Code of Federal Regulations (CFR) Index website to review the comprehensive list of federal regulatory agencies that apply to my business/industry.
- This is a 925 page pdf document 😮
- As mentioned earlier, my business organization does affiliate marketing (closest category was Retail) and the principles service is Internet Sales.
- The relevant category for me was Internet. For me this is merely a reference section for the future, so I bookmarked it.
10. Next up was going to the Kentucky Administrative Regulations Website for Title 30 – Secretary of State, to reviewing any applicable state regulations. The only relevant category was Chapter 7 – Occupational License Fees, which I already addressed in Step 8 above.

11. After this I contacted my county clerk about any county permit or license requirements for my business. For my home-based Internet business, there were none.
12. Following this I contacted my city mayor’s office for any additional municipal permit or license requirements. Again, for my business there were none.
13. Next step would be to visit the Kentucky Office of Unemployment Insurance to establish a reserve account. However, as a Sole Proprietor LLC, I do not employ anyone thus I am not considered a Kentucky employer. Accordingly, this was inapplicable to me.
14. The last step was to register beneficial ownership information with FinCEN within the next 30 days.

- This is a very important step to keep you out of Federal legal trouble.
- As of January 1, 2024, most business entities are required to file a Beneficial Ownership Information Report (BOIR) to the Financial Crimes Enforcement Network (FinCEN), within 90 days of organizing. FinCEN is under the U.S Treasury Department.
- At first glance this seems intimidating. However, they publish a Small Entity Compliance Guide that will help answer your questions and let you determine if you need to file.
- Since I am an LLC under U.S. laws, I was considered a reporting company and thus had to file a BOIR. I chose to file online, rather than print and mail.
- Their Guide has a very good flowchart that lets you quickly determine if you are a reporting company and must file.

- Interestingly, as of the date of this post, the law that created this requirement (Corporate Transparency Act) was ruled unconstitutional by a Federal District Court and is currently being challenged in other courts. However, FinCEN has not changed its stance and still requires filing by small companies, or risk a penalty of $591 per day of noncompliance.
And there you have it! Simple, huh. NOT! Yes, it is a lot to go through, which is why many people chose to remain a Sole Proprietor and not bother with the headache. For many, that is best and you can focus most of your time and energy on your business and being successful. For me, I am looking not only at the present, but the future so this is the business type I prefer.
If you decided to form a business entity, I highly suggest having an attorney and/or tax advisor/CPA you can consult to make sure you are legitimate. Be very wary of Internet “attorneys” or “legal advisors.” Of course, it is absolutely fine to start as a Sole Proprietor and as you become more and more successful, decide to form a business entity. That’s part of growing your business and at that point you’ll likely have contacts with an attorney and tax advisor/CPA. Remember, one stepping stone at a time.
You might be wondering – why on earth did I do this? It is so much to go through. Because I am serious about my business and succeeding. Many people that have a job with an employer take their job and work seriously and in return are paid a salary. If lucky they will get a bonus or promotion or increases in pay. However, their worth is determined by their employer. I am working for myself with my own business and plan to take my business even more serious than when I was working for the Government. Under Dean Holland’s mentorship, I will be successful and wanted to have a business entity appropriate for me. I do not plan to get rich quick, but with determination, perseverance and working smart and hard, I will finally earn what I am worth and achieve the dream life I have envisioned.
I hope this series has been helpful for you. If nothing else, it gave you an idea of what creating a business entity, other than Sole Proprietorship, is about. For those of you who are seriously considering forming a business entity, if you are a Voyager Newsletter subscriber, you can get my list of all the states’ Secretary of State websites where you will start the process. If you are not subscribed, then you can join HERE.
Now it is time to focus on the marketing and advertising aspect of my business, which is essential for my success. I had a light bulb moment this week and will share that in my next Blog post. I look forward to continuing my voyage with you, especially as I navigate the most difficult area for me – putting myself out there. I will see you soon!
Thanks for sharing the thinking process you engaged in to set up your business. It has been tailored to your situation but we can learn from it to tweak it for ours.
Tax season is almost here. Well a few months away, but nevertheless—we prepare with more information to get ahead.
Thanks, Kate. Yes, while I am documenting what I went through, I cannot emphasize enough for others to check their own state and locale to make sure they make any necessary tweaks. Tax season is approaching. The Government always gets theirs.
What a journey you’ve been on! I can only imagine the research and dedication this took— Well done for sticking with it and sharing all these gems to help others dodge the same hurdles. Excited to see your next steps, especially with marketing! Here’s to all your hard work paying off big time!
Thanks, Sarah. That’s the big next step. I get inspiration from you and others with how you are doing and growing.
I think you are speaking my language. A great reminder that I still need to do my BOI. Don’t want to get hit with the fine. You have done an excellent job explaining the ins and outs of starting a business.
Hey Jordan,
Wow! I thought we had to jump through enough hoops here in Australia. You certainly have a list of tasks to complete to get to your LLC.
I’m sure being an attorney helped with that process.
As you say – now is the time to start the marketing. Good luck with it.
Sean Street
Thanks, Sean. Yes it is. A lot to know to stay out of trouble.
This is such a great post as it details the many steps that are needed to create a business in the most appropriate and compliant way. So many people just think that they can make money and that’s all there is to it. I, too, have established my business legally under an LLC, but you have motivated to me to make sure that I’ve completed all of my steps. I do not believe I have and for this I thank you for your advice to make sure I do everything that is necessary to limit my risk and liability. Have a great week!