Starting A Business


Support for business start up and entrepreneurial development is a key source of economic growth for communities. The Cadiz Chamber seeks to support innovation and commercialization of ideas in various existing and emerging industries in the region. The main goal is to nurture scalable companies with the long-term potential to create jobs, commercialize new technologies, and strengthen the regional and state economy.

Starting a Business: Step 1

Contact Planning & Zoning to determine if your desired location is properly zoned.

Contact Information:
Cadiz /Trigg County Planning Commission
P.O. Box 1484
Cadiz, Kentucky 42211
Phone: (270) 522-1170
Fax: (270) 522-1171
Contact: Paul Fourshee; Chairman
(270) 522-6035

Starting a Business: Step 2

Decide what type of business organization you would like to create.

Contact the Kentucky Secretary of State:
All businesses must obtain a business license from the City regardless of organization. However, not all businesses must register with the State. Please consult with your accountant or legal counsel to determine which form fits your needs.

Sole Proprietorship

A sole proprietorship is owned and operated by an individual. It does not have a separate existence apart from its owner. No filing with the Secretary of State is necessary to form a sole proprietorship, but if the sole proprietorship is operating under assumed name, an assumed name filing with the county clerk is required. The individual owner is personally responsible for the debts of the business.


A corporation is a business organization that is separate and apart from its owners. A corporation has the same powers as an individual to do all things necessary to carry out its business. A board of directors manages the corporation and officers are responsible for the daily operations of the corporation. Shareholders are not personally responsible for the debts of the corporation. A corporation is formed by filing Articles of Incorporation with the Kentucky Office of the Secretary of State.

General Partnership

A general partnership is an association of two or more persons to carry on as co-owners of a business for profit. KRS 362- 175. No filing with the Secretary of State is necessary to form a general partnership, but if the general partnership is doing business under an assumed name, an assumed name filing is required with the Secretary of State and county clerk. An Application for Certificate of Assumed Name is available on the Kentucky Secretary of State website. Generally, every partner is an agent of the partnership and is personally responsible for the debts of the partnership. KRS 362.190; KRS 362.220.

Limited Partnership

A limited partnership is an association of two or more persons with one or more limited partners and one or more general partners. KRS 362.401 (7). Limited partners are not personally responsible for the debts of the limited partnership unless they participate in management of the partnership. KRS 362.437. General partners are responsible for managing the business of the partnership and are personally responsible for the debts of the partnership. KRS 632.447. A limited partnership is formed by filing a Certificate of Limited Partnership with the Secretary of State. KRS 362.415. More information on forming a limited partnership is available on the Kentucky Secretary of State website.

Limited Liability Company

A limited liability company is an unincorporated business organization formed by filing Articles of Organization with the Secretary of State. A limited liability company may be managed by members or managers. The members and managers are not personally responsible for debts of the limited liability company. The main advantage to choosing a limited liability company over a corporation is that LLC members enjoy limited liability but the entity can be taxed as a partnership, which is a more favorable tax treatment.

Registered Limited Liability Partnership

A registered limited liability partnership is a partnership that is registered with the Secretary of State. KRS 362.555. Each partner is personally responsible for the debts of the partnership except for the debts of the partnership arising from negligence or misconduct committed by another partner while the partnership is a registered limited liability partnership. KRS 362.220 (2). A registered limited liability partnership is formed by filing a Statement of Registration with the Secretary of State. KRS 362.555. More information on registering as a limited liability partnership is available on the Kentucky Secretary of State website.

Starting a Business: Step 3

Determine if you must file for a Federal Employment Identification Number (EIN).

If you answer “Yes” to any of the following questions then you must file for an EIN number.

  • Do you have employees?
  • Do you operate your business as a corporation or a partnership?
  • Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
  • Do you withhold taxes on income, other than wages, paid to a non-resident alien?
  • Do you have a Keogh plan?
  • Are you involved with any of the following types of organizations?
    1. Trusts, except certain grantor-owned revocable trusts, IRAs, Exempt Organization Business Income Tax Returns
    2. Estates
    3. Real estate mortgage investment conduits
    4. Non-profit organizations
    5. Farmers’ cooperatives
    6. Plan administrators

In most cases this number can be obtained online via the IRS website. Additionally, if you provide health insurance for your employees, you may need a National Standard Employer Identifer (NSEI) for your electronic health transactions. To determine if you need an NSEI, refer to the Department of Health and Human Services’ website. Additional information for starting a business and complying with Federal regulations may be found in the IRS publication, Checklist for Going Into Business.

Starting a Business: Step 4

Apply for a business licenses and permits.

City of Cadiz/Trigg County – Contact: City Hall (270) 522-8244

The business license application can be picked up at City Hall. The City issues licenses for businesses located either inside the City limits or in the County. Below is the process for obtaining a business license.

  1. Complete application and submit to City Hall (If completed application is hand-delivered to City Hall then license will be issued immediately)
  2. If business is located inside the City limits there is a $50 minimum fee depending on the category of business. Contact City Hall for rates: (270) 522-8244
  3. If located in the County there is no fee

Kentucky Revenue Cabinet

All businesses must be issued a state tax number. The application can be obtained online.

Kentucky Office of Employment and Training

The KY OET handles all unemployment insurance issues for the State. You must be registered and issued an unemployment insurance tax ID number. To access their online services visit.

Kentucky Workman’s Compensation Board

Coverage is required by the State for any employer who has one or more employees. Information can be obtained from your local insurance agent.

Social Security Administration

All businesses must contact the Social Security Administration to establish payment of social security taxes. Much of the information related to this topic can be found on the SSA business services website.

Small Business Resources

Financial Resources

In addition to traditional business loans available at most local banking institutions these programs may offer attractive financing options to assist new and growing businesses.

Small Business Administration (SBA)

7(a) Loan – The 7(a) is a loan guaranty program in which the SBA partially guarantees a traditional business loan from a bank. Contact your local bank for more information.

504 Loan – The 504 loan program is offered by Small Business Certified Development Companies in partnership with local banks to provide fixed rate financing on major fixed assets (i.e. land and buildings).

Micro Loan – Small loans (max of $35,000) available to new and growing small businesses.

Kentucky Economic Development Finance Authority (KEDFA)

SmallBusinessLoanProgram.pdf – KEDFA has a small business loan program to provide capital for land, buildings, equipment, working capital, etc in amounts ranging from $15,000 to $100,000. The loan funds are not eligible to retail or personal/professional services and cannot be used for refinancing existing debt. Companies with fewer than 50 employees are eligible and recipients must create one job within one year of receiving funds.

State of Kentucky – Business resources provided by the State of Kentucky Economic Development Office. (Navigate to Business Assistance then Small Business Support). A checklist and resource guide for starting a business in Kentucky can be found at

Kentucky Small Business Development Center – The Kentucky Small Business Development Center network is a premier provider of business services that empower entrepreneurs with practical information, skills, and strategies that make measurable, positive impacts on their businesses and, by extension, on the communities where they work. The local contact is Mickey Johnson at the Murray State Small Business Development Center. He can be contacted at 926-8085.

Kentucky Science and Technology Corporation – KSTC is an entrepreneurial company dedicated to enhancing the capacity of people, companies and organizations to develop and apply science and technology and compete responsibly in the global marketplace.

Innovation and Commercialization Centers (ICC’S) & Innovation Centers (IC’S) – ICC’s and IC’s are comprehensive business accelerators focused on helping Kentucky entrepreneurs build successful technology-based businesses.

Kentucky Council on Post-secondary Education – This site lists a variety of resources that have been developed out of collaboration between higher education and private business – This website is a general resource to assist the budding and experienced entrepreneur.

ENERGIZING ENTREPRENEURS.ORG – This website is a valuable resource for rural entrepreneurs.

American Management Association – AMA is a global not-for-profit, membership-based association that provides a full range of management development and educational services to individuals, companies and government agencies worldwide, including 486 of the Fortune 500 companies.

Minority Business Development Agency – The Agency’s mission is to actively promote the growth and competitiveness of large, medium and small minority business enterprises (MBEs). MBDA actively coordinates and leverages public and private-sector resources that facilitate strategic alliances in support of its mission.

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