How Much Does an LLC Cost in Kentucky

Think starting an LLC has to break the bank? Kentucky might just change your mind. Form an LLC in Kentucky for as little as $40.

The Bluegrass State—home of beautiful horses, the world's longest cave, and the iconic Kentucky Derby.

It also boasts a lower cost of living than many other states, making it an attractive place to set up shop.

The question is: how much does an LLC cost in Kentucky? Use this guide to form a budget for your startup.

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Articles of Organization

One-Time Fee: $40^[1]

To form an LLC in Kentucky, you must submit the Articles of Organization to the Secretary of State. Once the documents are approved, your LLC will be recognized as a separate legal entity.

A Kentucky LLC's Articles of Organization contains the following information, among other details:^[2]

• Limited liability company name
  
• Registered agent name and address
  
• Business mailing address
  
• Management structure (manager or member-managed)

You can file the Articles of Organization online, by mail, or in person. Online filings are typically processed as soon as they're received.

Application for Certificate of Authority

One-Time Fee: $90^[1]

If you already have an LLC in another state and want to expand your business to Kentucky, you have to register it as a foreign LLC.

To create a foreign LLC in Kentucky, you must request a Certificate of Authority from the Secretary of State. Don't forget to attach a Certificate of Existence from your domestic state.

Annual Report

Annual Fee: $15^[1]

All LLCs in Kentucky must file annual reports with the Secretary of State. It lets the government, banks, and anyone who can access public records that your business is still active.

In Kentucky, annual reports are due by June 30 yearly. You can submit as early as January 1 of the same year.^[4]

If your LLC details change, you may also need to submit a Statement of Change plus a $10 filing fee.^[1]

Business Permits and Licenses

Cost: Typically $50+/yr

Kentucky does not have a state-level general business license. Instead, it prefers to leave business licensing requirements to local jurisdictions and specific industries.

In Louisville, the largest city in Kentucky, a food service establishment permit costs at least $80 yearly.^[5]

In Lexington, known as the "Horse Capital of the World," most businesses must pay a $100 occupational license fee.^[6]

The number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated by various governmental offices simultaneously and could renew yearly.

Business Taxes

Cost: At least $175/yr

LLCs are generally considered "pass-through" entities for tax purposes. This means the LLC's profits and losses pass through to the owners and are reported on individual tax returns.

However, unlike other states, Kentucky has a Limited Liability Entity Tax (LLET) on businesses with limited liability protection. If either your LLC's total gross receipts or total gross profits amount to $3 million or less, the minimum LLET is $175.^[7]

The LLET is separate from Kentucky's income tax. This means your share of the LLC's profits is still subject to the state's 4.5% personal income tax rate.^[8]

On top of that, you must also pay federal income taxes.

Federal Income Tax Rates for 2024:^[9]

Don't forget the 15.3% federal self-employment tax.^[10]

Optional Fees

While the fees below are generally optional, some are unavoidable depending on your business needs.

For example, obtaining a Certificate of Existence is often necessary when opening an LLC bank account.

Registered Agent Services

Annual Cost: $0, or $100-$300/yr

In Kentucky, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.

You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Kentucky. You must also be available to receive documents during business hours.

However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.

Statement of Change

Cost: $10^[1]

In Kentucky, an LLC can change its registered agent's details by filing a form with the Secretary of State. Changes include the registered agent's name and address.

There's a separate statement of change and another $10 filing fee for changes in the LLC's mailing address.^[1]

Operating Agreement

Cost: $0, or up to $500+

LLCs in Kentucky are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.

An LLC operating agreement contains the following:

• The roles and responsibilities of each member
  
• How new or departing members will be treated
  
• How business profits and losses will be divided

Ideally, you should already have a signed Operating Agreement before forming an LLC in Kentucky. But if your LLC is already formed, you can always draft it yourself after.

Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.

Employer Identification Number

Cost: $0, or $50 to $99

Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.

You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:

• Northwest Registered Agent: $50
  
• Bizee: $70
  
• ZenBusiness: $99

Single-member LLCs in Kentucky don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.

BOI Report

One-Time Cost: $0, or up to $149

The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 30 calendar days of your LLC's formation.^[11]

It includes information about the LLC's beneficial owners, including name, birth date, and address.

FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:

• Northwest Registered Agent: $25
  
• LegalZoom: $149
  
• ZenBusiness: $149

You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.

Name Reservation

Cost: $15^[1]

You can reserve your desired name first if you've already got a business name but aren't ready to form an LLC. This will prevent others from using that name for 120 days.^[12]

You can renew the name reservation for another 120 days if you need more time.^[12]

Remember to review Kentucky's naming regulations. For example, an LLC name must include LLC, Ltd., or similar.

Assumed Name

Cost: $20^[1]

An assumed name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state. Some LLCs use a DBA for branding purposes, like using a name without "LLC" at the end.

In Kentucky, registering a DBA with the state costs $20 and must be renewed every five years. However, it might cost more because some cities have local charges for DBA registrations.

Articles of Correction

Cost: $20^[1]

After your Kentucky LLC application is approved, review all the details of the Articles of Organization carefully.

If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing the Articles of Correction.

Amendment of Articles of Organization

Cost: $40^[1]

Your Kentucky LLC's Articles of Organization contains specific details about your business. Should these details change, you must file an amendment to the Secretary of State.

File an amendment if you:

• Change the LLC name
  
• Move to a new location
  
• Appoint a new registered agent

You must also file a statement of change with the $10 filing fee if you update your registered agent's details or change your mailing address.^[1]

Certificate of Existence

Cost: $10^[13]

A Certificate of Existence is an official document by the Secretary of State. It verifies that your LLC is updated with all state filings and has paid all its fees and taxes.

You might need a Certificate of Existence to:

• Open a bank account
  
• Apply for business loans
  
• Qualify for business insurance
  
• Conduct business as a foreign LLC

Certified Copies

Cost: $10 for five pages + $0.50 per additional page^[13]

Certified copies of documents verify that your LLC is legitimate and that its details are accurate.

You might need these for circumstances like opening a business bank account or expanding your LLC in another state.

Additionally, some LLCs keep certified copies of their initial Articles of Organization and amendments (if any) for recordkeeping purposes.

You can also get plain copies of documents for $5 for up to five pages plus $0.50 per additional page.^[13]

Business Website Domain

Annual Fee: $10 to $20

A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.

Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.

Business Insurance Premiums

Cost: Varies

In Kentucky, most businesses with at least one employee must have workers' compensation insurance.^[14]

You can purchase workers' insurance from a carrier authorized by the Department of Insurance.^[14] Additionally, consider protecting your LLC's assets with other types of insurance:

• General liability insurance
  
• Commercial property insurance
  
• Professional liability insurance
  
• Cyber liability insurance

The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.

Bottom Line

Ready to hit the ground running in the land of bluegrass and mint julep? Hold your horses until you have at least $40 to file the Articles of Organization with the Secretary of State.

First-year expenses may also include name reservation, assumed name, and registered agent fees.

Limited time: Get 10% off LLC plans

Fast-track your 2025 business goals. Get 10% off LLC plans. Offer ends soon.

• Pro package includes: Articles of organization, name check service, operating agreement, federal tax ID, bookkeeping tools, customizable legal documents, unlimited eSignatures for online agreements, and a customizable website.
• Premium package includes: Everything included in pro, plus business attorney guidance, unlimited 30-minute attorney consultations on new topics, LLC formation document changes within 30 days.

Get Deal

Read Review

Expires 1/31/2025

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That said, the total cost of forming an LLC in Kentucky will increase depending on the additional services, documents, and licenses you need. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.

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