How to Start a Business in Kentucky (2026): Filings, Fees and Taxes

Kentucky is inexpensive to enter: the Secretary of State charges $40 to file Articles of Organization for an LLC or Articles of Incorporation for a corporation, and the annual report is $15. To start a business in Kentucky, choose a structure, file with the Secretary of State, register for state tax accounts on MyTaxes.ky.gov, and check county and city permit rules. The cost to plan for is Kentucky’s limited liability entity tax (LLET), which carries a $175 minimum for LLCs and corporations.

Sole proprietors and general partnerships don’t file formation documents and aren’t subject to the LLET, but they do file an assumed name certificate if they operate under a business name. Fees and rules below are as of October 2026.

Updated October 2026.

Best Business Formation Services in Kentucky (2026)

If you’d rather not handle forming a business in Kentucky yourself, these are the services we recommend, in order. The table compares price and what’s included.

1. Mainstay Filing

Mainstay Filing is our top pick in Kentucky. It costs $199/year + state fee at cost and covers lLC formation filing, registered agent for the year, EIN application, annual report preparation and filing. The price stays the same every year, with no add-on menu.

2. KY Registered Agent.org

KY Registered Agent.org is a Kentucky registered agent service at $99/year. It provides $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.

3. Kentucky Registered Agent.co

Kentucky Registered Agent.co is a Kentucky registered agent service at $99/year. It provides in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.

What you’ll pay to start a business in Kentucky

Choose your Kentucky business structure

Kentucky’s tax rules make the structure choice more than a liability question, because the LLET only applies to entities with limited liability.

• Sole proprietorship: no state filing and no LLET, but unlimited personal liability.
• General partnership: also exempt from LLET and personally liable; a statement of partnership authority is optional.
• LLC: $40 to form, $15 a year to report, and subject to the $175 minimum LLET. The trade-off is liability protection for members.
• Corporation: the same $40 base filing plus an organization tax that rises with authorized shares, and the same LLET exposure.

The Kentucky Department of Revenue notes that the LLET covers corporations, LLCs, S corporations and limited partnerships, but not sole proprietorships and general partnerships. For a closer look at the LLC route, see our Kentucky LLC guide.

Budgeting for year one

A small Kentucky LLC typically pays $40 to file its Articles of Organization, $175 in minimum LLET for its first tax year and $15 for its first annual report the following year. That is about $230 in state charges before any optional name reservation ($15), assumed name filing or local occupational license fees. A corporation’s figure is similar, plus the organization tax on its authorized shares.

Choose a name and check availability

Run your idea through the Kentucky business entity search. A Kentucky LLC’s name must include “limited liability company,” “limited company” or an abbreviation such as “LLC,” and a corporation’s name needs a word such as “corporation,” “company” or “incorporated,” or an abbreviation.

To hold a name while you prepare paperwork, a name reservation costs $15 and lasts 120 days. Our Kentucky business name search guide has more on how the SOS judges whether names are distinguishable.

For brainstorming, the Namechk business name generator is a quick start, and Namechk checks whether the domain and social handles are free.

Assumed names (DBAs)

Kentucky’s Secretary of State tells owners to file a certificate of assumed name if they plan to transact business under any name other than the exact legal name of the business entity. Entities file with the Secretary of State; sole proprietors and general partnerships file assumed names with the county clerk where they do business.

Name a Kentucky registered agent

Every Kentucky LLC and corporation must keep a registered agent and registered office in Kentucky, where service of process can be delivered during business hours. The annual report asks you to confirm the agent each year.

An owner with a Kentucky street address can serve as the agent. Those who don’t want their address on the public record often hire a service; Mainstay Filing includes one for the first year with formation. A statement of change of registered agent or office costs $10. Our Kentucky registered agent guide covers the rules.

File your Articles with the Secretary of State

1. Use the Secretary of State’s online filing system or download the form from the business forms library.
2. For an LLC, file Articles of Organization ($40) listing the name, registered agent and office, principal office address and organizer.
3. For a corporation, file Articles of Incorporation ($40) and pay the organization tax on authorized shares: one cent per share up to 20,000 shares, with lower rates above that and a $10 minimum for 1,000 shares or fewer.
4. Save the filed document; banks and the Department of Revenue will ask for it.

After filing, adopt an operating agreement (LLC) or bylaws (corporation). Kentucky doesn’t collect them, but they govern ownership, voting and exits. For a full cost breakdown, see Mainstay’s Kentucky LLC cost guide.

Apply for an EIN

Get your Employer Identification Number on the IRS website. It’s free, and the Kentucky Department of Revenue lists it as a step before you register for state tax accounts.

You won’t need to file a federal BOI report: FinCEN’s final rule, effective August 14, 2026, exempts companies created in the United States.

Register for Kentucky tax accounts

The Department of Revenue says businesses other than sole proprietorships should register with the Secretary of State and then apply for tax accounts at MyTaxes.ky.gov. Online registration is faster; the department says paper Tax Registration Applications (Form 10A100) can take up to three weeks to process.

• Sales and use tax: Kentucky’s rate is 6% of gross receipts, and there are no local sales and use taxes, which keeps collection simple.
• Limited liability entity tax: LLCs and corporations pay the LLET. If either total gross receipts or total gross profits is $3 million or less, the business pays the $175 minimum; a sliding scale applies between $3 million and $6 million.
• Withholding: register before your first payroll. Kentucky employers may also owe local occupational license taxes withheld from wages in many cities and counties.
• Unemployment insurance: register with the state’s unemployment insurance program once you have employees, and report new hires.

Kentucky’s state minimum wage matches the federal $7.25 per hour.

Licenses and permits in Kentucky

Kentucky has no general statewide business license. The Secretary of State’s checklist points owners to the county clerk in the county where they do business to review local ordinances and permit requirements, and many cities and counties require an occupational license and collect an occupational license tax on net profits.

State boards license regulated professions, from contractors and electricians to cosmetologists and healthcare providers. Businesses selling alcohol need approval from Kentucky’s Department of Alcoholic Beverage Control, and food businesses work with the local health department.

Banking, insurance and a web presence

Open a business bank account with your filed Articles, EIN and operating agreement. Keeping finances separate protects your LLC’s liability shield and makes the LLET and sales tax returns cleaner.

General liability insurance is the baseline. Add professional liability if you sell advice or services, and arrange workers’ compensation before you hire. Then register a domain that matches your business name and publish a basic website.

Keeping your Kentucky business compliant

• File the annual report with the Secretary of State between January 1 and June 30 each year after the year you form. The fee is $15, and you must confirm your principal office and registered agent.
• Missing June 30 puts the entity in bad standing. The state mails a 60-day notice on July 1, and entities that still haven’t filed by the end of that cure period are administratively dissolved until they reinstate.
• Registered agent and principal office changes can’t be made on the annual report; they need a separate $10 statement of change.
• File the LLET and income tax returns with the Department of Revenue, plus sales tax and withholding returns on schedule.
• Renew local occupational licenses and file local occupational license tax returns where required.

FAQs

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