How to form an LLC in Kentucky

Kentucky has one of the lowest LLC filing fees in the country, but a separate entity-level tax that most LLCs pay every year. This guide covers the filing, the June 30 report and the limited liability entity tax.

By Awais Jameel, Chartered Accountant. Reviewed by Mirza Fahad Baig, Chartered Accountant. Checked against official sources on . 3 minute read.

Short answer

To form an LLC in Kentucky, file Articles of Organization with the Kentucky Secretary of State and pay $40. File a $15 annual report by June 30 each year, starting the year after formation. Most Kentucky LLCs also owe the limited liability entity tax, with a $175 minimum each year, so the true yearly cost is about $190.

At a glance

State filing fee
$40
Filed with
Kentucky Secretary of State
Annual report
$15, by June 30
First report
The year after formation
Limited liability entity tax
$175 minimum a year
Registered agent
Required, Kentucky street address
How to form an LLC in KentuckyState filing fee: $40; Filed with: Kentucky Secretary of State; Annual report: $15, by June 30; First report: The year after formation; Limited liability entity tax: $175 minimum a year; Registered agent: Required, Kentucky street address.KEY FACTS AT A GLANCEHow to form an LLC in KentuckyState filing fee$40Filed withKentucky Secretary ofStateAnnual report$15, by June 30First reportThe year after formationLimited liability entity tax$175 minimum a yearRegistered agentRequired, Kentucky streetaddressChecked against official sourcesTax BakersHow to form an LLC in KentuckyState filing fee: $40; Filed with: Kentucky Secretary of State; Annual report: $15, by June 30; First report: The year after formation; Limited liability entity tax: $175 minimum a year; Registered agent: Required, Kentucky street address.KEY FACTS AT A GLANCEHow to form an LLC in KentuckyState filing fee$40Filed withKentucky Secretary of StateAnnual report$15, by June 30First reportThe year after formationLimited liability entity tax$175 minimum a yearRegistered agentRequired, Kentucky street addressChecked against official sourcesTax Bakers
Key facts at a glance, as set out in this guide.

Who should form an LLC in Kentucky?

Anyone who lives in Kentucky or runs their business from there. If you form in another state but operate in Kentucky, you will usually have to register there as a foreign LLC anyway, paying both states' fees. See home state or another state.

How do you form an LLC in Kentucky, step by step?

  1. Choose and check the name

    Search the state's business records and include "LLC", "L.L.C." or "Limited Liability Company" in the name.

  2. Appoint a registered agent

    A person or company with a physical street address in Kentucky. See what a registered agent is.

  3. File the Articles of Organization

    Online through the Secretary of State's business portal, or by mail, with the $40 fee. Register with the Department of Revenue through Kentucky Business One Stop afterwards.

  4. Get an EIN and sign an operating agreement

    The EIN is free from the IRS. See LLC operating agreement.

  5. Register for state taxes

    Sales tax and payroll as needed. Then note the first yearly filing date.

What does Kentucky require every year?

An annual report each year, $15, filed between January 1 and June 30, starting the year after formation. An LLC that does not file can be administratively dissolved, and reinstatement costs a fee plus the missed reports.

Separately, Kentucky's limited liability entity tax applies to most LLCs, including single-member LLCs disregarded for federal tax. The minimum is $175 a year; LLCs with larger Kentucky gross receipts or gross profits pay more, calculated on the tax return.

For deadlines, fees and late penalties in detail, see Kentucky LLC yearly filings.

What does the first year cost?

ItemCost
Articles of Organization$40
Limited liability entity tax, small LLC$175 minimum
First annual report, the following year$15

Budget around $190 a year to keep a Kentucky LLC, mostly the entity tax rather than the report.

Should you file it yourself or use a formation service?

Filing yourself costs only the state fee, and the Kentucky filing is short enough for most owners to complete. A formation service saves time, can act as your registered agent and may send reminders for yearly filings, but compare total yearly costs: low headline prices are often paired with paid add-ons such as expedited filing, operating agreements or EIN applications, which you can do yourself free. Whichever you choose, keep the approved filing, the EIN letter and your operating agreement together. See how much an LLC costs.

Can a non-resident form an LLC in Kentucky?

Yes. Kentucky has no residency or citizenship requirement for an LLC's members or managers. You need a registered agent with a Kentucky street address and an EIN; a foreign owner without a Social Security number applies for the EIN on Form SS-4. A single-member LLC owned by a foreign person files Form 5472 with a pro forma Form 1120 every year, even with no US income. See can a non-resident own a US LLC and annual filings for foreign-owned LLCs.

What happens if you miss a required report?

The state usually charges a late fee and marks the LLC as not in good standing, which can block a certificate of good standing, a bank account or a loan. If the filing stays overdue, the state can administratively dissolve the LLC, ending its liability protection and its claim to the name. Reinstatement means filing every missing report and paying the fees owed, so put the dates in your calendar. See reinstating a dissolved LLC.

Which Kentucky taxes apply to an LLC?

Owners pay Kentucky's flat individual income tax on their share of profit, and many cities and counties levy occupational license taxes on business income or wages. The state sales tax is 6%, with no local sales taxes; register with the Department of Revenue if you sell taxable goods or services.

If you sell online, see Kentucky sales tax for online sellers.

Federally, a Kentucky LLC is taxed like any other LLC. See how LLCs are taxed. For a side-by-side view of state costs, see how much an LLC costs.

Want your Kentucky LLC formed?

We file your Articles of Organization, arrange the registered agent and EIN, and keep track of every Kentucky deadline for you.

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Questions people ask

How much does it cost to form an LLC in Kentucky?

$40 for the Articles of Organization.

When is the Kentucky LLC annual report due?

By June 30 each year, starting the year after formation, for $15.

Do Kentucky LLCs pay entity tax?

Most do: the limited liability entity tax, with a $175 minimum a year.

Do single-member LLCs pay the Kentucky entity tax?

Generally yes, even when disregarded for federal tax.

Sources

Every fee, date and rule on this page was taken from these official and primary sources.

  1. Kentucky Secretary of State: Business filings
  2. Kentucky Department of Revenue: Corporation income and limited liability entity tax
  3. IRS: Get an employer identification number
  4. IRS: Employer identification number, including international applicants

Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.

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This guide is general information. It is not tax or legal advice for your situation.