Kentucky is one of the cheapest states to start an LLC: the Articles of Organization cost $40 and the annual report is $15. The cost most new owners overlook is the state’s limited liability entity tax (LLET), a minimum of $175 a year for most LLCs doing business in Kentucky. Miss the annual report deadline of June 30 and the state administratively dissolves your company.
Kentucky LLC at a glance
Fees and deadlines from official state sources| Formation document | Articles of Organization |
|---|---|
| Filing fee | $40 |
| Processing / expedite | Usually the same day received, but may take up to three business days; no expedite option is published |
| Annual report | $15, filed January 1 to June 30, starting the year after formation |
| State LLC tax | Limited liability entity tax, $175 minimum |
| Registered agent | Required, with a Kentucky registered office |
| Newspaper publication | Not required |
| Where to file | Secretary of State FastTrack online filings |
Step 1Pick a name Kentucky will accept
Under Kentucky law, your LLC’s name must end with “limited liability company,” “limited company,” “LLC” or “LC.” You may shorten “limited” to “Ltd.” and “company” to “Co.” A professional LLC uses “professional limited liability company,” “professional limited company,” “PLLC” or “PLC.”
The name must be distinguishable from every other name already on record with the Secretary of State. The word “cooperative” generally can’t be used, and “Rural Electric Cooperative” is reserved for a specific kind of utility. Check availability with the Business Entity Search.
Not ready to file yet? You can hold a name for 120 days for $15, and renew the reservation for another 120 days during the 30 days before it runs out.
Step 2Name a registered agent in Kentucky
Every Kentucky LLC must keep a registered office and a registered agent in the state at all times. The agent can be an individual who lives in Kentucky, or a business entity allowed to do business in Kentucky. Either way, the agent’s business address must be the same as the registered office. You can serve as your own agent if you meet those rules. The Secretary of State notes that legal papers served on your agent count as served on the LLC, so pick someone reliable.
Step 3File the Articles of Organization
The articles are short. Kentucky law requires:
- the LLC’s name;
- the registered office address and the name of the initial registered agent;
- the mailing address of the initial principal office (this can be in or outside Kentucky);
- whether the LLC will be managed by its members or by one or more managers.
A professional LLC must also say what professional services it will provide. Your LLC exists for an unlimited time unless the articles say otherwise.
How to file. The fastest route is online through the Secretary of State’s FastTrack filing system (“Form a New Business”). You can also mail paper articles. Kentucky One Stop explains that paper filers send two copies, and one file-stamped copy then goes to the county clerk in the county where the registered office is located. The fee is $40, and the Secretary of State accepts debit and credit cards from approved issuers.
Timing. The Secretary of State says documents are usually processed the same day they arrive, but processing can take up to three business days. No paid expedite service is published. Your LLC legally exists once the articles are filed, unless you chose a later effective date.
Step 4Keep up with the annual report and the LLET
Annual report. Your first report is due between January 1 and June 30 of the year after the year you formed the LLC. After that, file every year in the same window. The fee is $15, and you can file online. The report confirms your registered agent, registered office and principal office, and lists managers if the LLC is manager-managed.
If you miss June 30, a Kentucky LLC is administratively dissolved and stays in bad standing until it is reinstated. Reinstatement means filing an application, getting good-standing letters from the Department of Revenue (and, for profit companies, the Division of Unemployment Insurance), paying delinquent fees, and paying a $100 reinstatement penalty.
Limited liability entity tax. This is a separate state tax handled by the Department of Revenue, not the Secretary of State. See the tax section below.
Step 5Finish setting up
- Operating agreement. Kentucky doesn’t collect it, but a written agreement sets out ownership, voting and what happens if a member leaves. It is worth having even for a single-member LLC.
- EIN. Get a free Employer Identification Number from the IRS. You’ll need it for a bank account and for hiring.
- State tax registration. Many Kentucky businesses register with the Department of Revenue through a Kentucky Tax Registration Application. Kentucky One Stop explains which businesses need it.
- Local licenses and assumed names. Check with your city and county for local business licenses. If you will trade under a name other than the LLC’s legal name, file a Certificate of Assumed Name.
- Out-of-state LLCs. An LLC formed elsewhere that does business in Kentucky generally registers as a foreign entity and files the same annual report.
What a Kentucky LLC costs
| Articles of Organization (one time) | $40 |
|---|---|
| Name reservation (optional, one time) | $15 |
| Annual report (yearly) | $15 |
| Limited liability entity tax (yearly) | $175 minimum for most LLCs |
| Reinstatement penalty (only if dissolved) | $100 plus delinquent fees |
How Kentucky compares
State filing fee to form an LLC, next to neighboring states. The national median is $100.
National median · Fees from each state's official sources; some states charge a different amount online or by mail. If you live and run your business in Kentucky, forming your LLC in another state usually means also registering it here as a foreign LLC, so you pay both states' fees.
Kentucky taxes on LLCs
Kentucky law imposes the limited liability entity tax on every corporation and limited liability pass-through entity doing business in the state, with exemptions for groups such as tax-exempt nonprofits. A $175 minimum is due when gross receipts or gross profits from all sources are $3 million or less. Above that, the tax is based on Kentucky gross receipts or gross profits, but never less than the minimum.
The Department of Revenue’s filing guide lists a single-member LLC owned by an individual on Form 725 and a multi-member LLC on Form PTE, both subject to LLET. Returns are generally due on the 15th day of the fourth month after the tax year ends and must be filed through approved software. The LLC’s income itself usually flows through to the owners’ returns. Ask a tax professional how this applies to you.
File it yourself or use a formation service?
Kentucky’s online filing is simple, and if you file the articles yourself you pay only the state fee of $40. A paid formation service can handle the paperwork, act as your registered agent and send reminders, which some owners find worth the extra yearly cost, especially if they live out of state. Neither route changes your legal obligations: the annual report and the LLET are still yours to keep current.
Frequently asked questions
How long does it take to form an LLC in Kentucky?
The Secretary of State says filings are usually processed the same day they arrive and can take up to three business days.
When is my first annual report due?
Between January 1 and June 30 of the calendar year after you form the LLC. An LLC formed in 2026 files its first report in 2027.
Does a single-member LLC owe the LLET?
The Department of Revenue’s filing guide shows a single-member LLC owned by an individual as subject to LLET on Form 725, so most do. Confirm your situation with the Department of Revenue or a tax professional.
Do I have to publish a notice in a newspaper?
No. Kentucky has no publication requirement for forming an LLC.
Sources
- Kentucky Secretary of State: Business filing fees
- Kentucky Secretary of State: Annual reports
- Kentucky Secretary of State: Business filings FAQs
- Kentucky Secretary of State: Business filings overview
- Kentucky Secretary of State: FastTrack online filings
- Kentucky Secretary of State: Business Entity Search
- KRS 14A.3-010: Entity names
- KRS 14A.3-020: Reserved names
- KRS 14A.4-010: Registered office and agent
- KRS 14A.6-010: Annual report
- KRS 275.020: Forming an LLC
- KRS 275.025: Contents of articles of organization
- KRS 141.0401: Limited liability entity tax
- Kentucky Transparency: State taxes (LLET)
- Kentucky Department of Revenue: Corporation, LLC and pass-through tax FAQs
- Kentucky One Stop: Choosing a business structure
- Kentucky One Stop: State tax registration requirements
- IRS: Get an Employer Identification Number