Best Businesses to Start in Kentucky

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Starting your own Kentucky business is one of the most rewarding things you can do. However, getting it off the ground can often feel overwhelming, especially if you’ve never gone through the process before. 

Fortunately, we’re here to help. Whether you need help with filing documents like your Kentucky Certificate of Existence or Kentucky Articles of Incorporation, conducting a Business Entity Search, or learning about business entity structures, we have the tools and resources to help your business succeed. 

Before getting too far along, however, it’s important to know what kind of business you want to operate.     

There are a number of good businesses to start in Kentucky. But you might be wondering, What is the best business to start in Kentucky?  

While there may not be one single “best” business to start in Kentucky, use our guide below to learn more about some of the best and most profitable business ideas in the state to help you start brainstorming.

When you’re ready to move forward, let us help you get started with our Kentucky LLC Formation Service or our Kentucky Corporation Formation Service today.   

The Most Profitable Small Business Ideas in Kentucky

Here are a few ideas for business ownership in Kentucky that can help you create a profit and become a successful business owner.

Idea #1: Logistics and Distribution

The State of Kentucky is located in the center of a large distribution area in the eastern portion of the United States. In fact, Kentucky is within a one-day drive of 65% of the U.S. population. This makes it a great option for starting a logistics or distribution business. 

Idea #2: Food Sales/Restaurant Business

Everyone needs to eat and drink to survive. Thus, no matter where you live, food and beverage sales will likely be a strong industry to get into.  

Idea #3: Bourbon Sales and Production

95% of the entire world’s supply of bourbon is produced in the State of Kentucky. So for those who are passionate about bourbon and interested in turning their interest into a business, this can be another great idea.

Of course, there may be a number of competitors. However, due to the number of resources in the area, and the high demand for great bourbon, this can still be a lucrative business option to pursue.  

Idea #4: Farming Business

Kentucky is also a hot spot for farming and agriculture businesses. With more than 13 million acres of farmland, comprising more than 50% of the state’s total land area, the possibilities in this industry are seemingly endless.

Idea #5: Women-Owned Business

While this isn’t necessarily a type of business, it’s important to note that there are many opportunities available to women entrepreneurs. Notably, there are many grants for women to start a business in Kentucky. Thus, always be on the lookout for opportunities to help you start and fund your business. 

Why These Are the Best Small Businesses to Start in Kentucky

Each of these businesses has a number of factors that make them a best small business in Kentucky to start. For example, some of these factors include: 

  • Ability to start and operate your business right from home
  • Relatively low start-up and maintenance costs 
  • High number of potential consumers in the State of Kentucky
  • Availability of resources
  • High demand and significant staying power

Ultimately, the best business to start in Kentucky will be one that allows you to do what you’re passionate about while also being profitable. This might look different from business to business, but these ideas are all great places to start. 

Best Cities in Kentucky for Starting a Business

Once you decide what type of business you want to start, your next question might be, What is the best place to start a business in Kentucky? 

This may depend in part on the particular industry you want to enter into or the type of customers you plan to serve. Nevertheless, no matter what particular type of business you intend to operate, below are some great cities in Kentucky to consider: 

  • Louisville
  • Lexington
  • Bowling Green
  • Owensboro

Each of these cities has a large or growing population with a great deal of potential for acquiring a strong customer base. Further, these cities have strong economies when it comes to some of the industries noted above.

Form Your Business with Us

Finding good businesses to start in Kentucky is no easy feat. But starting a successful and profitable business can be even more difficult.   

When you’re not sure where to begin, or where to take your business once it’s off the ground, we’ll be here to help. 

Not only can we help you start your Kentucky business, but we can also help you manage and grow it into the future. We can assist you with things like selecting a Kentucky Registered Agent, Applying for Business Licenses and Permits in Kentucky, and countless other things you’ll need to create a successful business entity. 

When you’re ready to get started and set up your entity, we can file for you and get your business set up in minutes. From there, we can help you with our countless tools and resources, such as our Worry-Free Compliance Service, and take a great deal of the hard work off of your plate so you can focus on doing what you love mostrunning your business. 


  • The cost to start a business in Kentucky will vary depending on the type of legal entity structure you select. You can check the filing fees for the various types of Kentucky business entities on the Secretary of State website.

  • Your tax obligations will also vary depending on a variety of factors. Thus, be sure to consult with a qualified tax professional to discuss any relevant tax requirements for your Kentucky business.

  • Not all Kentucky businesses will need an EIN. However, even if you don’t need one for your particular business, having one is almost always a great idea.

  • Unfortunately, there’s no simple answer to whether you should form an LLC or a sole proprietorship. In reality, this decision will depend on the particular needs and goals of your business.

  • Absolutely. In fact, due to the many benefits associated with doing so, many Kentucky entrepreneurs are starting their businesses from home.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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Written by Team ZenBusiness

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