Kentucky LLC Cost

When you start your business in Kentucky, you’ll pay some one-time fees to form your business. Once you’ve been in business for a year, you’ll owe taxes and annual payments to stay in compliance. Here are the top three costs to start a business in Kentucky.

Kentucky LLC Filing Fee – $40

In Kentucky, it costs $40 to file an LLC’s Articles of Organization.

Limited Liability Entity Taxes – $175+

While not subject to a Corporate Income Tax, Kentucky LLCs will pay a Limited Liability Entity Tax (LLET) each year. The minimum LLET is $175. You’ll pay a higher amount if your LLC makes more than $3 million in gross receipts or gross profits.

Registered Agent Fee – Free

You can list yourself as your LLC’s Registered Agent in Kentucky and avoid a fee. However, as the Registered Agent, you must be available at the office during business hours to accept legal notices. Many entrepreneurs hire a commercial registered agent for a small fee. Your Registered Agent will contact you if they receive service of process on behalf of your company. With our Kentucky Registered Agent Service, we can help you find the best Registered Agent for your LLC.

While filing the Articles of Organization forms your LLC, there are several other fees you might need to pay. The average cost to start a business in Kentucky depends on your location and business activities.

Certificate of Existence

When you apply for loans, enter into long-term contracts, or seek venture financing, you might need to provide a Certificate of Existence for your LLC. This document certifies that your LLC is duly organized and in existence; has filed its annual reports; and has paid the fees, taxes, and penalties owed. To request a Certificate of Existence, the cost is $10.

Letter of Good Standing

In some cases, you might need a Letter of Good Standing certifying that the LLC has filed its tax returns and paid in full. You can request a Letter of Good Standing from the Secretary of State for $10. The Kentucky Department of Revenue does not issue a separate Letter of Good Standing.

DBA Name in Kentucky

If your LLC uses a name other than its registered name, you’ll want to file an assumed name. Unlike many states, your Kentucky assumed name must be distinguishable from other business names on the record. Also known as a “doing business as” name or DBA, you will file a Certificate of Assumed Name for each assumed name you use. Once you pay the $20 filing fee, the Certificate is good for five years, and you can renew it.

Foreign LLC

When you previously formed your LLC in another state and want to do business in Kentucky, you need to qualify to do business in the state. To legally operate an out-of-state LLC in Kentucky, you will file an Application for Certificate of Authority with the Secretary of State. The filing fee for this document is $90.

Business Licensing

The Secretary of State does not issue any business licenses. Still, your LLC might need to apply for a license with the city or county or the federal government. You might have to pay fees for:

• Business licenses
• Permits
• Registrations

You might owe fees and taxes depending on the type of business you engage in or your location. You’ll also need to register with the Kentucky Department of Revenue if you have employees or engage in a taxable activity.

To help you with this step, try a Business License Report from our partners at Avalara. We’ll provide a comprehensive list that breaks down the specific licenses, permits, and registrations your business needs.

For just $0 plus state fees, we can form your Kentucky LLC for you in just minutes. No LegalZoom promo code required: Pay just $0 plus filing fees for fast LLC formation in Kentucky. 

Yes. If your LLC doesn’t keep up with paying its filings and fees, you’ll be charged late fees and interest. If you remain out of good standing, the government can initiate proceedings to administratively dissolve your business.

If you don’t pay the filing fee, the Secretary of State can refuse to file your documents. Usually, entrepreneurs form limited liability companies to protect their personal assets from business debts. If you haven’t paid your fees, you could legally be considered a sole proprietorship or general partnership and face increased liability.

You pay your Articles of Organization fees to the Kentucky State Treasurer. 

When it comes to the cost to start a business in Kentucky, your largest LLC fee is your Articles of Organization fee, which is $40. After your first year of business, the biggest fee is $175 for your LLET. The amount of fees you owe will depend on your business activities, your business location, and your business needs.

You can pay your filing fees with a credit card, Electronic Funds Transfer (ACH), or prepaid account. If filing by mail, you can include a check. You may also pay with cash if filing in person.