Kentucky LLC Requirements

Updated for 2026 · Official Secretary of State Website

Kentucky is one of the cheapest states in the US for LLC formation and maintenance, with just a $40 filing fee and $15 annual report. The state offers fast online processing and a straightforward formation process. Kentucky's low cost of living and diverse economy spanning bourbon, automotive manufacturing, and healthcare make it appealing for small business owners.

Filing Fee

$40

One-time state fee

Annual Fee

$15

Per year

Processing

Immediate to 2 business days

Online filing

Deadline

June 30

Annual report due

Below Average Cost

Kentucky is among the five cheapest states for LLC formation with its $40 filing fee and $15 annual report — total first-year costs of just $55.

Notable Facts About Kentucky LLCs

Kentucky has the second-lowest LLC filing fee in the nation at $40
The $15 annual report fee is tied for the lowest annual filing cost nationally
Kentucky processes online LLC formations within 1-2 business days
The state has a flat 4% individual income tax rate

Tax Information for Kentucky LLCs

Kentucky has a flat 4% individual income tax rate. LLCs taxed as pass-through entities pay at individual rates. The state imposes a Limited Liability Entity Tax (LLET) of $175 minimum on LLCs with gross receipts or gross profits over $3 million. Most small LLCs will not owe the LLET.

Formation Steps

1

Choose a Name for Your LLC
Select a unique business name that complies with Kentucky naming requirements. The name must include "LLC" or "Limited Liability Company" and cannot be the same as an existing registered business in Kentucky.
2

Appoint a Registered Agent
Designate a registered agent with a physical address in Kentucky who can receive legal documents and official correspondence on behalf of your LLC.
3

File Articles of Organization
Submit your Articles of Organization (also called a Certificate of Formation in some states) to the Kentucky Secretary of State. This is the official document that creates your LLC.
4

Create an Operating Agreement
Draft an operating agreement that outlines ownership percentages, member roles, profit distribution, and management structure of your LLC. While not always legally required, it is strongly recommended.
5

Get an EIN from the IRS
Apply for a free Employer Identification Number (EIN) from the IRS. You'll need this for opening a business bank account, hiring employees, and filing taxes.
6

Open a Business Bank Account
Open a dedicated business bank account to keep your personal and business finances separate. This helps maintain your LLC's liability protection.
7

File Annual Reports
Kentucky requires periodic reports due by June 30. The filing fee is $15. Mark your calendar to avoid late fees or administrative dissolution.

Visit Official SOS Website

Annual Report Details

Fee: $15

Deadline: June 30

Annual report due by June 30 each year.

Annual report filed yearly.

Need a Registered Agent in Kentucky?

Every Kentucky LLC must have a registered agent with a physical address in the state. A registered agent service ensures you never miss important legal documents or compliance deadlines.

Compare Registered Agent Services

Frequently Asked Questions

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

The state filing fee to form an LLC in Kentucky is $40 for the Articles of Organization. This cost is below average compared to other states. Additional costs may include a registered agent service ($50-$300/year) and an operating agreement if you hire an attorney.

What is the annual cost of an LLC in Kentucky?

Kentucky charges $15 for its periodic reporting requirement, due June 30. Annual report filed yearly. Kentucky is among the five cheapest states for LLC formation with its $40 filing fee and $15 annual report — total first-year costs of just $55.

How long does it take to form an LLC in Kentucky?

Online filing in Kentucky typically takes Immediate to 2 business days. You'll need to file Articles of Organization with the state. Processing times may vary based on filing volume and the time of year.

Do I need a registered agent in Kentucky?

Yes, Kentucky requires every LLC to have a registered agent with a physical street address in the state. The registered agent receives legal documents, tax notices, and official government correspondence on behalf of your LLC.

What taxes does a Kentucky LLC pay?

Does Kentucky require an operating agreement for LLCs?

While not all states legally require an operating agreement, it is strongly recommended for every LLC in Kentucky. An operating agreement defines ownership structure, member roles, and how the business will be managed. Without one, your LLC will be governed by Kentucky's default LLC laws.