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Perhaps you are hoping to form a Kentucky LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Kentucky.
On this page, you’ll learn about the following:
Kentucky LLC Cost of Filing
Here are the costs involved in forming an LLC in Kentucky.
Cost of Filing Formation Certificates
The Kentucky Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Kentucky Secretary of State.
Kentucky Domestic LLC
- Online filing costs $40
- Annual Report filing costs $15
- Name Reservation costs $15
- By mail: Fill out the Application form PDF, and submit it to the following address: Commonwealth of Kentucky, Division of Business Filings P.O. Box 718 Frankfort, KY 40602 (502) 564-3490
Kentucky Foreign LLC
- Online filing costs $90
- Annual Report filing costs $15
- Name Reservation costs $15
- By mail: Fill out the Application form PDF, and submit it to the following address: Commonwealth of Kentucky, Division of Business Filings P.O. Box 718 Frankfort, KY 40602 (502) 564-3490
You can visit the official Commonwealth of Kentucky website to learn more about business entity filings, fees, and forms.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Kentucky LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Kentucky, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Kentucky Department of Revenue for regulatory boards or agencies requiring licensing.
Kentucky LLC Taxes to be Paid
The business LLCs in the State of Kentucky are subject to different State tax filing obligations. Though the fees may vary from county to county.
Kentucky State Income Tax
This is the State Tax levied on any income you pay to yourself. The tax rate in the State varies between 2% to 6% depending on the total amount of taxable income.
Kentucky Sales tax
The standard rate of sales tax applicable is at the rate of 6.00%. Though the taxes may vary depending on the county and city.
Kentucky Federal Self-Employment tax
Any profit that Kentucky LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Kentucky Payroll Tax Withholding
If you hire employees in Kentucky, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Cost Comparison Among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Kentucky, read the table below:
| State | Filing Fee | Annual Fee/Biennial Fee | Sales tax |
| Kentucky LLC | $40 | $15 (annual) | 6.00% |
| Virginia LLC | $100 | $50 (annual) | 5.30% |
| Tennessee LLC | $300 | $300 (annual) | 7.00% |
| Illinois LLC | $150 | $75 (annual) | 6.25% |
| Indiana LLC | $100 (mail)$95 (online) | $50 (mail)$31 (online) | 7.00% |
Kentucky has witnessed a job market increase in previous years and has wide future job growth options. Manufacturing and coal mining comprises the biggest industries in the State contributing as a major source of income.
Other Costs
- Kentucky Name Reservation: $15 for online filings or by mail
- Doing Business As (DBA): $20 per class for online filing or filing by mail
- Certified Document Copies: $10.00 for the first five pages plus $0.50 for suceeding page.
- Certificate of Good Standing: $10
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Kentucky LLC: $40
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in Kentucky
To maintain an LLC in Kentucky you will need to pay an annual fee of $15 along with sales tax at 6%, income tax at 2% to 6% and federal taxes.
First and foremost, one of the primary costs of maintaining an LLC in Kentucky is the annual LLC filing fee. The state requires LLCs to file an annual report and pay a fee to the Kentucky Secretary of State. Failure to file this report and pay the fee on time can result in penalties and possible dissolution of the LLC. Additionally, some LLCs may choose to hire a registered agent to handle the annual report filing on their behalf, which can add to the overall cost of maintaining the business.
Another cost to consider when maintaining an LLC in Kentucky is the cost of obtaining any necessary business licenses and permits. Depending on the nature of the business, there may be specific licenses or permits required at the state, county, or local level. These fees can vary depending on the type of business and location.
In addition to the annual filing fee and licensing costs, LLCs in Kentucky are required to pay state taxes. While LLCs are not taxed at the federal level, they are subject to state taxes in Kentucky. Business owners should be aware of the tax obligations for their LLC and ensure they are setting aside funds to cover these expenses.
Furthermore, maintaining an LLC in Kentucky may also involve legal fees for any necessary changes to the business structure or operating agreement. It’s important for LLC owners to regularly review and update their operating agreement to ensure it accurately reflects the current business operations and ownership structure.
Lastly, general business expenses such as insurance, office space, and employee salaries should also be factored into the cost of maintaining an LLC in Kentucky. These expenses can vary depending on the size and industry of the business but are important considerations for LLC owners to keep in mind.
Overall, while forming an LLC in Kentucky can provide significant benefits for business owners, it’s important to understand the ongoing costs associated with maintaining this type of business structure. By being aware of the expenses involved and budgeting accordingly, LLC owners can effectively manage the financial aspects of running their business and ensure long-term success.
In Conclusion
The cost of Kentucky is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.