LLC Cost in Kentucky – How Much to Pay for an LLC


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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.

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:

StateFiling FeeAnnual Fee/Biennial FeeSales 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

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.

If you’re considering forming a limited liability company in Kentucky, it’s important to know what the state charges. The fees range from a few dollars to several hundred dollars depending on the nature of the business. These costs can be broken down into recurring, naming, and one-time fees.

When forming a Kentucky LLC, you’ll need to pay a small initial fee to the state to register your company. You can do this online or by mail. During the process, you’ll be asked to provide basic information such as the LLC’s legal name, the jurisdiction it operates in, the management style you prefer, and the type of business you will be conducting.

There are also a number of annual costs associated with running a limited liability company in the Bluegrass State. For instance, if you’re operating in a regulated industry, you may need to obtain an occupational license. In addition, if you hire employees, you’ll need to pay unemployment insurance tax. This is a tax that is due within four and a half months of the start of the tax year. Failure to pay the tax can result in severe penalties.

You’ll need to file an annual report with the state. You’ll also need to get a Certificate of Good Standing. Getting these is not free, but you can avoid them altogether if you take advantage of an online service.

Other yearly expenses include fees to renew your business-specific licenses. Be sure to set reminders on your calendar to keep you from forgetting to file these.

The most expensive cost of forming a Kentucky limited liability company is likely to be the formation and filing of the company’s Articles of Organization. To file the articles, you’ll need to hire a registered agent. You’ll need to pay a $10 filing fee to the state.

Aside from the Articles of Organization, there are other Kentucky LLC formation costs that you should consider. For example, you’ll need to obtain an Employer Identification Number. Using an EIN will help you identify your business when you file for federal and state taxes. Additionally, you’ll need to choose a domain name for your website. Finally, you’ll need to register your LLC’s Registered Agent.

The average cost to form a Kentucky LLC will vary depending on the nature of your business and your location. However, the cost of forming an LLC in the state is fairly minimal, especially when compared to other states. As a bonus, you’ll get a memorable web address to match your business’s name.

Other recurring costs to expect are fees for your LLC’s annual report, as well as its registered agent, naming, and other services. Depending on the nature of your business, you may need to hire a professional registered agent to ensure you meet the state’s requirements. An experienced and competent registered agent will charge between $50 and $150 per year.

Choosing the right registered agent is an important step in forming a Kentucky limited liability company. You’ll need to make sure the person you choose is available during regular business hours, and that they have a physical address in the state.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

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.

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