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.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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.

The costs of starting and maintaining an LLC vary by location and business activity. The initial set-up fees are minimal and can be paid before the business starts. However, there are also recurring costs, such as annual reports and taxes. The following table will provide an average cost for starting and maintaining an LLC in Kentucky. The costs can be high or low depending on the size of the business and the type of activities performed.

An LLC requires a registered agent. This person accepts legal documents on the organization’s behalf. A registered agent must be appointed and is responsible for receiving correspondence. To file for a Kentucky LLC, complete and submit articles of organization to the Secretary of State’s office. This filing requires a fee of $40. These documents serve as the first official corporate documents and company operating agreement. Minutes of the company’s meetings are considered corporate records.

If you’re doing the formation yourself, you can save money by not paying the fee for a registered agent. While you can opt for a professional, you should still check the costs. Some services charge one-time fees and tack on “free” services for the next year. Also, always read the fine print. Otherwise, you may end up paying more than you expected to. Once your business is up and running, you can then hire an attorney or agency to help you.

Once your LLC has been formed, you should pay the required taxes. The state of Kentucky requires its business to pay payroll tax and self-employment taxes. Additionally, there are several other fees that you’ll need to pay for operating a Kentucky LLC. The cost for setting up an LLC in Kentucky should not exceed $1000. In addition to these fees, you should also check with the state about any miscellaneous business taxes that may apply.

In order to register an LLC, you must use the Kentucky Secretary of State. A reserved name is necessary if the business does not want to operate under its original name. The Secretary of State’s website allows you to check if the name you’ve chosen is available. If it is, you’ll have to pay the $15 fee and wait 120 days to use the name. Once your business is registered, you can file the Articles of Organization and annual reports, as well as professional license applications. An LLC registration fee in Kentucky is minimal compared to the state’s fees.

When setting up an LLC in Kentucky, it’s important to hire a registered agent to handle legal documents. A registered agent can be expensive, but it’s worth it to keep your business in compliance with the state’s laws. Your registered agent must be a resident of the state where you’re operating. It’s best to choose a registered agent who lives in Kentucky. Your registered agent should also be able to provide you with important business documents.

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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