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.

When starting a business, you might wonder how much it costs to maintain an LLC in Kentucky. While the initial step to forming a Kentucky LLC is free, there are other steps you need to complete in order to stay in good standing with the state. For example, you should separate your personal assets from those of your company. This will help you maintain greater flexibility and protection. In addition, it will simplify your bookkeeping.

To maintain an LLC in Kentucky, you must file an annual report with the state. The state requires you to file this report to update information about your company. In Kentucky, you must pay a fee of $15 to file your annual report. This fee will vary depending on the type of business you are running.

Filing an annual report is one of the most important things you must do to maintain your LLC. You need to file this report with the Secretary of State by June 30 of every year. You can file it online or by mail. The report must include the name of the registered agent and the address of the company’s principal office. In addition, it must include the names and addresses of the members and managers of the company.

Another important part of forming an LLC in Kentucky is designating a registered agent. This person or business is responsible for receiving all legal mail and other correspondence for the LLC. The registered agent must have a physical address in Kentucky and be available to accept service of process during regular business hours. The registered agent will also receive the lawsuit paperwork if the LLC is sued. To maintain an LLC in Kentucky, it is important to select an agent who can accept service of process and maintain records.

If you decide to form an LLC in Kentucky, you’ll need to file a mandatory annual report. This annual report will be due in June 30 of the year in which you formed the business. If you fail to file it, your LLC could be dissolved. The Kentucky Secretary of State charges a $15 fee for filing annual reports.

Lastly, you must register your Kentucky LLC with the Secretary of State. To do this, you will need to choose a name for your company and select a registered agent. You can use the Kentucky FastTrack Business Organization Search to check whether a name is available for your business. It is also important to have a comprehensive LLC operating agreement, which clarifies the duties of each member.

There are some other costs you need to consider when forming an LLC in Kentucky. You’ll need to pay an initial filing fee to register your business, as well as ongoing expenses, such as business insurance, a website, and registered agent services.

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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