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

There are several costs involved in maintaining an LLC, including legal fees, state approval, and insurance. The cost of filing for Kentucky business license is relatively low. Generally, an LLC does not require a general business license. However, some industries may require certain permits or licenses. In those cases, owners should seek assistance from an outside registered agent. This service is usually inexpensive and is recommended by the Kentucky Secretary of State.

The first step is to prepare the Articles of Organization. These documents are required by the state so that the Secretary of State can record basic company information. These documents can be filed online or mailed in. In either case, you must submit them along with an application fee of $40 to the Secretary of State of Kentucky. While these documents are not necessary, they are beneficial for the business because they include important rules, provisions, and regulations.

Another fee to consider is a business bank account. This is necessary to separate your personal finances from the business finances. A separate bank account is also important for maintaining the corporate veil. Additionally, you may need a sales tax id number, a business license, or a certificate of occupancy. All of these fees can add up fast, so it’s important to start saving early.

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.

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