How to Form an LLC in Kentucky: Steps & Cost (2026)
You form a Kentucky LLC by filing Articles of Organization with the Kentucky Secretary of State and paying the $40 filing fee, online through the One Stop / FastTrack portal or on paper. You must appoint a Kentucky registered agent, record a file-stamped copy with your county clerk, file a $15 annual report by June 30 each year, and pay the state's minimum $175 Limited Liability Entity Tax (LLET).
Quick Answer
- Document
- Articles of Organization (Limited Liability Company)
- Filing fee
- $40 (2026), to the Kentucky Secretary of State
- Agency
- Kentucky Secretary of State - file via One Stop / FastTrack
- Registered agent
- Required - Kentucky resident or qualified entity who consents
- Annual report
- $15, due June 30 each year
- State tax
- Limited Liability Entity Tax (LLET), $175 minimum
Kentucky Agency and Document: Secretary of State, Articles of Organization
A Kentucky LLC is created by filing Articles of Organization with the Kentucky Secretary of State. Filing the Articles - and the Secretary of State's acceptance of them - is the legal act that brings the LLC into existence under the Kentucky Business Entity Filing Act and Chapter 275 of the Kentucky Revised Statutes. The Articles state the LLC's name, its registered agent and registered office, its mailing address, whether it is member-managed or manager-managed, and the effective date.
The company name must contain an LLC designator (such as "LLC," "L.L.C.," "Limited Liability Company," or "Limited Company") and be distinguishable from names already on file. You can check availability using the Secretary of State's business entity search and file online through the One Stop Business Portal, which routes to the Secretary of State's FastTrack system; paper filing with two copies is also accepted. This guide covers the Kentucky process; for the national overview see how to form an LLC and what an LLC is.
How to Form a Kentucky LLC, Step by Step
Forming a Kentucky LLC is a five-step process centered on the Articles of Organization. Each step corresponds to a requirement of Kentucky law or a federal tax rule.
- Choose and check your LLC name. Select a name that includes an LLC designator and is distinguishable from names already registered with the Secretary of State. Verify availability in the business entity search. If you are not ready to file, you may reserve a name for 120 days for a $15 fee. Confirm the name does not infringe a federal trademark.
- Appoint a Kentucky registered agent. Every Kentucky LLC must designate a registered agent with a physical Kentucky street address (the registered office). The agent - an individual Kentucky resident or a qualified business entity - must consent to the appointment. See the national registered agent overview.
- File the Articles of Organization. Submit the Articles to the Kentucky Secretary of State and pay the $40 filing fee. File online through the One Stop / FastTrack portal for the quickest turnaround, or send two copies by mail. Once the Secretary of State accepts the filing, your LLC legally exists.
- Record a copy with the county clerk. Kentucky requires you to record a file-stamped copy of your accepted Articles of Organization with the county clerk in the county where your registered office is located. Keep the county-stamped copy with your records.
- Get an EIN and register for Kentucky taxes. Apply for a free federal EIN from the IRS, then register with the Kentucky Department of Revenue for the Limited Liability Entity Tax and any sales, use, or withholding tax accounts your business needs.
After these steps, adopt an operating agreement, open a business bank account (banks generally ask for the file-stamped Articles and the EIN), and keep your registered agent, annual report, and tax accounts current every year.
Kentucky LLC Filing Fees (2026)
The core cost of a Kentucky LLC is the $40 Articles of Organization fee. The table below lists the state fees most new LLCs encounter, each verified against the Kentucky Secretary of State fee schedule. Amounts are effective for 2026 and are set by the state, not by any filing service. For the full cost picture over time, see Kentucky LLC cost and the national LLC cost guide.
| Item | Filing | Fee (2026) | Agency |
|---|---|---|---|
| Create the LLC | Articles of Organization | $40 | Secretary of State |
| Annual report | Annual Report | $15 | Secretary of State |
| Change of registered agent / office | Statement of Change | $10 | Secretary of State |
| Reserve a name (120 days) | Reservation of Name | $15 | Secretary of State |
| Assumed (DBA) name | Certificate of Assumed Name | $20 | Secretary of State |
| Federal EIN | IRS Form SS-4 | $0 (free) | IRS |
Beyond these state charges, every Kentucky LLC also owes the minimum $175 Limited Liability Entity Tax to the Department of Revenue, described below. County clerk recording fees vary by county and are set locally.
Kentucky Registered Agent Requirement
A Kentucky registered agent is the person or entity your LLC designates to receive service of process, tax notices, and official state correspondence. Kentucky law requires every LLC to designate and continuously maintain a registered agent and a registered office in Kentucky. You name the initial agent directly in the Articles of Organization.
The agent must be either an individual Kentucky resident or a business entity authorized to do business in Kentucky, and must have a physical Kentucky street address - a post office box alone does not satisfy the registered office requirement. You may act as your own registered agent, name a member or manager, or hire a commercial registered agent service. To change agents later, file a Statement of Change of Registered Agent or Registered Office with a $10 fee. Failing to maintain a registered agent can lead to administrative dissolution of the LLC. See Kentucky registered agent requirements for detail.
Annual Report and Ongoing Compliance
Every Kentucky LLC must file an annual report with the Secretary of State. The report confirms the LLC's principal office, registered agent, and management, and carries a $15 fee. It is due June 30 each year and can be filed any time between January 1 and June 30. An LLC that misses the June 30 deadline is administratively dissolved and remains inactive and in bad standing until it reinstates. See the Kentucky annual report guide for the filing steps and reinstatement process.
Limited Liability Entity Tax (LLET)
The Limited Liability Entity Tax is a state tax on entities, including LLCs, that enjoy limited liability protection in Kentucky, administered by the Kentucky Department of Revenue. Every LLC owes a minimum LLET of $175. An entity with $3,000,000 or less in Kentucky gross receipts or gross profits pays only that $175 minimum and does not compute the tax further. Above that threshold, the LLET is the lesser of $0.095 per $100 of Kentucky gross receipts (0.095%) or $0.75 per $100 of Kentucky gross profits (0.75%), with a sliding scale phasing in between $3,000,000 and $6,000,000.
The LLET is reported on the entity's Kentucky return - Form 720 for entities taxed as corporations, Form 725 for single-member LLCs, and Form 765 for partnerships and multi-member LLCs - generally due by the 15th day of the fourth month after the close of the tax year. Because an LLC is a pass-through by default, members also report their share of income on their own federal and Kentucky returns. Compare entity choices at S-corp vs LLC.
EIN, Federal Classification, and Business Licenses
A federal Employer Identification Number (EIN) is issued free by the IRS on Form SS-4 and is used to open a bank account, hire employees, and file taxes. By default the IRS treats a single-member LLC as a disregarded entity (taxed on the owner's return) and a multi-member LLC as a partnership; either can elect corporate or S-corporation treatment. Kentucky has no general statewide business license, but many cities and counties require a local business license or impose an occupational (payroll) tax, and regulated professions need their own permits. See business licenses in Kentucky and the national business license overview.
Penalties for Missing Kentucky Requirements
Missing Kentucky requirements carries real consequences. An LLC that fails to file its annual report by June 30 is administratively dissolved by the Secretary of State; it loses good standing and must file a reinstatement application, pay the delinquent annual report fees, and pay a $100 reinstatement penalty before it can return to active status. Separately, failing to pay the LLET or file the required Department of Revenue returns can trigger penalties and interest. Keeping your registered agent, annual report, and LLET current is the simplest way to avoid all of these outcomes.
Closing a Kentucky LLC
To close a Kentucky LLC properly, you wind up the business, settle debts and taxes, and file Articles of Dissolution with the Secretary of State for a $40 fee. Simply abandoning the LLC leaves annual report and LLET obligations running and can lead to administrative dissolution rather than a clean voluntary close. See how to dissolve an LLC in Kentucky and the national dissolution overview for the full wind-up steps.
Frequently Asked Questions
How much does it cost to start an LLC in Kentucky?
The state filing fee for the Articles of Organization is $40, paid to the Kentucky Secretary of State. After formation, every LLC files a $15 annual report by June 30 and pays a minimum $175 Limited Liability Entity Tax. See Kentucky LLC cost.
What do I file to create a Kentucky LLC?
Articles of Organization, filed with the Kentucky Secretary of State online through the One Stop / FastTrack portal or on paper, with the $40 fee. A file-stamped copy is then recorded with the county clerk of the registered office county.
Does a Kentucky LLC need a registered agent?
Yes. Every Kentucky LLC must continuously maintain a registered agent and a physical Kentucky registered office. The agent may be a Kentucky resident or qualified entity and must consent to the role.
Does a Kentucky LLC pay state tax?
Yes. Kentucky LLCs owe the Limited Liability Entity Tax, with a $175 minimum. Entities with $3,000,000 or less in Kentucky gross receipts or gross profits pay only the $175 minimum, while members report pass-through income on their own returns.
When is the Kentucky LLC annual report due?
June 30 each year; it can be filed any time between January 1 and June 30. The fee is $15. An LLC that misses the deadline is administratively dissolved until it reinstates.
Related
- How to form an LLC (cluster hub)
- Kentucky registered agent requirements
- How much does a Kentucky LLC cost?
- Kentucky annual report & LLET
- Business licenses in Kentucky
- How to dissolve an LLC in Kentucky
- How to form an LLC in Texas (sibling)
- How to get an EIN
More Kentucky business guides
Business License In Dissolve An Llc In Annual Report Articles Of Organization Certificate Of Formation Dba Filing Llc Cost Operating Agreement Registered Agent
Sources
- Kentucky Secretary of State - Business Filing Fees ($40 Articles of Organization; $15 annual report; $10 change of registered agent; $15 name reservation; $20 assumed name; $100 reinstatement penalty).
- Kentucky Secretary of State - Annual Reports ($15 fee; June 30 deadline; administrative dissolution).
- Kentucky Secretary of State - Business Filings (formation and filing overview).
- Kentucky Secretary of State - FastTrack Online Filings.
- Kentucky Secretary of State - Business Entity Search (name availability).
- Kentucky One Stop Business Portal - Structure & Registration (Articles of Organization; county clerk recording).
- Kentucky Department of Revenue - Corporation Income & Limited Liability Entity Tax ($175 minimum LLET; $3,000,000 threshold; 0.095% / 0.75% rates).
- Kentucky Department of Revenue - Business Tax Registration (Form 10A100; no general state business license; local licenses/occupational tax).
- Kentucky Department of Revenue - Pass-Through Entities (Form 725 / Form 765).
- IRS - Limited Liability Company (LLC) (default federal classification).
- IRS - Get an Employer Identification Number (free EIN).
- IRS - About Form SS-4 (EIN application).
- Cornell Law School (LII) - 26 CFR § 301.7701-3 (entity classification election).
LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Kentucky Secretary of State and Kentucky Department of Revenue before acting.