Quick facts about forming a Kentucky LLC
| Item | Details |
|---|---|
| Filing Fee | $40 (online or by mail) |
| Processing Time | Typically 1-3 business days online, up to 2 weeks by mail |
| Annual Report Fee | $15, filed between January 1 and June 30 each year, starting the year after formation |
| Registered Agent Required | Yes, must have a physical address in Kentucky |
| State Franchise Tax | No franchise tax, but LLCs pay the Limited Liability Entity Tax (LLET), minimum $175 per year |
| Business License | No statewide license, but local permits may be required |
| Managing Authority | Kentucky Secretary of State (Business Filings) |
Kentucky offers a variety of incentives to businesses, including tax credits, business loans, and other forms of financial support. Business-friendly tax laws and a relatively low cost of living have attracted many new and existing businesses to Kentucky. If you plan to start a business in Kentucky, forming a limited liability company (LLC) can help protect your personal assets from business liabilities. Forming an LLC can also help you streamline the management of various business matters, such as regulatory compliance and taxes.
How to start an LLC in Kentucky in 5 steps
The following five steps will help you obtain the information you will need and file the necessary paperwork to get your Kentucky LLC started.
- Name your Kentucky LLC
- Choose your registered agent
- File articles of organization
- Create an operating agreement
- Apply for an EIN
Each step is discussed in more detail below.
Step 1: Name your Kentucky LLC
You will need to choose a unique name for your LLC. The name must be distinguishable from other names on record with the Secretary of State. It must end with one of the following:
- “Limited Liability Company” or “LLC”
- “Limited Company” or “LC”
- In these endings, “Limited” may be abbreviated “Ltd.” and “Company” may be abbreviated “Co.” (for example, “Ltd. Liability Co.” or “Ltd. Co.”)
You can do a Kentucky business entity search on the Kentucky Secretary of State’s website to see if the name you want is available. Once you have confirmed that it is available, you have several options for protecting your use of that name.
If you are not ready to form your LLC quite yet, you can reserve the name you chose for up to 120 days by filing Form RES, “Reservation or Renewal of Reserved Name” and paying a $15 fee. You may use the same form to renew your reservation for another 120 days. You can renew during the 30 days before the reservation expires.
Step 2: Choose a registered agent
In order to do business in Kentucky with an LLC or any other type of entity, you must designate an individual or business to serve as your Kentucky registered agent. A registered agent’s job is to provide a consistent location, known as the registered office, for the following:
- Official communications from the Commonwealth of Kentucky
- Service of process for lawsuits against the LLC
The state will send important correspondence to your LLC’s registered agent. If someone files suit against your company, the process server will pay the registered agent a visit at the registered office. The registered agent is responsible for passing these materials on to you.
An individual or business may serve as a registered agent. An individual agent must be a Kentucky resident; a business entity must be authorized to do business in Kentucky. A registered agent must have a physical address in Kentucky. They may not use a P.O. Box as a registered office location. You may serve as the registered agent for your LLC. Numerous companies serve as registered agents for others for an annual fee, which typically runs $50–$300 per year.
You appoint your registered agent in your articles of organization. You can change it later by filing a Statement of Change (form RAC, $10). It can’t be changed on your Kentucky annual report.
Step 3: File articles of organization
Once you have chosen a name for your company and confirmed that it is available, you can form your LLC. You may do this by filing articles of organization with the Kentucky Secretary of State. Three different forms are available, depending on the type of company you plan on forming:
- Form KLC, articles of organization for a for-profit LLC
- Form NLC, articles of organization for a non-profit LLC
- Form PLC, articles of organization for a professional service LLC that provides services requiring professional credentials, such as law, accounting, medicine, engineering, or architecture
State fees
The filing fee for articles of organization is $40. You can pay it by credit card if you file online or by check made payable to the Kentucky State Treasurer if you file by mail. Check out this article for a full breakdown of the Kentucky LLC cost.
Requirements
The articles of organization form asks for the following information:
- The name of the LLC
- The LLC’s registered office and the name of the registered agent at that office
- The address of the LLC’s initial principal office
- Whether the LLC will be managed by members or managers
- The signature of a person authorized to act on the company’s behalf, known as the “organizer”
- The signature of the registered agent, or an authorized representative if the registered agent is a business entity
How to file
You can file the articles of organization online through the Kentucky Secretary of State’s online portal. You may file in person or by mail instead.
To file in person, you may go to 1025 Capital Center Drive, Suite 201, Frankfort, KY 40601, 8:00 a.m. to 4:30 p.m. ET, Monday through Friday. Before heading to the office, you might call the office at (502) 564-3490 to see if they have any restrictions in place for in-person visits.
You can file by mail by sending the original and one copy of the articles of organization, along with the filing fee, to the Office of the Secretary of State, P.O. Box 718, Frankfort, KY 40602-0718. Online filings need no copies.
Step 4: Create an operating agreement
An LLC operating agreement represents the agreement of the initial members about how they will run the company. If the Articles of Organization state that managers will run the company instead of members, the operating agreement can establish procedures for how the members will select managers.
State law does not require you to have a Kentucky LLC operating agreement. An agreement can be written or oral (KRS 275.015), and it isn’t filed with the Secretary of State. In the absence of an operating agreement, the provisions of Kentucky law apply to the company, its members, and its managers.
Step 5: Apply for an EIN
The next step in forming your LLC is to obtain an Employer Identification Number (EIN) from the IRS. An EIN is required if your LLC has employees or more than one member. Single-member LLCs without employees can use the owner’s SSN, but most get an EIN for banking. Learn more about what an EIN is and how to get one.
Your LLC’s EIN will identify it on all tax filings with the IRS. You will also need an EIN to open a company bank account. You may obtain an EIN from the IRS online, by fax, or by mail. You can begin by filling out Form SS-4.
Next steps after forming your Kentucky LLC
Once your LLC is formed, a few other filings may apply. If you’ll do business under a different name, file a Kentucky assumed name (DBA). You’ll also want to check which Kentucky business licenses and permits your business needs.
Many Kentucky cities and counties also charge occupational license taxes, so see what Kentucky business licenses cost before you budget. For funding ideas, browse Kentucky small business grants.
If you ever decide to close the business, here’s how to dissolve a Kentucky LLC the right way.
FAQ
It costs $40 to file your Articles of Organization with the Kentucky Secretary of State, either online or by mail.
Online filings are usually processed within one to three business days, while mailed filings can take up to two weeks.
Yes, every Kentucky LLC must have a registered agent with a physical address in the state to receive official mail and legal documents.
No, Kentucky does not require an operating agreement. It can be written or oral, and it isn’t filed with the state. Having one in writing helps clarify roles, responsibilities, and profit distribution among members.
Yes, all Kentucky LLCs must file an annual report between January 1 and June 30 each year, starting the year after formation, and pay a $15 fee to remain active.
Kentucky has no franchise tax by that name, but LLCs pay the Limited Liability Entity Tax (LLET), with a $175 minimum per year. Your business may also need to pay income tax based on its earnings.
Yes, nonresidents can form a Kentucky LLC as long as they appoint a registered agent with a physical Kentucky address.
Kentucky doesn’t require a general statewide business license, but many cities and counties have local business license or tax registration requirements.
