Last Updated: September 10, 2024, 9:20 am by TRUiC Team


Kentucky LLC Cost

The minimum Kentucky LLC cost is $40, which covers the fee for filing your LLC formation documents, known as the Articles of Organization.

However, the total cost of forming an LLC in Kentucky can vary depending on your specific preferences and business needs.

In our Kentucky LLC Cost article, we’ve outlined everything you need to know about the costs involved in starting and maintaining an LLC.

More than 84% of our readers form their LLC through a professional service to save time and avoid mistakes.

Northwest ($29 + State Fees)

How Much Does a Kentucky LLC Cost

The table below summarizes the key costs involved in establishing a Kentucky limited liability company (LLC). 

LLC Cost Summary

Requirement Fee
Articles of Organization $40
Registered Agent $0-$150+
LLC Name $0-$35

Kentucky LLC Filing Fee ($40+)

In Kentucky, all LLCs must submit the Articles of Organization to the Secretary of State to officially register.

The fee for filing the Articles of Organization is $40, payable to the Secretary of State. By contrast, foreign LLCs (i.e., those that will be operating from outside of Kentucky) must instead file a Certificate of Authority, which comes with a $90 filing fee.

If you opt to use an LLC formation service, you’ll pay slightly more due to the service fee that’s applied on top of the Kentucky filing fees above.

Fees for LLC formation services can start as low as $29 and go higher depending on the additional services you may choose.

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Have a look at our in-depth review of the best and most affordable LLC Formation Services in 2024

Kentucky Registered Agent ($0-$150+)

When filing your LLC’s Articles of Organization or Certificate of Authority, you will need to appoint a registered agent.

A registered agent is an individual or entity that you’ve designated to receive legal, tax, and other governmental documents on behalf of your LLC.

You can serve as your own registered agent at no additional cost, but many business owners prefer not to do this as you can easily incur penalties due to accidental non-compliance with state regulations. 

On top of this, acting as your own registered agent can mean that your personal address will become publicly available (if you’re a home-based business). 

Registered agent services typically range from $125 to $300 per year, depending on the provider and the services they offer.

Note: Your LLC’s registered agent will need to accept their appointment, which can be done by either signing the relevant section of the Articles of Organization or submitting this Statement of Consent of Registered Agent form to the SOS.

Get a Free Registered Agent Service

Form an LLC with Northwest Registered Agent to get one year of registered agent services free of charge ($29 + State Fees).

Kentucky LLC Name ($0-$35)

Choosing the right name for your LLC is an essential part of forming your business in Kentucky.

However, even though naming your LLC is free, there are two potential name-related costs you might encounter during this step.

Reserving Your Business Name

If you’ve chosen a business name but aren’t ready to officially register your LLC, you can reserve the name for later use by filing the Reservation or Renewal of Reserved Name form. The reservation fee is $15, and it holds your desired name for 120 days.

Tip: Before reserving a name, you should perform a name availability search on the Kentucky Secretary of State’s website to make sure that your chosen name is available.

Additionally, it’s a good idea to select a name that has an available matching domain to maintain brand consistency for your LLC’s online presence.

Find a Domain Now

Doing Business As (DBA) Name

If you intend to operate your business under a different name than your legal LLC name, you will need to register a DBA name, which is also known as an Assumed Name in Kentucky.

To do this, you will need to file this Certificate of Assumed Name form either by mail or in person. 

The registration costs $20 to file and will secure your DBA name for five years. Renewal also costs $20, which is done by filing a Certificate of Renewal of Assumed Name form. 

Optional Kentucky LLC Formation Costs

Below are some additional costs that may also potentially be faced with when forming an LLC in Kentucky.

Kentucky LLC Operating Agreement

Although it’s not legally required, having an operating agreement is a good idea for your LLC.

This document outlines the responsibilities of each member or manager, which helps to ensure the business continues running smoothly by providing clarity in case of disputes.

You can create an operating agreement on your own at no cost, or you can use online services or hire an attorney, which can be more expensive.

Since an operating agreement is a strictly internal document, it doesn’t need to be filed with the Kentucky Secretary of State.

Local Business Licenses

Your LLC may need to obtain licenses at a local level depending on its industry and the location it’s based in. 

For instance, if your LLC runs a restaurant in Louisville, you will need to apply for a health department license, which costs around $80.

Certificate of Existence

A Certificate of Existence, which is often required by banks or lenders to verify that your LLC is registered and in good standing with the state, can be obtained through the Secretary of State’s website for $10.

You can also request certified copies of other business documents for $10 for the first five pages, plus $0.50 for each additional page.

Ongoing Costs to Maintain a Kentucky LLC

Below are the recurring costs associated with maintaining an LLC in Kentucky.

Annual Report

Every LLC in Kentucky must file an annual report with the Secretary of State by June 30 each year. This report costs $15 to file, regardless of whether you do so online, by mail, or in person.

As changes in your registered agent and/or office cannot be made in your annual report form (unlike most states), you’ll need to file one of two forms to be able to change these details:

Limited Liability Entity Tax (LLET)

Kentucky imposes a Limited Liability Entity Tax (LLET) on all multi-member LLCs. 

The minimum rate is $175 per year, but if your business’s gross receipts or profits exceed $3 million, the rate increases by:

As part of its obligations for this tax, your LLC will need to file Form 720 and make any payments by April 15 of the year following your fiscal year’s end in order to stay compliant.

Registered Agent Maintenance

If you choose to hire a registered agent service instead of performing this role yourself, you’ll generally need to pay a small annual fee.

Even though this can vary significantly from provider to provider, it generally falls somewhere between $125 and $300. 

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Ready to Get Started?

Have a look at our LLC Kentucky Guide (DIY Approach)

Let Northwest Registered Agent handle it for you ($29 + State Fees) 

Kentucky vs Other States

Kentucky stands out as the most affordable state when it comes to LLC formation, with an initial formation fee of only $40 and a $15 annual report fee. This is significantly less than in states such as California, where the annual franchise tax alone is at least $800. 

Even so, you should keep in mind that the best state to form your LLC in will generally be the one in which you plan to operate from.

This is because otherwise you will likely need to comply with more than one state’s regulations — paying registration and fees at least twice.

Kentucky LLC Cost FAQ

The cost to form an LLC in Kentucky is primarily the filing fee for the Articles of Organization. As of the current data, the filing fee is $40. This can be done online, by mail, or in person with the Secretary of State's office. 

Note that this is the basic cost and there could be other costs associated with your business setup such as business licenses or permits depending on your business activities and location.

You can file for LLC formation in Kentucky online, by mail, or in person. The paperwork you need to file is called the Articles of Organization. This document needs to be sent to the Secretary of State's office along with the filing fee of $40.

In Kentucky, an LLC needs a registered agent. The registered agent can be anyone who agrees to receive legal paperwork on behalf of your LLC. The important thing is that the registered agent must officially consent to this role by physically or electronically signing the formation document.

If you decide to change your registered agent after forming your LLC in Kentucky, the new registered agent must officially consent to their role. This is done by physically or electronically signing the change form.

A DBA name, or "doing business as" name, is also referred to as an assumed name in Kentucky. If your LLC operates under a name different from its legal name, you would need a DBA. However, a DBA is not mandatory if you plan to operate your business under the legal name of your LLC.

In Kentucky, an LLC must file an annual report. This report updates or confirms the LLC’s contact and ownership information. The cost of filing an annual report in Kentucky is $15.

As of the provided data set, there are no specific state compliance fees for LLCs in Kentucky, outside of the costs associated with filing the annual report.

Before you file your Articles of Organization, you need to ensure your desired LLC name is available. In Kentucky, you can do this using the FastTrack Business Organization Search or FastTrack Name Availability Search online.

A Good Standing Certificate, also known as a Certificate of Existence, is a document from the Secretary of State that validates that your LLC is legally registered and compliant with all state requirements. It can be beneficial when opening business bank accounts, seeking financing, or conducting business transactions.

Article Sources

Kentucky Business One Stop Portal:
https://onestop.portal.ky.gov/onestopportal/

IRS - Employer ID Numbers:
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

Kentucky Secretary of State:
https://www.sos.ky.gov/Pages/default.aspx

SBA - Apply for licenses and permits:
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

Chamber of Commerce - Kentucky Chamber of Commerce List
https://www.officialusa.com/stateguides/chambers/Kentucky.html