Forming an LLC in
Kentucky KY
Checked November 4, 2026 · How we score
Filing fee
$40
Articles of Organization
Annual fee
$15
per year, normalised
State income tax
3.5%
top rate
Cost rank
#5
of 51, first-year fees
Kentucky LLC costs
| Filing fee | $40 |
|---|---|
| Annual report / franchise fee | $15 Annual report: $15, due by June 30 each year. |
| First-year state fees | $55 |
| Registered agent | Required (about $50–$300/year if you don't use your own address in the state) |
| Newspaper publication | No |
| Anonymous ownership | No |
| Processing time | 1 day |
Kentucky taxes for LLCs
| Personal income tax (top) | 3.5% Flat 3.5% for 2026 (down from 4%). |
|---|---|
| Corporate income tax | 5% Flat 5% on net income. |
| State sales tax | 6% |
| Franchise / gross receipts | Limited liability entity tax (LLET): $175 minimum, or 0.095% of Kentucky gross receipts or profits when those exceed $3 million; credited against owners' income tax. |
A single-member LLC is a disregarded entity: profit flows to the owner's personal return. Federal income tax applies in every state. Non-US owners without US-source business income generally owe no US income tax but must file Form 5472 with a pro-forma 1120 each year.
Pros and cons
Why form in Kentucky
- One of the cheapest filings at $40
- Low $15 annual report
- Flat 3.5% income tax
Watch out for
- Limited liability entity tax (LLET) for larger businesses
- Local occupational license taxes are common
Best for: Founders who want a very cheap filing · Kentucky-based small businesses
Kentucky LLC: common questions
How much does an LLC cost in Kentucky?
Filing the Articles of Organization in Kentucky costs $40. After that, expect $15 a year for the annual report. Annual report: $15, due by June 30 each year. A commercial registered agent, if you need one, is typically $50–$300 a year extra.
Do I need a registered agent in Kentucky?
Yes. Kentucky requires every LLC to keep a registered agent with a physical street address in the state to accept legal and tax notices. You can act as your own agent if you live there, but non-residents and owners who want privacy usually pay a commercial agent, typically $50–$300 a year.
Can a non-US resident form an LLC in Kentucky?
Yes. Kentucky does not require US citizenship, residency or an SSN to own an LLC; you need a Kentucky registered agent address and then an EIN from the IRS (by fax or mail with Form SS-4 if you have no SSN). A foreign-owned single-member LLC must also file Form 5472 with the IRS every year, even with no US income. Check what Kentucky publishes, since member or manager names may appear in public filings. US-formed LLCs are exempt from FinCEN beneficial ownership (BOI) reporting after the March 2025 interim rule; only entities formed under foreign law and registered in the US must still report.
Does Kentucky have a state income tax?
Yes. Flat 3.5% for 2026 (down from 4%). LLC profits normally pass through to the owners' personal returns. Corporate income tax: Flat 5% on net income.
What is the Kentucky LLET?
The Limited Liability Entity Tax applies to LLCs and other pass-through entities, at the greater of $175 or 0.095% of Kentucky gross receipts or profits. Entities with under $3 million in Kentucky gross receipts or profits owe only the $175 minimum, and the owners can claim a credit against their individual income tax.
Sources
Kentucky Secretary of State business filings
- Kentucky Secretary of State / business filing office
- Tax Foundation – 2026 state income tax rates
- LLC University – LLC filing and annual fees by state (cross-check)
Similar states
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.