A limited liability company (LLC) is a popular choice for small business owners because of its many advantages. An LLC, like a corporation, gives owners personal liability protection from business debts and liabilities. In addition, an LLC has a flexible management structure and tax options.
Here are the steps you need to take to form an LLC in Kentucky. For more information on how to form an LLC in any state, check out our article on how to start an LLC. You can also use our online LLC formation service to register your LLC.
When you start your business, you'll need to choose a business name. When picking a name for your business, you must follow Kentucky's laws for LLC names.
LLC name must be distinguishable. You must pick a name for your LLC's name that's distinguishable (different) from the names of other business entities already on file with the Kentucky Secretary of State (SOS). You can check which names have already been taken using the SOS's business entity search. (Ky. Rev. Stat. § 14A.3-010 (2024).)
LLC name must include an entity designator. Under Kentucky law, an LLC must end with the words "limited liability company" or "limited company," or the abbreviation "LLC," or "LC." You can abbreviate the words "limited" as "Ltd." and "company" as "Co." (Ky. Rev. Stat. § 14A.3-010 (2024).)
Name reservation. You can reserve an available name for 120 days by filing a Reservation or Renewal of Reserved Name with the SOS. As of 2024, the filing fee for the application is $15. (Ky. Rev. Stat. § 14A.3-020 (2024).)
Using an assumed name. When doing business, you don't have to use your LLC's legal name registered on its articles of organization. Instead, you can use another name—sometimes called an "assumed name," "DBA," (short for doing business as), "trade name," or "fictitious business name." If you use an assumed name, you must register it with the SOS. To register your assumed name, you must file a Certificate of Assumed Name with the SOS. You can file the certificate online or by mail. As of 2024, the filing fee is $20. (Ky. Rev. Stat. § 365.015 (2024).)
Every Kentucky LLC must have an agent for service of process in the state—known as a "registered agent." A "registered agent" is an individual or business entity that agrees to accept legal papers on the LLC's behalf if it's sued.
In Kentucky, the registered agent must be either a:
Your registered agent must have a physical street address in Kentucky. Your registered agent must sign your articles of organization to accept their appointment.
(Ky. Rev. Stat. § 14A.4-010 (2024).)
You can form a Kentucky LLC by filing Articles of Organization for a Limited Liability Company (Form KLC) with the SOS. The articles must include the following information:
An organizer (the person who prepares and submits the articles) and the registered agent must sign the articles.
(Ky. Rev. Stat. § 275.025 (2024).)
You can file your articles online through the SOS's FastTrack filing system. Alternatively, you can submit the articles by mail.
As of 2024, the filing fee for Kentucky Articles of Organization is $40.
In Kentucky, LLCs aren't required to have an operating agreement. But it's highly recommended that you create one for your LLC.
An operating agreement—like bylaws for a corporation—will establish the rules and procedures for how your LLC will operate, including your LLC's management structure. You don't need to file your operating agreement with the state but you should put it in writing.
Your operating agreement should generally cover:
The agreement also lets you make your own rules for your LLC. Without an operating agreement, Kentucky's default LLC laws will govern how your LLC operates. In addition, an operating agreement can help preserve the LLC owners' limited liability protection by showing that the LLC is truly a separate business entity from its owners.
For help creating an LLC operating agreement, you can use our online LLC formation service.
Your LLC will likely need to comply with tax and regulatory requirements, including applying for business licenses and permits and registering for other business taxes.
EIN. If your LLC has more than one member, it must obtain a federal employer identification number (EIN), even if it has no employees. If you form a single-member LLC, you must obtain an EIN only if you'll have employees or you elect to have your LLC taxed as a corporation instead of a sole proprietorship (disregarded entity). You can obtain an EIN by completing an online EIN application on the IRS website. There's no filing fee.
Business licenses. Depending on your business location and activities, your LLC might need to obtain local and state business licenses. For example, you might need to apply for a professional license or license from your city. You'll need to make sure that you and your business have all necessary operational, tax, and professional licenses and all required zoning and building permits. See our article on Kentucky business licenses for more guidance.
Kentucky Department of Revenue. If you have employees or will be selling goods and collecting sales tax, you'll need to register with the Kentucky Department of Revenue (USTC). You can register your business online for most taxes with the DOR by completing One Stop Registration via the Kentucky Online Gateway (KOG). For more information on Kentucky LLC tax registration, check out our article on Kentucky annual tax and LLC filing requirements.
Here are some other questions you might have about your Kentucky LLC.
If you're just starting your business or have already been operating as a sole proprietor, you should consider forming an LLC. LLCs limit an owner's personal liability for business debts and lawsuits and offer a lot of flexibility when it comes to ownership, management, and taxation of the business.
To learn more about LLCs and decide if it's the right business structure for you, see our article on LLC basics.
Below are the fees (as of 2024) you might need to pay to form your LLC in Kentucky:
Filing on your own is often the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another option, but it will often cost you hundreds, if not thousands, of dollars in the process. If you'd like help completing all the filings, try our online LLC formation service.
To learn more about the costs associated with forming and running an LLC, see our article on how much it costs to form an LLC.
Yes. Every LLC must file an Annual Report with the SOS. You must submit your report by June 30 each year. You'll need to confirm basic information about your LLC each time.
You can submit your annual report online or by mail. As of 2024, the fee to submit your annual report is $15.
(Ky. Rev. Stat. § 14A.6-010 (2024).)
For more details, see our article on LLC annual reports and tax filing requirements in Kentucky.
Apart from annual reports, your LLC will need to file and pay applicable taxes to the local, state, and federal governments. In addition, your LLC might need to obtain and periodically renew any required general or special business licenses or permits. You'll be responsible for keeping track of these maintenance requirements to keep your LLC in good standing and legally compliant.
Starting in 2024, all LLCs were previously required to submit a beneficial ownership information (BOI) report to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. However, in March 2025, after some constitutional challenges, FinCEN revised the BOI reporting rule so that the requirement only applies to companies created outside the U.S. So, if you form your LLC within the U.S., then you no longer need to worry about the BOI reporting requirement.
You're not required to have an operating agreement for your LLC in Kentucky. Though, it's highly advisable to have one. An operating agreement can help protect your limited liability status, prevent financial and managerial misunderstandings among members, and ensure that you choose the rules that govern your business instead of your state's default rules.
Kentucky, like many states, doesn't issue a general business license at the state level. However, depending on your location and business activities, you might need to obtain a license or permit from the state or your local government. Every city and county has its own requirements so be sure to check out your city website or contact local officials for more information.
You could need professional licenses, tax licenses or registrations, safety certifications, environmental permits, and building permits. For an overview, check out the start my business webpage on the Kentucky Business One Stop website.
You can find extensive details about state and local regulatory requirements in our Kentucky business license article.
LLCs are considered "pass-through entities" (PTEs) by default, meaning the responsibility for paying taxes on the LLC's income passes through to the members. So, an LLC member will report and pay taxes on their share of the LLC's income on their personal tax return.
However, there are other taxing scenarios that you should be aware of. Some LLCs elect to be taxed as a corporation rather than as a partnership (a type of PTE). Alternatively, Kentucky allows LLCs to pay income tax at the entity level through the pass-through entity tax (PET). If you elect to have your LLC pay the PET, then your LLC will be taxed at the entity level on behalf of the members (owners). You'd then claim a tax credit on your personal return for the tax already paid on your behalf by your LLC. You'll make these elections and report and pay these state taxes to the DOR.
In addition to income tax, your LLC might be responsible for reporting and paying sales tax, withholding employee wages, and paying unemployment insurance (UI) tax. You'll register to withhold and pay wages and to report and pay sales tax using the Kentucky One Stop Business Portal and KOG. You'll need to register to pay UI taxes to the Kentucky Career Center.
Moreover, Kentucky imposes a limited liability entity tax on LLCs and other businesses with limited liability. The tax is calculated based on your LLC's gross receipts or profits with a minimum tax of $175.
See our article on Kentucky tax filing requirements for more details.
Yes. To do business in Kentucky, all LLCs organized outside of the state (called "foreign LLCs") must register with the SOS. Your foreign LLC must appoint a registered agent for service of process that's physically located in Kentucky.
To register, file a Certificate of Authority with the SOS. The registered agent must sign the certificate or you must include an attachment with the registered agent's written consent to the appointment.
You can file the certificate online using the SOS's FastTrack filing system or you can submit the filing by mail. As of 2024, the filing fee for a Certificate of Authority is $90.
Before filing, make sure the LLC's name is available in Kentucky. If your LLC's name isn't available, your LLC must adopt a fictitious name for use in the state.
(Ky. Rev. Stat. §§ 14A.9-010 and following (2024).)
See our article on qualifying to do business outside your state for more guidance.
Yes. For most formation purposes, a Kentucky single-member LLC is considered the same as a multi-member LLC. The steps to form a single-member LLC in Kentucky are generally the same as those listed above.
Single-member LLCs do have additional flexibility when it comes to filing a tax return. To learn more, see our article on how single-member LLCs pay federal income tax.
Yes. If you provide a licensed professional service in Kentucky and want to form an LLC, you can form a professional LLC (PLLC). For example, architects, attorneys, dentists, physicians, and certified public accountants provide professional services. In general, if you or your business need a license, certification, or other legal authorization to provide a service, then you provide a professional service.
You can form a PLLC by submitting Articles of Organization Professional Limited Liability Company (Form PLC) to the SOS. In your articles, you must indicate which profession you'll practice under your PLLC.
If you reach the point where it's time to close your business and cease all operations, then you'll want to properly dissolve your LLC to limit your liability for lawsuits and government fees. To dissolve an LLC in Kentucky, you should:
(Ky. Rev. Stat. §§ 275.285 and following (2024).)
You'll also need to close your tax accounts and take any other steps necessary to close out your business. See our article on what you need to do when closing your business for more in-depth information and guidance.
Ready to start your LLC?
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