How to Form an LLC in Kentucky (2026)
Reviewed by DocDraft Legal Team · Kentucky · Last updated 2026-08-06
A limited liability company (LLC) is a business structure that legally separates the company from the people who own it, so the owners are generally not personally responsible for the company's debts. Forming one in Kentucky means filing a formation document with a state agency and paying its fee to bring the company into legal existence. In Kentucky you create an LLC by filing the Articles of Organization with the Secretary of State, and the filing fee is only $40, one of the lowest in the country. Two Kentucky features drive the real cost of running the company. First, every Kentucky LLC files an annual report with the Secretary of State each year for a $15 fee. Second, Kentucky imposes a Limited Liability Entity Tax (LLET) with a minimum payment of $175, collected by the Department of Revenue. Kentucky LLCs are governed by the Kentucky Limited Liability Company Act in KRS Chapter 275. This guide explains what an LLC is, the exact Kentucky steps and fees, and the deadlines that keep the company in good standing.
Find out where you stand in Kentucky
Where are you in forming your LLC?
DocDraft provides document preparation, not legal advice.
How do you form an LLC in Kentucky?
File the Articles of Organization with the Kentucky Secretary of State and pay the $40 filing fee, which you can submit through the Kentucky One Stop Business Portal. You must name a registered agent with a Kentucky street address to accept legal papers. The Secretary of State usually processes filings the same day, though it can take up to three business days.
How much does it cost to form an LLC in Kentucky?
The core cost is the $40 fee to file the Articles of Organization with the Secretary of State, paid once. After that, every Kentucky LLC files an annual report for a $15 fee. Kentucky also imposes a Limited Liability Entity Tax with a minimum payment of $175 each year. Reserving a name in advance costs $15.
Does a Kentucky LLC file an annual report?
Yes. Every Kentucky LLC must file an annual report with the Secretary of State to stay in good standing, and the fee is $15. The report confirms the LLC's registered agent, office address, and management information. Kentucky requires this filing each year, not every two years as some states do.
Does Kentucky require newspaper publication to form an LLC?
No. Kentucky does not require an LLC to publish notice of its formation in a newspaper. This is unlike New York, Arizona, and Nebraska, where publication is a condition of forming or operating. In Kentucky the Articles of Organization filing and the annual report are handled through the Secretary of State, with no separate publication step.
Kentucky LLC formation at a glance
You form a Kentucky LLC by filing the Articles of Organization with the Secretary of State for a $40 filing fee, one of the lowest formation fees in the country, submitted online through the Kentucky One Stop Business Portal at onestop.ky.gov. What sets Kentucky apart is the annual tax layer, not the formation cost. Every Kentucky LLC files an annual report with the Secretary of State each year for a $15 fee, due between January 1 and June 30. Separately, Kentucky imposes a Limited Liability Entity Tax (LLET) with a minimum payment of $175, collected by the Department of Revenue and owed even when the business has little or no net income. Every LLC must name and maintain a registered agent with a physical Kentucky street address. Kentucky does not require newspaper publication. The Secretary of State usually processes documents the same day they are received, but it may take up to three business days. The governing statute is the Kentucky Limited Liability Company Act, KRS Chapter 275.
Forming a two-owner Kentucky LLC, step by step
Suppose two friends in Louisville want to open a small design studio as an LLC. First they search the Kentucky Secretary of State's business database to confirm their name is available and includes a designator such as LLC, and they can reserve the name for a $15 fee while they prepare paperwork. Next they appoint a registered agent: one owner lives in Kentucky and agrees to serve, using a Kentucky street address, not a P.O. box, where legal papers can be delivered during business hours. They then file the Articles of Organization through the Kentucky One Stop Business Portal and pay the $40 filing fee. The Secretary of State usually processes the filing the same day, and the LLC legally exists once it is filed. Because they have two members, they also write an operating agreement setting each owner's percentage and how profits split, even though Kentucky does not require them to file it. They apply to the IRS for a free EIN so the partnership can file taxes and open a bank account. Finally they calendar two recurring Kentucky obligations: the $15 annual report, due each year between January 1 and June 30, and the Limited Liability Entity Tax with its $175 minimum, paid to the Department of Revenue. Missing the annual report can lead the Secretary of State to administratively dissolve the LLC, so both owners set a reminder well before June 30.
Relevant Laws
Kentucky Limited Liability Company Act (KRS Chapter 275)
KRS Chapter 275 governs the formation, management, and dissolution of every Kentucky LLC. It sets who may form an LLC, the required contents of the Articles of Organization, the registered agent requirement, and the default rules for member-managed and manager-managed companies. It is the primary statute Kentucky business owners work from.
KRS 275.025 (Articles of Organization)
Requires a Kentucky LLC to be formed by delivering Articles of Organization to the Secretary of State for filing. The articles state the LLC's name, its registered office and registered agent, its principal office, and whether it is member-managed or manager-managed. The filing fee is $40, among the lowest state formation fees in the country.
KRS 275.135 (Registered office and registered agent)
Requires every Kentucky LLC to continuously maintain a registered office and a registered agent in Kentucky. The agent, an individual residing in Kentucky or a business entity authorized to act as agent, receives lawsuits and official notices for the company. The registered agent's Kentucky street address goes on the Articles of Organization.
KRS 275.190 (Annual report)
Requires a Kentucky LLC to file an annual report with the Secretary of State each year between January 1 and June 30. The report confirms the LLC's registered agent, registered office, principal office, and management. The filing fee is $15, and filing keeps the LLC in good standing and avoids administrative dissolution.
KRS 141.0401 (Limited Liability Entity Tax)
Imposes the Limited Liability Entity Tax (LLET) on LLCs and other limited liability entities doing business in Kentucky. The tax is based on the greater of a gross receipts or gross profits calculation, with a minimum payment of $175. It is administered by the Kentucky Department of Revenue and applies in addition to any income tax that passes through to the owners.
IRS federal tax classification (default pass-through)
The IRS does not tax the LLC as a separate category. By default a single-member Kentucky LLC is disregarded and taxed like a sole proprietorship, and a multi-member LLC is taxed as a partnership, with income passing through to the owners. An LLC may instead elect S corporation or C corporation treatment. This federal classification is separate from Kentucky's Limited Liability Entity Tax, which applies either way.
Regional Variances
How forming an LLC in Kentucky differs from other states
A $40 filing fee, among the lowest anywhere
Kentucky charges just $40 to file the Articles of Organization, far below states like Massachusetts at $500, Nevada at $425, or Texas at $300. For a founder watching startup costs, the one-time formation cost in Kentucky is a small line item, and the ongoing charges matter more over the life of the company.
The Limited Liability Entity Tax minimum of $175
Kentucky imposes a Limited Liability Entity Tax (LLET) with a minimum payment of $175, collected by the Department of Revenue. Many states charge no comparable entity-level minimum tax. The LLET applies on top of the annual report fee and is owed even in a low-income year, so it usually dwarfs the $40 formation cost over time.
Annual report, not biennial
Kentucky requires an annual report each year between January 1 and June 30 for a $15 fee. Some states, including California and New York, use a biennial cycle instead. The yearly cadence in Kentucky means the easiest way to fall out of good standing is simply forgetting the June 30 deadline.
No newspaper publication requirement
Kentucky does not require you to publish notice of formation in a newspaper. New York, Arizona, and Nebraska do, which adds cost and a deadline. A Kentucky LLC is complete once the Secretary of State files the Articles of Organization, with no publication step.
Same-day processing in most cases
The Kentucky Secretary of State usually processes documents the same day they are received, though it may take up to three business days. That is faster than states like Maine, where standard processing can run 40 to 55 business days, so a Kentucky founder can typically start operating quickly.
Suggested Compliance Checklist
Confirm your LLC name is available and compliant
Before filing days after startingSearch the Kentucky Secretary of State's business database to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with the Secretary of State for a $15 fee while you prepare your Articles of Organization.
Appoint a registered agent
Before filing days after startingKentucky requires a registered agent with a physical Kentucky street address who is available during business hours to accept legal documents. Decide whether you, a co-owner who lives in Kentucky, or a commercial registered agent service will serve. You will name the agent on the Articles of Organization, so settle this first.
File the Articles of Organization with the Secretary of State
To create the LLC days after startingFile the Articles of Organization with the Kentucky Secretary of State through the Kentucky One Stop Business Portal at onestop.ky.gov and pay the $40 filing fee. The LLC legally exists only once the Secretary of State files it, usually the same day. Keep the filed confirmation as proof of formation.
Adopt an operating agreement
At or soon after formation days after startingPut the ownership percentages, profit split, management structure, and exit rules in writing. Kentucky's LLC act lets members set their own rules through an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft.
Get a federal EIN from the IRS
Before opening a bank account or hiring days after startingApply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate.
File the annual report between January 1 and June 30
Each year between January 1 and June 30 days after startingFile your annual report with the Kentucky Secretary of State each year during the January 1 to June 30 window. The fee is $15. It confirms the LLC's registered agent, registered office, and management. Missing the June 30 deadline can lead to administrative dissolution of the LLC, so calendar it early each year.
Pay the Limited Liability Entity Tax to the Department of Revenue
Annually with your Kentucky tax return days after startingEvery Kentucky LLC owes the Limited Liability Entity Tax (LLET) under KRS 141.0401, with a minimum payment of $175, calculated on gross receipts or gross profits. Pay the Kentucky Department of Revenue with your annual tax filing, even in a low-income year. Confirm the current calculation and due date with the Department of Revenue, since tax provisions change.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm your LLC name is available and compliant | Search the Kentucky Secretary of State's business database to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with the Secretary of State for a $15 fee while you prepare your Articles of Organization. | - | Before filing |
| Appoint a registered agent | Kentucky requires a registered agent with a physical Kentucky street address who is available during business hours to accept legal documents. Decide whether you, a co-owner who lives in Kentucky, or a commercial registered agent service will serve. You will name the agent on the Articles of Organization, so settle this first. | - | Before filing |
| File the Articles of Organization with the Secretary of State | File the Articles of Organization with the Kentucky Secretary of State through the Kentucky One Stop Business Portal at onestop.ky.gov and pay the $40 filing fee. The LLC legally exists only once the Secretary of State files it, usually the same day. Keep the filed confirmation as proof of formation. | - | To create the LLC |
| Adopt an operating agreement | Put the ownership percentages, profit split, management structure, and exit rules in writing. Kentucky's LLC act lets members set their own rules through an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft. | llc-operating-agreement | At or soon after formation |
| Get a federal EIN from the IRS | Apply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate. | - | Before opening a bank account or hiring |
| File the annual report between January 1 and June 30 | File your annual report with the Kentucky Secretary of State each year during the January 1 to June 30 window. The fee is $15. It confirms the LLC's registered agent, registered office, and management. Missing the June 30 deadline can lead to administrative dissolution of the LLC, so calendar it early each year. | - | Each year between January 1 and June 30 |
| Pay the Limited Liability Entity Tax to the Department of Revenue | Every Kentucky LLC owes the Limited Liability Entity Tax (LLET) under KRS 141.0401, with a minimum payment of $175, calculated on gross receipts or gross profits. Pay the Kentucky Department of Revenue with your annual tax filing, even in a low-income year. Confirm the current calculation and due date with the Department of Revenue, since tax provisions change. | - | Annually with your Kentucky tax return |
Frequently Asked Questions
An LLC, or limited liability company, is a business structure that separates the company from its owners in the eyes of the law. The owners, called members, are generally not personally liable for the company's debts or lawsuits, so a creditor usually cannot reach a member's home or savings for a business obligation. In Kentucky, LLCs are created under the Kentucky Limited Liability Company Act in KRS Chapter 275. An LLC pairs that liability shield with pass-through taxation and lighter paperwork than a corporation, which is why it is the most common structure for small Kentucky businesses.
For many owners, yes. A Kentucky sole proprietorship costs nothing to start but leaves your personal assets exposed if the business is sued or falls into debt. Filing Articles of Organization with the Kentucky Secretary of State costs just $40, one of the lowest formation fees in the country, and creates a legal shield between you and the business. The tradeoff is Kentucky's ongoing charges: a $15 annual report and the Limited Liability Entity Tax. Attorney review of your setup is available if you want a professional opinion first.
Yes. Kentucky imposes a Limited Liability Entity Tax (LLET) on LLCs doing business in the state, collected by the Department of Revenue under KRS 141.0401. It is figured on gross receipts or gross profits, with a minimum payment of $175. The LLET is owed on top of any income tax that passes through to the owners, and the $175 minimum applies even in a year with little or no net income. Many states have no comparable entity-level minimum tax, so budget for it from the start.
The Limited Liability Entity Tax has a minimum payment of $175, and every LLC doing business in Kentucky owes it, even a single-member LLC with modest revenue. The Department of Revenue calculates the actual amount on the greater of a gross receipts or gross profits basis, but it never falls below the $175 floor. You pay it with your annual Kentucky tax filing. Because tax rules change, confirm the current calculation and due date with the Department of Revenue.
Every Kentucky LLC files an annual report with the Secretary of State each year between January 1 and June 30, and the fee is $15. Kentucky uses a yearly cadence, not the biennial cycle some states like California and New York use. The report confirms your registered agent, registered office, and management. Missing the June 30 deadline can lead the Secretary of State to administratively dissolve the LLC, so calendar it early each year to keep good standing.
Yes. If you have settled on a name but are not ready to file the Articles of Organization, you can reserve it with the Kentucky Secretary of State for a $15 fee, which holds the name while you finish your paperwork. First search the Secretary of State's business database to confirm the name is available and includes a required designator such as LLC or Limited Liability Company. Reservation is optional; you can also just file the Articles of Organization directly once the name clears.
Yes. KRS Chapter 275 requires every Kentucky LLC to name a registered agent with a physical Kentucky street address, but you can serve in that role yourself if you live in Kentucky and are available during business hours to accept legal papers. You can also name a co-owner who lives in Kentucky or hire a commercial agent service. A P.O. box is not enough. You list the agent on the Articles of Organization and confirm it on each annual report.
Other Kentucky guides
Ready to Draft Your Document?
Get AI-powered legal documents with attorney review included. Plans start at $39.99/mo.