How to Start an LLC in Kentucky (2026)

Q: How much does it cost to start an LLC in Kentucky?

Only $40 for the Articles of Organization, which is the lowest formation fee in the country. Your EIN is free from the IRS. The annual report is $15. The cost most guides leave out is the Limited Liability Entity Tax, which has a $175 minimum every year, so plan on roughly $190 a year to run a Kentucky LLC.

Q: What is the Kentucky LLET?

The Limited Liability Entity Tax is a Department of Revenue tax on every business that receives limited liability protection under Kentucky law, including single-member LLCs. It is calculated on gross receipts or gross profits, with a minimum of $175 per taxable year. It is separate from the Secretary of State annual report and it is the main ongoing cost of a Kentucky LLC.

Q: When is the Kentucky annual report due?

Between January 1 and June 30 each year, starting the year after your LLC is formed. It costs $15 and is filed with the Secretary of State. If you miss it, your entity is listed in bad standing, which can show up when a client, bank, or insurer checks you.

Q: Is Kentucky a cheap state to form an LLC in?

On paper it is the cheapest, at $40 to file and $15 a year. In practice the $175 minimum LLET puts Kentucky in the middle of the pack for total annual cost. It is still a reasonable place to form if you operate there, which is the only sensible reason to pick a state anyway.

Last updated: August 28, 2026

To start a Kentucky LLC, file the Articles of Organization with the Kentucky Secretary of State for $40, name a registered agent with a Kentucky address, and get a free EIN. The annual report is $15, filed between January 1 and June 30. The number to plan for is not the filing fee: Kentucky charges a Limited Liability Entity Tax with a $175 minimum every year.

Quick note: we're operators, not attorneys or accountants. This is general educational info, not legal or tax advice. The LLET is a Department of Revenue tax, separate from the Secretary of State fees, and it is the real annual cost here.

Kentucky has the cheapest formation fee in the country and one of the cheapest annual reports. It also has a business tax most state guides forget to mention, which costs more than four years of filing fees. Here are both halves of the picture, written for people starting something real like a courier route.

The $175 tax that makes Kentucky less cheap than it looks Kentucky imposes a Limited Liability Entity Tax (LLET) on every business that gets liability protection from the state, including single-member LLCs. The minimum is $175 per taxable year, regardless of how little you earned. So the honest annual cost of a Kentucky LLC is closer to $190 ($15 report plus $175 LLET), not $15. Talk to a Kentucky tax pro about how it applies to you.

How to start a Kentucky LLC in 6 steps

Name it, appoint a Kentucky registered agent, file the Articles ($40), write an operating agreement, get a free EIN, then file the $15 annual report by June 30 and handle the LLET.

Name your Kentucky LLC

The name must be distinguishable from other Kentucky entities and include an LLC designator. Check it in the Kentucky business search before you file. If you are not ready to file, Kentucky will reserve a name for 120 days for $15.

Appoint a Kentucky registered agent

You need an agent with a physical Kentucky street address who accepts legal papers during business hours. You can be your own if you live in Kentucky, or use a service so your home address is not in a public database. Changing the agent later costs just $10 here. Northwest includes agent service free the first year with their $39 filing.

File the Articles of Organization

File with the Kentucky Secretary of State. The fee is $40, which is the lowest formation fee of any state. You can file online through the Secretary of State's business filings system or on paper.

Write an operating agreement

Kentucky does not require one, but write it anyway. It sets out ownership, management, and who can sign, it backs your liability protection, and banks usually ask for it at account opening. A simple template covers a single-owner courier business.

Get a free EIN from the IRS

Your EIN is free at irs.gov and takes about ten minutes. You need it for the business bank account, contracts, and hiring. Never pay a third-party site for one. You will also use it to register for Kentucky tax accounts.

File the $15 annual report by June 30, and handle the LLET

Every Kentucky business files an annual report between January 1 and June 30 of each year after formation. It costs $15. Miss it and your entity is listed in bad standing, which clients and banks can see. Separately, register with the Department of Revenue and plan for the LLET minimum of $175 per year.

Kentucky LLC cost breakdown

$40 to form and $15 a year at the Secretary of State, plus a $175 minimum LLET at the Department of Revenue.

Item	Cost	Required?
Articles of Organization	$40	Yes
EIN	Free from the IRS	Yes (free)
Registered agent service	$0 (yourself) to $300/yr	No
Annual report (Jan 1 to Jun 30)	$15 per year	Yes
Limited Liability Entity Tax (LLET)	$175 per year minimum	Yes
Name reservation (120 days)	$15	Optional
Change of registered agent	$10	Only if changing

Kentucky figures as of August 2026, from the Secretary of State fee schedule and the Department of Revenue LLET guidance. Local occupational licence fees can apply on top in some cities and counties. Confirm before filing.

Rather have it filed for you? Northwest will form your Kentucky LLC for $39 + the $40 state fee and act as your registered agent the first year, keeping your home address off the public record. See the $39 formation service → Affiliate link. We may earn a commission at no extra cost to you.

Setting up to run courier routes in Kentucky?

The LLC is step one. Our course covers the rest: insurance and certifications, the business bank account, and how to find routes and win contracts with Kentucky clinics, labs, and hospitals.

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Kentucky LLC FAQs

How much does it cost to start an LLC in Kentucky?

The Articles cost $40, the lowest in the country, and the annual report is $15. But budget for the $175 minimum LLET as well, so about $190 a year.

What is the Kentucky LLET?

It is a Department of Revenue tax on entities with limited liability, including LLCs. The minimum is $175 per taxable year, separate from the $15 annual report.

When is the Kentucky annual report due?

Between January 1 and June 30 each year after formation, and it costs $15. Miss it and your entity is listed in bad standing.

Is Kentucky a cheap state to form an LLC in?

The filing fees are the cheapest in the country, but the $175 minimum LLET puts the real annual cost mid-pack. Form where you operate.

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