How Much Does an LLC Cost in Kentucky? (Filing Fees Guide)

If you’re eyeing Kentucky for your LLC, you’re lucky because it’s pretty affordable to start. In fact, this the cheapest state to form your LLC in the U.S.

The state filing fee is just $40, and you’ll need to pay an annual report fee of $15. Not too shabby, right?

But let’s dive a bit deeper.

In addition to the state filing and annual report fees, you might need a registered agent if you don’t handle it yourself. Reserving your LLC name and filing for a “Doing Business As” (DBA) name are optional steps.

Additionally, depending on your business and location, you may need various licenses and permits, and a Certificate of Good Standing might be required for loans or expansion.

Understanding these extra costs and fees for Kentucky LLC helps you budget better and avoids surprises.

How Much Does an LLC Cost in Kentucky?

Starting an LLC in Kentucky is relatively affordable.

The main cost to consider is the filing fee.

• Filing Fee: Filing the Articles of Organization costs $40. This essential document legally establishes your LLC with the state.
• Annual Fees: Kentucky requires an annual report fee of $15. This fee is necessary to keep your LLC in good standing and stay current with applicable tax obligations.
• Additional Costs: While the filing fee is the primary expense, there are other potential costs to keep in mind:
  • Business licenses – depending on your business type.
  • Registered agent fees – if you hire a professional service, which typically ranges from $100 to $300 per year.
• Types of LLCs: Consider Professional LLCs or Series LLCs, which may have different associated fees and offer specific benefits and flexibility for various business needs.

When planning, remember that the $40 fee is a one-time payment. Like a sole proprietorship or partnership, your LLC protects personal assets and benefits from pass-through taxation.

LLC Costs in Kentucky (Formation Fees)

Here’s a breakdown of the Kentcuky LLC key requirements and their fees:

Kentucky LLC Requirements	Cost
LLC Business Name Cost	$0
Articles of Organization	$40
Operating Agreement (optional)	$0 (with Northwest)
EIN Number	$0 (free from IRS)
Annual Report	$15 / annually
LLC Name Reservation Fee (optional)	$15
Certificate of Good Standing (optional)	$10
Foreign LLC Registration (optional)	$90
Fictitious Name (DBA) (optional)	$30
Taxes	Varies
State Business License Fee	Varies depending on the type of business and its location
Registered Agent Services	$0-$125 (Northwest)
LLC Formation Services	$39
Total LLC Costs in Kentucky	$55 – $364

Total LLC costs in Kentucky range from $55 to $364. If you do everything yourself and skip the optional extras, you might only spend around $55. However, if you decide to pay for additional services and requirements, your costs could go up to between $200 and $364.

The first mandatory expense is the Articles of Organization, which cost $40. You’ll also need to pay an annual report fee of $15 to maintain your LLC’s good standing with the state. Obtaining an Employer Identification Number (EIN) is free from the IRS.

Now, let’s discuss the optional costs.

While having an Operating Agreement is recommended, it can be obtained at no cost if you use services like Northwest. Your LLC business name costs $0; you can choose any available name without a fee.

If you want to reserve your LLC name, that will cost you $15. You can request a Certificate of Good Standing for $10, and if you plan to register a Kentucky foreign LLC, that would incur a fee of $90. If you wish to operate under a different name (DBA), you must pay $30.

Regarding registered agent services, you can either act as your agent at no cost or hire a professional service, which typically ranges from $0 to $300, depending on the provider. Suppose you use an LLC formation service that typically costs around $39. Additionally, remember that taxes and state business license fees can vary, with a state business license fee of $0.

Understanding these mandatory and optional costs will help you budget effectively as you embark on your business journey in Kentucky.

Keep reading to get a full breakdown of the costs and tips on saving when forming your Kentucky LLC!

Kentucky LLC Business Name Cost ($0)

When forming an LLC in Kentucky, choosing a business name does not cost anything. You can select a name that fits your business needs without worrying about fees.

It’s important to ensure that the name you want is unique and not already in use. You can check the availability of your desired name through the Kentucky Secretary of State’s website. This will help you avoid any legal issues later on.

If your chosen name is unavailable, you may need to get creative. Consider variations or additions to your name, such as using initials or location identifiers.

Choosing a strong name is an important part of building your brand. Focus on something that reflects your business’s mission and values. Since selecting a name is free, take your time to make the right choice.

Kentucky Articles of Organization Fee ($40)

You must file the Articles of Organization to form an LLC in Kentucky. This document is essential as it officially creates your LLC. The fee for this filing is $40.

You can pay this fee in various ways: cash, check, or debit/credit card. Make your check payable to the Kentucky State Treasurer.

This $40 fee is a one-time cost. Once you submit your Articles of Organization and the fee, you will have taken a significant step in starting your business. It’s the first formal step in establishing your limited liability company.

The Kentucky LLC processing time for the Articles of Organization is immediately when you file online and up to a week when you file by mail.

If you are a veteran, you may qualify to file your LLC for free. If you meet the state’s criteria, this can be a helpful benefit.

Remember that while the filing fee is straightforward, other costs may arise. These can include fees for additional documents or services if you need them. Always check current requirements with the Kentucky Secretary of State for fee updates or changes.

LLC Operating Agreement Cost in Kentucky ($0 with Northwest)

Creating an LLC operating agreement in Kentucky is essential for managing your business effectively, but it doesn’t have to break the bank.

When you start your LLC with Northwest Registered Agent, you can obtain an operating agreement at no extra cost. This fantastic benefit helps you save money right from the start.

While Kentucky law doesn’t require an operating agreement, having one is crucial for defining how your LLC will be run. It outlines key aspects of your business, including:

• Ownership Distribution: Who owns what percentage of the LLC?
• Management Structure: Will your LLC be managed by members or by appointed managers?
• Voting Rights: How will decisions be made within the LLC?
• Duties and Responsibilities: What are each member’s specific roles and obligations?
• Profit and Loss Allocation: How will profits and losses be distributed among members?
• Dispute Resolution: What process will be followed to resolve conflicts among members?

By taking advantage of Northwest’s free operating agreement service or by creating one yourself, you keep your start-up costs low while ensuring that your LLC is well-organized and prepared for future success.

Kentucky Registered Agent Fee ($0-$300/year)

When forming an LLC in Kentucky, you must choose a registered agent. This agent is responsible for receiving legal documents and important state communications. The fees for this service can vary widely.

If you decide to be your registered agent, there is no fee. This option gives you full control over the process.

Using a professional Kentucky registered agent service can cost more. Typical annual fees usually range from $100 to $300. Most services charge this amount to handle your documents and ensure compliance.

For example, Northwest Registered Agent offers $0 for the first year you use their services. After that, their fees start at around $125 annually, which renews annually. This is an affordable option when considering the benefits of professional service.

Choosing the right registered agent can save you time and effort, helping your LLC operate smoothly in Kentucky.

EIN Cost in Kentucky ($0 from the IRS website)

When starting an LLC in Kentucky, you’ll need an Employer Identification Number (EIN). This number is essential for tax purposes and other legal requirements.

The best part is that obtaining an EIN is free. You can apply for it directly from the IRS website. There’s no charge, so you can save money while taking this important step.

To apply for your EIN, you can follow these simple steps:

• Visit the official IRS website.
• Complete the online application form.
• Submit the form to receive your EIN immediately.

Be careful with third-party websites that may charge a fee for this service. They often take advantage of those who may not know you can obtain your EIN for free.

Once you have your EIN, keep it in a safe place. You’ll need it to open a business bank account and file taxes.

Kentucky LLC Annual Report Fee ($15/annually)

You must file an annual report if you operate an LLC in Kentucky. The fee for this report is $15. This requirement helps keep your business in good standing with the state.

You can file your Annual Report online or by mail. Filing online is often quicker and more straightforward. To submit your report, simply confirm your business information and make the payment.

It’s important to file your report by June 30 each year. If you miss this deadline, your LLC could lose its good standing. You will receive a notice after July 1, allowing you an extra 60 days to submit your report without any penalties.

Pay your fee promptly. This will help you avoid any issues with your LLC status. Timely filing keeps your business compliant and ready for ongoing operations in Kentucky.

Fictitious Name/DBA Cost in Kentucky ($20)

In Kentucky, if you want to use a different name for your LLC, you need to file a DBA, also known as a fictitious name. This process is simple and costs $20.

When you submit your application, you reserve a name for your business. The name must be unique and not already used by another state business.

You must renew your DBA every five years. The renewal fee is also $20. You can do it online or mail the Certificate of Renewal of Assumed Name form to renew. This ensures your business continues to be recognized under your chosen name.

If you decide to change your DBA name or update the business address, you must file a new registration. This also involves filling out specific forms and paying the fee again.

LLC Name Reservation Fee in Kentucky ($15)

In Kentucky, if you want to reserve your LLC name, you must pay a fee of $15. This fee allows you to secure a name for your LLC for up to 120 days before you file the formation documents.

Reserving your name is a smart move. It prevents others from using the name while you prepare the necessary paperwork. If you’re concerned about your preferred name being taken, this step can give you peace of mind.

To reserve an LLC name, you will file a form called the Reservation or Renewal of Reserved Name with the Kentucky Secretary of State. You can do this online or by mail.

Your application must include the desired LLC name and the fee. Ensure the name complies with Kentucky naming rules, which require it to be unique and not too similar to existing businesses.

Kentucky Certificate of Good Standing ($10)

A Certificate of Good Standing is an important document for your LLC in Kentucky. It shows that your business is legally registered and compliant with state regulations.

To obtain this certificate, you need to pay $10. You can request it through the Kentucky Secretary of State’s office. This document is essential for various business activities, such as applying for loans or conducting contracts.

You can request a Certificate of Good Standing in a few simple steps:

• Visit the Kentucky Secretary of State’s website.
• Complete the application form.
• Pay the $10 fee via approved payment methods.

Remember that the certificate reflects your business status at the time of the request. Any outstanding taxes or legal issues might affect your status.

A Certificate of Good Standing shows potential partners and clients that your business is reliable and compliant.

Foreign LLC Registration Fee ($90)

If you want to operate a foreign LLC in Kentucky, register it with the state and pay a registration fee of $90.

A foreign LLC is an entity that was formed in another state but does business in Kentucky. You must file a Certificate of Authority with the Kentucky Secretary of State to start the process.

After you submit the necessary paperwork, you must pay the fee. You can pay using various methods, including cash, check, or credit/debit card.

Be aware that additional fees may apply to paper filing. Check with the Secretary of State’s office for the most current costs. Keeping track of these fees ensures you’re prepared for your business expenses.

Filing this registration is essential to legally operating your business in Kentucky. Plan your budget to include this fee as you expand your business into the state.

Kentucky State Business License Fee (varies depending on the type of business and its location)

Obtaining a state business license in Kentucky is affordable because the state does not charge a fee for this license. However, the specific requirements and any additional local fees can vary depending on your business type and location.

For example, certain industries or professions might need special permits or licenses at the city or county level, which can come with additional costs. Understanding these variations ensures your business remains compliant while allowing you to plan for any location-specific fees.

Staying informed and compliant with all requirements helps your business operate smoothly without unexpected costs.

Even though the state fee is zero, knowing what to expect based on your business type and location will help you avoid surprises as you establish your business in Kentucky.

Kentucky LLC Taxes (varies, filed and/or paid every year)

As an LLC owner in Kentucky, you have various tax responsibilities. Here are some taxes you may need to pay:

• Federal Tax: LLCs typically do not pay federal tax as a business. Instead, profits pass through to your tax return.
• State Income Tax: Kentucky charges individual income tax. The tax rate varies based on income levels.
• Local Income Tax: Depending on your location, you might have to pay local income taxes. Check with your city or county for specific rates.
• Self-Employment Tax: If you are self-employed, you will pay self-employment taxes on your earnings. This helps fund Social Security and Medicare.
• Sales and Use Tax: If your LLC sells goods or services, you may owe sales tax. This applies to retail sales in Kentucky.
• Payroll Tax: If you have employees, you must withhold and pay payroll taxes, which include Social Security and Medicare taxes.
• Property Tax: If your LLC owns property, you will be responsible for property taxes. Rates depend on the local government.

Like all LLCs, Kentucky LLCs are taxed as pass-through entities by default, which means you report your LLC’s profits and losses on your tax returns. Keeping track of all these tax obligations is essential to ensure compliance with federal, state, and local laws.

Kentucky LLC Reinstatement Fee ($100)

If your LLC has been administratively dissolved in Kentucky, you can reinstate it in good standing. The reinstatement fee is $100, which is required to complete the process.

In addition to the reinstatement fee, you must address any missed annual reports. Each report costs $15. There is no late fee for these past-due reports, so you pay only what you owe.

You will submit your payment along with the reinstatement application. Make sure to include any required documents to avoid delays.

It’s important to check that your application is complete. Incomplete applications can lead to further complications and fees.

Remember, paying the reinstatement fee helps ensure your LLC is recognized and compliant with state regulations. Keeping your business in good standing is crucial for future operations.

Kentucky LLC dissolution fee ($40)

Dissolving your LLC in Kentucky is straightforward. You will need to pay a $40 filing fee, a one-time charge required by the Kentucky Secretary of State.

To initiate the dissolution, complete the Articles of Dissolution form. This form is essential to inform the state that your LLC is closing.

Once filled out, you should send the form along with your check for $40. Make sure the check is payable to the Kentucky State Treasurer.

It’s important to settle all your business obligations, like debts and taxes, before you dissolve your LLC. This helps to avoid any future legal issues.

The dissolution process officially ends your business’s existence in Kentucky, so double-check that you have completed all required steps. Keeping a record of the submitted documents and payment is also a good practice. This way, you have proof that your LLC has been properly dissolved.

Kentucky LLC Change of Registered Agent Fee ($10)

Changing your registered agent in Kentucky is straightforward and costs $10. This fee is for filing the Statement of Change of Registered Agent form.

To start, you must complete the change form, which you can mail or file in person. After filling out the form, you can pay the fee with cash, check, or debit.

Keep in mind the payment is non-refundable. Ensure your new registered agent has signed the consent section of the form. This confirms their acceptance.

You can also change your registered agent online. This can be a quicker way to handle the process, but the fee will remain the same.

Ensuring your registered agent is up-to-date is important for your LLC. A valid registered agent helps you stay compliant with state laws.

What is the Cheapest Way to Start Kentucky LLC?

Starting an LLC in Kentucky can be straightforward if you choose the right method. The most affordable option is to file your Articles of Organization directly with the Kentucky Secretary of State. The filing fee is $40, which is a one-time cost.

You can set up your LLC online for $40 or submit a paper form with a check. Filing online is often quicker and more convenient since you avoid mailing delays.

If you decide to use a formation service, be aware that while they help with paperwork, their fees can range from $39 to over $100, depending on the service. Adding these fees makes filing yourself less economical.

While filing yourself is cheaper, consider that you may need to hire a registered agent later. This person receives legal documents for your LLC. Depending on the provider, a registered agent service usually costs between $100 and $300 annually.

Filing alone can save money, but it comes with certain responsibilities. You will need to manage your paperwork and ensure compliance with state regulations.

Should You Use an LLC Formation Service in Kentucky?

When starting an LLC in Kentucky, you might wonder if you should use an LLC formation service. These services, like Northwest Registered Agent, can offer several advantages.

• Peace of Mind: LLC formation services handle the paperwork and details for you, ensuring everything is completed correctly. This saves you time and reduces the risk of errors.
• Staying Compliant: These services help you track necessary filings and deadlines, prevent missed paperwork, and maintain your business’s good standing. They also remind you of key dates and compliance requirements.
• Privacy Protection: Using an LLC formation service can shield your personal information. By acting as your registered agent, the service keeps your details out of public records, enhancing your privacy.
• Access to Experts: You gain free access to LLC formation experts and attorneys who can answer your questions and provide tailored advice. This professional guidance helps you navigate the process smoothly and effectively.

While there are fees for using these services, many find the benefits worthwhile. The support can be helpful, especially if you’re new to forming a business. Overall, consider your needs and whether the convenience of a formation service fits your situation.

Frequently Asked Questions

What are the ongoing operational costs of LLCs in Kentucky?

The ongoing costs for an LLC in Kentucky include the $15 annual report fee, which is due every year. You may also incur costs for maintaining a registered agent or accounting services.

Should I hire an LLC formation service in Kentucky?

Hiring an LLC formation service can simplify the process. These services handle paperwork and filing for you but come with fees. Weigh the convenience against the cost to decide what’s best for you.

Are there penalties for paying my fees late in Kentucky?

Yes, there are penalties for late payments in Kentucky. If you don’t pay your annual report fee on time, your LLC could face late fees or even dissolution.

Is Kentucky an excellent state in which to start an LLC?

Kentucky is considered favorable for starting an LLC due to its reasonable fees and straightforward regulations. It offers a business-friendly environment that many entrepreneurs find attractive.

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

If your LLC has been dissolved or revoked and you need to reinstate it, the reinstatement application costs $100. You may also need to pay any outstanding fees or penalties.

What happens if I do not file my Kentucky LLC Annual Report?

Failing to file your Annual Report can result in penalties and potential dissolution of your LLC. It is important to keep up with this requirement to maintain good standing.

Do I need to hire an attorney to form an LLC in Kentucky?

You do not have to hire an attorney to form an LLC in Kentucky. Many people complete the process on their own. However, consulting a lawyer can be helpful if you have specific legal questions or need assistance with complex issues.