How Much Does a Kentucky LLC Cost? (2026)
A Kentucky LLC costs $40 to form - the Articles of Organization filing fee paid to the Kentucky Secretary of State. After that, each year you pay a $15 annual report by June 30 and a minimum $175 Limited Liability Entity Tax (LLET) to the Department of Revenue, for a recurring state minimum of about $190. Kentucky has no general state business license fee.
Quick Answer
- Formation fee
- $40 - Articles of Organization (Secretary of State)
- Annual report
- $15 per year, due June 30
- LLET minimum
- $175 per year (Department of Revenue)
- EIN
- $0 (free from the IRS)
- State business license
- None - local fees vary by city/county
- Recurring state minimum
- ~$190/year (report + minimum LLET)
The One-Time Formation Cost: $40
The single required cost to create a Kentucky LLC is the $40 filing fee for the Articles of Organization, paid to the Kentucky Secretary of State. This is a one-time charge whether you file online through the One Stop / FastTrack portal or on paper. There is no separate "processing" surcharge for standard filing. Filing the Articles is what legally brings the LLC into existence; the step-by-step process is covered in how to form an LLC in Kentucky.
Kentucky also requires you to record a file-stamped copy of your accepted Articles with the county clerk in the county of your registered office. County clerk recording fees are set locally and vary by county, so confirm the amount with your county clerk. For a plain-English overview of the entity itself, see what an LLC is.
Kentucky LLC Fee Schedule (2026)
The table below lists the state fees a Kentucky LLC may encounter, each verified against the Kentucky Secretary of State fee schedule and the Department of Revenue. Amounts are effective for 2026 and are set by the state, not by any filing service. Compare with other states using the national LLC cost guide.
| Item | Filing | Fee (2026) | When |
|---|---|---|---|
| Form the LLC | Articles of Organization | $40 | Once, at formation |
| Annual report | Annual Report | $15 | Yearly, by June 30 |
| Minimum state tax | Limited Liability Entity Tax (LLET) | $175 | Yearly |
| Reserve a name (120 days) | Reservation of Name | $15 | Optional, before filing |
| Assumed (DBA) name | Certificate of Assumed Name | $20 | Optional |
| Change registered agent/office | Statement of Change | $10 | As needed |
| Reinstatement penalty | After administrative dissolution | $100 | As needed |
| Articles of Dissolution | Close the LLC | $40 | At closing |
| Federal EIN | IRS Form SS-4 | $0 | After formation |
Annual Report: $15 Every June 30
The Kentucky annual report is the recurring Secretary of State cost. It carries a $15 fee and is due June 30 each year; it can be filed any time between January 1 and June 30. The report simply confirms the LLC's principal office, registered agent, and management. Missing the June 30 deadline triggers administrative dissolution, so this small fee protects your LLC's good standing. Full details are in the Kentucky annual report guide.
Limited Liability Entity Tax: $175 Minimum
The Limited Liability Entity Tax (LLET) is the recurring Department of Revenue cost and is usually the largest annual state charge for a small Kentucky LLC. Every LLC owes a minimum LLET of $175. An entity with $3,000,000 or less in Kentucky gross receipts or gross profits pays only that $175 minimum. Above the threshold, the LLET is the lesser of $0.095 per $100 of Kentucky gross receipts (0.095%) or $0.75 per $100 of Kentucky gross profits (0.75%), with a sliding scale between $3,000,000 and $6,000,000.
The LLET is reported on the entity's Kentucky return - Form 720 (corporations), Form 725 (single-member LLCs), or Form 765 (partnerships and multi-member LLCs) - generally due by the 15th day of the fourth month after the tax year ends. Because the LLET applies on top of any income tax the members owe on pass-through income, factor it into your annual budget. To compare how the LLET and self-employment tax land under different structures, see S-corp vs LLC.
Total Ongoing Cost: About $190 per Year
Adding the $15 annual report to the $175 minimum LLET, the recurring state minimum for a small Kentucky LLC is about $190 per year, before any income tax on profits. That figure rises only if your LLC exceeds the $3,000,000 LLET threshold, needs a local business license, or hires a paid registered agent or accountant. Unlike some states, Kentucky does not layer a separate yearly Secretary of State "franchise" charge on top of the annual report.
Business License and Local Costs
Kentucky has no general statewide business license, so there is no single state license fee. However, many cities and counties require a local business license or impose an occupational (payroll) license tax, and regulated professions carry their own license fees. These local costs vary widely by jurisdiction and by industry, so check with your city and county. See business licenses in Kentucky and the national business license overview for how to identify what applies to you.
Optional and Situational Costs
Several Kentucky LLC costs are optional or situational rather than required. A name reservation costs $15 and holds a name for 120 days before you file. A DBA (Certificate of Assumed Name) costs $20. Changing your registered agent or registered office costs $10. Hiring a commercial registered agent typically runs an annual service fee set by the provider, not the state. An EIN from the IRS is always free - no third party is needed to obtain one.
Cost to Close a Kentucky LLC
Closing a Kentucky LLC voluntarily costs $40 to file Articles of Dissolution with the Secretary of State, after you settle debts and final taxes. If your LLC was administratively dissolved for missing the annual report and you want to revive it, reinstatement costs a $100 penalty plus any delinquent annual report fees. The full wind-up steps are in how to dissolve an LLC in Kentucky and the national dissolution overview.
Beyond the one-time formation fee, owners should budget for recurring costs of keeping the LLC compliant: the periodic report fee, any state franchise or privilege tax, and - if the owner does not act as their own agent - an annual registered agent fee. Planning for these ongoing amounts avoids the common surprise of treating formation as a single up-front expense.
Several advertised 'LLC costs' are optional and set by private companies rather than the state, including formation services, expedited processing, and premium registered agent packages. The mandatory costs are the ones charged by the state and the IRS; the federal employer identification number, for example, is always free directly from the IRS, and paying a third party for it is unnecessary.
Frequently Asked Questions
How much does it cost to start an LLC in Kentucky?
The one-time state cost is the $40 Articles of Organization filing fee paid to the Secretary of State. A federal EIN is free. County clerk recording fees and any local business license fees vary by jurisdiction.
What are the ongoing annual costs of a Kentucky LLC?
Each year a Kentucky LLC pays a $15 annual report fee by June 30 and a minimum $175 LLET to the Department of Revenue - roughly $190 per year in recurring state minimums, before income tax.
Does Kentucky charge a franchise tax on LLCs?
Kentucky has no traditional corporate franchise tax, but LLCs owe the LLET. The minimum is $175, and entities with $3,000,000 or less in Kentucky gross receipts or gross profits pay only that minimum.
Is there a Kentucky business license fee?
There is no general statewide business license, so no single state fee. Many cities and counties charge a local business license fee or occupational tax that varies by jurisdiction.
How much does it cost to reinstate a Kentucky LLC?
A reinstatement application, a $100 reinstatement penalty, and any delinquent annual report fees are required to return an administratively dissolved LLC to good standing.
Related
- How to form an LLC (cluster hub)
- How to form an LLC in Kentucky
- Kentucky annual report & LLET
- Kentucky registered agent
- Business licenses in Kentucky
- How to dissolve an LLC in Kentucky
- How much does an LLC cost? (national)
- How to get an EIN
Sources
- Kentucky Secretary of State - Business Filing Fees ($40 Articles of Organization; $15 annual report; $10 change of registered agent; $15 name reservation; $20 assumed name; $40 Articles of Dissolution; $100 reinstatement penalty).
- Kentucky Secretary of State - Annual Reports ($15 fee; June 30 deadline).
- Kentucky Secretary of State - Dissolution (Articles of Dissolution).
- Kentucky Secretary of State - FastTrack Online Filings.
- Kentucky One Stop Business Portal - Structure & Registration (county clerk recording).
- Kentucky Department of Revenue - Corporation Income & Limited Liability Entity Tax ($175 minimum LLET; $3,000,000 threshold; 0.095% / 0.75% rates).
- Kentucky Department of Revenue - Business Tax Registration (no general state business license; local licenses / occupational tax).
- Kentucky Department of Revenue - Pass-Through Entities (Form 725 / Form 765).
- IRS - Get an Employer Identification Number (free EIN).
- IRS - About Form SS-4.
- IRS - Limited Liability Company (LLC) (federal classification).
- Cornell Law School (LII) - 26 CFR § 301.7701-3 (entity classification).
LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current requirements with the Kentucky Secretary of State and Kentucky Department of Revenue before acting.