Kentucky Business License: Who Needs One & How to Apply (2025)
As of 2025, Kentucky doesn’t impose a general business license requirement; instead, business licensing is regulated on a local, state, and federal level.
This means that whether or not you need a Kentucky business license will depend on your business’s location and industry.
This article will cover:
What Is a Business License in Kentucky?
A business license is a permit issued by a local, state, or federal body that allows businesses to perform a specific business activity and/or operate legitimately.
So if there isn’t a “general business license” in Kentucky, what exactly is there?
Well, Kentucky — like the vast majority of states — imposes different requirements based on where you’re located and what you actually do.
For example:
- A restaurant in Louisville will need a food service permit from Louisville Metro Government Health & Wellness and must register with the Louisville Metro Government Revenue Commission for occupational license tax.
- A professional accounting firm in Lexington will need an occupational license from the Lexington-Fayette Urban County Government Division of Revenue and must secure licenses for each of its Certified Public Accountants (CPAs) from the Kentucky Board of Accountancy.
- A retail clothing store in Bowling Green will need to register with the Office of Occupational License and obtain a Sales and Use Tax Permit from the Kentucky Department of Revenue.
- A bourbon distillery in Owensboro will need a Distilled Spirits Plant registration from the federal Alcohol and Tobacco Tax and Trade Bureau, a Class A or Class B Distillery License from the Kentucky Department of Alcoholic Beverage Control, and a local Occupational Business License from the city of Owensboro.
Note: These examples are simplified to illustrate common licensing requirements and do not list every permit that may be needed. Operating without proper licensing can result in penalties including fines, business closure orders, and legal complications. Always research the specific requirements for your business type and location.
Do I Need a Kentucky Business License?
Well, the answer to this will, ultimately, depend on your business’s situation. Look at our table below to get a general idea.
Kentucky Business Licensing at a Glance
| Jurisdiction | Business Licenses | Who Needs It & Where to Apply |
|---|---|---|
| Local |
| Varies by location Contact your local municipality to determine local requirements. |
| State | Sales and Use Tax Account | Businesses selling tangible personal property, digital property, or certain taxable services Apply through the Kentucky Business One Stop Portal or with the Kentucky Department of Revenue. |
| Professional Licenses | Required for regulated professions (e.g., healthcare, construction, real estate, etc.) Apply through the Kentucky Department of Professional Licensing for most professions. | |
| Industry-Specific State Licenses | Businesses in regulated industries (e.g., food establishments, liquor, child care, and companies impacting the environment) Apply through the relevant Kentucky agency. | |
| Federal | Industry-Specific Licenses | Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS) |
*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney.
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How to Get a Business License in Kentucky
The process of obtaining a business license in Kentucky will depend on the permit in question, but generally involves completing the following steps:
1. Form a Business Structure & Obtain an Employer Identification Number (EIN)
We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line.
This also gives other benefits depending on the business model, such as:
- Personal liability protection
- Improved legitimacy
- Larger access to loans and corporate financing
Recommended Business Structure
We generally recommend almost all small business owners to form a limited liability company (LLC). This offers personal liability protection, is extremely affordable, and offers a ton of flexibility when it comes to how it can be taxed and managed.
You can use a formation service for just $29 (excluding the $40 state fee).
Note: You should obtain an EIN after forming your LLC. You can have a look at our How to Get an EIN overview for more information.
2. Apply for the Right Business License in Kentucky
This step will depend on the business license in question.
Kentucky Local Business Licenses
Many Kentucky cities and counties require you to obtain local business licenses or permits. This can be in addition to the common state-wide licenses talked about above.
Here are some common local permits you may need:
- Occupational License (General Business License): In Kentucky, cities and counties require occupational licenses rather than traditional business licenses. The requirements and tax rates vary by location (e.g., if your business is based in Louisville, you’d register with the Louisville Metro Government Revenue Commission and pay a 2.2% occupational license fee).
- Industry Permits: Businesses involved in food preparation, service, or sales must obtain health permits from their local health department. This includes restaurants, food trucks, caterers, grocery stores, and temporary food vendors at events. This varies by location (e.g., if your business is based in Louisville, you’d obtain your food service permit from the Louisville Food Safety Program)
- Zoning Permits: You may need this to ensure your business’s location is zoned appropriately and complies with local laws (e.g., if your business is based in Covington, you’d apply through the Planning and Development Services of Kenton County online portal).
- Sign Permits: Any business installing, modifying, or replacing exterior signage must obtain a sign permit to ensure compliance with local regulations regarding size, placement, height, and lighting standards. For example, if your business is based in Louisville, you’d apply through the Office of Planning where temporary signs are limited to 120 days annually.
- Certificate of Occupancy: It’s required for most businesses before they can legally occupy a building or space. This verifies the structure meets building codes and is safe for the intended use (e.g., if your business is based in Lexington, you’d apply through the Building Inspection Division and then schedule a Fire Inspector life safety inspection).
- Home-Based Business Permits: Some municipalities require special permits for businesses operating from residential properties — particularly those that may generate traffic or impact neighbors. For example, if your business is based in Louisville, you’d register with the Louisville Metro Government Revenue Commission for your business license and ensure compliance with zoning regulations.
To find your local county or city’s official contact information and licensing requirements, visit the Kentucky League of Cities or the Kentucky Association of Counties.
Kentucky State Business Licenses
Below we’ve included the most common business licenses that are required on a state level.
Kentucky Sales Tax Permit
You can register for a Kentucky seller’s permit online through the Kentucky Online Gateway.
Apply Online With the Kentucky Business One Stop Portal
Apply OnlineFee: $0
Kentucky Professional Licenses
If you’re interested in a professional license, you’ll need to head over to the relevant state commission because this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:
- Kentucky Board of Accountancy: Oversees the licensing of Certified Public Accountants (CPAs) and Public Accountants (PAs), including individual licenses and accounting firm permits
- Kentucky Real Estate Commission: Regulates real estate brokers and sales associates along with continuing education requirements
- Kentucky Board of Medical Licensure: Licenses physicians (M.D.s and D.O.s), physician assistants, and other medical professionals
- Kentucky Board of Nursing: Oversees licensing for Registered Nurses (RNs), Licensed Practical Nurses (LPNs), and Advanced Practice Registered Nurses (APRNs)
- Kentucky Board of Pharmacy: Regulates pharmacists, pharmacy technicians, and pharmaceutical facilities
- Kentucky Board of Cosmetology: Licenses cosmetologists, estheticians, nail technicians, and related beauty professionals
For more information on how to go about getting licensed, have a look at StateRequirement’s in-depth licensing guides.
Industry-Specific State Licenses
Some Kentucky businesses require additional licenses based on the specific industry in which they operate.
Here are some common examples of industry-specific state licenses in Kentucky:
- Liquor License: Required for businesses that manufacture, distribute, or sell alcoholic beverages. Regulated by the Kentucky Department of Alcoholic Beverage Control (ABC). The ABC offers various permit types, including on-premises consumption, off-premises sales, and manufacturer permits.
- Motor Vehicle Dealer License: Required for businesses that sell, offer to sell, or advertise for sale motor vehicles. Regulated by the Commonwealth of Kentucky Motor Vehicle Commission.
- Child Care License: Required for child care centers and home-based providers. Regulated by the Kentucky Cabinet of Health and Family Services. Requires a background check prior to licensure.
- Food and Cosmetic Manufacturing Permit: Required for businesses that manufacture, process, or package food products or cosmetics for wholesale or retail distribution. Regulated by the Kentucky Food Safety Branch.
Note: This is not a complete list. Licensing requirements vary by industry and business model. For more information, visit the Kentucky Business One Stop website.
Kentucky Environmental Permits
If your business’s industry will mean that it could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the relevant agency. You can find a list of agencies that issue and regulate these permits and licenses on the Kentucky Business One Stop website.
Examples of industries regulated here include:
- Mining
- Oil and gas
- Forestry
- Wastewater
- Waste management
Recommended Solution
Business licensing can be complicated and time-consuming, taking focus away from running and growing your business. We recommend using an affordable legal service to handle your licensing needs instead.
Federal Business Licenses for Kentucky LLCs
If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate.
A full list of industries regulated at a federal level can be found below:
- Agriculture: Overseen by the U.S. Department of Agriculture
- Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
- Aviation: Overseen by the Federal Aviation Administration.
- Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
- Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
- Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
- Maritime Transportation: Overseen by the Federal Maritime Commission.
- Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
- Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
- Transportation and Logistics: Overseen by the U.S. Department of Transportation
Kentucky Business License Renewal
Depending on your business license, you may need to renew it periodically — usually within one or two years.
Your Kentucky sales tax permit doesn’t need to be renewed.
Several of the local permits will, however, need to be renewed; this includes health department permits, signage permits, and fire department permits, which generally all need to be renewed annually.
Having said that, this will depend on both your location and the license in question.
Kentucky Business License FAQs
Kentucky doesn’t require a general business license that applies to all businesses. However, depending on your location and industry, you’ll likely need specific permits or licenses at the local, state, or federal level. Most businesses need at least a sales tax permit if they sell taxable goods or services.
This depends on your business type and location. Common requirements include: a sales tax permit, local permits (e.g., health, zoning, occupancy), professional licenses (for regulated professions), and industry-specific licenses (e.g., liquor, child care, motor vehicle dealer). Contact your local municipality and review the Kentucky professional licensing agency requirements for your specific industry.
The Kentucky sales tax permit is free to obtain. Other license costs vary significantly. For example, local permits may range from $30 to $500, professional licenses can cost $50 to $300+, and specialized licenses like liquor permits or motor vehicle dealer licenses can cost hundreds to thousands of dollars, including required bonds and insurance.
The Kentucky sales tax permit is perpetual and doesn’t need to be renewed. Other state and local permits or licenses will require varying renewal processes.
Generally, no. You must obtain all required licenses before beginning operations. Operating without proper licenses can result in fines, legal action, and difficulty obtaining licenses in the future. Some licenses allow provisional operation while applications are pending so you should check with the specific agency.
Yes, home-based businesses need the same licenses as traditional businesses plus they must comply with local zoning laws. You’ll need a sales tax permit if selling taxable goods/services, any required professional licenses, and you must ensure your residential area is zoned for business use or obtain the appropriate permits.