How to Start an LLC in Kentucky (2025 Guide)

How to Form an LLC in Kentucky in 5 Steps

In order to form your LLC in Kentucky, there are certain steps you’ll need to complete:

1. Name Your Kentucky LLC
2. Choose a Registered Agent
3. File the Articles of Organization
4. Create an Operating Agreement
5. Get an EIN

Step 1: Name Your Kentucky LLC

Before you form an LLC in Kentucky, you need to decide on a business name. 

Your LLC’s name should be memorable and easily searchable while also complying with the state’s naming requirements.

1. Important Naming Guidelines for Kentucky LLCs:

• Your name must include the phrase “limited liability company,” “limited company,” or the abbreviation “LLC” or “LC.” 
• The names of all professional limited liability companies must end with the phrase “professional limited liability company,” “professional limited company,” or the abbreviation “PLLC” or “PLC.”
• Your name cannot include words that suggest that your LLC is affiliated with a state or federal agency. Examples of such words include “department,” “state secretary,” and “FBI.” 
• Your name cannot contain restricted words that relate to certain professions (e.g., medicine, law, CPA services, etc.) unless you have received prior approval and/or have the required licensing from the relevant state body. 

For more information, we recommend having a look at Kentucky’s statutory LLC naming guidelines.

2. Conduct a Business Name Search in Kentucky

To check whether your desired name has already been taken by another business entity in Kentucky, you can perform a business entity search on the Kentucky Secretary of State’s website.

If you’re not going to start your LLC right away, it might be a good idea to consider reserving your name for up to 120 days. You can do this by filing a Reservation or Renewal of Reserved Name form with the Commonwealth of Kentucky and paying the $15 processing fee. 

For more information, you can have a look at our Kentucky LLC Name Search guide.

3. Conduct a Domain Name Search

Next, it’s important to determine if your business name is available as a web domain. Even if you don’t plan to make a business website right away, this is an extremely important step as it will prevent others from acquiring it. 

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.

FAQ: Naming a Kentucky LLC

Step 2: Choose a Registered Agent in Kentucky

After you find the right name for your LLC, you will need to nominate a Kentucky registered agent. This is a requirement for all LLCs in Kentucky.

What is a registered agent? A registered agent is an individual or business entity responsible for receiving important legal documents on behalf of your business. Think of your registered agent as your business’s primary point of contact with the state.

Who can be a registered agent? A registered agent must be a resident of Kentucky or a business entity that is authorized to transact business in the Commonwealth. As a new business owner, you can elect to use an LLC member (e.g., yourself, a partner, etc.), work with a business attorney, or use a registered agent service. 

FAQ: Nominating a Registered Agent

Step 3: File Your Kentucky LLC Articles of Organization

To register your LLC, you will need to file Form KLC: Articles of Organization with the Kentucky Secretary of State. You can do this online, in person, or via mail. 

Before filing, make sure you have completed your Articles of Organization correctly. You will need to have filled in the following sections:

• Your LLC’s name
• Your LLC’s initial principal office address (this cannot be a P.O. box)
• Your LLC’s management structure (i.e., by members or by managers)
• Your registered agent’s name, street address, and consent to appointment (either as a signature or via a completed consent Statement of Consent of Registered Agent)
• Two exact or conformed copies of the Articles of Organization (if filing by mail)

File the Articles of Organization

OPTION 1: File Online With the Kentucky Secretary of State

File Online

– OR –

OPTION 2: File Form KLC by Mail or In Person

Download Form

State Filing Cost: $40, payable to “Kentucky State Treasurer” (Nonrefundable)

Mailing Address:
Michael G. Adams
Office of the Secretary of State
P.O. Box 718
Frankfort, KY 40602

Office Address:
Room 154, Capitol Building
700 Capital Ave.
Frankfort, KY 40601

For help with completing the form, visit our Kentucky Articles of Organization guide.

Note: If you’re expanding your existing business to the state of Kentucky, you’ll need to register as a foreign limited liability company (LLC).

FAQ: Filing Kentucky LLC Documents

Step 4: Create a Kentucky LLC Operating Agreement

An operating agreement is not required in Kentucky, but it’s a good practice to have one.

An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

A comprehensive operating agreement ensures that all LLC owners are on the same page and reduces the risk of future conflict.

You can use the free tool in our Business Center to create a custom operating agreement in minutes — or download our free templates:

• Kentucky Single-Member LLC Operating Agreement
• Kentucky Multi-Member LLC Operating Agreement

FAQ: Creating a Kentucky LLC Operating Agreement

Step 5: Get an EIN

You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. You can think of this as essentially a Social Security number (SSN) for the company.

Why do I need an EIN? An EIN is required for the following:

• To open a business bank account for the company
• For federal and state tax purposes
• To hire employees for the company

Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

FOR INTERNATIONAL APPLICANTS: You do not need an SSN to get an EIN. Learn more here.

Get an EIN

Option 1: Request an EIN from the IRS

Apply Online

– OR –

Option 2: Apply for an EIN by Mail or Fax

Download Form

Mail to:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

FAQ: Getting an EIN

Best LLC Services in Kentucky Compared

For a comprehensive comparison, read our Best LLC Services review. We reviewed and ranked the top LLC formation services to help you determine the best fit for your new business.

Important Next Steps to Protect Your Kentucky LLC

After you’ve formed your LLC, you’ll need to complete key steps in order to:

• Separate your personal and business assets
• Stay compliant with state and federal laws

Get a Business Bank Account & Credit Card

Using a dedicated business banking account and business credit card is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your LLC is sued. In business law, this is referred to as piercing your corporate veil.

You can protect your business with these two steps:

1. Opening a business bank account:

• Separates your personal assets from your company’s assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

2. Getting a business credit card:

• Helps you separate personal and business expenses.
• Builds your company’s credit history, which can be useful to raise capital later on.

Get Insurance

Even though an LLC offers limited liability, you’ll still likely need to purchase some form of business insurance to protect your LLC’s assets. The most common types are:

• General Liability Insurance: A broad insurance policy that protects your business from lawsuits. Most small businesses get general liability insurance.
• Professional Liability Insurance: A business insurance for professional service providers (consultants, accountants, etc.) that covers against claims of malpractice and other business errors.
• Workers’ Compensation Insurance: A type of insurance that provides coverage for employees’ job-related illnesses, injuries, or deaths. In Kentucky, businesses with one or more employees, including LLC members and corporate officers, are required by law to have workers’ compensation insurance.

Want to learn exactly what coverage your Kentucky business may need? Read our full Kentucky Business Insurance Guide.

Obtain Business Licenses If Needed

While Kentucky doesn’t require a general state business license, your LLC may need specific licenses or permits based on its industry, location, and activities.

• State-Level Licenses: Use the Department of Professional Licensing website to determine if your business requires any state-issued licenses or permits.
• Local Licenses: Check with your city or county clerk’s office to identify any local licensing requirements, such as zoning permits or health department approvals.
• Federal Licenses: If your business activities are regulated by a federal agency (e.g., selling alcohol or firearms or operating in the transportation industry), consult the U.S. Small Business Administration’s website to determine necessary federal licenses or permits.

For a comprehensive overview and step-by-step instructions, refer to our Kentucky Business License Guide.

Pay Kentucky LLC Taxes

Your Kentucky LLC will have several key tax obligations:

Income Taxes

Kentucky imposes three types of income taxes relevant to LLC owners: individual income, corporate income, and limited liability entity tax. You can file these taxes online or by mail using the forms listed below. 

• Individual Income Tax: The members of LLCs with a default tax election are required to pay this flat 5% rate on their share of the LLC’s income by submitting Form 740 to the Kentucky Department of Revenue (for full-year residents) or Form 740-NP (for non-residents).
• Corporation Income Tax: LLCs that are treated as corporations for federal tax purposes are required to pay this flat 5% tax at an entity level on their total profits. In order to submit a return for corporate income tax, you’ll need to file Form 720 with the Department of Revenue. 
• Limited Liability Entity Tax (LLET): The minimum payment is $175, however, this number varies up to $7,500 based on total gross receipts and total gross profits. This tax return is also submitted using Form 720. 

Sales and Use Taxes

If you are selling tangible or digital goods or services, you’ll need to obtain a seller’s permit through the Kentucky Department of Revenue website.

This certificate allows a business to collect sales tax on taxable sales.

Sales tax, also called “Sales and Use Tax,” is a tax levied by states, counties, and municipalities on business transactions involving the exchange of certain taxable goods or services.

Read our sales tax guide to find out more.

Employer Taxes

If you have employees in Kentucky, you’ll need to register for Unemployment Insurance Tax through the Kentucky Office of Unemployment Insurance. You’ll also need to sign up for Employer Payroll Withholding Tax through the Kentucky Department of Revenue.

Local Taxes 

Some Kentucky cities and counties have their own income tax requirements that may affect your LLC. These may include income tax, net profits tax, and gross receipts tax.

You can view the full list of cities and counties with local tax requirements on the Kentucky Secretary of State’s website.

Most Kentucky LLCs must file their state tax returns by April 15. For help understanding your full tax obligations — and making sure nothing gets missed — check out our full Kentucky LLC Tax Guide.

File Your LLC Annual Report

All LLCs based in Kentucky are required to submit an annual report to the Secretary of State by June 30 every year along with a $15 filing fee. This report will keep the state’s records updated on key aspects of your business, such as: 

• The address of its principal office
• Its current registered agent
• The names and addresses of its members/managers and directors.

You can submit this report online through the Kentucky Secretary of State website anytime between January 1 and June 30.

Note: Failing to submit your annual report by the deadline in June will result in administrative dissolution or revocation of your certificate of authority, depending on whether your LLC is a domestic or foreign entity. 

To stay on top of this deadline and other important compliance tasks, we recommend hiring a professional registered agent service — they can help ensure you never miss a filing.

Kentucky Business Resources

• TRUiC Business Center
• Local Resources
• Kentucky Department of Revenue
• Kentucky Secretary of State
• Kentucky One Stop Business Portal
• Kentucky Small Business Development Center
• Kentucky LLC Statutes