Last updated May 30, 2020
Tax Registration & Requirements
How to form an LLC in Kentucky
This Quick Start Guide is a brief overview of how to form an LLC in Kentucky.
Kentucky LLC costs:
State filing fee: $40 (one-time fee)
Annual fee: $15 (every year)
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Note: Our tax lesson is not as step-by-step as our LLC formation lessons, due to the uniqueness and variation among businesses. Taxes are usually not as straightforward as forming an LLC in Kentucky, and therefore, the information below is an overview, and not a comprehensive guide.
You will likely need to hire a tax professional to make sure you meet all your Kentucky state and local tax obligations. We recommend using Thumbtack.
Do it yourself in Kentucky
Overview of Kentucky Taxes
State Tax Requirements and Registration
City and County Tax Requirements
Depending on your industry, where your business is located, how you are taxed by the IRS, and whether or not you have employees, will determine which additional taxes and forms are due.
Some examples of other taxes and forms due are:
- Sales and use tax
- Limited liability entity tax
- Employer’s withholding tax
- Partnership and LLC tax
- Transient room tax
- Motor vehicle tax
- Consumer’s use tax
- Coal severance/processing tax
- Coal seller/purchaser certificate ID number
- Telecommunications tax
- Utility gross receipts license tax
- Tobacco tax
- Property tax
- Alcohol tax
- Fuel tax
- Local taxes
- And more
You can also contact the Kentucky Department of Revenue directly for more information on the different taxes your LLC might have to pay:
Kentucky Department of Revenue
Limited Liability Entity Tax ($175 minimum)
Your Kentucky LLC will also have to pay a Limited Liability Entity Tax (LLET) each year.
Your Limited Liability Entity Tax will either be the minimum of $175 or the amount computed based on the formula (as per section 141.0401), whichever is higher.
Calculating your tax obligations in Kentucky can be complicated and if done improperly can negatively impact your LLC.
Hiring a tax professional will not only help you keep your Kentucky LLC in compliance, but it will also give you an advisor to go to for other business questions.
You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 people before making your final decision.