Kentucky LLC Cost: Filing Fee, Annual Fees and 5-Year Total
Forming an LLC in Kentucky costs $40 in state filing fees and then $190 a year to keep it active ($15 in filing fees plus a $175 state tax). Kentucky's estimated five-year state costs of $975 are 191% above the 51-jurisdiction median of $335.
Checked against official state sources (October 2026) · Last verified: October 29, 2026 · Sources
What an LLC costs in Kentucky
| Item | Amount | Notes |
|---|---|---|
| Formation filing fee | $40 | One time |
| Recurring state filing / report fee | $15/yr | Annual report, $15 |
| State tax / mandatory annual charge | $175/yr | Limited liability entity tax, $175 minimum (Department of Revenue). Owed every year, starting with the formation year (conditions below). |
| Year-one cost | $215 | Formation fee + any year-one extra + the first year's state tax |
| Estimated 5-year state costs | $975 | Formation + year-one extras + 4 years of filing / report fees + 5 years of the state tax; ranks 44th cheapest of 51 |
The five-year figure counts state government fees and, where one applies, the separate mandatory annual state tax shown above. It assumes a single-member LLC owned by an individual with little or no income. It excludes registered agent services, formation-service fees, publication costs, local business licenses, income-based state taxes (income, gross-receipts, B&O, sales) and any optional extras. How we calculate it.
State tax you owe on top of the filing fees
Kentucky charges a separate $175 a year state tax or charge on top of the filing-office fees: Limited liability entity tax, $175 minimum (Department of Revenue). Owed every year by an LLC organized in, or doing business in, Kentucky, even with no profit. The $175 is the minimum and applies to any LLC with $3 million or less in gross receipts or gross profits. A single-member LLC files Form 725 by the 15th day of the 4th month after year end. We count it in the year-one, annual and five-year totals above and in the rankings.
Verified details
- Articles of Organization: $40.
- Annual report: $15, due by June 30 each year; the first is due between January 1 and June 30 of the year after formation.
- Limited liability entity tax (LLET): the greater of the amount computed on Kentucky gross receipts or profits, or $175. For an LLC with total gross receipts or profits of $3 million or less, the tax is the $175 minimum.
- A single-member LLC owned by an individual files Form 725 (income and LLET return); the minimum $175 is due even for a short or first-year return and regardless of tax credits.
- An individual member can claim a nonrefundable Kentucky income-tax credit only for LLET paid above the $175 minimum.
Annual reports and upkeep
Kentucky filing cadence: Annual (Jan 1 to Jun 30). Annual report, $15. Missing filings can lead to late fees and, eventually, administrative dissolution, so put the dates in a calendar. See annual reports and franchise taxes explained.
How to form an LLC in Kentucky
- Check the name. Search the Kentucky business records on the Secretary of State / filing office site to confirm your LLC name is available and includes an LLC designator.
- Pick a registered agent. Every state requires a registered agent with a physical street address in the state. You can serve as your own agent if you live in Kentucky and are reachable during business hours, or hire a commercial agent. Registered agent guide.
- File the formation document. The state filing fee is $40. Use the state's online filing portal where available; paper filing is slower.
- Write an operating agreement. Most states do not require you to file one, but banks and partners typically ask for it, and it sets ownership and decision rules. Operating agreement basics.
- Get an EIN. The IRS issues EINs for free through its online application. Beware of sites that charge for it.
- Open a business bank account and calendar the deadlines. Put the annual (jan 1 to jun 30) filing dates in a calendar so the LLC stays in good standing.
Want someone else to handle the filing in Kentucky?
A formation service files the paperwork for a fee on top of the state fee and often includes a first year of registered agent service. It saves time, but you can file directly with the state for the state fee alone. Compare DIY and services.
See a formation service (partner link) Sponsored
Living or operating outside Kentucky?
You can form an LLC in Kentucky even if you live elsewhere, but if you actually do business in your home state you will usually also have to register the LLC there as a foreign LLC and pay that state's fees, so you may pay twice. In Texas, for example, an out-of-state LLC transacting business pays $750 to register. See forming an LLC in a state other than your own.
Compare Kentucky with similar-cost states
| State | Formation | Annual | 5-yr total |
|---|---|---|---|
| North Carolina | $125 | $200 | $925 |
| District of Columbia | $99 | $150 | $699 |
| Florida | $125 | $138.75 | $680 |
| Maryland | $100 | $300 | $1,300 |
Frequently asked questions
How much does it cost to start an LLC in Kentucky?
The state filing fee is $40. Add a registered agent if you do not serve as your own, plus any local licenses.
What is the annual cost of an LLC in Kentucky?
Annual report, $15. Kentucky also charges a $175 annual state tax (Limited liability entity tax, $175 minimum (Department of Revenue)). That is about $190 per year in state costs in total.
Do I need a registered agent in Kentucky?
Yes. Kentucky requires every LLC to maintain a registered agent with a physical address in the state. You may act as your own agent if you meet the state's requirements.
Do I need an operating agreement in Kentucky?
Most states do not make you file one, but you should have one. Check Kentucky's LLC statute and ask your bank what it requires. We do not give legal advice.
Is Kentucky cheap compared with other states?
Kentucky's estimated five-year state costs of $975 are 191% above the 51-jurisdiction median of $335.
Sources
- Kentucky official filing site: sos.ky.gov
- KY SOS: fees
- KY SOS: annual reports
- KRS 275.055
- KY DOR: corporation income tax and LLET
- KRS 141.0401 (limited liability entity tax)
- KY DOR: Form 725 instructions (single member LLC, 2025)
Fees change. Confirm the amount on the state's official page before you file.
Fee data: official state government pages and statutes (checked October 28–29, 2026); sources are linked on each state page. See our methodology. Not legal or tax advice.