How Much Are Your Kentucky LLC Fees?

Kentucky is home to over 360,000 small businesses. That’s roughly one business for every 12.5 residents! 

With so many organizations in operation, there’s a chance one of them may already be using your desired business name. Before you begin filing, check Kentucky’s business filings and records online services website to see if your name is available.

Also, don’t forget that your organization needs to include “Limited Liability Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.” in its name. This actually works to your advantage because you may be able to make your business’ name distinct enough by including a different variation of “LLC” in its title.

While you’re working out your name, be mindful that it can’t contain words like “trust,” “bank,” “insurer,” or “insurance company” unless you are one of these things. “Corporation,” “incorporated,” and any abbreviation are also off the table because you’re an LLC, not a corporation. You also can’t use anything that implies that you’re a government entity, such as “CIA” or “FDA.”

If your LLC name is available and fits the above criteria, you can reserve it for 120 days for $15. This gives you exclusive rights to your name just in case another business registers a name indistinguishable from you while you’re getting your paperwork together. 

Don’t be disheartened if the name you want is already taken. You’re only required to use your official business name on your legal and financial paperwork (e.g., taxes, annual reports, etc.).

You can register for a “Doing Business As” (DBA) name if you want to market your organization under a different name. DBA names can be helpful when attending networking events, creating marketing materials, and building brand recognition. 

You can register a DBA name in Kentucky for $20.

Before you file your official paperwork, you need to select a registered agent. 

A registered agent is the person or commercial entity responsible for receiving your LLC’s legal and financial documents. Whoever or whatever entity you choose has to have a physical address in Kentucky. Having a P.O. Box doesn’t qualify you to be a registered agent.  

Once your business is an official LLC, your registered agent’s physical address becomes publicly available. If you prefer to keep your address private, or if no one in your LLC has a physical address in Kentucky, you can hire a commercial registered agent service. 

Companies like Kentucky Registered Agent cost $49 a year. Otherwise, being your own registered agent is free.

With your business name and registered agent chosen, you’re ready to form your LLC! To make it official, you need to fill out your articles of organization. While this document sounds daunting, you shouldn’t be intimidated by it. Your articles of organization outline all of your LLC’s basic information, including:

Your articles of organization cost $40 to file with the Secretary of State. Once approved, you’re officially an LLC!

LLCs are not required to have an operating agreement in Kentucky. However, we strongly recommend creating one anyway, even if you don’t submit it to the Secretary of State. 

Your operating agreement defines the rules and regulations your LLC is going to abide by and should be signed by all of your organization’s members. It serves as an excellent reference point for when your organization is trying to make a substantial business decision, such as whether or not to enter a new market. It can safeguard your business if you end up in a legal and financial dispute. Without one, a judge or jury may end up making vital decisions for your LLC, which may be in your organization’s best interest.

Operating agreements can get pretty detailed. Usually, the more specific you are, the better. The core elements of your operating agreement should include:

It doesn’t matter if you’re a multi-member LLC with hundreds of members or a single-member LLC with no employees: your business can only benefit from having an operating agreement. They’re free to create, but since it’s a contract with a lot of legalese, we recommend hiring an attorney.

Good news—the state of Kentucky doesn’t require you to have a general business license to operate your LLC. However, you must have all your other required licenses and permits before operating in the state. These include industry-specific professional licenses and permits, and location-based licenses specific to your location. 

While requirements vary, you’ll typically need the following to obtain these licenses and permits:

The costs and renewal periods for these licenses will vary. To figure out what you need, visit your local government’s website to research what’s required of your industry. If you have difficulty figuring that out, contact your local government officials for information.

More good news—applying for a Kentucky sales and use tax permit is free! File your application with the Department of Revenue (DOR), or take it to a DOR Taxpayer Service Center to get it processed immediately.

Congratulations! You’re officially up and running. 

Now all you have to do is remain in good standing with the local, state, and federal governments. In addition to paying taxes and maintaining a legal operation, you must file an annual report with the Secretary of State. 

Your annual report is similar to your articles of organization and helps vendors, creditors, and the government be able to contact you when needed. It costs $15 to file, and you can file it anytime between January 1 and June 30 each year. 

To recap, here’s the list of Kentucky’s LLC fees we’ve covered thus far and how often they’re due: