How to form an LLC in Kentucky

Kentucky runs two recurring cycles, and the cost schedule keeps them separate. The main charge is the Annual report, $15 per year. The second cycle is Limited Liability Entity Tax (LLET), $175 minimum per year, $175 every 1 years. Across five years the schedule counts $950 in recurring payments: the yearly charge in every year of the window, plus the second filing only when its own cycle calls for it. That is why the five-year recurring column is not simply five times the largest fee on the page.

How to read the recurring fee

Kentucky calls this charge the annual report. That name is the filing you calendar, pay, and confirm, and it is not interchangeable with an annual report, statement of information, or entity tax in another state. The annual report must be filed each year between January 1 and June 30. The office named in the checked record is Kentucky Secretary of State; confirm the exact form name there before the first deadline, because paying the right amount on the wrong filing does not keep an LLC in good standing. Budget $15 on the yearly cycle shown above, and keep the state confirmation with the formation records.

Formation checklist

The steps below follow the Kentucky record on this page: formation through Kentucky Secretary of State, the charge named Annual report, and the due rule checked on 2026-10-04.

1. Choose the legal name. Search the entity records held by Kentucky Secretary of State and check the Kentucky name rules before printing cards, signing a lease, or opening accounts.
2. Choose the registered agent. The agent needs a qualified Kentucky address and must be available to receive official papers. Decide whether that will be you, another eligible person, or a paid service.
3. File the formation document. Submit the form through Kentucky Secretary of State and pay articles of organization, $40.
4. Write the operating agreement. Record owners, contributions, authority, money rules, and exit terms. Keep it with company records even if the state does not collect it.
5. Get tax and bank accounts in order. Apply for an EIN when required, open business banking, and separate personal money from company money from day one.
6. Calendar the recurring charge. The annual report must be filed each year between January 1 and June 30. Add a reminder well before the deadline and save the state confirmation after each filing.

What the state total does not include

The five-year figure on this page is a state formation and recurring-fee total. It does not include income tax, franchise tax beyond a charge explicitly named in the source record, sales tax, payroll tax, local business licenses, industry permits, insurance, bookkeeping, or professional fees.

If the business will operate in another state, price foreign registration there as well. A formation in Kentucky does not remove duties where employees, property, or sales activity create a second registration obligation.

Before you pay for help

A filing service can be worth paying for when your time is tight or the ownership is not simple. Compare the service quote with the state-only baseline in the LLC True Cost Calculator. If a quote bundles a registered agent, ask for the renewal price. Low first-year promotions can become the largest line in year two.

State notes from the checked record

• Domestic entities that fail to file the annual report by June 30 are administratively dissolved (Secretary of State Annual Reports page).
• Veteran-owned businesses organized after August 1, 2018 are exempt from the annual report fee for their first four years (KRS 14A.2-060).
• Kentucky also imposes a Limited Liability Entity Tax with a minimum of $175 due per taxable year (Kentucky Department of Revenue, Schedule LLET instructions, KRS 141.0401).

Next steps

Run the five-year calculator, read the registered agent guide, and keep the recurring report checklist with your formation records.