Kentucky LLC Cost (2026): $40 to File, but Budget $175 a Year for the LLET
Kentucky’s Secretary of State fees are among the lowest in the country: $40 to form and $15 a year to report. If you stopped there, Kentucky would look like a bargain. But Kentucky also charges a Limited Liability Entity Tax with a $175 annual minimum, and that tax, not the filing fees, is what makes up most of the cost of running a Kentucky LLC.
The $40 Filing and $15 Report
Kentucky LLCs are formed by filing Articles of Organization with the Kentucky Secretary of State for $40. After formation, the LLC files an annual report every year, starting the year after it is formed, during the window from January 1 to June 30. The report costs $15.
On filing fees alone, a Kentucky LLC would cost $70 over three years. The full picture is quite different.
Northwest Registered Agent
Kentucky’s business search shows your registered agent address to the public. $39 formation + $40 state fee, free registered agent for year one, then $125/yr.
$39 formation fee · Free registered agent for 12 months · Your address stays off public records · No data selling · No hidden fees
Form Your LLC with Northwest ($39) →Lowest 3-year cost we found: Northwest $289 vs Bizee $298 vs ZenBusiness $497 (service fees; state fees extra). Northwest also puts its address on your public filings instead of yours where the state allows.
The $175 Limited Liability Entity Tax
Kentucky imposes the Limited Liability Entity Tax (LLET) under KRS 141.0401 on entities that offer liability protection, including LLCs. The minimum is $175 per year, and it applies even if the LLC makes no money. Single-member LLCs owned by individuals report it on a separate Department of Revenue return, and multi-member LLCs include it with their pass-through entity return.
LLCs with larger Kentucky gross receipts or gross profits can owe more than the minimum, but most small LLCs pay the $175 floor. Over three years, that is $525, far more than all the Secretary of State fees combined. The table below includes it in each year, which is why Kentucky’s three-year total is higher than its headline fees suggest.
The June 30 Deadline and the $100 Penalty
Kentucky does not charge a separate late fee right after June 30. The Secretary of State sends a notice around July 1, and a report filed by the end of August typically restores good standing for the normal $15.
If the report is still missing after that, the LLC is administratively dissolved. Reinstatement requires a reinstatement application, a $100 penalty, $15 for every missed report, and letters of good standing from the Department of Revenue and, for businesses with employees, the unemployment insurance office. Collecting those letters takes time, so the practical cost of a missed report is well beyond $15.
Name Reservation and Other Costs
- Name reservation: $15 to hold an LLC name before filing.
- Income tax: apart from the LLET, profit passes through to the owners’ Kentucky income tax returns by default.
- Local occupational taxes: many Kentucky cities and counties levy occupational license taxes on business income or payroll, set locally.
Kentucky 3-Year Cost
The table includes the $175 minimum LLET each year.
| Scenario | Year 1 | Year 2 | Year 3 | 3-Year Total |
|---|---|---|---|---|
| Northwest Registered Agent | $254 ($40 + $175 LLET + $39, RA free) | $315 ($15 report + $175 LLET + $125 RA) | $315 (same) | $884 |
| ZenBusiness (Starter) | $314 ($40 + $175 LLET + $0 + $99 RA) | $389 ($15 + $175 + $199 RA) | $389 (same) | $1,092 |
| DIY, self as registered agent | $215 ($40 articles + $175 LLET) | $190 ($15 report + $175 LLET) | $190 ($15 report + $175 LLET) | $595 |
A DIY Kentucky LLC costs $595 over three years, and $525 of that is the LLET. The $289 extra with Northwest Registered Agent is registered agent service after the free first year, plus reminders for the June 30 report deadline.
Form your Kentucky LLC for $39 + $40 state fee.
Northwest Registered Agent: $39 formation, free Year 1 registered agent, compliance reminders, and your home address kept off public records.
Form My Kentucky LLC for $39
Prefer a $0 upfront starter plan? Compare ZenBusiness (registered agent $199/yr).
When a Kentucky LLC may not be worth it yet: the $175 LLET is a fixed cost whether you earn anything or not. If your business is not yet producing income, forming now means paying that minimum for a year with nothing to show for it. Once revenue is steady, the tax becomes a small share of the cost of doing business.
Why I Choose Northwest Registered Agent
After forming 3 LLCs myself and helping clients through the process, I keep coming back to Northwest Registered Agent. Here is why:
- Remarkable Customer Support: Quick, human responses every time.
- Caring & Privacy-Focused: Genuine service with full respect for your privacy.
- Lightning-Fast Formation: Often faster than promised.
- Incredible Value: $39 includes a free business address, mail scanning, and more.
- Clear & Transparent: No hidden fees or surprises.
Ready to form your business? Choose Northwest today!
Frequently Asked Questions
How much does it cost to form an LLC in Kentucky?
$40 to file Articles of Organization. With Northwest Registered Agent the first-year cost is $254 when you include the $175 minimum LLET, with a free first year of registered agent service.
What is the Kentucky LLET?
The Limited Liability Entity Tax, imposed under KRS 141.0401. LLCs owe a minimum of $175 per year, even with no profit.
When is the Kentucky LLC annual report due?
Between January 1 and June 30 each year after formation. The fee is $15.
How much does it cost to reinstate a Kentucky LLC?
A $100 reinstatement penalty plus $15 for each missed annual report, along with good standing letters from state tax agencies.
