What an LLC costs in Kentucky (2026)

Forming an LLC in Kentucky costs $40. After that the state charges Annual Report, $15 a year, and LLCs owe Kentucky limited liability entity tax (LLET).

LLC taxes in Kentucky by revenue

Profit taken as two thirds of revenue where a tax is on net income.

Kentucky limited liability entity tax (LLET): Every liability-protected entity (corporations, LLCs including single-member LLCs, S corps) pays at least $175. Above $6 million of gross receipts or gross profits the tax is the lesser of 0.095% of Kentucky gross receipts or 0.75% of Kentucky gross profits. Between $3 million and $6 million a sliding scale applies (receipts option works out to 0.19% of receipts above $3 million, per Form 720 at https://revenue.ky.gov/Forms/Form%20720%20(2025).pdf), so this flat 0.095% model overstates the tax in that band. Sole props and general partnerships are not subject. A C corp credits its LLET above $175 against its corporate income tax.

What else an LLC owner pays

The fees above are what the state charges the LLC. The bigger cost is tax on the profit: a single-member LLC pays the same income tax and self-employment tax as a sole proprietor. At $100,000 of profit that comes to $25,510 a year in Kentucky, fees included. An S corp election can lower it: LLC vs S corp in Kentucky.

Domestic entities that miss the June 30 deadline are administratively dissolved.

• All five structures in Kentucky
• Sole proprietorship vs LLC
• LLC cost in every state
• How to form an LLC