Here's what you need in Kentucky
Official state business portal: Kentucky Business One Stop. The Kentucky Business One Stop guides you through planning, starting and running a business, with links to state registration, taxes, licenses and permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| General state business licenseNo general state business license. Kentucky does not have a statewide business license for all businesses, but some types of businesses need a special state license or permit. Many cities and counties require a local business license or an occupational tax. | Kentucky Business One Stop | Not needed | Source | Nov 7, 2026 |
| Form an LLCArticles of Organization. To form an LLC, file Articles of Organization with the Kentucky Secretary of State. | Kentucky Secretary of State | $40 filing fee | Applyat web.sos.ky.govSource | Nov 7, 2026 |
| Business name (DBA)Certificate of Assumed Name. An LLC, corporation or partnership that uses another name files a Certificate of Assumed Name with the Kentucky Secretary of State. A sole proprietor files it with the county clerk. The filing lasts five years and can be renewed. | Kentucky Secretary of State (business entities) or county clerk (sole proprietors) | $20 filing fee at the Secretary of State | Source | Nov 7, 2026 |
| Sales tax permitSales and use tax permit. Every retailer or seller in Kentucky must apply to the Department of Revenue for a sales and use tax permit for each place of business. | Kentucky Department of Revenue | Fee not published.Ask the agency | Applyat revenue.ky.govSource | Nov 7, 2026 |
| Unemployment insurance (once you hire)Unemployment insurance employer account. If you hire employees, you must register for unemployment insurance in Kentucky. | Kentucky Office of Unemployment Insurance | You pay tax on wages | Applyat kcc.ky.govSource | Nov 7, 2026 |
| Federal tax ID (EIN)Employer Identification Number (EIN). You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. | Internal Revenue Service (IRS) | Free | Applyat irs.govSource | Nov 7, 2026 |
Costs after you start
What an LLC in Kentucky pays or files after it is formed.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Annual ReportEvery business registered in Kentucky, including an LLC, files an annual report with the Secretary of State between January 1 and June 30 each year. A business that misses the deadline is administratively dissolved. | Kentucky Secretary of State | $15 a year | Applyat sos.ky.govSource | Nov 7, 2026 |
| Limited Liability Entity Tax (LLET)Kentucky taxes every business with limited liability, including LLCs. A business with gross receipts or gross profits of three million dollars or less pays only the minimum; larger businesses pay more. | Kentucky Department of Revenue | $175 a year minimum | Applyat revenue.ky.govSource | Nov 7, 2026 |
Licenses by type of business
State level licenses. Your city or county may add its own permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Hair salon, barber shop or nail salonSalon license. A beauty, esthetics or nail salon needs a salon license from the Kentucky Board of Cosmetology. The license renews every 2 years. | Kentucky Board of Cosmetology | $100 initial fee, $200 to renew every 2 years | Applyat kbc.ky.govSource | Nov 7, 2026 |
| Child care in your homeCertified Family Child Care Home. A home that cares for up to 6 unrelated children, plus up to 4 related children for a total of 10, can be certified as a Family Child Care Home. Apply to the Office of Inspector General, Division of Regulated Child Care. | Kentucky Cabinet for Health and Family Services, Division of Regulated Child Care | $10 certification fee, nonrefundable | Source | Nov 7, 2026 |
| Selling alcohol (bar or restaurant)Alcoholic beverage license. Bars and restaurants apply for alcohol licenses online with the Kentucky Department of Alcoholic Beverage Control. Some licenses also need approval from a local ABC administrator. | Kentucky Department of Alcoholic Beverage Control | Fee not published.Ask the agency | Applyat abcportal.ky.govSource | Nov 7, 2026 |
| General contractorGeneral contractor license. We could not find an official state page that says whether Kentucky licenses general contractors. The Department of Housing, Buildings and Construction licenses some building trades, and cities and counties may have their own rules. | Kentucky Department of Housing, Buildings and Construction | Not yet verifiedCheck with the agency | Source | Nov 7, 2026 |
| Selling homemade food (cottage food)Home-Based Processor registration. You can make certain foods at home, such as baked goods, candy and jams, and sell them directly to consumers in Kentucky after registering as a Home-Based Processor. Registration must be renewed each year. | Kentucky Department for Public Health, Food Safety Branch | $50 a year | Applyat chfs.ky.govSource | Nov 7, 2026 |
What is different in Kentucky
- At $40, the LLC filing fee is among the lowest: only 1 of 49 verified states charge less.
- Where to file a business name (DBA): An LLC, corporation or partnership that uses another name files a Certificate of Assumed Name with the Kentucky Secretary of State. A sole proprietor files it with the county clerk. The filing lasts five years and can be renewed.
- Homemade food sales are capped at $60,000 a year. Of the 16 states where we verified a cap, 8 allow more.
- Home food sellers need the Home-Based Processor registration ($50 a year).
- At $100, the salon or shop license fee is near the middle: 14 of 36 verified states charge less and 19 charge more.
- Annual Report: $15 a year. Every business registered in Kentucky, including an LLC, files an annual report with the Secretary of State between January 1 and June 30 each year. A business that misses the deadline is administratively dissolved.
- Limited Liability Entity Tax (LLET): $175 a year minimum. Kentucky taxes every business with limited liability, including LLCs. A business with gross receipts or gross profits of three million dollars or less pays only the minimum; larger businesses pay more.
Steps to start a business in Kentucky
Pick a structure and register it
Sole owners can start under their own name. To form an LLC, file the Articles of Organization with the Kentucky Secretary of State ($40).
Get a free EIN
Apply on irs.gov. You need it to hire, and banks usually ask for it. Never pay a website for an EIN.
Register your business name
If you trade under a name that is not your legal name, file a DBA with the Kentucky Secretary of State (business entities) or county clerk (sole proprietors).
Register for sales tax
If you sell taxable goods or services, get your permit from the Kentucky Department of Revenue before your first sale.
Get a state license for your type of business
Salons, child care, alcohol, building work and home food each have their own state rules. See the table above.
Check city and county permits
Ask about a local business license, zoning, health and building permits before you sign a lease.
Register as an employer when you hire
Open a state unemployment insurance tax account with the Kentucky Office of Unemployment Insurance.
City and county permits
Cities and countys in Kentucky can require their own business license, zoning approval, health permit or building permit. Rules change from place to place, so ask your city hall and county clerk before you sign a lease. Home businesses often need a home occupation permit.
In the biggest cities, ask these local governments:
- Louisville: the Louisville Metro Government (Jefferson County). City of Louisville (louisvilleky.gov)
City rules and fees are not in our guide yet.
Questions about business licenses in Kentucky
Do I need a business license in Kentucky?
No. Kentucky does not have a statewide business license for all businesses, but some types of businesses need a special state license or permit. Many cities and counties require a local business license or an occupational tax.
How much is a business license in Kentucky?
There is no general state business license fee in Kentucky. A local business license, if your city or county requires one, is priced by that city or county. State licenses for some types of business have their own fees, listed on this page.
How much is an LLC in Kentucky?
The Kentucky Secretary of State charges $40 filing fee to file the Articles of Organization. To form an LLC, file Articles of Organization with the Kentucky Secretary of State.
How much does an LLC cost per year in Kentucky?
Annual Report: $15 a year. Every business registered in Kentucky, including an LLC, files an annual report with the Secretary of State between January 1 and June 30 each year. A business that misses the deadline is administratively dissolved. Limited Liability Entity Tax (LLET): $175 a year minimum. Kentucky taxes every business with limited liability, including LLCs. A business with gross receipts or gross profits of three million dollars or less pays only the minimum; larger businesses pay more.
Does an LLC need a business license in Kentucky?
Yes, if your type of business or your location requires one. Forming an LLC only registers your company with the state; it is not a license. An LLC in Kentucky still needs any state license for its type of business and any local business license from its city or county.
Do I need a sales tax permit in Kentucky?
Yes, if you sell taxable goods or services. Every retailer or seller in Kentucky must apply to the Department of Revenue for a sales and use tax permit for each place of business.
How much is a DBA in Kentucky?
An LLC, corporation or partnership that uses another name files a Certificate of Assumed Name with the Kentucky Secretary of State. A sole proprietor files it with the county clerk. The filing lasts five years and can be renewed. Official fee: $20 filing fee at the Secretary of State.
Can I sell homemade food from home in Kentucky?
You can make certain foods at home, such as baked goods, candy and jams, and sell them directly to consumers in Kentucky after registering as a Home-Based Processor. Registration must be renewed each year. Fee: $50 a year. Sales cap: $60,000 a year.
Do I need an EIN?
You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. It is free: never pay a website for an EIN.
Sources
Every fact on this page comes from an official government page, checked on the date shown. Facts we could not confirm are marked Not yet verified and show no number. How we check.
- General state business license Kentucky Business One Stop Checked Nov 7, 2026
- Form an LLC Kentucky Secretary of State Checked Nov 7, 2026
- Business name (DBA) Kentucky Secretary of State (business entities) or county clerk (sole proprietors) Checked Nov 7, 2026
- Sales tax permit Kentucky Department of Revenue Checked Nov 7, 2026
- Hair salon, barber shop or nail salon Kentucky Board of Cosmetology Checked Nov 7, 2026
- Child care in your home Kentucky Cabinet for Health and Family Services, Division of Regulated Child Care Checked Nov 7, 2026
- Selling alcohol (bar or restaurant) Kentucky Department of Alcoholic Beverage Control Checked Nov 7, 2026
- General contractor Kentucky Department of Housing, Buildings and Construction Not yet verified Checked Nov 7, 2026
- Selling homemade food (cottage food) Kentucky Department for Public Health, Food Safety Branch Checked Nov 7, 2026
- Annual Report Kentucky Secretary of State Checked Nov 7, 2026
- Limited Liability Entity Tax (LLET) Kentucky Department of Revenue Checked Nov 7, 2026
- Federal tax ID (EIN) Internal Revenue Service (IRS) Checked Nov 7, 2026