How to Start Your Own LLC in Kentucky

This guide walks you through every stage of forming an LLC in Kentucky—from selecting a legally compliant business name and filing your Articles of Organization to obtaining an EIN, securing necessary licenses, and maintaining compliance after formation. By the end, you'll understand exactly how to protect your personal assets while operating your Kentucky LLC with confidence.

1. Name Your Kentucky LLC

Choosing the right name for your LLC is one of the most important early steps in forming your business. Your LLC name represents your brand identity and becomes the first impression customers, partners, and regulators will have of your company. A strong name should be unique, memorable, and reflective of what your business does.

Before selecting a name, it helps to clearly define your business concept. Understanding your products, services, and target audience will make it easier to choose a name that remains relevant as your business grows. Many entrepreneurs also find it useful to ask trusted friends or colleagues for feedback to ensure the name is easy to understand and pronounce.

Once you have a list of potential names, conduct a general web search to see if similar businesses already exist. Checking domain name availability is also smart if you plan to build an online presence. This step helps avoid customer confusion and branding conflicts.

Check Name Availability in Kentucky

After narrowing your options, perform an official business name search on the Kentucky Secretary of State's website. This ensures your desired name is not already registered or too similar to another business operating in Kentucky.

Kentucky LLC Naming Rules

Kentucky law requires LLC names to follow specific rules. Your business name must include "Limited Liability Company" or an accepted abbreviation such as LLC or L.L.C. The name cannot contain words that imply affiliation with a government agency, and it must be distinguishable from all other registered business names in the state. Certain restricted words—such as bank, insurance, or university—require special state approval.

Check Federal Trademarks

You should also search the U.S. Patent and Trademark Office (USPTO) database to confirm that your chosen name is not federally trademarked. This is especially important if you plan to expand beyond Kentucky or operate online nationwide.

Reserve Your Kentucky LLC Name

If you're not ready to form your LLC immediately, Kentucky allows you to reserve your business name. To do this, you must download the Name Reservation form from the Secretary of State's website. Kentucky does not offer online name reservations, so the form must be submitted by mail or in person.

Mailing Address:
Alison Lundergan Grimes
Office of the Secretary of State
PO Box 718
Frankfort, KY 40602-0718

Office Location:
Room 154, Capitol Building
700 Capital Avenue
Frankfort, KY 40601
Hours: 8:00 AM – 4:30 PM (ET)

The name reservation fee is $15, and once approved, your LLC name is reserved for 120 days.

Doing Business As (DBA) in Kentucky

Even after registering your LLC, you may want to operate under a different business name. This is known as a Doing Business As (DBA) or assumed business name.

For example, if your LLC is named JJ's Waffles, LLC and you later introduce a new product line called JJ's Muffins, you can use a DBA instead of forming a new LLC. DBAs also allow you to accept payments and open bank accounts under the alternate name, which can be helpful for branding and customer clarity.

In Kentucky, a DBA is referred to as an assumed business name. To register one, you must download the assumed name form from the Secretary of State's website and submit it by mail or in person. Online registration is not available. The same mailing and office addresses listed above apply.

2. Select a Registered Agent

Kentucky requires every LLC to appoint a registered agent. This individual or business entity is responsible for receiving official correspondence, including legal documents, tax notices, and state communications.

The registered agent ensures that important documents are received promptly and that your LLC remains in good standing. In Kentucky, a registered agent may be an LLC member, an individual, or a business entity authorized to operate in the state.

Registered Agent Requirements

To qualify, a registered agent must:

• Be at least 18 years old
• Maintain a physical street address in Kentucky (P.O. Boxes are not allowed)
• Be available during regular business hours

While you may act as your own registered agent, many business owners choose to hire a professional registered agent service. These services help maintain privacy, reduce the risk of missed legal notices, and allow you to focus on running your business rather than managing compliance logistics.

3. Determine Your Management Structure

Kentucky LLCs can be structured as either member-managed or manager-managed.

Member-Managed LLC

In a member-managed LLC, all members are actively involved in running the business and making daily decisions. This structure works well for small businesses where owners want direct control over operations.

Manager-Managed LLC

In a manager-managed LLC, one or more managers handle daily operations, while other members act as passive investors. A member may serve as a manager, but only alongside another manager who is not a member. This structure is often used when an LLC has multiple owners who prefer limited involvement.

Kentucky requires you to clearly state your management structure in your Articles of Organization.

4. File Articles of Organization with the Kentucky Secretary of State

To officially form your LLC, you must file Articles of Organization with the Kentucky Secretary of State. This filing is completed through the Kentucky Online Gateway.

Information Required

The Articles of Organization require information such as:

• LLC name
• Principal office address
• Registered agent details
• Registered office address
• Management structure

After signing in, select "Enroll," choose "Use My Account," and then click "Register a New Business." You'll be guided through a series of screens to enter your business details, review your information, and submit payment.

Filing Fee & Processing

• Filing fee: $40
• Online filings are typically confirmed within 24 hours
• Mailed filings may take up to three business days, plus mailing time

Kentucky Secretary of State Contact Information

Office of the Kentucky Secretary of State
700 Capital Avenue, Suite 152
Frankfort, KY 40601

Phone: (502) 564-3490
Fax: (502) 564-5687

5. Draft an Operating Agreement

An Operating Agreement outlines how your LLC is owned, managed, and operated. Although Kentucky does not legally require LLCs to have an operating agreement, having one is strongly recommended—even for single-member LLCs.

This document helps clarify ownership percentages, management authority, voting rights, profit and loss distribution, and procedures for resolving disputes or making changes to the business. It also strengthens your limited liability protection by demonstrating that the LLC operates as a separate legal entity.

While templates are available online, many business owners choose to have an attorney draft or review their operating agreement to ensure accuracy and enforceability.

6. Get Your Employer Identification Number (EIN)

An Employer Identification Number (EIN) is issued by the IRS and is used to identify your LLC for tax purposes. An EIN is required if your LLC has more than one member, hires employees, or opens a business bank account.

You can apply for an EIN for free through the IRS website. During the application, you must identify a responsible party, who is the individual responsible for controlling and managing the LLC's funds and operations.

7. Obtain Business Licenses and Permits

Kentucky does not issue a single statewide business license for all businesses. Instead, licensing requirements depend on your industry, location, and business activities.

Certain professions and industries require special state or federal licenses, and local governments may impose zoning, signage, health, or safety requirements. Kentucky's One Stop Business Portal helps business owners identify which licenses and permits apply to their situation.

Operating without the proper licenses can result in fines or penalties, so it's important to verify requirements before opening your business.

8. Determine Your Tax Status

By default, Kentucky LLCs are treated as pass-through entities for federal tax purposes. This means the LLC itself does not pay income tax. Instead, profits and losses are reported on the members' personal tax returns.

Default Tax Treatment

Single-member LLCs are taxed like sole proprietorships, while multi-member LLCs are taxed as partnerships unless another tax election is made. LLCs may elect to be taxed as a C-Corporation or S-Corporation by filing the appropriate IRS forms, depending on their tax strategy.

Kentucky also imposes the Limited Liability Entity Tax (LLET), which is based on gross receipts or profits.

Other Ongoing Requirements for Kentucky LLCs

Open a Business Bank Account

After formation, you should open a dedicated business bank account to keep personal and business finances separate. This separation is essential for accounting accuracy and preserving liability protection.

Apply for a Business Credit Card

Many LLCs also apply for business credit cards to establish business credit and manage startup expenses.

Get Business Insurance

Business insurance—such as general liability, professional liability, workers' compensation, and commercial auto insurance—helps protect your company from financial risk.

Maintain LLC Records

Keeping accurate records, including formation documents, operating agreements, contracts, and financial statements, is critical for compliance and long-term success.

Reporting Requirements in Kentucky

Kentucky LLCs must file an annual report by June 30th each year. The filing fee is $15, and failure to file can result in administrative dissolution of the LLC.

Kentucky LLC FAQs