The Complete Guide to Kentucky Business Licenses
Kentucky does not have a statewide business license that applies to all businesses. Sellers register with the Department of Revenue, and most cities and counties levy an occupational license tax on business profits and wages.
Step 1: Form the LLC
File Articles of Organization with the Secretary of State for $40. The annual report is $15, filed between January 1 and June 30, and LLCs also owe the Limited Liability Entity Tax ($175 minimum). See the Kentucky LLC guide for every formation step.
Step 2: Sales and use tax permit
Register with the Kentucky Department of Revenue on MyTaxes (or Form 10A100) for a sales and use tax permit. The rate is 6% statewide, and Kentucky has no local sales taxes. The same registration covers employer withholding; unemployment insurance is registered separately with the Office of Unemployment Insurance.
Step 3: Local occupational license tax
Many Kentucky cities and counties require businesses to register for and pay an occupational license tax:
- Louisville Metro: 2.2% of business net profits (Metro, TARC and school board portions combined), filed on Form OL-3.
- Lexington-Fayette: 2.25% of wages and business net profits.
Step 4: Professional and contractor licenses
The Department of Professional Licensing oversees many professional boards, and the Department of Housing, Buildings and Construction licenses electrical and HVAC contractors.
Assumed names
An LLC files a certificate of assumed name with the Secretary of State ($20) and then with the county clerk.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Articles of Organization | Secretary of State | $40; $15 annual report |
| Sales and use tax permit | Department of Revenue (MyTaxes) | 6% statewide, no local sales tax |
| Occupational license tax | City / county (e.g. Louisville, Lexington) | 2.2%–2.25% of net profits |
| Electrical / HVAC license | Housing, Buildings and Construction | Varies |
| Assumed name | Secretary of State + county clerk | $20 (state) |
Frequently Asked Questions
Does Kentucky require a business license?
Kentucky has no statewide business license. Sellers register for sales and use tax, and most cities and counties require registration for their occupational license tax.
What is the occupational license tax in Louisville?
Louisville Metro charges 2.2% of business net profits, combining the Metro, TARC and school board portions, filed on Form OL-3.
Does Kentucky have local sales tax?
No. Kentucky's sales tax is 6% statewide with no local sales taxes.
How much does it cost to form an LLC in Kentucky?
The Articles of Organization cost $40, the annual report is $15, and LLCs owe the Limited Liability Entity Tax (minimum $175).
How do I register an assumed name in Kentucky?
An LLC files a certificate of assumed name with the Secretary of State ($20) and then with the county clerk.