[0:00] The short answer Dan: To start an LLC in Kentucky, you file Articles of Organization, Form KLC, with the Kentucky Secretary of State, and pay $40. Maya: Is that all it costs? Dan: For the state filing, yes. And if your business is veteran-owned, that fee can be waived. Maya: This is The Business Formation Podcast. Today, Kentucky for 2026, in six steps, with what it all costs and the three best ways to have it filed for you. Where do we start? [0:28] Step 1: Choose a name Dan: The name needs limited liability company, limited company, or an abbreviation like LLC or LC. It also has to be distinguishable from names already on record. Maya: How do I check? Dan: The Secretary of State has a free business search. Use that first. Maya: Can I hold a name while I get ready? Dan: Yes. A reservation lasts 120 days and costs $15. [0:53] Step 2: Name a registered agent Maya: Who can be my registered agent in Kentucky? Dan: A Kentucky resident, a Kentucky entity, or an authorized foreign entity. It needs a Kentucky street address. Maya: And a P.O. box? Dan: No. Not accepted. Maya: Does the agent have to agree to it? Dan: Yes. The agent gives written consent by signing on the form. Maya: Is any of that private? Dan: No, the details are public. That's why many owners use a commercial agent. If you switch agents later, the change costs $10. [1:26] Step 3: File the Articles of Organization Maya: Where does the filing happen? Dan: Online, through FastTrack. That's the Secretary of State's filing system. The fee is $40. Maya: I'm Maya, by the way, here with Dan. Dan: Good to meet you, Maya. One more thing about that fee. Veteran-owned businesses can have it waived. Maya: How long until it's processed? Dan: Usually the same day. It can take up to three business days. Maya: Is that the end of the filing? Dan: Almost. Kentucky law also asks you to file a copy with the county clerk where your registered office is. [2:02] Step 4: Write an operating agreement Maya: Do I send the operating agreement to the state? Dan: No. It isn't filed with the Secretary of State, and there's no state fee. Keep it with your records. Maya: Does it have to be on paper? Dan: Kentucky allows written or oral agreements. Still, put yours in writing. Maya: What goes in it? Dan: Who owns what, how profits are split, who makes decisions, and what happens if a member leaves. [2:26] Step 5: Get a free EIN Maya: What about the federal side? Dan: Apply for your EIN free with the IRS at IRS.gov, after the state files your Articles. Maya: How quickly does it come? Dan: If the online application is approved, the IRS issues the number right away. Maya: Is there anything else Kentucky wants from a new LLC? Dan: Yes, the limited liability entity tax. The minimum is $175 each year, and you file it with the Department of Revenue. Maya: That's more than the formation fee. Dan: It is. And one thing you can skip: the beneficial ownership report. FinCEN no longer requires it from U.S. companies. [3:05] Step 6: File the annual report Maya: What do I file once I'm formed? Dan: An annual report, every year, between January 1 and June 30. Maya: When does the first one come? Dan: The year after you form. It's $15. Maya: And if I forget? Dan: After a 60-day notice, the LLC is administratively dissolved. Maya: What does it take to come back? Dan: A $100 reinstatement penalty, plus the annual report, plus a letter of good standing from the Department of Revenue. [3:33] What it costs Maya: Give me the do-it-yourself number. Dan: $40 to form. Then $15 a year for the annual report. Maya: And the EIN? Dan: Free. Maya: Anything optional? Dan: A name reservation at $15 for 120 days, and a $10 fee if you change agents later. Neither is required. Maya: What about the entity tax? Dan: The $175 minimum is on top of those. Maya: So the first-year state costs? Dan: $40 for the Articles, and the entity tax minimum of $175. The first $15 report comes the year after you form. [4:11] The county clerk copy Maya: Let me go back to that county clerk copy. Why does it matter? Dan: Kentucky law asks you to file a copy with the county clerk where your registered office is. Maya: So it's a second filing. Dan: Yes, in addition to the one with the Secretary of State. Maya: Is it a state filing fee? Dan: The state fee is the $40 for the Articles. The clerk copy is a separate step. Maya: Add it to the checklist, then. Dan: Right. [4:35] Picking your registered agent Maya: Walk me through the agent rules once more. Dan: A Kentucky resident, a Kentucky entity, or an authorized foreign entity, at a Kentucky street address. Maya: What does the agent sign? Dan: A written consent, right on the form. Maya: And the catch with doing it yourself? Dan: Your agent's name and address are public record. A P.O. box isn't allowed either. Maya: What does a change cost? Dan: $10. [5:03] Why the annual report matters Maya: Let me press on the annual report. It's only $15. Dan: Which makes it easy to remember, and costly to miss. Maya: What's the sequence if it's late? Dan: The state sends a 60-day notice. After that the LLC is administratively dissolved. Maya: And then? Dan: Reinstatement. The $100 penalty, the annual report, and the Department of Revenue letter. Maya: So $15 on time is the simple path. Dan: By a wide margin. [5:32] First-year checklist Maya: Give me the order of operations. Dan: Search the name. Choose your registered agent. File Form KLC online for $40. Send the copy to the county clerk. Then get your EIN and write your operating agreement. Maya: And the calendar? Dan: The $15 annual report, between January 1 and June 30, every year. And the $175 minimum entity tax, filed with the Department of Revenue. [6:00] The 3 best ways to file in Kentucky Maya: What if I'd rather have someone else file? Dan: Here are the three best ways to file in Kentucky. Number one, our pick, is Mainstay Filing, $199 a year plus the state fee. With the $40 state fee, checkout comes to $239. Maya: What does that include? Dan: Your Articles filed, your EIN application, and your registered agent every year. It renews at the same $199. Maya: And the annual report? Dan: Mainstay prepares and files it by June 30 every year. You pay only the $15 state fee. Maya: Number two? Dan: KY Registered Agent.org. It prepares and files your Articles for $199 plus the state fee, also $239 at checkout. The first year of agent service is free, then it's $99 a year. Maya: And number three? Dan: Kentucky Registered Agent.co. Same offer. $199 plus the state fee, first year of agent service free, then $99 a year. Maya: How do I choose? Dan: If you'll file your own annual report, numbers two and three cost less from year two, at $99 a year for the agent alone. The $15 state fee is the same either way. [7:23] Three years of service fees Maya: Give me the three-year view. Dan: Mainstay is $199 a year, so $597. Number two or three is $199 in year one, then $99 in each of the next two years, for $397. Maya: A $200 gap. Dan: Yes, and with Mainstay that gap pays for the annual report being filed each year. [7:48] Recap Maya: Can I hear it one more time? Dan: Choose a name with LLC in it, name a registered agent at a Kentucky street address, file Form KLC for $40, write an operating agreement, get your free EIN, and file your $15 annual report by June 30 every year. Maya: The links to all three services and every official source are in the show notes. Thanks for listening to The Business Formation Podcast, and good luck with your new Kentucky LLC.