Kentucky LLC Taxes

Federal Taxes

Regardless of where your business is located, if you have an LLC within the United States, you will have to pay federal income taxes and federal self-employment taxes. These taxes are reported on your Form 1040.

Federal Self-Employment Taxes

It doesn’t matter if your LLC is a single-member LLC or a multi-member LLC; all LLC members must pay self-employment taxes on their share of the LLC’s profits. The self-employment tax rate is 15.3%.

Federal Income Taxes

你的联邦income taxes will depend on your tax bracket, and the cutoffs for individual tax brackets, as well as the percent owed, will change each year.

Kentucky State Taxes

All states have their own laws that govern how they tax individuals and businesses. As such, you need to understand the differences so your LLC isn’t surprised by Kentucky’s unique tax laws or rates.

Kentucky Income Taxes

Kentucky’s state income tax rate is 4.5%, placing it on the low end when compared to other states across the country.

Kentucky Sales and Use Tax

Kentucky has a state sales tax of 6%, which is quite average. Importantly, it has no additional local sales taxes so you’ll encounter the same flat rate of 6% statewide.

Register for a Sales and Use Tax License in Kentucky

If your business sells taxable goods or services, you must register for a sales and use tax license with the Kentucky Department of Revenue. The state refers to many local licenses as “occupational license taxes.”

You can register online via theKentucky League of Citieswebsite, which also offers more information on occupational license taxes.

Limited Liability Entity Tax

Kentucky also imposes a Limited Liability Entity Tax (LLET) on LLCs operating within the state. This tax doesn’t apply to sole proprietorships and general partnerships.

The LLET will cost your business a minimum of $175 each year, but the state likely will charge you more than that. We highly recommend you consult with a tax professional about this tax because the amount you owe can fluctuate and not paying in full can result in penalties for your business.

Visit the肯塔基州的收入website for more information on the LLET.

Additional State Taxes

Kentucky has a variety of state-specific taxes that apply to only certain types of businesses or specific aspects of businesses. Here are some examples of the additional taxes that may apply to your business:

• Alcohol Taxes
• Consumer Use Tax
• Motor Fuels Tax
• Telecommunications Tax
• Transient Room Tax

To learn more, visit the肯塔基州的收入website.

Kentucky Local Taxes

The local laws and ordinances in one Kentucky county or city will differ from those in another. Regardless of where you live in Kentucky, check with your local jurisdiction to ensure your business obtains the required local permits and follows any local regulations that may impact its operations.

Kentucky LLC Annual Report

All Kentucky LLCs need to file an annual report each year either by mail oronline. The filing fee is $15, but veterans may not have to pay this.

This report is due between January 1 and June 30 each year. The only exception is if you start your business within that time period. If you form your business on April 2, 2024, for example, your first annual report will be due between January 1 and June 30, 2025.

If you miss the June 30 deadline, the state will intervene and dissolve your LLC. The Kentucky Secretary of State’s office sends postcard reminders in January and February each year to remind you of the report and encourage you to file early.

For more information, check out ourKentucky LLC Annual Reportguide.

LLC taxes are complex. While our guide can provide you with important information, we recommend youschedule a free consultation with an accountantto ensure you handle your business taxes correctly.