What Business Licenses & Permits are Needed in Kentucky?
Starting a in will mean potentially registering with a number of federal, and local agencies. Let’s take a look at common licenses and permits a will register for in .
Before applying for any licenses, the legal entity of the will need to be established. Learn more about the differences between the , general , , and (LLC). Corporations and LLCs will register with the of .
Related: Comparison of Entities
Learn more about forming an LLC in Kentucky
Also see: Steps to starting a business in Kentucky
There is no general of , however, many cities require businesses to be licensed in order to operate. Rules for registration vary depending on location and what the does. Below are a few cities that have .
– The -Fayette Urban Department of Finance requires businesses operating in the to obtain an .
The license’s cost is $100 initially, and then 2.25% of net profits of every from activities conducted within Fayette will be due.
A Certificate of Occupancy may be necessary in order to use a building or space legally.
Bowling Green – Any within the City or City Annex is required to complete the application.
A one-time registration of $50 will be made payable to the City of Bowling Green. The will be charged a 1.85% on any profits made by operating in the city.
Owensboro – All businesses will need to obtain an from the City of Owensboro. This license’s cost is $75, and 1.78% of profits will also be due to the city. Businesses such as junk yards, towing services, bowling alleys, and more will need to register with the city.
Covington – In order to do in the City of Covington, businesses will need to apply for an . A $50 fee will be required with the application. An additional called the will also be due annually, which is a tax based on a percentage of the profits.
Hopkinsville – An is required for all businesses operating in the of Hopkinsville. The initial registration fee is $100. Then each year the minimum license fee of $250 or 1.5% of net profits earned in the City if gross receipts are over $25,000, with a cap of $10,000.
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Building & Zoning Permits
Zoning – Depending on the location of the , it’s important to verify whether the needs an occupancy or has specific zoning regulations to follow. Depending on city requirements, home-based businesses may need to apply for a home occupation .
Building – A building may be needed from the city or building and planning department if there is any construction or renovations to a facility.
Signage – Some municipalities require a before adding signage.
Account
All businesses in will need to register for Accounts with the of . Registering for a Account will allow a to obtain a to sell products (both physical and digital) and offer certain services.
After registering, a will receive a Commonwealth Identifier (CBI), which is a unique identification number for the .
Resale Certificate
Businesses purchasing merchandise to resell will usually want to obtain a Resale Certificate in order to not pay for merchandise that is being resold to customers.
A variety of professions in the are regulated and need to be registered before offering certain services. A few common occupations that require licensing in include; detectives, cosmetologists, barbers, architects, massage therapists, and many more. Additional information, fees, and for professions are available from the Office of Occupations & Professions.
Employer Identification Number (EIN)
Many businesses will register with the Internal Service (IRS) for an EIN (also referred to as a FEIN, Federal Employer Identification Number, or Federal ID Number). The EIN is the equivalent for a Social Security Number for an individual. Corporations, Limited Liability Companies, Partnerships, and Sole Proprietorships with employees will all need to register for one. Sole Proprietorships without employees can use the owner’s Social Security Number.
There is no cost for an EIN, and the application process only takes a few minutes to get.
Assumed Name Registration
While not a , it’s common for Sole Proprietorships and Partnerships operating under a name that is different from the full name of the owner(s) to register for an Assumed Name (also known as a Doing As, DBA, or Fictitious Name) with the ‘s Office in the where the is located.
These are some of the most common licenses, but there are far too many licenses and permits for us to keep track of. Before starting your , be sure to check with City Hall, , Chamber of Commerce, and/or Economic Developer in your area to get more information regarding licensing.
2 Responses
Hello, I was wanting to ask about getting a business license in Louisville Kentucky to start an auto body shop, but I’m not sure what the process is to do it. Your help would be much appreciated. Thank you
There are several things that can fall under the umbrella of business license.
Here is a general overview on what auto body shops need – https://startingyourbusiness.com/what-licenses-does-an-auto-body-repair-shop-need/
Here is some specific auto body rules for Kentucky sales taxes – – https://revenue.ky.gov/DOR%20Training%20Materials/103%20KAR%2027.230.%20Automotive%20body%20shops%20or%20suppliers.pdf
Also the state of Kentucky, has the Business One Stop that helps identify the licenses they need to start – https://onestop.ky.gov/Pages/default.aspx
Hope this helps! Let me know if you have any other questions!
Greg