702-871-8678
Why incorporate in Kentucky?
Business Information & Rankings
- Kentucky ranked 3rd for its workforce training programs. (Expansion Management magazine, 2005)
- Kentucky ranked 4th on Site Selection’s Annual Competitiveness Award. (2005)
- Kentucky ranked 9th in the nation on the Annual Business Climate Rankings. (Site Selection, 2005)
- In 2004, new business investment in Kentucky totaled nearly $2.3 billion with the creation of just over 16,600 new jobs.
Cost of living
| For Lexington, KY (2005): | Index Score |
|---|---|
| Composite: | 96.3 |
| Housing: | 90.3 |
| Utilities: | 101.7 |
| Misc. Goods & Services: | 98.9 |
Crime Rate
Kentucky has the 8th lowest crime ranking in the U.S. (F.B.I., 2004)
Fees & Taxes
Business Inventory Tax
Business inventory is taxed.
Corporate Income Tax
Kentucky is the only state that requires a physical presence requirement in order to be subject to the corporation income and license tax.
| First | $25.000 | 4.0 % |
| Next | $25.000 | 5.0 % |
| Next | $50.000 | 6.0 % |
| Next | $150.000 | 7.0 % |
| Over | $250.000 | 8.25% |
Personal Income Tax
Kentucky’s personal income tax system consists of five brackets with a top rate of 6% starting at $8,000.
Personal Property Tax
Taxable. The state imposes a tax on intangible personal property. Kentucky is one of the 38 states that collect property taxes at both the state and local levels.
State Sales and Use Tax
Base Rate: 6%
Machinery Rate: none
There is an exemption for machinery for new and expanding industry. This excludes repair, replacement or spare parts.
Unemployment Insurance
Kentucky new employers’ rate is 2.7% for 3 years.