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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
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$25.0004.0 %
Next$25.0005.0 %
Next$50.0006.0 %
Next$150.0007.0 %

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.