Delaware vs Kentucky LLC Cost (2026): $390 vs $55
Side-by-side LLC formation cost comparison for Delaware and Kentucky: filing fees, annual report costs, processing time, and tax implications.
Forming an LLC in Kentucky costs $55 in year one — $335 cheaper than Delaware ($390).
Delaware
Kentucky
Lower CostFull LLC Cost Comparison: Delaware vs Kentucky
| Factor | Delaware | Kentucky |
|---|---|---|
| State filing fee (one-time) | $90 | $40 |
| Annual report fee | $300 / per year | $15 / per year |
| Processing time | 1–2 business days | 1–2 business days |
| State income tax | Yes | Yes |
| First-year total | $390 | $55 |
Kentucky saves you $335 in year one compared to Delaware.
Delaware LLC Notes
Delaware is a top choice for startups due to business-friendly courts, though annual franchise taxes can be high.
Kentucky LLC Notes
Kentucky has one of the lowest LLC filing fees and annual report costs.
Which State Should You Actually Use?
For most small businesses, form your LLC where you actually do business — not where the filing fee is cheapest. If you operate in Delaware, form there. If you operate in Kentucky, form there.
- Forming in your home state: Simpler compliance, no registered agent needed in another state, no foreign qualification fees.
- Forming in Wyoming or Delaware: Makes sense for investor-backed startups, multi-member LLCs with complex ownership structures, or businesses operating in multiple states.
- Key cost trap: If you form in Delaware but operate in Kentucky, you'll pay both states' fees — eliminating any savings.
Compare More LLC Formation Costs
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