Start a Business in Lexington

Permits, costs, timeline, and step-by-step requirements.

✔ 4 permits⏱ 2-6 weeks💰 Occupational license tax 2.25% net profits

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Overview

Starting a business in Lexington requires a Occupational License through the Division of Revenue. Base fee: Occupational license tax 2.25% net profits. Cheapest LLC filing in the US. No general state business license. Cities use Occupational License.

Required Permits

✓Federal: EIN from IRS (free, instant online)

✓State: LLC/Corp filing + seller's permit/sales tax registration

✓County: health department permit + fire inspection

✓City: business licence/tax certificate

Step-by-Step Process

Federal: EIN from IRS (free, instant online)

State: LLC/Corp filing + seller's permit/sales tax registration

County: health department permit + fire inspection

City: business licence/tax certificate

Costs

Estimated total: Occupational license tax 2.25% net profits depending on permits and inspections.

Contact

Division of Revenue

Phone: 859-258-3344

Apply Online →

Common Mistakes

⚠ Consolidated city-county (Lexington-Fayette Urban County)

⚠ Occupational license tax based on gross receipts or net profits

⚠ Horse industry — specific regulations for equine businesses

⚠ University of Kentucky area zoning

⚠ Kentucky requires an Occupational License from the local government in most cities

Choose Your Business Type

Restaurant Food Truck Barber Shop Retail Store Coffee Shop Bar / Nightclub Gym / Fitness Studio Nail Salon Cannabis Dispensary Dog Grooming Bakery Cleaning Service Daycare Center Auto Repair Shop

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