How to Register for a Sales Tax Permit in Kentucky

No matter what the focus of your business, there are regulatory obligations that are pretty much the same for everyone: you have to register your business, file for all the necessary permits and maybe even secure funding for your startup.

This short guide will take you through the essential steps needed to properly set up your business in Kentucky.

Starting a Business in Kentucky

As with any business, you have to select a business structure and a name. The state of Kentucky enables you to select a number of different business structures from ‘Sole Proprietorship’ to a ‘Joint Venture’. When choosing the structure of your business, you need to consider how each business structure impacts your personal liability and how it affects the amount of tax you will have to pay. Remember that different business structures offer various protection levels. You can find the full list of business structures and more information on it here.

Following the selection of the business structure, you need to choose a name for your business. You can check the availability of business names before filing it with the Secretary of State, whose contact details will be listed at the end of this guide. The state of Kentucky also allows you to reserve a name you might use in the future to secure availability when needed.

Your next step is to register the business with the Secretary of State as well as the Kentucky Department of Revenue. The registration can be completed through Kentucky One Stop, an online service set up by the Department of Revenue that provides you with information and fast-tracks the registration process. It is essential to also contact your local or county offices since many require local business registration.

Registering for a Sales Tax Permit in Kentucky

Registering for tax numbers is your next step. This is done on a Federal level as you are first required to apply for an Employer Identification Number (EIN) with the IRS. On top of obtaining an EIN, it is essential to understand the tax requirements you as a business owner would have. If you are not confident that you understand the regulations, consult with a tax professional.

Now, if your business entails the sale of tangible merchandise, sales of admissions (tickets), lease or rentals of property or communication services, you will have to collect sales tax. You can register for a Kentucky Sales Tax permit during your business registration process with the Kentucky Business One Stop online service or by emailing or submitting the Kentucky 10A100 form, which is provided to any new business registrant.

When registering for a Kentucky sales tax permit, you need to provide the following information: effective date, a legal business name, previous account numbers, business location, ownership type, types of sales information, social security number and the North American Industrial Classification System (NAICS) code (which is required for all businesses).

There is no fee for registering for a sales tax permit. The permit is usually processed in two or three weeks. In addition, there is no need to renew the sales tax permit.

Who Needs a Sales Tax Permit

Any business or entity having a sales tax nexus or a significant presence in the state of Kentucky needs a sales tax permit.

You are considered to have a sales tax nexus if you own or lease a property in the state, if you store goods in a warehouse in the state, complete services in the state or sell software used in the state. For detailed requirements, read here.

In addition to learning whether you own a sales tax nexus (a physical business presence) in the state of Kentucky, you also should see whether the products and services you sell are taxable. Services are generally not taxable and there are few exceptions to the tangible goods that you don’t have to collect tax for. For more details on local and state tax requirements visit The Government of Kentucky’s One Stop Business Portal.

Getting a Kentucky Resale Certificate

By presenting a Kentucky Resale Certificate when purchasing goods for resale you will be exempt from paying sales tax. However, make sure that all the information required in the Resale Certificate is filled in properly. You can download the Kentucky Resale Certificate here.

Make sure you are also using the certificate in a legal manner as unlawful use of the certificate could lead to a number of penalties. This is why you should also check for the validity of a resale certificate when a purchaser presents you with one during a purchase. Make sure the buyer has a valid Tax ID, the certificate is filled completely and correctly. For any additional information contact the Kentucky Department of Revenue (the contact details are provided at the end of this article).

Additional Business Requirements

Make sure you obtain all the information needed for your specific line of business. There are insurance requirements you have to consider as well as specific federal, operational, environmental or local permits. Many cities and counties in Kentucky require local business licenses or taxes operating within their jurisdiction, so check with your local office for details.

Also, look into the zoning rules and any zoning licenses you might have to obtain. State of Kentucky’s Department of Housing, Buildings and Construction is the entity responsible for administering building code enforcement. For local requirements, contact either your county clerk, city clerk or planning/zoning office.

While this short guide points you in the right direction and to the right sources, it should not be taken as an official guide for registering your business in the state of Kentucky. For official information, you should contact the bodies mentioned in the text above.

Contact Details:

Office of the Kentucky Secretary of State

700 Capital Ave., Ste. 152
Frankfort, KY 40601
Phone: (502) 564-3490

Kentucky Department of Revenue

501 High Street
Frankfort, KY 40601
Phone: (502) 564-4581
TTY: (502) 564-3058

Share on social networks

Henley Johnson

Henley currently works as a sales representative for Direct Liquidation, assisting businesses with product sourcing of liquidated merchandise from the largest retailers in the world. Whether you are looking for a pallet or a truckload Henley is here to help you grow your business.

View Henley’s Bio on YouTube.