Nicholasville KY Business License: City 1% Net Profit and 1.5% Payroll Plus Jessamine County 1%, 3% Hotel Tax and 5% Alcohol Fee

If you are searching for a nicholasville ky business license, the first thing to know is that Kentucky does not issue one general license that covers every business. Registering a company or an assumed name is a filing with the Secretary of State, not a license. Licensing happens by trade through state agencies, and local taxes and licenses come from the city and county. In Nicholasville, the local side is where most owners need to act. Income earned inside the city pays both the city and Jessamine County, and the Nicholasville Tax Office administers the net profit tax for both. This guide walks through the steps in the order most owners need them.

This article is informational, not legal or tax advice. Rates, forms and deadlines can change, so confirm current details with the Nicholasville Tax Office and consult a qualified attorney or CPA before you file.

What You Need Before You Start

• Your exact legal business name and entity type (sole proprietorship, partnership, LLC or corporation)
• A Kentucky street address for the business and, for an entity, a Kentucky registered office and registered agent (no post office box is accepted)
• Your federal Employer Identification Number (EIN), if you have one
• Your estimated net profit, total payroll and gross receipts for the year
• Monthly lodging revenue records if you rent rooms, and monthly and quarterly alcohol sales records if you sell alcohol
• A payment method for online filings through the Kentucky One Stop Business Portal and MyTaxes.ky.gov

Step 1: Confirm Where Your Income Is Earned

The city and county taxes apply to income earned inside the city limits. Your mailing address alone does not settle the question. Confirm your business location with the tax office before you register. Wilmore taxes separately, so if any part of your operation is in Wilmore, that city's rules apply to that part of your income and you should confirm them with Wilmore directly.

Step 2: Form Your Entity and Register Any Assumed Name

Form an LLC or corporation through the Kentucky One Stop Business Portal at onestop.ky.gov. An LLC files Articles of Organization (Form KLC, Profit Limited Liability Company) for $40. A corporation files Articles of Incorporation (Form PAI, Profit Corporation) for $50. The LLC name must contain 'limited liability company,' 'limited company,' 'LLC' or 'LC.' To abbreviate 'limited company,' use 'LTD CO.' Online filings take effect on the date and time they are filed. Processing is usually the same day but can take up to three business days.

If you want to hold a name while you prepare your filing, the Secretary of State offers a name reservation for $15 that lasts 120 days.

If you do business under a name other than your own legal name, you need a Certificate of Assumed Name (Form ASN). It costs $20 when filed with the Secretary of State. A sole proprietor files with the county clerk of the county where the individual resides, and county recording fees are set locally.

Every entity must maintain a Kentucky registered office at a street address and a registered agent. Changing either costs $10.

Step 3: Register Your Kentucky Tax Accounts

Kentucky has no statewide general business license, but you still register your tax accounts with the Kentucky Department of Revenue using Form 10A100 through MyTaxes.ky.gov. Then identify which taxes apply to you:

• Sales tax: The state rate is a flat 6% with no local sales tax, but the tax reaches about 50 services. If you sell taxable goods or services, register for a sales tax permit at revenue.ky.gov.
• Entity tax: Kentucky has no franchise tax, but LLCs and corporations owe the Limited Liability Entity Tax (LLET). The minimum is $175 if Kentucky gross receipts or gross profits are $3 million or less. Between $3 million and $6 million, the tax follows a sliding scale. Above $6 million, it is the lesser of 0.095% of Kentucky gross receipts or 0.75% of Kentucky gross profits.
• Corporate income tax: Corporations pay a 5% flat rate on income, in addition to the LLET.
• Owner income tax: LLC income passes through to members and is taxed at the 3.5% flat individual rate for 2026, with a $3,360 standard deduction.

Step 4: File a Business Registration Form with the Nicholasville Tax Office

File a separate Business Registration Form for each business. If one owner runs two businesses, you still file two forms. Find the form and current instructions at nicholasville.org/tax-office. Ask the office to confirm how payroll reporting is set up, since payroll is reported to both the city and the county.

Step 5: Know the City and County Net Profit and Payroll Taxes

These two taxes make up the core of the local bill:

Tax	City of Nicholasville	Jessamine County	Filing
Net profit	1%	1%	One office administers the net profit tax for both. Returns are due April 15 for calendar-year filers. Fiscal-year filers file by the 15th day of the 4th month after year end.
Payroll	1.5%	1%	Reported to both the city and the county. Confirm the reporting schedule with the tax office.

Added together, that is 2% on net profit (1% city plus 1% county) and 2.5% on payroll (1.5% city plus 1% county). Plan around those figures, but do not treat them as the whole local bill. Wilmore taxes separately, and insurance companies pay a separate fee covered below. Ask the tax office for a written list of every levy that applies to your business type.

Step 6: Collect the 3% Transient Room Tax If You Rent Lodging

If you rent lodging, you collect a 3% transient room tax. The tax is collected for the Nicholasville/Wilmore/Jessamine County Joint Tourism Commission. Returns are due 15 days after the end of each month, so tax collected in March is due April 15. Confirm your registration and remittance steps with the tax office before your first rental.

Step 7: Plan for the City ABC License and the 5% Alcohol Fee

Besides the city ABC license, the city charges a regulatory fee of 5% of gross receipts from alcohol sales under alcohol ordinances 860-2013 and 892-2013. Returns are due on the last day of the month after each quarter ends:

Quarter	Sales period	Return due
First	January to March	April 30
Second	April to June	July 31
Third	July to September	October 31
Fourth	October to December	January 31

Kentucky law (KRS 243.075) limits fees of this kind, so ask the city to confirm how the 5% applies to your sales before you set your prices or budget for the fee.

Step 8: Insurance Businesses Pay a Separate 10% Fee

Insurance companies pay a 10% license fee on insurance business in the city. The base the fee applies to is not something to guess at, so ask the tax office how it is calculated before you estimate what you owe.

Step 9: Check Trade-Specific and State Licenses

Kentucky licenses most trades through a specific agency. Check with the agency that oversees your work:

• Department of Housing, Buildings and Construction: electricians, plumbers and HVAC
• Kentucky Real Estate Authority: real estate
• Boards of Cosmetology and Barbering: cosmetology and barbering
• Cabinet for Health and Family Services: child care and home health
• Alcoholic Beverage Control (ABC): alcohol and tobacco
• Local health department: food permits

Kentucky has no statewide general contractor license. If you do construction work, confirm the local requirements for the city and county where you work before you bid on jobs.

Step 10: Build a Deadline Calendar

Deadline	Requirement
January 1	Kentucky annual report filing window opens
April 15	City and county net profit returns for calendar-year filers, and room tax for March collections
June 30	Kentucky annual report due for LLCs and corporations ($15). Domestic entities that miss this date are administratively dissolved.
15 days after month end	Transient room tax return, if you rent lodging
Last day of the month after quarter end	Alcohol regulatory fee return, if you sell alcohol

Common Mistakes to Avoid

• Assuming the 1% city net profit tax is your whole local bill. Add the county tax, the payroll taxes, and any levies that apply to your industry.
• Forgetting that Wilmore taxes separately if part of your work happens there.
• Filing one Business Registration Form for several businesses.
• Treating the alcohol return as due at the end of the quarter. It is due on the last day of the month after the quarter ends.
• Confusing a Certificate of Assumed Name with a license. It is a filing that lets you use a trade name.
• Using a post office box as your registered office.
• Letting the June 30 annual report slip, since missing it can lead to administrative dissolution.

Tips for Staying on Track

• Put every deadline in the table above into one shared calendar with two reminders for each date.
• Keep monthly lodging and alcohol sales records from the first day you open, so quarterly and monthly returns are simple to prepare.
• Ask the Nicholasville Tax Office to confirm your rates, filing schedule and payroll reporting in writing.
• The Kentucky Small Business Development Center at kentuckysbdc.com and the SBA's Kentucky district page at sba.gov can help you work through setup questions.

What to Expect

Online entity filings typically process the same day, and may take up to three business days. Local registration and first returns can take longer, and the timing depends on the office, so confirm it with the tax office early. Keeping a single deadline calendar and clean monthly records may help you avoid missed filings, though results depend on your business and how complete your records are.

Before you file, confirm all rates, forms and deadlines with the Nicholasville Tax Office and the state agency that applies to your business. For complex structures, multiple locations or mixed revenue streams, consult a qualified attorney or CPA. This article is informational, not legal or tax advice.