How to Start a Massage Therapy Business in Kentucky: 600 Hour License, $200 Biennial Fee, the Hands, Feet and Ears Exemption and 6% Sales Tax

If you plan to earn money doing massage in Kentucky, sort out two separate questions before you buy a table or lease a room. The first is whether you need a state license for the work you want to do. The Kentucky Board of Licensure for Massage Therapy regulates that question under KRS 309.350 to 309.364. The second is how to set up the business that does the work. That runs through the Kentucky Secretary of State, the Kentucky Department of Revenue, and your city and county.

This guide takes both tracks in order. It covers what the state license requires, what it costs, when you can work without it, how the 6% sales tax applies to your services, and the local steps new practitioners most often miss. Confirm every figure with the agency named before you pay, because fees and rules change.

What You Need Before You Start

Gather these items before you file anything. Missing one of them is the most common reason applications stall.

• Proof of age (you must be at least 18) and a valid government photo ID
• Transcripts from a board-approved 600 hour massage program, or a transcript showing an associate degree with a massage emphasis
• Fingerprints for the state background check
• $200 for the initial license fee
• A business name you have checked in the Secretary of State database at https://sosbes.sos.ky.gov/BusSearchNProfile/search.aspx
• A Kentucky One Stop Business Portal account at https://onestop.ky.gov/ for online filings
• $40 for Articles of Organization if you form an LLC, or $50 for Articles of Incorporation if you form a corporation
• A federal Employer Identification Number (EIN), which the IRS issues free of charge through IRS.gov
• A Kentucky street address for your registered office and a registered agent who lives in Kentucky or is a qualified business entity
• A written zoning check for your intended location and a quote for professional liability insurance

Step 1: Confirm You Meet the Board’s Eligibility Rules

To receive a Kentucky massage therapy license, you must meet four requirements under KRS 309.358. You must be at least 18 years old. You must be of good moral character. You must pass a fingerprint background check. And you must meet the education requirement, which is either 600 board-approved hours of training or an associate degree with a massage emphasis. You must also pass an approved exam.

The board, not the school, decides whether your training counts. Before you enroll, ask the program in writing whether it is approved by the Kentucky Board of Licensure for Massage Therapy. A certificate that looks official but is not board-approved will not get you licensed, and the hours cannot be recovered by re-labeling them later.

Step 2: Complete Your Training and Track Your Hours

Most people take the 600 hour route. Keep every transcript, attendance record and hour log. Ask the school for an official transcript that shows the total hours and the dates of your coursework. If you change schools partway through, get documentation from each one, since the board will want a complete and consistent record.

If you already hold an associate degree with a massage emphasis, check with the board whether your degree meets the requirement as written. Do not assume that a general health or wellness degree qualifies.

Step 3: Pass the Exam and Apply to the Board

Once your education is complete, sit for an exam the board accepts under KRS 309.358. Confirm which exams qualify before you register, since the board sets that list and it can change. Then submit your application with the $200 initial license fee, your fingerprints and your transcripts.

Ask the board whether the exam must be passed before you submit the application, or whether it can follow. The answer determines how you schedule your work, so do not guess.

Step 4: Decide Whether You Need the Full License

Kentucky law gives you a second path. Under KRS 309.352, a person may perform massage limited to the hands, feet or ears without holding the massage therapist title and without a license. This is often called the hands, feet and ears exemption.

The exemption is narrow, and it comes with a hard rule: you cannot use the title. You cannot advertise yourself as a licensed massage therapist, use the letters LMT, or market full body massage while claiming the exemption. If you want to offer full body work or call yourself a massage therapist, you need the license. Confirm the scope of the exemption with the board before you write your service menu, especially if you plan to add services over time.

Step 5: Form Your Business Entity

You have two common options. You can operate as a sole proprietor, or you can form a limited liability company (LLC). Each has different filing steps and costs.

For an LLC, file Articles of Organization (Form KLC) through the Kentucky One Stop Business Portal. The filing fee is $40. Your name must include “limited liability company,” “limited company,” “LLC,” or “LC.” If you abbreviate “limited company,” you must use “LTD CO.” Reserve the name first if you need time, which costs $15 and holds the name for 120 days. Every entity must keep a Kentucky registered office and a registered agent. Changing the agent or office later costs $10. Standard processing is usually same day, but it can take up to three business days. Online filings take effect when you file.

If you operate under your own name or a different trade name, you may need a Certificate of Assumed Name (Form ASN). The Secretary of State charges $20 for this filing, and it is effective for five years and renewable. Sole proprietors file with the county clerk in the county where they maintain their principal place of business, under KRS 365.015(3), and county recording fees are set locally, so confirm the amount with that clerk.

Keep your personal and business money separate from day one. A dedicated business bank account makes sales tax and occupational tax reporting far easier.

Step 6: Register for a Sales Tax Permit and Collect 6%

Kentucky has a flat 6% state sales tax and no local sales taxes. Massage is a taxable service in Kentucky under KRS 139.200(2)(an), unless it is medically necessary. Do not assume your massage services are exempt from sales tax. Ask the Department of Revenue how the medically necessary standard applies to your specific services, and keep the documentation that supports any exemption you claim.

Register your business tax account using Form 10A100 through MyTaxes.ky.gov. Kentucky does not issue a statewide general business license, so this tax registration is the state step for most massage businesses. Once registered, add the sales tax to your taxable invoices and file on the schedule the Department of Revenue assigns. Information is available at https://revenue.ky.gov/ and the registration page at https://revenue.ky.gov/Business/Pages/Register-Business.aspx.

If you form an LLC, the LLC also owes the Limited Liability Entity Tax (LLET), which carries a $175 minimum for entities with Kentucky gross receipts or gross profits of $3 million or less. LLC income passes through to the members, who pay the 3.5% flat individual rate for 2026.

Step 7: Clear Local Zoning, Occupational Tax and City or County Rules

Kentucky’s massage law preempts local ordinances that try to license massage therapists. Under KRS 309.364, state law supersedes local massage therapist ordinances. That does not mean you can skip local steps. Local zoning still applies to your location, and local occupational license fees still apply to your business. The statute also creates no separate state massage establishment license, so the rules for a physical massage location come from your city or county.

Kentucky has 120 counties and about 420 cities, and many of them levy occupational license taxes on payroll, net profits or gross receipts. Cities, counties and school districts can all impose these taxes. Each jurisdiction runs its own forms and revenue office. Find the occupational license tax district for the city and county where you will operate, and ask about zoning for home-based or commercial spaces before you sign a lease. Ask whether a massage establishment must register locally, and confirm the answer with the city or county office in writing.

Step 8: Set Up Insurance, Records and a Renewal Calendar

Get a professional liability insurance quote before you take your first client. Insurers will ask about your license number, your training and your service menu, so have those documents ready. Buy coverage that matches the services you actually perform, including any work that falls under the hands, feet and ears exemption.

Track your continuing education from the start. The board requires 12 hours of continuing education per two-year period, and 3 of those hours must cover ethics under 201 KAR 42:110. Log each course with the provider, date, hours and topic.

Put your renewal date on a calendar with reminders at least 60 days out. The biennial renewal fee is $200. Under 201 KAR 42:020, a renewal submitted late costs $225 if it is within 60 days after expiration, and $250 if it is 61 to 90 days late. After 91 days, you must go through reinstatement, and you should confirm the reinstatement cost directly with the board. If you are an LLC, also calendar the annual report: it costs $15 and is due June 30 every year, and an entity that misses June 30 is administratively dissolved.

Tips and Common Mistakes to Avoid

• Using the title under the exemption. The exemption covers hands, feet or ears only, and it does not allow the title. Keep your marketing consistent with what your license or exemption allows.
• Enrolling in an unapproved program. Verify board approval in writing before you pay tuition.
• Assuming massage is sales tax exempt. Under KRS 139.200(2)(an), massage is a 6% taxable service unless it is medically necessary. Document your reasoning.
• Skipping the local check. State law overrides local massage therapist ordinances, but zoning and occupational license fees still apply.
• Letting the license lapse. A late renewal costs more, and after 91 days you face reinstatement. Set reminders early.
• Forgetting the LLC annual report. Missing the June 30 deadline can lead to administrative dissolution.
• Mixing personal and business money. Separate accounts make tax filing and audits far simpler.

Expected Results

A license or exemption does not guarantee income, and results vary widely by location, pricing, experience and marketing. Many clients book massage for relaxation, and you can describe that experience in plain terms, such as “many people find massage relaxing” or “some clients tell us they leave feeling calmer.”

Keep your claims modest and avoid promises to treat, cure, prevent or diagnose any medical condition. Claims that massage treats a disease or changes the body’s structure can draw regulatory scrutiny. Stick to descriptions of relaxation and general comfort, and let your clients’ experiences speak for themselves.

Next Steps Checklist

1. Confirm you meet the age, character, fingerprint and education requirements.
2. Verify that your training program is approved by the board in writing.
3. Pass an approved exam and submit your application with the $200 fee.
4. Decide whether you need the full license or can work under the hands, feet and ears exemption.
5. Check your business name and file Articles of Organization ($40) or an assumed name ($20).
6. Register for tax through Form 10A100 at MyTaxes.ky.gov and collect 6% sales tax where it applies.
7. Confirm zoning and the occupational license tax district for your city and county.
8. Buy liability insurance and set up continuing education and renewal reminders.

Important Disclaimer

This article is informational content, not legal or tax advice. Fees, deadlines and rules change, and the agencies named above control the final answer for your situation. Before you form a business, register for taxes or rely on a sales tax position, consult a qualified attorney and a certified public accountant (CPA). Check every figure with the Kentucky Board of Licensure for Massage Therapy, the Secretary of State, the Department of Revenue, and your city or county.