How to Start a Plumbing Business in Kentucky: DHBC Master $250 and Journeyman $60 Licenses, 80% and 75% Exam Marks and the Farmstead Exemption

If you want to know how to become a plumber in Kentucky and then run your own plumbing company, you have to clear two sets of requirements. The first is the personal license that lets you do plumbing work. The second is the business side: registering your entity, carrying insurance, registering for taxes, and meeting local rules. This guide covers both, in the order most people tackle them, with the fees and pass marks that apply.

Plumbing is licensed at the state level. The Department of Housing, Buildings and Construction (DHBC), Division of Plumbing, administers plumber licensing under KRS Chapter 318 and 815 KAR 20:030. Cities do not license plumbers, but your city or county may still levy a local occupational license tax on your business, which we cover in Step 9.

Disclaimer: This article is informational content, not legal or tax advice. Fees, deadlines and rules change. Confirm every figure with the agency named before you spend money or file anything, and consult a qualified attorney and CPA about your specific situation.

What You Need Before You Start

Gather these items before you apply for anything. Several of them take time to obtain, especially insurance quotes and experience records.

• Government-issued photo ID and proof of age. Applicants must be at least 18.
• Proof of U.S. citizenship or work authorization. Applicants must be a U.S. citizen or a work-authorized alien.
• Apprenticeship and journeyman records. Keep dated records of your hours, employers and supervising plumbers. Ask each employer for a written verification letter.
• Character references. You must show good moral character, so line up people who can speak to your conduct.
• Insurance quotes. A master plumber or firm must carry $250,000 general liability coverage, plus workers' compensation and unemployment coverage.
• A business name and entity choice. Decide between an LLC, a corporation, or a sole proprietorship before you file.
• A Kentucky registered agent and registered office. This is a Kentucky street address, not a post office box.
• A federal Employer Identification Number (EIN) from the IRS, which you will need for tax and banking purposes.
• Payment for each fee. The fees are listed in the steps below.

Step 1: Choose Your Plumbing License Level

Kentucky issues two plumbing licenses that matter for a business owner: master plumber and journeyman plumber. Most owners aim for the master license because it carries the most responsibility and the highest fee. Ask DHBC what each license lets you do on your own, and whether a firm must have a licensed master named to it, before you choose a path.

The two licenses differ in cost and experience requirements, so compare them against your current work history:

License	Experience path	Exam pass mark	License fee	Exam fee
Master plumber	2 years as a journeyman within the past 5 years, plus 2 years under a master; or an engineer or out-of-state route	80% per exam portion	$250	$150
Journeyman plumber	2 consecutive years as an apprentice	75% per exam portion, including a practical	$60	$50

Step 2: Confirm You Meet the Basic Eligibility Rules

Before you worry about experience, confirm the threshold requirements. You must be at least 18 years old, have good moral character, and be a U.S. citizen or a work-authorized alien. These requirements apply to every plumbing license level. If any of them is unclear in your case, such as your work authorization status, contact DHBC before you pay an application or exam fee.

Step 3: Complete the Required Experience

Experience is the step that takes the longest, so plan it first.

• Journeyman: Complete 2 consecutive years as an apprentice. Your apprenticeship must be documented well enough to support your application.
• Master: Show 2 years as a journeyman within the past 5 years, plus 2 years working under a master plumber. The engineer and out-of-state routes are separate options, so confirm which one applies to you with DHBC.

The master requirements stack, so the master route is a multi-year commitment. Ask DHBC how overlapping years are counted before you assume that work in one role can be credited toward the other.

Step 4: Pass the Exam

DHBC schedules plumbing exams in February, May, August and November. Plan around those four windows, and register early, because a missed window can add months to your timeline.

Pass marks are assessed per exam portion, so you cannot average a weak section against a strong one. The journeyman exam requires 75% on each portion, and that includes a practical component. The master exam requires 80% on each portion. A passing score is valid for 3 years, so if you pass one portion and wait too long to finish the rest, you may need to plan a retake. Confirm the current portion structure with DHBC before you study.

Step 5: Apply for and Pay Your License Fee

Your license fee is paid after you pass, on top of the exam fee. The fee structure works out as follows:

• Master plumber: $250 license fee plus $150 exam fee, for $400 in agency fees.
• Journeyman plumber: $60 license fee plus $50 exam fee, for $110 in agency fees.

These totals cover only the DHBC fees listed here. Insurance premiums, local licenses, and any other charges are extra. Confirm the current application process and payment methods on the DHBC website before submitting anything.

Step 6: Form Your Business Entity

Kentucky has no general statewide business license. Registering an entity is a filing with the Secretary of State, and the plumbing license is separate. You have three common options.

LLC

File Articles of Organization (Form KLC, Profit Limited Liability Company) for $40 through the Kentucky One Stop Business Portal. Online filings are effective on the date and time of filing, and processing is usually same day but can take up to three business days. The name must contain the words limited liability company, limited company, LLC or LC. To abbreviate limited company, you must use LTD CO. Search the Kentucky business search first, because the name must be distinguishable from any name already on record.

Corporation

File Articles of Incorporation (Form PAI, Profit Corporation) for $50. The same name rules and registered agent requirements apply.

Sole proprietorship

If you operate under your own name, you do not form an entity with the Secretary of State. If you want to use a different business name, you file a Certificate of Assumed Name with the county clerk of the county where you maintain your principal place of business, under KRS 365.015(3). County recording fees are set locally, so confirm the amount with that clerk.

Name reservation: If you need time to finalize the entity, you can reserve a name for 120 days for $15.

Registered agent: Every entity must keep a Kentucky registered office and registered agent. The office must be a Kentucky street address, and a post office box is not accepted. If the agent does not sign your formation document, the appointment does not take effect until the agent delivers a written statement of acceptance to the Secretary of State. Changing the agent or office later costs $10.

Step 7: Put Insurance in Place

Under KRS 318.030, a master plumber or firm must carry $250,000 in general liability coverage. You also need workers' compensation and unemployment coverage, and you must be able to show proof of each. Get quotes before you file your license application, because a coverage gap can stall the process. Compare quotes on coverage limits and exclusions, not just the premium.

Step 8: Register for Kentucky Taxes

Register your tax account with the Kentucky Department of Revenue using Form 10A100 through MyTaxes.ky.gov. Kentucky does not have a separate general business license, so this tax registration is the core state tax step. Expect the following:

• Sales tax: Kentucky's state rate is 6%, with no local sales taxes. The tax reaches about 50 services, so check with the Department of Revenue whether any of the work you bill is taxable. Do not assume plumbing services are exempt or taxable without confirming.
• LLC income: LLC income passes through to the members and is taxed at the 3.5% flat individual rate for 2026, with a $3,360 standard deduction.
• Corporation income: Corporations pay a 5% flat corporate income tax.
• Limited Liability Entity Tax (LLET): LLCs and corporations owe the LLET, with a $175 minimum 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.

Kentucky has no franchise tax. The LLET is the entity-level tax to plan for, and the figures above are subject to change, so confirm them with a CPA.

Step 9: Check Local Occupational License Taxes

Kentucky has 120 counties and about 420 cities. Cities, counties and school districts may levy occupational license taxes on payroll, net profits or gross receipts. Each jurisdiction runs its own forms and revenue office, so you must check the occupational license tax district for the city and county where your business operates. Ask whether any other city or county license applies to your plumbing work, and whether your payroll triggers a separate filing.

Step 10: Calendar Your Ongoing Compliance

Many plumbers lose their license or entity status through missed renewals, not through poor work. Set reminders for these items:

• Entity annual report: $15, due June 30 each year. The filing window opens January 1. Domestic entities that miss June 30 are administratively dissolved.
• Plumbing license renewal: Renewals are annual and expire on the last day of your birth month, so your deadline depends on your birthday, not a single statewide date.
• Continuing education: Complete 6 hours of continuing education each year under 815 KAR 2:010.
• Lapsed license: A license left unrenewed for 180 days is cancelled.
• Assumed name: A registration is effective for five years and is renewable, with a $20 Secretary of State filing fee for entities.

The Farmstead Exemption

KRS 318.015(3) provides that the plumbing chapter does not apply to farmsteads. That means plumbing work on a qualifying farmstead falls outside the licensing requirements in Chapter 318. The statute is short, and the term's practical reach is a question for DHBC. Before you build a business plan around it, ask DHBC in writing how it applies to the property and the work you plan to do.

Two cautions apply. First, work outside a farmstead remains subject to the licensing rules. Second, the exemption from Chapter 318 does not remove your entity, tax, insurance or local obligations covered in the steps above. Plan for those regardless of the exemption, and have a CPA or attorney review how the exemption affects your structure.

Out-of-State Plumbers and Reciprocity

If you already hold a plumbing license in another state, Kentucky's reciprocity rule under KRS 318.040 is narrow. It applies only with states that have a statewide plumbing code, an equal exam, and a reciprocal arrangement with Kentucky. If your home state does not meet all three conditions, you will likely need to meet Kentucky's requirements directly. Ask DHBC to confirm your eligibility before you assume your out-of-state license transfers.

Common Mistakes to Avoid

• Assuming a city issues the plumbing license. DHBC licenses plumbers. Cities may only tax your business.
• Treating the license as renewing on a fixed date. Your renewal date follows your birth month.
• Failing a single exam portion and assuming the rest carries over. Each portion must reach the pass mark, and passing scores are valid for 3 years.
• Choosing an LLC name without the required words. Use LLC, LC, limited liability company, or limited company, and check name availability first.
• Using a post office box as the registered office. Kentucky requires a street address.
• Missing the June 30 annual report. Domestic entities that miss the deadline are administratively dissolved.
• Letting continuing education lapse. The 6 hours each year are required, and an unrenewed license is cancelled after 180 days.
• Starting work before insurance is in force. You must carry $250,000 in general liability coverage, plus workers' compensation and unemployment proof.
• Skipping the local occupational license check. Cities, counties and school districts can levy their own taxes on your business.

Tips for a Smoother Start

• Start your experience records on day one. Dated hours and verification letters are the documents most often needed later.
• Pick your exam window early. Working backward from a February, May, August or November sitting keeps your study on schedule.
• Get insurance quotes before you file. Coverage requirements can affect your business setup and costs.
• Ask for free planning help. The Kentucky Small Business Development Center can help you think through entity choice and planning before you commit to filings.
• Keep a single compliance calendar. Include the June 30 annual report, your birthday-based license renewal, and your continuing education hours.

What Results to Expect

Following these steps may leave you with a Kentucky plumbing license and a properly registered business that can bill customers. The timeline depends largely on your experience path and exam scheduling, and it may take several years if you pursue the master license. Costs may run higher than the agency fees listed here once insurance, local taxes and professional advice are included. No outcome is guaranteed, and your results will depend on your experience, your exam performance and how carefully you track each requirement.

Final Checklist

1. Choose the master or journeyman license path and confirm the experience route with DHBC.
2. Confirm eligibility: age 18, good moral character, and citizenship or work authorization.
3. Document your apprenticeship or journeyman hours.
4. Register for the next February, May, August or November exam, and pass each portion at 80% (master) or 75% (journeyman).
5. Pay the $250 master or $60 journeyman license fee after passing.
6. File your entity: $40 for an LLC, $50 for a corporation, or a county assumed name for a sole proprietorship.
7. Secure $250,000 general liability, workers' compensation and unemployment coverage.
8. Register your tax account on MyTaxes.ky.gov with Form 10A100, and plan for the LLET.
9. Check local occupational license taxes in your city and county.
10. Calendar the June 30 annual report, your birthday-based license renewal and 6 hours of continuing education each year.

Disclaimer: This article is informational content, not legal or tax advice. Confirm all fees, deadlines and requirements with the Department of Housing, Buildings and Construction, the Secretary of State and the Department of Revenue, and consult a qualified attorney and CPA before making decisions about your business.