How to Start a Trucking Company in Kentucky: KYU Number, 2.85 Cents per Mile Over 59,999 Pounds, Zero-Mile Quarterly Returns and the $500 Revocation Fee

Knowing how to start a trucking company in Kentucky means handling two tracks at once. The first is the business entity, an LLC or corporation filed with the Kentucky Secretary of State. The second is the trucking layer: federal registrations, Kentucky tax accounts and the recurring returns that keep them active. The entity paperwork can be finished in a day. The weight-distance tax is where new carriers get caught, because it files every quarter, including quarters when your trucks never leave the yard.

This guide covers the sequence in the order you should work through it. It is informational content, not legal or tax advice. Trucking rules depend on your equipment, routes, cargo and whether you haul for hire, so talk with a qualified attorney and a CPA before you choose a structure or set up your tax plan.

What You Need Before You Start

Gather these items before you open any portal. Missing one usually means stopping halfway through an application.

• A business name that meets Kentucky rules. It must include “limited liability company,” “limited company,” “LLC” or “LC.” If you abbreviate “limited company,” use “LTD CO.”
• A registered agent and registered office in Kentucky. The office must be a Kentucky street address. A post office box will not work.
• Filing fees. $40 for Articles of Organization (Form KLC) for an LLC, or $50 for Articles of Incorporation (Form PAI) for a corporation.
• A federal Employer Identification Number (EIN) from the IRS.
• A vehicle list. For every truck and trailer, record the VIN, combined licensed weight, axle count and plate type. You need this for the KYU inventory and to decide whether the intrastate fuel tax applies.
• Your USDOT number and UCR status, checked with the Federal Motor Carrier Safety Administration (FMCSA).
• A KYID account for the Division of Motor Carriers online application.
• A card or bank account for ACH payments to the Motor Carrier Portal.
• A business bank account and insurance quotes. Confirm required coverage with FMCSA and your insurer. This guide does not list insurance minimums.

Step 1: Pick Your Entity and Check the Name

Many small carriers choose an LLC because income passes through to the members. Kentucky taxes LLC income at the 3.5% flat individual rate for 2026, but LLCs also owe the Limited Liability Entity Tax, covered in Step 10. A corporation pays the 5% flat corporate income tax. The right choice depends on your tax position and financing, so get professional advice before you file.

Search the Secretary of State’s business database at sosbes.sos.ky.gov before you settle on a name. Your name must be distinguishable from any name already on record (KRS 275.100). If you need time to line up financing or insurance, you can reserve the name for 120 days for a $15 fee.

Step 2: Appoint a Registered Agent

Every entity must maintain a registered office in Kentucky and a registered agent (KRS 14A.4-010). The agent must be an individual who lives in Kentucky, or an entity qualified to do business in Kentucky, and the agent’s business address must match the registered office. Unless the agent signs the formation document, the appointment does not take effect until the agent delivers a written acceptance to the Secretary of State. Changing your agent or registered office later costs $10.

Step 3: File Your Formation Documents Online

File through the Kentucky One Stop Business Portal. The LLC filing fee is $40. Kentucky publishes no expedited service tier or expedited fee, so online filing is the fastest path. Filings are usually processed the same day they are received but can take up to three business days. An online filing is effective on the date and time it is filed.

Step 4: Register Your Tax Accounts

Kentucky has no statewide general business license. Registering your entity is a filing, not a license, but your tax accounts still need setting up. Register with the Department of Revenue using Form 10A100 through MyTaxes.ky.gov. The Department’s main site is revenue.ky.gov.

Kentucky’s 6% sales tax applies to goods and to about 50 services, so ask the Department whether any service you bill is taxable. The state has no local sales tax, so the 6% rate applies statewide.

Step 5: Get Your Federal Operating Registrations

Trucking is regulated federally as well as by Kentucky. Check your USDOT number and UCR status with FMCSA. If you haul for hire across state lines, you may need additional federal operating authority. FMCSA sets those requirements, and they depend on your operation, so confirm the exact list before you dispatch your first load.

Step 6: Apply for Intrastate Authority If You Haul Only Inside Kentucky

If you carry freight for hire only within Kentucky, you need a motor carrier certificate under KRS 281.630. This guide does not list the certificate fee or application steps, so confirm both with the agency before you haul.

Step 7: Register for the KYU Weight-Distance Tax

The KYU is a weight-distance tax license for carriers traveling Kentucky roads with a combined licensed weight over 59,999 pounds. The tax is $0.0285 per mile, or 2.85 cents, under KRS 138.660. For example, 1,000 Kentucky miles at that rate comes to $28.50 before any other calculation the portal applies.

The Division of Motor Carriers issues the license through its online application, which requires a KYID account. A paper Form TC 95-1 is available, but it takes 10 to 14 business days, so the online application is the faster route.

List every qualifying vehicle in your KYU inventory. Farm-plated vehicles are exempt. If you only make occasional trips into Kentucky, a one-time temporary KYU permit is available for each truck. Confirm the cost of the application and the temporary permit with the Division of Motor Carriers, because this guide does not list them.

Step 8: Sort Out IFTA, IRP and KIT

KYU is a separate tax license from IFTA, the fuel tax license, and IRP apportioned plates are a third account. Each is its own registration, and filing for one does not satisfy another.

• IFTA: As a general rule, Kentucky-based interstate carriers hold IFTA.
• KYU: Carriers based outside Kentucky use KYU for travel on Kentucky roads.
• IRP: Apportioned plates are a separate account from both.
• KIT: The intrastate fuel tax covers Kentucky-based trucks that never leave the state, when the combined weight is 26,001 pounds or more or the truck has three or more axles.

Confirm your mix of accounts with the agency that issues each one. Do not assume that interstate authority replaces KYU. It does not.

Step 9: File Zero-Mile Quarterly Returns on Time

KYU returns and payments are filed online through the Motor Carrier Portal under KRS 138.685, by card or ACH. You must file for every quarter by the last day of the month after the quarter ends, even if the truck drove zero Kentucky miles. Miss the deadline and a $500 revocation fee applies, plus penalty and interest.

Quarter	Months covered	Return due
Q1	January to March	April 30
Q2	April to June	July 31
Q3	July to September	October 31
Q4	October to December	January 31

Put these dates on a shared calendar with a reminder a week ahead. A zero-mile return takes minutes to file, but a missed one costs $500 before penalty and interest.

Step 10: Keep Your Entity and State Filings Current

The annual report is $15 and is due June 30 every year. The filing window opens January 1, and you file through FastTrack Online Filings. Domestic entities that miss June 30 are administratively dissolved.

An LLC or corporation also owes the Limited Liability Entity Tax (LLET), which has a $175 minimum if Kentucky gross receipts or gross profits are $3 million or less. Between $3 million and $6 million, a sliding scale applies. Above $6 million, the tax is the lesser of 0.095% of Kentucky gross receipts or 0.75% of Kentucky gross profits. Confirm the exact sliding-scale figures with the Department of Revenue.

Kentucky has no franchise tax. Local governments, however, levy occupational license taxes on payroll, net profits or gross receipts. Kentucky has 120 counties and about 420 cities, and each taxing district runs its own forms and revenue office. Check the district where your terminal and drivers’ work locations sit.

Common Mistakes to Avoid

• Treating zero-mile quarters as optional. They are not. File every quarter.
• Letting the annual report slip past June 30. A missed deadline can lead to administrative dissolution.
• Using a post office box as the registered office. Kentucky requires a street address.
• Leaving a qualifying truck off the KYU inventory. Only farm-plated vehicles are exempt, so list everything else.
• Assuming IFTA, IRP or interstate authority covers KYU. They do not.
• Mailing a paper TC 95-1 late. It takes 10 to 14 business days, so start early or use the online application.
• Skipping the local occupational license check. Your city or county may tax payroll or profits even when the state does not.
• Assuming the 6% sales tax never applies to your billing. Ask the Department of Revenue which services are taxable.

Expected Results

Following these steps may get your entity and tax accounts open within a few weeks, though the timeline depends on how quickly you gather documents and how fast each agency responds. The entity filing itself can finish in a day when submitted online. Once your accounts are open, much of the ongoing work is calendar discipline: quarterly KYU returns, the June 30 annual report and any local filings. Results vary with your equipment, routes and business model, and nothing in this guide guarantees that any application will be approved or that the business will be profitable.

Official Resources

• Kentucky Secretary of State, Division of Business Filings: sos.ky.gov/bus/business-filings
• Kentucky One Stop Business Portal: onestop.ky.gov
• Kentucky Department of Revenue: revenue.ky.gov
• Kentucky Small Business Development Center: kentuckysbdc.com
• U.S. Small Business Administration, Kentucky district: sba.gov/district/kentucky

This article is informational content, not legal or tax advice. Trucking, tax and entity rules change, and the fees and deadlines above should be verified on each agency page before you file. Consult a qualified Kentucky attorney and a CPA before you finalize your business structure or tax plan.