Lexington, KY Business License Guide

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The Ultimate Business License Guide for Lexington, Kentucky (LFUCG)

Last updated: August 2025

This is a practical, no-nonsense hub for getting properly licensed to do business in Lexington-Fayette Urban County, Kentucky. It gives you a clear checklist, direct links to official pages, realistic timelines, and local contacts. It does not assume everything is easy. Where fees and thresholds can change fast, you’ll see direct links to verify the current amounts.

Important note about figures and verification: In Kentucky and Lexington, some fees and tax rates change through local ordinance or state law updates. To avoid giving you stale info, this guide links directly to the official agency pages where the current numbers are posted. Use those links to confirm amounts before you submit an application or a payment.

Quick Help Box (Start Here)

What “business license” means in Lexington

The “business license” most people mean in Lexington is your local occupational license account with LFUCG’s Division of Revenue. Lexington does not issue a single paper “license” for every kind of business. Instead, you:

  • Register for a local occupational license account (net profits/payroll tax filing).
  • Obtain any required local permits (zoning, building, signage).
  • Obtain sector permits (health permits, ABC, taxi/transport, etc.).
  • Register with the State of Kentucky (entity filings, tax accounts, unemployment insurance if hiring, workers’ comp).

Reality check:

  • There’s no universal “state business license” for Kentucky.
  • Lexington’s occupational license registration is mandatory for anyone doing business in Fayette County (including remote sellers with nexus and contractors working in the city).
  • If you operate in other Kentucky cities, many have their own occupational license tax. You may need to register and file in each jurisdiction where you do business. Use the Kentucky Department for Local Government – Local Occupational License Tax Resources to confirm local rules.

Fast orientation: who needs what (by common business type)

Use this table as a quick map. Always verify your exact requirements with the official links in the table.

Business type (example) Lexington local registration Kentucky state tax registration Health/sector permits Building/zoning Alcohol
Retail shop (clothing, gifts) LFUCG occupational license (Division of Revenue) KY sales and use tax; employer withholding if you have employees None unless specialized (e.g., tobacco/vape separate rules) Zoning use check; building permit and certificate of occupancy if needed; sign permit Not applicable unless selling alcohol
Restaurant/cafe LFUCG occupational license KY sales tax on prepared food; employer withholding if hiring Health inspection/permit (LFCHD) Zoning and building/CO; grease trap and wastewater rules may apply If serving alcohol, city + state ABC
Food truck/catering LFUCG occupational license KY sales tax; employer withholding if hiring Mobile food unit permit (LFCHD); commissary agreement Parking and location rules; event permits as needed If selling alcohol at events, ABC permits
Contractor/trades (electrician, remodeler) LFUCG occupational license Employer withholding if hiring; sales tax if selling taxable items State professional licenses for certain trades Building permits per job; zoning for shops/yards Not applicable
Home-based online seller LFUCG occupational license KY sales tax (marketplace rules may apply); employer withholding if hiring Generally none Home Occupation rules; signage limits Not applicable
Salon/barbershop LFUCG occupational license Sales tax on certain services/items; employer withholding if hiring State Board of Cosmetology/Barbering licenses; LFCHD may apply for body art Zoning/building; occupancy; signage Not applicable
Short-term rental (STR) LFUCG occupational license KY sales tax + state/lodging taxes; marketplace collection may apply STR city registration rules may apply (check LFUCG) Zoning/registration requirements Not applicable
Brewery/distillery/taproom LFUCG occupational license KY excise and sales tax; employer withholding ABC (city + state); federal TTB Zoning/building; wastewater pretreatment Required

Sources: Lexington-Fayette Urban County Government (LFUCG) main site (search each division); Kentucky Business One Stop; Kentucky Department of Revenue – Business Tax; LFCHD Environmental Health; Kentucky ABC.

Step-by-step: the shortest path to being legal

Below is a practical order of operations that reduces backtracking. For each step, you’ll see what to do first, how to apply, required documents, rough timelines, and a Plan B.

Step 1: Choose and register your business structure (KY Secretary of State)

Most important action: Secure the legal name and entity status before you sign leases or print materials.

  • If you’re forming an LLC, corporation, or nonprofit: File with the Kentucky Secretary of State (SOS) through Kentucky Business One Stop. Kentucky’s fees are generally modest compared to other states, and online filings are common.
  • If you’re operating as a sole proprietor or general partnership under a “doing business as” name: File an Assumed Name with the Kentucky SOS via Business Filings.
  • Keep your annual report obligations in mind: Entity types registered with the SOS must file annual reports. See SOS Annual Reports for current due dates and the online filing link.

Required documents

  • Your business name choices (and alternates if taken).
  • Registered agent name and Kentucky street address.
  • Principal office address and organizer/owner information.
  • For corporations: share and director details; for nonprofits: purpose and incorporators.

Costs and current fees

  • Kentucky filing fees are set by statute. Verify the current fee schedule at Kentucky SOS – Fees and Forms. As of the most recent SOS postings, common filings include low, fixed fees (e.g., LLC formation and annual report fees are typically modest in Kentucky). Confirm exact amounts at the SOS link above before paying.

Timelines

  • Online filings can be same-day to a few business days depending on the filing type and volume. Paper filings take longer.

Contacts and official links

What to do if this doesn’t work

  • If your name is rejected: Use the SOS name search to find an available alternative on SOS Business Records.
  • If you need help choosing an entity: Contact the Kentucky SBDC – Lexington for free counseling, or consult a local attorney/CPA.

Step 2: Get your federal EIN (IRS)

Most important action: Obtain an EIN if you hire, form an entity (LLC, corporation), or need a business bank account.

Required info

  • Legal name/structure, responsible party details, business address, reason for applying (e.g., starting a new business), expected employees.

Timelines

  • Online EIN issuance is immediate when the IRS tool is available.

What to do if this doesn’t work

  • If the online tool is down or you’re not eligible to apply online (e.g., no SSN/ITIN), use Form SS-4 and follow IRS instructions on the same page.
  • For help: Consider a local tax preparer or call IRS business assistance; see IRS Contact – Businesses for options.

Step 3: Register for Kentucky state tax accounts (sales/use tax, employer withholding)

Most important action: If you will sell taxable goods/services or have employees, register with the Kentucky Department of Revenue through KBOS before you start sales or payroll.

  • Register online via Kentucky Business One Stop. This typically sets up:
    • Sales and use tax account (for taxable sales).
    • Employer withholding (state income tax withheld from wages).
    • Additional accounts as needed (e.g., transient room, certain excise taxes).
  • Kentucky state sales and use tax rate is currently 6% statewide. Verify the rate and taxable categories at KY DOR – Sales and Use Tax.

Documents you’ll need

  • EIN, business entity details, ownership roster, NAICS code, business location(s), anticipated start date, and estimated monthly sales/withholding.

Costs and fees

  • Kentucky does not charge a separate “sales tax permit fee” to register for a sales and use tax account. Confirm at KY DOR – Registration.

Timelines

  • Online registration is typically processed within a few business days; account numbers may be issued sooner. Check your KBOS dashboard and DOR correspondence.

What to do if this doesn’t work

Step 4: Register locally with Lexington (LFUCG) for the Occupational License

Most important action: You must register for Lexington’s occupational license account with the LFUCG Division of Revenue before engaging in business in Fayette County.

  • Go to the city’s site and navigate to the Division of Revenue: Lexington-Fayette Urban County Government – Division of Revenue. Use the site search for “occupational license” and “business registration.”
  • Registration sets up your local tax account(s) for:
    • Net profits license fee return (based on your business net profits allocable to Lexington).
    • Employer withholding (payroll “occupational license fee”) if you pay wages for work performed in Lexington.
  • Employers must withhold the local occupational license fee from employee wages earned in Lexington. Businesses allocate net profits to Lexington based on activity within the city. The city publishes current rates, thresholds, due dates, and forms (e.g., OL-NP for net profits, OL-1 for withholding). Verify current rates and forms on the Division of Revenue page.

Documents you’ll need

  • EIN, entity registration details, business location address, ownership, start date, and whether you have employees.

Costs, rates, due dates

  • Lexington sets occupational license fee rates by local ordinance. Verify the current wage withholding rate, net profits rate, and any minimums/thresholds at the official page: LFUCG Division of Revenue – Occupational License.
  • Filing deadlines and frequency (monthly/quarterly/annual) depend on your liability and are posted on the official forms and instructions. Use the official forms and guidance on the Division of Revenue page for the latest due dates.

Timelines

  • Online account setup can be fast. Allow a few business days for processing and mailed correspondence.

Contacts

  • For quick routing to Division of Revenue, call LexCall 311 (outside Fayette County: 859-425-2255), or navigate from LFUCG – Division of Revenue.

What to do if this doesn’t work

  • If your registration stalls, contact the Division of Revenue via 311 and ask for business tax assistance. Keep your EIN and state account numbers handy.
  • If you operate in multiple Kentucky cities, also check each jurisdiction’s registration using KY DLG – Local Occupational Tax Resources.

Step 5: Zoning approval and building/occupancy permits (before you sign or build)

Most important action: Confirm your location is zoned for your use before you sign a lease or start construction.

  • Zoning/use check: Contact LFUCG Planning (search “Planning” and “Zoning”). Verify your use is allowed in the zone and whether you need a conditional use permit or variance.
  • Building permits and inspections: If you’re renovating, changing the use, or installing equipment/signage, work with LFUCG Building Inspection. Obtain necessary building, electrical, HVAC, plumbing permits and a Certificate of Occupancy when complete.
  • Home-based businesses: Review “Home Occupation” standards and any needed permits (parking, signage, visitors, deliveries limits). Search “Home Occupation” on the LFUCG site.

Required documents

  • Site plan/floor plan, contractor info, scope of work, load and equipment details, sign drawings, and any professional seals if required.

Costs and timelines

  • Permit fees vary by project scope; see LFUCG fee schedules on the division pages.
  • Plan review and inspections can take days to weeks depending on complexity and volume. Coordinate early with your general contractor and inspectors.

Contacts

What to do if this doesn’t work

  • If zoning is not a fit: Consider a different site, a zoning text amendment, or conditional use, but expect public hearings and longer timelines.
  • If permits are delayed: Schedule pre-submittal meetings with Building Inspection; have stamped drawings ready; respond quickly to plan review comments.

Step 6: Health permits and inspections (food, pools, body art, etc.)

Most important action: If you handle food, pools, lodging, body art, or childcare, contact LFCHD early.

  • Food service: Restaurants, cafes, food trucks, caterers, groceries must obtain permits and pass inspections through Lexington-Fayette County Health Department – Environmental Health.
  • Mobile food units: You’ll need a commissary agreement, vehicle/equipment inspection, and location compliance. Start with LFCHD guidance pages and check city parking rules.
  • Body art/tattoo: Permits and operator certifications via LFCHD.
  • Lodging/pools: Health inspections and permits required for public pools and certain lodging facilities.

Required documents

  • Facility plans, equipment lists/spec sheets, ServSafe or equivalent manager certificates, commissary letters for mobile units, water/sewer approvals.

Costs and timelines

  • Permit fees and inspection schedules are posted by LFCHD for each program. Confirm current amounts on their site before scheduling.
  • Plan review can take 2–4 weeks or more; build inspection and final permits follow after passing inspections.

Contacts

What to do if this doesn’t work

  • If your plan is rejected: Ask for a plan review meeting; revise layout, equipment, or procedures per LFCHD comments.
  • If you need temporary permission: Ask about temporary event permits (farmers markets, festivals) and their requirements.

Step 7: Alcoholic Beverage Control (if applicable)

Most important action: You must get both city and state alcohol licenses (and federal if you produce alcohol).

Required documents

  • Floor plans, lease/deed, entity documents, responsible agent info, background checks, server training plans, local zoning compliance letters, and signage/public notice requirements.

Costs and timelines

  • State and local ABC fees vary significantly by license type. Use the current fee schedules at Kentucky ABC – Licensing and the LFUCG ABC page.
  • ABC approvals can take several weeks to months due to public notice periods and local/state coordination. Build that into your lease and opening date.

What to do if this doesn’t work

  • If license type is unclear: Contact Kentucky ABC licensing for guidance and confirm with LFUCG ABC which local category you need.
  • If your location is near a school/church: Kentucky and local distance rules may restrict certain license types; consider a different site or different license class.

Step 8: Employer setup (payroll, UI, workers’ comp, city withholding)

Most important action: Don’t run payroll until you’ve set up withholding accounts and insurance.

  • Kentucky Employer Withholding: Register via Kentucky Business One Stop for your employer withholding account.
  • Unemployment Insurance (UI): Employers must register with the Kentucky Office of Unemployment Insurance (through Kentucky Career Center). Start at Kentucky Career Center – Employers.
  • Workers’ Compensation insurance: Required for most employers. Get coverage via a private carrier or qualify to self-insure. See KY Department of Workers’ Claims for rules.
  • Local Lexington withholding: Set up and remit the occupational license fee on wages for work performed in Lexington through the LFUCG Division of Revenue. Use the city’s forms/instructions for due dates and thresholds.

Documents and timelines

  • EIN, state employer account numbers, payroll provider info, ownership details, and start date.
  • Allow 1–2 weeks to get all accounts live if you’re brand new. Payroll providers can help accelerate.

What to do if this doesn’t work

  • If payroll is imminent: Use a full-service payroll provider experienced in Kentucky and Lexington local withholding to avoid late filings.
  • If you hired someone out-of-state: Check whether their work location triggers another city/county occupational tax; use KY DLG – Local Occupational Tax Resources.

Step 9: Industry-specific licenses and environmental compliance

Most important action: Identify any special environmental or sector rules early to avoid costly rework.

  • Air quality (auto body, manufacturing, coatings): See LFUCG Division of Air Quality (search “Air Quality”) for permits, notifications, and reporting.
  • Wastewater pretreatment (food grease traps, breweries, high-strength waste): Start at LFUCG – Water Quality and request pretreatment guidance.
  • Solid waste and recycling service: Commercial accounts and rules via LFUCG Waste Management.
  • Transportation/taxi/TNC and right-of-way: Confirm with LFUCG and the Kentucky Transportation Cabinet (for state routes). KYTC main portal: Kentucky Transportation Cabinet.
  • Professional and trade licensing: Many trades are licensed at the state level (e.g., electrical, HVAC, plumbing, cosmetology). Check the relevant board via Kentucky Public Protection Cabinet and other state boards.

What to do if this doesn’t work

  • If you’re unsure which environmental permits apply: Ask for a pre-application consult through LFUCG Water Quality or Air Quality. Bring process descriptions and estimated volumes/chemicals.

Step 10: Final pre-opening checks

Most important action: Get your paperwork organized and confirm that all inspections have passed.

  • Have your Certificate of Occupancy (CO) issued and on hand (if applicable).
  • Verify LFCHD permits are active (for food/body art/pools).
  • Confirm LFUCG Division of Revenue account is set and you know your first filing due date.
  • Set up your sales tax filings calendar in the DOR system.
  • If you have employees, test payroll and withholding submissions.
  • Post required labor law notices (federal/state), and any required city notices.

What to do if this doesn’t work

  • If a last-minute inspection fails: Ask the inspector for a punch list and reinspection timeline; fix only what’s required to pass.
  • If you can’t open on time: Contact your landlord and key suppliers early; update your ABC and LFCHD contacts if a public notice needs re-dating.

Costs and taxes snapshot (verify each before you file)

Kentucky is relatively low-cost for entity filings and has a simple state sales tax. Local occupational license fees are common across Kentucky cities. Always confirm the current rates and fees at the official links.

Item Agency Typical rule Where to verify
Kentucky state sales and use tax KY Department of Revenue State rate is currently 6%; some services taxable KY DOR – Sales & Use Tax
Sales tax permit KY Department of Revenue No separate permit fee KY DOR – Registration
Lexington occupational license account LFUCG Division of Revenue Required if doing business in Lexington-Fayette LFUCG – Division of Revenue
Local net profits and wage withholding rates LFUCG Division of Revenue Set by local ordinance; verify current rates and due dates LFUCG – Occupational License Info
KY entity formation (LLC/Corp) KY Secretary of State Low, fixed filing fees; verify current amounts KY SOS – Business Filings & Fees
KY annual report KY Secretary of State Required for registered entities; modest fee KY SOS – Annual Reports
Health permits LFCHD Fees vary by facility type LFCHD – Environmental Health Programs
ABC licenses KY ABC + LFUCG ABC State + local licenses required; fees vary by license Kentucky ABC and LFUCG ABC

Realistic timelines

These are common experiences for straightforward applications. Complex, high-volume, or seasonal surges can slow things down. Always build in buffer time.

Task Typical timeline Notes
Form entity with KY SOS (online) Same day to a few business days Paper filings take longer
Get IRS EIN Immediate online SS-4 by mail/fax takes longer
Register with KY DOR via KBOS 1–5 business days Watch KBOS dashboard/email
Register Lexington occupational license 1–5 business days City processing varies
Zoning verification 1–10 business days Depends on whether hearings are needed
Building permits (minor interior work) 1–3 weeks Complex projects can take longer
Health plan review (restaurant) 2–4+ weeks Coordinate equipment lead times
ABC licensing Several weeks to months Public notice and background steps
Hiring first employee (UI + WC) 1–2 weeks Carrier underwriting can add time

Plan B: If you’re tied to a fixed opening date, submit in parallel where allowed (e.g., start LFCHD plan review while working through building review), and keep a shared checklist with inspectors’ contact info and reinspection dates.

Common Lexington scenarios and how they play out

  • A retail shop signs a lease and learns the previous tenant had a different use. Because the use changed, the owner must obtain a new Certificate of Occupancy. They submit a simple floor plan and schedule inspections through Building Inspection. They also register with LFUCG Division of Revenue for the occupational license and with KY DOR for sales tax. They mark down their first city withholding due date because they’ll have two part-time employees.
  • A food truck founder starts at home. LFCHD requires a permitted commissary kitchen for prep, storage, and cleaning. They partner with a shared commercial kitchen and submit the commissary agreement. They also learn certain Lexington locations require event permission or private property agreements; they map a weekly schedule that avoids no-vending zones.
  • A home-based ecommerce seller ships from a spare bedroom. They register with LFUCG (occupational license) and with KY DOR for sales tax. They confirm Home Occupation rules and keep signage off their residential property to comply with zoning.
  • A taproom plans to pour beer onsite. They sequence ABC steps: zoning confirmation, building upgrades for occupancy, state ABC, city ABC, and TTB (if brewing). They budget months for ABC approvals and coordinate their grand opening around those dates.

Application checklists (by step)

To reduce delays, gather these items before you start forms. Use the links in each step above for the current, official lists.

  • Entity formation (KY SOS)
    • Business name options
    • Registered agent details
    • Business address
    • Owner/manager/director details
    • Payment method for filing fee
  • IRS EIN
    • Entity formation acceptance info (if applicable)
    • Responsible party SSN/ITIN
    • Business mailing address
  • KY DOR registration (KBOS)
    • EIN
    • NAICS code
    • Ownership roster
    • Anticipated start date
    • Sales channels (in-store, e-comm, events)
  • Lexington occupational license (LFUCG)
    • EIN and KY DOR account numbers (if assigned)
    • Business location(s) in Fayette County
    • First hire date (if applicable)
    • Fiscal year-end
  • Zoning/Building
    • Site/floor plans
    • Scope of work and contractors
    • Equipment specifications
    • Signage drawings
    • Egress/occupant load info
  • Health permits (LFCHD)
    • Menu and process flow
    • Equipment list/spec sheets
    • Food manager certifications
    • Commissary letter (mobile units)
    • Wastewater/grease control plan
  • ABC (if applicable)
    • Zoning compliance letter
    • Floor plans
    • Ownership/manager background info
    • Public notice affidavits
    • Server training plan

Local contact directory (verify direct lines on the linked pages)

Where possible, start with LexCall 311 for quick routing to the right city division. For state agencies, use the “Contact” pages below for the latest phone numbers and emails.

Agency Website Phone/contact note
LFUCG Division of Revenue LFUCG – Division of Revenue Start with LexCall 311 or 859-425-2255 and ask for Business/Occupational License
LFUCG Planning LFUCG – Planning Use LexCall 311 for routing
LFUCG Building Inspection LFUCG – Building Inspection Use LexCall 311 for routing
LFUCG ABC LFUCG – ABC Use LexCall 311 for routing
LFCHD Environmental Health LFCHD – Environmental Health See LFCHD contact page for program-specific lines; general assistance via LexCall 311
Kentucky Business One Stop onestop.ky.gov See portal Help/Contact inside KBOS
Kentucky Secretary of State sos.ky.gov Use the Business Services contact page
KY Department of Revenue revenue.ky.gov Use the DOR “Contact Us” directory
Kentucky ABC abc.ky.gov Use Licensing Contact page
Kentucky Career Center (employers/UI) kcc.ky.gov Use the Employers contact page

Taxes you’ll likely deal with (Lexington and Kentucky)

  • City occupational license taxes:
    • Net profits license fee: A percentage of net profits attributable to business conducted in Lexington. Filed annually; extensions and estimates may apply. Use official LFUCG forms and instructions for rates and due dates.
    • Payroll/withholding license fee: Employers withhold a percentage from wages earned for work performed in Lexington and remit on the city schedule.
  • Kentucky state taxes:
    • Sales and use tax: Collected on taxable sales at the statewide rate (currently 6%). See DOR – Sales and Use Tax.
    • Employer withholding: State income tax withheld from employee wages; file and pay on DOR schedule.
    • Corporate/LLET/Income: LLCs and corporations may have state-level obligations; work with a CPA.
  • Sector-specific taxes:
    • Alcohol excise and regulatory fees (if applicable): See Kentucky ABC.
    • Lodging/room taxes (if applicable): Hotels/STRs should verify state/local transient taxes with KY DOR and LFUCG. For local rules, start at the LFUCG site and search “transient room tax” and “short-term rental.”

Reality check: If you sell across Kentucky or pay employees in other cities (Lexington + elsewhere), you can owe multiple local occupational taxes. Keep clean location records for where work is performed and where revenue is sourced.

Filing calendars and reminders

Set up a compliance calendar so you don’t miss filings:

  • City occupational license filings
    • Withholding returns: monthly/quarterly/annual per LFUCG criteria.
    • Net profits return: annually, with due date tied to your tax year. Extensions typically follow federal patterns but confirm with LFUCG forms.
  • State filings
    • Sales tax returns: monthly/quarterly/annual based on volume; filed via DOR.
    • Employer withholding: remittance frequency based on liability.
    • Annual report with KY SOS: once a year to keep your entity in good standing.
  • Sector permits
    • Health permits: renew on LFCHD schedule and after ownership/location changes.
    • ABC: annual renewals with city and state, plus server training renewals where required.

What to do if this doesn’t work

  • If you miss a deadline: File and pay as soon as possible, then contact the agency to discuss penalty abatement if you have reasonable cause. Keep all notices and proof of payment.
  • If you can’t determine your frequency: Call the agency (or LexCall 311) and ask them to read your account’s assigned frequency from their system.

Common mistakes to avoid

  • Signing a lease before zoning and occupancy checks: You may be locked into a space that can’t be used without expensive upgrades or hearings.
  • Delaying health plan review: Kitchen equipment lead times can outlast your permit approval window, pushing back your opening.
  • Ignoring local withholding: Payroll providers may set up state withholding but overlook Lexington’s local occupational withholding unless you tell them explicitly.
  • Mixing personal and business finances: Banks and tax authorities will have a harder time sorting your records, and audits become painful.
  • Missing the city net profits return: Some businesses think city registration is “one-and-done.” You must file, even during a loss, unless you’ve properly closed your account.
  • Forgetting other jurisdictions: Contractors and mobile service businesses often owe occupational license taxes in each Kentucky city/county where work is performed.
  • Assuming a “state business license” exists: Kentucky doesn’t have a universal business license; you must assemble the correct set of filings for your business type.
  • Using the wrong legal name on permits: Your entity name and DBA must match your filings, bank account, and insurance, or agencies may reject applications.
  • Not coordinating ABC steps: Alcohol licensing is dual (city + state) and time-consuming. Start early and sequence your notices correctly.
  • Skipping workers’ comp: Kentucky enforces workers’ comp; coverage saves you from severe liability and penalties for uncovered injuries.

What to do if something goes wrong (triage tips)

  • Late filings or unexpected penalties: File immediately; then request a penalty abatement if you have reasonable cause (documentation helps). Keep correspondence and proof of e-file timestamps.
  • Rejected permits: Ask for a written list of deficiencies, request a re-review timeline, and schedule a quick meeting to confirm your fix plan.
  • Cash flow crunch and tax bills: Ask the agency about payment plans. For city accounts, contact LFUCG via LexCall 311 to reach the Division of Revenue. For state taxes, see DOR – Payment Plan/Collections.
  • Conflicting guidance: When state and local advice conflicts, ask both in writing for clarification and cite their pages. Keep a compliance memo in your records.
  • Opening date at risk: Prioritize health and occupancy approvals; negotiate soft openings without alcohol service if ABC is pending; communicate delays early with vendors and customers.

Inclusivity, diversity, and accessibility resources (Lexington & Kentucky)

Lexington and Kentucky have resources to help owners from underrepresented groups, veterans, immigrants, and people with disabilities access capital, certifications, and technical help.

  • Minority and Women-Owned (DBE/ACDBE) for transportation-related contracts
    • Certifying entity: Kentucky Unified Certification Program (KUCP) managed by the Kentucky Transportation Cabinet Office for Civil Rights and Small Business Development.
    • Use: Makes you eligible for federally funded transportation projects (DOT).
    • Learn and apply: KYTC – Civil Rights & Small Business Development.
  • Women-Owned Business Certification (WBE)
    • National certifier: Women’s Business Enterprise National Council (WBENC) – widely accepted by corporate buyers.
    • Info: WBENC Certification Overview.
  • Minority Business Enterprise (MBE)
    • National certifier: National Minority Supplier Development Council (NMSDC).
    • Regional affiliate serves Kentucky businesses.
    • Info: NMSDC Certification.
  • Veteran-Owned (VOSB/SDVOSB)
  • Disability-owned and LGBTQ-owned certifications
  • Local small business support and counseling
  • Language access and immigrant-owned support
    • LFUCG’s LexCall 311 can arrange interpretation services when contacting city divisions; ask for an interpreter.
    • For translation/ESOL resources, search “Global Lex” on the LFUCG site for the city’s language and cultural services directory.
    • Kentucky statewide refugee/immigrant resources: Kentucky Office for Refugees (see programs and local partner agencies).

Accessibility tips

  • Ask agencies for assistance if you need disability accommodations for inspections, forms, or hearings. City and state offices can provide reasonable accommodations on request.
  • If English isn’t your first language, request interpretation at the start of the call with LexCall 311 and during in-person visits to city offices.

Reality checks, tips, and warnings

  • Permitting always takes longer than you think. Create a shared checklist with due dates, and hold a 15-minute weekly stand-up with your contractor and permit leads.
  • Fees change. Never rely on a blog (including this guide) for final dollar amounts. Click the official links and confirm the current fee schedule before you file.
  • Multi-jurisdiction operations get busy fast. If you deliver or perform work outside Lexington, you may owe additional local taxes elsewhere. Keep a map of where your crews work, and reconcile monthly.
  • Food businesses have the heaviest pre-opening lift. Health, building, grease traps, and sometimes ABC stack together. Plan your equipment orders and media announcements around inspection windows, not the other way around.
  • Tax software/payload mismatches are common. Confirm your payroll provider is withholding and reporting Lexington’s local occupational tax in addition to Kentucky state withholding.

Frequently asked questions (Lexington/Kentucky)

  • Do I need a state business license to operate in Kentucky?
    • No. Kentucky does not issue a single, general “state business license.” You register your entity with the Secretary of State and obtain the specific tax accounts and permits you need. Start at Kentucky Business One Stop.
  • What is the Lexington “business license” and how do I get it?
    • In Lexington, you register for an occupational license account with the LFUCG Division of Revenue, then file net profits and withholding returns as required. Use the city site: LFUCG – Division of Revenue.
  • I’m a contractor based outside Lexington. Do I still need to register?
  • What is Kentucky’s sales tax rate?
  • Do I owe local taxes in multiple Kentucky cities?
  • How long does it take to open a restaurant in Lexington?
  • How do I know if my home business is allowed?
    • Review the Home Occupation rules with LFUCG Planning. Many low-impact businesses are allowed with limits on signage, traffic, and on-site customers.
  • I’m hosting short-term rentals. What taxes/permits apply?
    • You may need to register with LFUCG (occupational license), collect KY state sales and lodging taxes, and comply with local STR rules. Check LFUCG and KY DOR – Sales & Use Tax.
  • Where do I get help with a specific step?
    • Start with LexCall 311 or 859-425-2255 for city items, KBOS for state filings, and SBDC Lexington for free business coaching.
  • What if I miss a city tax deadline?
    • File and pay as soon as possible. Then contact the Division of Revenue via LexCall 311 to discuss penalties and interest and whether reasonable cause abatement is available. Keep all notices and confirmations.

Example filing sequence for three common Lexington businesses

Business Week 1–2 Week 2–4 Week 4–8 Week 8–12
Retail boutique Form entity (SOS), EIN, KBOS tax registration; LFUCG occupational license Lease + zoning/CO check; sign permit Fixture install; occupancy inspection Soft opening when sales tax and CO are confirmed
Food truck Entity/EIN/KBOS; LFUCG occupational license LFCHD plan review; commissary contract Vehicle and equipment inspection; city location compliance Launch schedule with event permits as needed
Taproom (beer) Entity/EIN/KBOS; zoning; initial building plans ABC prep; TTB (if brewing); building permits Construction; inspections; ABC public notice ABC approvals; final CO; grand opening

What to do if this still feels overwhelming

  • Use the SBDC: The Kentucky SBDC – Lexington can walk you through the sequence, review your lease, create a permit roadmap, and set reminders.
  • Ask the city for a quick-questions call: Use LexCall 311 to request a call-back or routing to the right division (Revenue, Planning, Building). Short conversations early save weeks later.
  • Consider a CPA for Lexington + multi-city tax: If you perform services in multiple KY jurisdictions, a CPA who regularly files occupational license returns can simplify your calendar and avoid penalties.
  • For complex builds: Schedule a pre-submittal meeting with Building Inspection and invite your architect/GC.

Sources (official and well-established)

All sources below are official government pages or widely recognized organizations. Always verify current fees, rates, and deadlines on the linked pages.

About This Guide

This guide is tailored to Lexington-Fayette Urban County (LFUCG) and Kentucky state requirements. It focuses on what business owners actually have to do, in the order that saves time and reduces mistakes. Where the exact dollar amounts, thresholds, or deadlines change, you’ll find a direct link to the official page so you can confirm the current figure before filing.

If you need help gathering precise, current fee totals for your exact business type (for example, the specific Lexington occupational tax rate and filing thresholds for your situation, or the current ABC license fees), use the official links above and/or call LexCall 311 for division routing.

Disclaimer

  • Program rules, fees, deadlines, and application processes change. Always verify the latest requirements directly with the relevant agency using the links in this guide.
  • This guide provides general information and is not legal, tax, or accounting advice. Consult a licensed professional for advice specific to your situation.