Kentucky LLC vs New Mexico LLC (2026)
Written for owners based in Kentucky.
Verdict: for most owners, form where the business is based
New Mexico requires no annual or biennial report and no entity-level tax on a default-classified LLC, so recurring state cost is $0 against at least $190 in Kentucky. Articles of Organization cost $50 there against $40 here. The absence of a report cuts both ways: nothing arrives each year to prompt you, and a company that quietly loses its registered agent can still be revoked under New Mexico law with no missed filing to signal it. New Mexico also does not name members publicly. A New Mexico LLC trading in Kentucky pays the $90 foreign registration.
Based in New Mexico? Read New Mexico LLC vs Kentucky LLC →
Compare Kentucky LLC vs New Mexico LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: September 23, 2026
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| Factor | Kentucky | New Mexico |
|---|---|---|
| Filing Fee | $40 | $50 |
| Processing Time | Same day to 3 business days | Not published by the state |
| Annual Report Fee | $15 | None |
| Annual Report Due | June 30 | None required |
| State Income Tax | Yes | Yes |
| Anonymous LLC | No | Yes |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $90 + registered agent ~$150/yr |
Full fee breakdown for either state: Kentucky LLC cost and New Mexico LLC cost. Owner privacy options for either state: Kentucky anonymous LLC guide and New Mexico anonymous LLC guide.
Business Climate: Kentucky vs New Mexico
| Factor | Kentucky | New Mexico |
|---|---|---|
| 5-year business survival rate | 54.1% (#11 of 51) | 46.3% (#46 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +34.1% YoY (#26 of 51 by volume) | +12.6% YoY (#37 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Kentucky vs New Mexico
Kentucky
New Mexico
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Kentucky charges $40 to form an LLC, while New Mexico charges $50. Kentucky is $10 cheaper upfront. The cost that usually gets overlooked: if you form in New Mexico but operate in Kentucky, you must also register as a foreign LLC in Kentucky (a $90 filing) and maintain a registered agent in New Mexico (typically around $150 per year). That puts the realistic first-year cost of the New Mexico route at roughly $290, versus $40 for simply forming in Kentucky. Only one side of this comparison is knowable: Kentucky publishes a standard turnaround (same day to 3 business days), while New Mexico publishes no standard processing time, so the two can't be ranked against each other on speed.
Taxes: Kentucky vs New Mexico
Both Kentucky and New Mexico levy a personal income tax on pass-through business income, and your LLC's profits will be taxed where you live and operate. Forming in New Mexico doesn't change what a Kentucky-based owner pays. Kentucky levies a flat 4% personal income tax. Kentucky imposes the Limited Liability Entity Tax (LLET), $175 minimum per year.
Privacy & Asset Protection
New Mexico allows anonymous LLC formation. Member and manager names don't appear on routine public filings. New Mexico's Articles of Organization require only the organizer and registered agent, and LLCs file no annual report, so members and managers stay off public filings. Kentucky doesn't offer that same privacy. Kentucky's annual report confirms the names and addresses of members/managers. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal. One important caveat: if you register your New Mexico LLC as a foreign LLC in Kentucky, that Kentucky registration is itself a public record, which can undercut much of the privacy benefit for a business that operates in Kentucky.
Annual Maintenance Costs
Kentucky LLCs file an annual report ($15, due June 30), and New Mexico LLCs file no annual report at all. If you form in New Mexico while operating in Kentucky, you maintain filings in both states, New Mexico asks for no report, but Kentucky still wants its equivalent for your foreign registration, and pay a New Mexico registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the New Mexico route to roughly $165 a year, versus at least $190 to keep a domestic Kentucky LLC in good standing. The tax inside those totals: Kentucky imposes the Limited Liability Entity Tax (LLET), $175 minimum per year.
When New Mexico Actually Makes Sense
Forming in New Mexico makes sense in a few specific situations: you need anonymous ownership. Kentucky puts owner or manager information on public filings and New Mexico doesn't (usually via a holding company, since operating in Kentucky still requires a public foreign registration there), your business genuinely operates in New Mexico, with a real office, employees, or property there, or you're relocating to New Mexico in the near future. For a typical small business based in Kentucky, none of these usually apply. Registering a New Mexico LLC to do business back home means $90 in Kentucky foreign-registration fees, on top of New Mexico's $50 formation fee, while Kentucky's own annual report runs $15 a year and is due June 30. When in doubt, form where you actually do business.
Frequently Asked Questions
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so. Where we hold the citation but no stable public link, the citation is printed on its own rather than pointed at a guessed address.
- New Mexico statute: Section 53-19-66.1 (revocation for agent lapse)
- sos.ky.gov/bus/business-filings/OnlineServices/Pages/default.aspxKentucky Secretary of State: business entity filings
- sos.ky.gov/bus/business-filings/Pages/Fees.aspxKentucky LLC filing fees
- sos.nm.gov/business-services/New Mexico Secretary of State: business entity filings
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.