State guide · Kentucky
Starting a Medical Practice in Kentucky
What physicians need to know about Kentucky's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Service Corporation or Professional LLC
LLC permitted
No
CPOM enforcement
Moderate
Top income tax
Verify — flat 4.0% (2024, scheduled to decline)
Min. franchise tax
None (Kentucky has Limited Liability Entity Tax — small minimum)
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
Kentucky physicians may form a Professional Service Corporation under KRS Chapter 274 or a Professional LLC. All shareholders or members must be licensed Kentucky physicians.
Filing is with the Kentucky Secretary of State.
- •Form a Professional Service Corporation or Professional LLC
- •All shareholders/members must be licensed Kentucky physicians
- •File Articles of Incorporation or Articles of Organization with the Secretary of State
- •File Annual Report with the Secretary of State
Corporate Practice of Medicine
Kentucky recognizes a moderate Corporate Practice of Medicine doctrine. Fee-splitting is prohibited.
Tax Considerations
Kentucky has a flat 4.0% personal income tax (scheduled to decline further to 3.5% in 2026 — Verify). Limited Liability Entity Tax (LLET) applies to most pass-throughs based on gross receipts or gross profits.
- •Flat personal income tax: 4.0% (Verify — scheduled to drop)
- •Limited Liability Entity Tax (LLET): minimum $175
- •Local occupational license fees in many counties/cities (typically 1–2%)
Kentucky Board of Medical Licensure
Kentucky does not require entity registration with the Board of Medical Licensure for general practices. Individual physicians are licensed.
- •No general entity registration required
- •All practicing physicians must hold an active Kentucky medical license
Employment Law Considerations
Kentucky is generally employer-friendly. At-will employment, no state-mandated paid sick leave, and non-competes generally enforceable.
- •At-will employment
- •No state-mandated paid sick leave
- •Non-competes enforceable if reasonable
- •Kentucky minimum wage at federal $7.25/hour
Official resources
Bookmark these official agency portals for Kentucky entity formation, tax registration, and medical board information.
Looking for Kentucky licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for Kentucky.
View Kentucky licensing guide →Get the complete practice startup guide
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