Why incorporate in Kentucky

Business Information & Rankings

Kentucky ranked 3^rd for its workforce training programs. (Expansion Management magazine, 2005)
Kentucky ranked 4^th on Site Selection's Annual Competitiveness Award. (2005)
Kentucky ranked 9^th in the nation on the Annual Business Climate Rankings. (Site Selection, 2005)
In 2004, new business investment in Kentucky totaled nearly $2.3 billion with the creation of just over 16,600 new jobs.

Cost of living

For Lexington, KY (2005):	Index Score
Composite:	96.3
Housing:	90.3
Utilities:	101.7
Misc. Goods & Services:	98.9

Crime Rate

Kentucky has the 8^th lowest crime ranking in the U.S. (F.B.I., 2004)

Fees & Taxes

Business Inventory Tax

Business inventory is taxed.

Corporate Income Tax

Kentucky is the only state that requires a physical presence requirement in order to be subject to the corporation income and license tax.

First	$25.000	4.0 %
Next	$25.000	5.0 %
Next	$50.000	6.0 %
Next	$150.000	7.0 %
Over	$250.000	8.25 %

Personal Income Tax

Kentucky's personal income tax system consists of five brackets with a top rate of 6% starting at $8,000.

Personal Property Tax

Taxable. The state imposes a tax on intangible personal property. Kentucky is one of the 38 states that collect property taxes at both the state and local levels.

State Sales and Use Tax

Base Rate: 6%
Machinery Rate: none

There is an exemption for machinery for new and expanding industry. This excludes repair, replacement or spare parts.

Unemployment Insurance

Kentucky new employers' rate is 2.7% for 3 years.

Why incorporate in Kentucky?