Louisville Business License and Permits: The Complete Guide for Jefferson County

There is no general Louisville business license. The Louisville Metro Revenue Commission says plainly that no local business license is required to start a business. What every business does need is an occupational license tax account with the Revenue Commission, plus state registration. Depending on what you do and where, you may also need zoning approval, building and sign permits, a certificate of occupancy, a health permit, or an alcohol license.

If you haven't formed your company yet, start with our step-by-step guide to starting a business in Kentucky, which covers the Secretary of State filing, EIN, and S corp and C corp setup.

How Do You Register a Business in Louisville?

Every Jefferson County business registers in up to three places:

1. Kentucky Secretary of State (LLCs and corporations). Sole proprietors using a trade name file an assumed name with the Jefferson County Clerk instead.
2. Kentucky Department of Revenue, on Form 10A100 at MyTaxes.ky.gov, if you collect sales tax, have employees, or are an LLC or corporation.
3. Louisville Metro Revenue Commission, for an occupational license tax account, before you start doing business. Register online through the eMINTS portal or on the paper Registration Application for Tax Account Number, or in person at 617 West Jefferson Street, (502) 574-4860. A new entity, entity type, or FEIN needs a new account.

How Does Louisville's Occupational License Tax Work?

There is one Louisville Metro occupational license tax, collected two ways: on business net profits and through employer withholding on wages. The tax is 2.2%: 1.25% to Louisville Metro Government, 0.20% to TARC, and 0.75% to the Louisville and Anchorage school boards. Businesses and resident individuals pay 2.2%. Nonresident individuals pay 1.45% because they are exempt from the school board portion.

Net-profits tax (Form OL-3)

Every business entity and sole proprietor pays 2.2% on net profit earned in Louisville Metro. Net profit starts from your federal return, with Louisville-specific adjustments, and consolidated federal returns are not allowed. Businesses operating both inside and outside Louisville Metro apportion their profit using payroll and sales factors.

Most businesses file Form OL-3. Simple sole proprietorships operating only in Louisville Metro with no employees can use the short OL-3A, and 1099 earners with no expenses can use OL-3EZ. You must file even if the business had a loss, did not operate during the year but plans to, or registered but never started.

Payroll withholding

Every employer with employees working in Louisville Metro withholds the tax from wages: 2.2% for employees who live in Jefferson County, 1.45% for those who don't. Owners who take a salary from an S corp or C corp are employees for this purpose: the salary is subject to withholding, and the company's remaining profit to the net-profits tax.

Deadlines

Sole proprietors never make estimated payments, and no business has to in its first year in Louisville Metro.

Penalties: Late filing or late payment of the net-profits tax carries a penalty of 5% of the tax per month or part of a month, up to 25%, with a $25 minimum. Missed estimated payments accrue 12% annual interest.

Suburban cities

Some cities inside Jefferson County levy their own occupational taxes or license fees on top of Metro's, collected by the city. Jeffersontown withholds 1% on wages earned there, and St. Matthews and Shively require their own business licenses. If you are located in a small city, check with it before you open.

Do You Need Zoning Approval?

Before you sign a lease or buy a building, confirm that your use is allowed under the property's zoning. The Louisville Metro Office of Planning (formerly Planning & Design Services) administers the Land Development Code, and the LOJIC Online map shows a parcel's zoning district, form district, and any historic preservation or overlay district.

A use the zoning doesn't allow needs a rezoning, conditional use permit, or variance, each with its own hearing and timeline. Exterior changes in a local preservation district (Butchertown, Cherokee Triangle, Clifton, Limerick, Old Louisville, Parkland, West Main Street) or to a designated landmark need a Certificate of Appropriateness from the Landmarks Commission. New or expanded parking lots need a permit, and new construction may require site plan review.

What Are the Rules for a Home-Based Business in Louisville?

Louisville allows home occupations within limits set in the Land Development Code. You must register a home occupation with the Office of Planning before you start if customers or clients will come to your home or if you will have a nonresident employee. The registration fee is $50, the application asks for your Revenue Commission account number, and the registration does not transfer if you sell the house.

The main limits:

• Employees: Residents of the home plus no more than one nonresident employee on site at a time. A conditional use permit ($550 application) can allow more on larger lots.
• Customers: No more than two customers or clients on site at once, with appointments staggered.
• Space: The business may use no more than 25% of the home's floor area, capped at 500 square feet on lots under one acre.
• Appearance: No home occupation signs and no exterior changes or visible evidence of the business.
• Hours and deliveries: No customers or nonresident employees from 9 p.m. to 7 a.m., and no more than two commercial deliveries a day.

Some uses are prohibited as home occupations entirely, including restaurants, retail sales from the home, auto repair, clinics, kennels, and group instruction for more than four people. A home office with no visitors and no nonresident employees doesn't need to register, but still needs a Revenue Commission account.

When Do You Need a Building Permit or Certificate of Occupancy?

The Office of Construction Review (a division of Louisville Metro Codes & Regulations) issues building, electrical, HVAC, and sign permits and certificates of occupancy.

• Building permit: Needed for renovation or build-out that changes the footprint or interior walls. A change of use from the space's previous use also requires a building permit, even if you aren't building anything.
• Certificate of occupancy: Required for new construction, changes of use, and substantial renovations. Final inspections, including fire, must be completed before you can occupy the space. Inside the Urban Services District, Louisville Fire handles fire review; elsewhere, it's the local suburban fire district.
• Plumbing permits come from the state, not Metro.
• Contractors: Anyone pulling a permit needs a Louisville Metro Contractor Identification License (proof of workers' comp, unemployment, and liability insurance). Electrical, HVAC, plumbing, and fire sprinkler work also need a Kentucky license from the Department of Housing, Buildings and Construction. There is no state general contractor license.

Before you sign a lease, ask whether the space already has a certificate of occupancy for your use. Turning a retail space into a restaurant or a warehouse into a gym usually means a change-of-use permit.

Do You Need a Sign Permit?

Yes, for most permanent signs. Louisville's sign standards are in Chapter 8 of the Land Development Code and depend on the property's form district, its use, and the size of the wall. Overlay and preservation districts add requirements. Signs must be approved and permitted before they go up, the installer needs a Metro sign contractor license, and oversized signs need a separate waiver. Check the rules before you order the sign.

What Permits Does a Food Business Need?

Restaurants and food service

Food service establishments, retail food stores, and caterers need a permit from Louisville Metro Public Health & Wellness. It starts with plan review (application, floor plan, plumbing riser diagram, and menu), which must be approved before the building, plumbing, or food service permit is issued. An opening inspection follows construction. Louisville also requires a Certified Food Manager on duty.

Food trucks and events

A food truck goes through plan review, a state plumbing inspection, a Public Health opening inspection, a fire inspection, and a Louisville Metro mobile vending permit. Metro Parks and Waterfront Park require their own permits. Festival vendors need a temporary food service permit from Public Health & Wellness.

Cottage food (Kentucky home-based processors)

Kentucky lets you make certain low-risk foods at home, including baked goods, candy, jams and jellies, dried herbs, and granola, as a home-based processor. You register annually with the Kentucky Department for Public Health Food Safety Branch for $50 a year. Gross sales are capped at $60,000 a year, sales must be in person within Kentucky (no shipping), and labels must say "This product is home-produced and processed."

How Do You Get an Alcohol License in Louisville?

Kentucky requires both a state license and a local license:

1. State: Apply through the Kentucky Department of Alcoholic Beverage Control at abc.ky.gov. A full-service restaurant typically needs a nonquota type 2 (NQ2) retail drink license.
2. Local: Submit your state application number, the local fee, and supporting documents to Louisville Metro ABC, which is now part of Metro's Office of Licenses, Permits & Investigations (444 S. 5th Street, Suite 200; 502-574-3591). Expect to show tax clearance from the Revenue Commission, a Public Health inspection, and proof that you published a legal notice of intent.

State law caps the local fee Louisville Metro can charge. For an NQ2 retail drink license, the cap is $1,800 a year. A few small cities in Jefferson County, such as St. Matthews, run their own local ABC licensing, so check where your premises sits.

Metro ABC also licenses pawnbrokers, secondhand dealers, taxis, amusement machines, and itinerant vendors.

Do You Need a Sales Tax Permit?

If you sell taxable goods or services in Kentucky, you need a sales and use tax permit from the Kentucky Department of Revenue. Register on Form 10A100 at MyTaxes.ky.gov. There is no fee. Kentucky's rate is 6% statewide, and Louisville has no local sales tax on top.

Which Professions Need a State License?

Many occupations need a Kentucky license on top of your business registration. The Public Protection Cabinet's Department of Professional Licensing (dpl.ky.gov) supports about two dozen boards, including massage therapy, real estate appraisers, private investigators, professional counselors, and geologists. Construction trades go through the Department of Housing, Buildings and Construction. Other professions have standalone boards, including medicine, nursing, law, accounting, cosmetology, and barbering.

Some services also need a local license. Louisville Metro Public Health & Wellness permits tattoo and body piercing studios, and since 2026 requires a local license for massage facilities. Short-term rentals must register annually with the Office of Planning ($250 a year).

Louisville Business License and Permit Checklist

If you are budgeting for the costs of opening, our Kentucky small business grants and funding guide lists the state and local programs that can offset them.

Frequently Asked Questions

Do I need a business license in Louisville, KY?

Louisville does not require a general business license for most businesses. Instead, every business operating in Louisville/Jefferson County must register with the Louisville Metro Revenue Commission for an occupational license tax account before it starts doing business. Some regulated businesses, such as restaurants, bars, food trucks, pawnshops, and contractors, also need specific permits or licenses from Louisville Metro agencies.

How much is the Louisville occupational license tax?

The Louisville Metro occupational license tax is 2.2%, made up of 1.25% for Louisville Metro Government, 0.75% for the Louisville and Anchorage school boards, and 0.20% for TARC. Businesses pay it on net profits earned in Louisville Metro, and employers withhold it from wages at 2.2% for Jefferson County residents and 1.45% for nonresidents, who do not pay the school board portion.

When is the Louisville OL-3 return due?

The Louisville Metro net-profits return, Form OL-3, is due on the 15th day of the 4th month after the end of the business's fiscal year, which is April 15 for calendar-year businesses. An automatic six-month extension is available if requested by the original due date, but at least 90% of the tax must be paid by that date to avoid a late payment penalty.

Do I need a permit to run a business from my home in Louisville?

You must register a home occupation with the Louisville Metro Office of Planning, for a $50 fee, if customers or clients will visit your home or you will have a nonresident employee. Home occupations are limited to one nonresident employee on site, two customers at a time, no signs, and no more than 25% of the home's floor area. Every home-based business still needs a Revenue Commission account.

How do I get a liquor license in Louisville?

You need both a state license from the Kentucky Department of Alcoholic Beverage Control and a local license from Louisville Metro ABC. Apply to the state first, then submit your state application number, the local fee, tax clearance, a health inspection, and proof of a published legal notice to Louisville Metro ABC. For a restaurant's NQ2 retail drink license, state law caps Louisville's local fee at $1,800 a year.