How to Start a Trucking Company in Kentucky

Starting a trucking company in Kentucky requires navigating a unique landscape of state-specific taxes and federal compliance mandates. Unlike many states that rely solely on the International Fuel Tax Agreement (IFTA), Kentucky mandates a specific Weight Distance Tax for vehicles with a combined gross weight of 60,001 pounds or more. Prospective owners must first secure a USDOT number through the Federal Motor Carrier Safety Administration (FMCSA) and register their business entity with the Kentucky Secretary of State. The initial investment for a new carrier typically ranges from $10,000 to $30,000, covering down payments on equipment, insurance premiums, and state filing fees. Efficiently managing these regulatory layers is simplified by centralizing data. DispatchTool provides a platform for organizing IFTA reporting data and tracking Kentucky Weight Distance Tax (KYU) mileage, ensuring that drivers remain on truck-safe routes that comply with state bridge laws and weight limits. By integrating document storage and settlement tracking into a single interface, new owners can focus on securing high-value freight rather than manual data entry. Create a DispatchTool account to begin digitizing your fleet records and automating your quarterly tax distance summaries.

Kentucky Secretary of State Business Filing

Before applying for motor carrier authority, you must register your business entity with the Kentucky Secretary of State. Most small fleets choose a Limited Liability Company (LLC) structure to protect personal assets. The filing fee for Articles of Organization in Kentucky is $40. You must also appoint a registered agent with a physical address in the state to receive legal documents. Once filed, you will receive a Commonwealth of Kentucky Organization Number, which is necessary for opening a business bank account and obtaining a federal Employer Identification Number (EIN) from the IRS at no cost.

Securing Federal Operating Authority (MC Number)

If you intend to haul regulated commodities across state lines, you must obtain a Motor Carrier (MC) number and a USDOT number. The application fee for permanent operating authority is $300, paid via the FMCSA Unified Registration System (URS). After filing, there is a mandatory 10-day protest period. During this time, you must file a Form BOC-3 (Designation of Process Agents) and ensure your insurance provider submits Form BMC-91 or BMC-91X. Failure to complete these filings within 20 days of the protest period conclusion will result in the dismissal of your application.

Kentucky Weight Distance Tax (KYU) Registration

Any commercial vehicle with a licensed weight of 60,001 pounds or more must have a Kentucky Weight Distance Tax (KYU) number. This is a permanent number issued by the Kentucky Transportation Cabinet (KYTC). Under KRS 138.660, the tax rate is $0.0285 per mile for all miles traveled on Kentucky public highways. Unlike other states, this is not part of IFTA; it is a separate quarterly filing. You must create a Kentucky Online Gateway (KOG) account to apply for the KYU number and submit quarterly reports even if zero miles were traveled within the state.

Unified Carrier Registration (UCR) Fees

Kentucky participates in the Unified Carrier Registration agreement. For 2025, the UCR fees are based on the total number of commercial motor vehicles in your fleet that operate in interstate commerce. For a fleet of 0-2 vehicles, the fee is approximately $37, while fleets of 3-5 vehicles pay $111. This registration must be renewed annually by December 31st. Operating without a valid UCR can result in fines exceeding $300 per occurrence and the possibility of vehicle impoundment during roadside inspections.

Kentucky Intrastate Tax (KIT) and IFTA

For vehicles exceeding 26,000 pounds or having three or more axles, you must register for the International Fuel Tax Agreement (IFTA) to simplify reporting of fuel use taxes across multiple jurisdictions. If you operate exclusively within Kentucky (intrastate), you may instead require a Kentucky Intrastate Tax (KIT) account. The KYTC requires a $50 application fee for the IFTA license and provides two decals per vehicle. Quarterly IFTA reports are due on the last day of the month following the end of the quarter (April 30, July 31, October 31, and January 31).

Commercial Insurance Requirements in Kentucky

Kentucky follows federal guidelines for minimum liability insurance, but requirements vary based on the type of cargo. For non-hazardous freight moved in vehicles over 10,000 lbs GVWR, the minimum limit is $750,000. For certain hazardous materials, the requirement jumps to $5,000,000. Additionally, most brokers and shippers require a minimum of $100,000 in Cargo Insurance and $1,000,000 in General Liability. New authorities in Kentucky can expect annual premiums between $12,000 and $18,000 per power unit depending on the driver's CDL experience and credit score.

Overweight and Oversize Permits

Kentucky has strict enforcement regarding bridge weight limits and axle spacing. The legal gross vehicle weight (GVW) on Kentucky interstates and designated highways is 80,000 pounds. If your load exceeds this, or exceeds 13 feet 6 inches in height or 8 feet 6 inches in width, you must obtain a permit from the KYTC Division of Motor Carriers. Single-trip permits typically cost $60 plus additional mileage fees for overweight loads. Annual permits are available for specific industries, such as the Kentucky Coal Haul Highway System, which allows higher weight limits on specific routes for certified carriers.

Sources

Kentucky Transportation Cabinet (KYTC) (2024) — https://transportation.ky.gov/Motor-Carriers/Pages/default.aspx Federal Motor Carrier Safety Administration (FMCSA) (2025) — https://www.fmcsa.dot.gov/registration Kentucky Secretary of State (2024) — https://www.sos.ky.gov/bus/business-filings/Pages/default.aspx Unified Carrier Registration (UCR) Plan (2025) — https://www.ucr.gov/

Frequently asked

How much does a Kentucky KYU number cost?

The KYU number itself is issued for free by the Kentucky Transportation Cabinet, but you must pay the Weight Distance Tax of $0.0285 per mile every quarter for vehicles over 60,000 pounds.

What is the deadline for IFTA filing in Kentucky?

IFTA returns must be filed quarterly by the last day of the month following the close of the quarter: April 30, July 31, October 31, and January 31.

Do I need a KIT account if I have IFTA?

No, if you have a valid IFTA license, you do not need a separate Kentucky Intrastate Tax (KIT) account, as IFTA covers your fuel tax obligations within the state.

How long does it take to get a KYU number?

If applied for through the Kentucky Online Gateway (KOG), a KYU number is often issued instantly or within 24 to 48 hours once all business documentation is verified.

What is the Kentucky Secretary of State filing fee for a new trucking LLC?

The filing fee for Articles of Organization for a domestic LLC in the Commonwealth of Kentucky is $40.