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725

41A725(I) (10–12)

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

INSTRUCTIONS

2012 KENTUCKY SINGLE MEMBER LLC

INDIVIDUALLY OWNED LLET RETURN

PURPOSE OF INSTRUCTIONS

Refer to the chart on page 2 to determine what tax form your

business needs to file.

These instructions have been designed for a single member

HOW TO OBTAIN ADDITIONAL FORMS

limited liability company (single member LLC) whose single

member is an individual, estate, trust or general partnership. A

Forms and instructions are available at all Kentucky Taxpayer

single member LLC is an entity that affords its member, through

Service Centers (see page 14). They may also be obtained by

function of the laws of this state or laws recognized by this

state, protection from general liability for actions of the entity.

writing FORMS, Department of Revenue, Frankfort, KY 40620,

or by calling (502) 564–3658. Forms can be downloaded from

A single member LLC is required by law to file a Kentucky Single

Member LLC Individually Owned LLET Return (Form 725).

KENTUCKY TAX LAW CHANGES

2012 Regular Session of the General Assembly

years preceding the request for approval by the Kentucky

Economic Development Finance Authority of the project

HB 246—Provisions effective July 12, 2012

which meets the standards set forth in KRS 154.25-020;

and (iii) have been previously approved for economic

Metropolitan College Tax Credit—KRS 141.381 was amended

development incentives by the Commonwealth related to

to extend the expiration date of the Metropolitan College

one (1) or more of its facilities.

tax credit from April 15, 2013, to April 15, 2017.

HB 441—Provisions effective July 12, 2012

HB 341—Provisions effective July 12, 2012

Limited Cooperative Associations—KRS Chapter 272A was

Statutory Trusts—KRS Chapter 386A was created to allow

created to allow an entity to organize as a limited cooperative

an entity to organize as a statutory trust or a series statutory

association. Section 8 of HB 441 provides that for purposes

trust. Section 5 of HB 341 provides that for purposes of KRS

of KRS 141.0401, each limited cooperative association with

141.0401, each statutory trust and foreign statutory trust

investor members shall be treated as a limited liability pass-

and each series of a series statutory trust or a foreign series

through entity, except to the extent of patronage activities

statutory trust shall be treated as a limited liability pass-

or dividends. A limited cooperative association shall have

through entity. A statutory trust has perpetual existence

perpetual existence unless the articles of association state

and affords its beneficial owner and trustee protection from

a term for the limited cooperative association’s existence,

general liability. A statutory trust may have one or more

and affords its members protection from general liability.

series and each series shall be separate for all purposes

Section 5 of HB 441 provides that a limited cooperative

including general liability.

association may be organized for any lawful purpose,

whether or not for profit.

Section 18 of HB 341 provides that a statutory trust may be

organized for any lawful purpose, except a statutory trust

HB 444—Provisions effective for tax years beginning on or

may not: (i) have a predominantly donative purpose; or (ii)

after January 1, 2010

be organized for the purpose of rendering a professional

service.

Qualified Air Freight For warders—KRS 141.121 was

amended to provide that a qualified air freight forwarder’s

apportionment factor shall be determined as follows: (i)

HB 400—Provisions effective July 12, 2012

the property factor shall be determined as provided in KRS

Kentucky Job Retention Agreements—KRS 154.25-010 was

141.120(8)(a); (ii) the payroll factor shall be determined

amended to expand eligible companies to include North

as provided in KRS 141.120(8)(b); and (iii) the sales factor

American Industry Classification Codes: 325211, 325510,

shall be determined as provided in KRS 141.120(8)(c),

326199, 327211, 327212, 327215, 331111, 331221, 331521,

except freight forwarding revenues shall be included in

332312, 332813, 33299, 335110, 335911, 335912, 423510,

the numerator of the sales factor by multiplying the freight

493110, 541614, 551114, and 561439. An eligible company

forwarding revenues by a fraction, the numerator of which

must: (i) employ a minimum of one-thousand (1,000) full-

is miles operated in Kentucky by the affiliated airline of

time persons engaged in automobile or automobile parts or

the qualified air freight forwarder and the denominator of

supplies manufacturing; (ii) have been operating within the

which is the total miles operated by the affiliated airline of

Commonwealth on a continuous basis for at least five (5)

the qualified air freight forwarder.

Instructions For Form 725 (State Form 41a725(I)) - Kentucky Single Member Llc Individually Owned Llet Return - 2012

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