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41A720 LLET(K) (10-13)

Page 2

INSTRUCTIONS – SCHEDULE LLET(K)

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

Purpose of Schedule—Schedule LLET(K), Limited Liability Entity

Section A—Computation of Gross Receipts and Gross Profits Excluding

Tax (For a Limited Liability Pass-through Entity with Economic

Economic Development Project(s)

Development Project(s)), is used by a limited liability pass-through

If the limited liability pass-through entity filing the tax return is a

entity that has one or more economic development projects under

partner or member of a limited liability pass-through entity or general

the Kentucky Rural Economic Development Act (KREDA), Kentucky

partnership (organized or formed as a general partnership after January

Industrial Development Act (KIDA), Kentucky Economic Opportunity

1, 2006) doing business in Kentucky, complete Schedule LLET(K)-C and

Zone Act (KEOZ), Kentucky Jobs Retention Agreement (KJRA),

enter the total amounts from Schedule LLET(K)-C, Section A, Lines 3

Kentucky Industrial Revitalization Act (KIRA), Kentucky Jobs

and 5 in Column A, Lines 3 and 5; and the total amounts from Schedule

Development Act (KJDA), Kentucky Business Investment Program

LLET(K)-C, Section B, Lines 3 and 5 in Column B, Lines 3 and 5, and

(KBI), Kentucky Reinvestment Act (KRA), Incentives for Energy

continue to Sections B, C and D.

Independence Act (IEIA) or Farming Operation Networking Project

(FON) in lieu of the regular Schedule LLET to compute its limited

If the limited liability pass-through entity filing the tax return is not a

liability entity tax (LLET) in order to exclude its Kentucky gross

partner or member of a limited liability pass-through entity or general

receipts and Kentucky gross profits attributable to the economic

partnership (organized or formed as a general partnership after January

development project(s). If the limited liability pass-through entity

1, 2006) doing business in Kentucky, complete Section A as follows:

is a partner or member of a limited liability pass-through entity or

general partnership (organized or formed as a general partnership

Line 1—Enter the pass-through entity’s Kentucky gross receipts

after January 1, 2006) doing business in Kentucky, complete Schedule

after Kentucky returns and allowances in Column A, and the pass-

LLET(K)-C, Limited Liability Entity Tax—Continuation Sheet. Attach

through entity’s total gross receipts from all sources after returns and

these schedules to the applicable tax return (Form 720S, 725 or

allowances from all sources in Column B.

765).

Line 2—Enter the economic development project’s Kentucky

gross

Short-Period Computation of LLET—For short-period returns,

receipts after Kentucky returns and allowances in Column A. No entry

annualizing gross receipts or gross profits is not permitted. A

is required in Column B.

minimum of $175 shall be due per taxable year. Taxable year is defined

as the period for which the return is made. KRS 141.010(16)

Line 3—Enter the amount of Line 1 less Line 2 in Columns A and B.

Combined Group—A member of a combined group pursuant to KRS

Line 4(a)—Enter the pass-through entity’s cost of goods sold

141.0401(1)(c) must use the total gross receipts and the total gross

attributable to Kentucky in Column A, and the pass-through entity’s

profits of the combined group to determine if it is eligible for the

total cost of goods sold attributable to gross receipts from all sources

small business relief provided by KRS 141.0401(2)(b). The member

in Column B.

computes its LLET based upon its Kentucky gross receipts and

Line 4(b)—Enter the economic development project’s cost of goods

Kentucky gross profits. A combined group means all members of an

sold attributable to Kentucky in Column A. No entry is required in

affiliated group as defined in KRS 141.200(9)(b) and all limited liability

Column B.

pass-through entities that would be included in an affiliated group if

organized as a corporation as provided by KRS 141.0401(1)(c).

Line 4(c)—Enter the amount of Line 4(a) less 4(b) in Columns A and

Section A of this schedule must be completed by a limited liability

pass-through entity, except a limited liability pass-through entity

Line 5—Enter the amount of Line 3 less Line 4(c) in Columns A and

exempt from LLET as provided by KRS 141.0401(6). If the limited

liability pass-through entity filing the tax return is a partner or member

of a limited liability pass-through entity or general partnership

Section B—Computation of Gross Receipts LLET

(organized or formed as a general partnership after January 1, 2006)

doing business in Kentucky, complete Schedule LLET(K)-C, Limited

Line 1—If gross receipts from all sources (Column B, Line 3) are

Liability Entity Tax—Continuation Sheet. Kentucky gross receipts,

$3,000,000 or less, STOP and enter $175 on Section D, Line 1.

Kentucky gross profits, total gross receipts from all sources, and total

Line 2—If gross receipts from all sources (Column B, Line 3) are greater

gross profits from all sources must be completed in accordance with

than $3,000,000 but less than $6,000,000, enter the following: (Column

KRS 141.0401(1). See the line-by-line instructions below.

A, Line 3 x 0.00095) – [$2,850 x (($6,000,000 – Column A, Line 3) /

Section B of this schedule must be completed to compute the LLET

$3,000,000)], but in no case shall the result be less than zero.

on Kentucky gross receipts excluding Kentucky gross receipts from

Line 3—If gross receipts from all sources (Column B, Line 3) are

economic development project(s).

$6,000,000 or greater, enter the following: Column A, Line 3 x

Section C of this schedule must be completed to compute the LLET on

0.00095.

Kentucky gross profits excluding Kentucky gross profits from economic

development project(s).

Line 4—Enter the amount from Line 2 or Line 3.

Section D of this schedule must be completed to show the LLET liability

Section C—Computation of Gross Profits LLET

excluding the LLET liability from economic development project(s)

before the application of any tax credits.

Line 1—If gross profits from all sources (Column B, Line 5) are

$3,000,000 or less, STOP and enter $175 on Section D, Line 1.

LINE-BY-LINE INSTRUCTIONS

Line 2—If gross profits from all sources (Column B, Line 5) are greater

Check Box—If the entity is a member of a combined group pursuant

than $3,000,000 but less than $6,000,000, enter the following: (Column

to KRS 141.0401(1)(c), check the box.

A, Line 5 x 0.0075) – [$22,500 x (($6,000,000 – Column A, Line 5) /

Reason Code—If the box is checked, enter the applicable code.

$3,000,000)], but in no case shall the result be less than zero.

Gross receipts or gross profits from all sources are equal to or

Line 3—If gross profits from all sources (Column B, Line 5) are $6,000,000

less than $3,000,000.

or greater, enter the following: Column A, Line 5 x 0.0075.

Gross receipts and gross profits from all sources are greater than

Line 4—Enter the amount from Line 2 or Line 3.

$3,000,000 but less than $6,000,000.

Gross receipts from all sources are equal to or greater than

Section D—Computation of LLET

$6,000,000 but gross profits from all sources are greater than

$3,000,000 but less than $6,000,000.

Line 1—Enter the lesser of Section B, Line 4 or Section C, Line 4, or a

minimum of $175 on this line and on Form 720S, 725 or 765, Part II,

Gross receipts and gross profits from all sources are equal to or

Line 1.

greater than $6,000,000.

Schedule Llet(K) (Form 41a720llet(K)) - Limited Liability Entity Tax For A Limited Liability Pass-Through Entity With Economic Development Project(S) Page 2

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