Instructions For Form 725 - Kentucky Single Member Llc Individually Owned Llet Return - 2011
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16725
41A725(I) (10–11)
Commonwealth of Kentucky
DEPARTMENT OF REVENUE
INSTRUCTIONS
2011 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 12). 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
2009 Special Session of the Kentucky General Assembly
2010 Special Session of the Kentucky General Assembly
HB 2 – Provisions effective for tax years beginning on or
after January 1, 2011
HB 3 – Provisions effective for tax years beginning on or
after January 1, 2010
Kentucky Small Business Investment Credit Program – KRS
141.384 was created to provide a nonrefundable tax credit
against the taxes imposed by KRS 141.020 or 141.040 and
KRS 141.0401. A small business shall not be eligible to apply
Certified Rehabilitation Tax Credit – KRS 141.382 was created
for credits and receive final approval for the credits until one
to provide a refundable or transferable credit against the taxes
year after the small business: (a) creates and fills one or more
imposed by KRS 136.505 or 141.020 or 141.040 and 141.0401,
eligible positions over the base employment, and that position
with the ordering of credits provided in KRS 141.0205, for
or positions are created and filled for twelve months; and (b)
qualified rehabilitation expenses incurred by the taxpayer
invests $5,000 or more in qualifying equipment or technology.
and used for substantial rehabilitation to a certified historic
The maximum amount of credits that may be committed in
structure as provided by KRS 171.397.
each fiscal year by the Kentucky Economic Development
Finance Authority shall be capped at $3 million. The maximum
amount of credit for each small business for each year shall
not exceed $25,000.
KRS 171.397(1)(b) provides that for applications for preliminary
approval received after April 30, 2010, the credit shall be
Endow Kentucky Tax Credit – KRS 141.438 was created to
refundable if the taxpayer makes an election under KRS
provide a nonrefundable tax credit against the taxes imposed
141.397(2)(b)2.a. KRS 171.397(2)(b)2 provides that the
by KRS 141.020 or 141.040 and KRS 141.0401 for a taxpayer
application shall include an irrevocable election by the
making an endowment gift to a permanent endowment fund
taxpayer to: (a) use the credit, in which case, the credit shall be
of a qualified community foundation, or county-specific
refundable; or (b) transfer the credit. KRS 171.397(8) provides
component fund, or affiliate community foundation, which
that the certified rehabilitation credit permitted by KRS 141.382
has been certified under KRS 147A.325, and meeting the
may be transferred or assigned to any entity subject to the
requirements of KRS 141.438(7). The total amount of tax credit
tax imposed by KRS 136.505 if an election is made to transfer
that may be awarded under this section shall be limited to
the credit as provided by KRS 171.397(2)(b)2.b. for some or
$500,000 in each fiscal year. The credit shall be equal to twenty
no consideration, along with any related benefits, rights,
percent (20%) of the value of the endowment gift provided by
responsibilities and liabilities.
the taxpayer, not to exceed $10,000.
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