725: Kentucky Single Member LLC Individually Owned Income and LLET Return (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Form 725 is the income and LLET return for an individually owned single-member LLC. It reports Kentucky net distributable income, calculates LLET liability and any tax due or overpayment, and determines the member’s LLET credit.
Who files this form
Form 725 is Kentucky’s income and Limited Liability Entity Tax (LLET) return for an individually owned single-member LLC.
The form includes boxes for Kentucky resident and nonresident owners. If the owner is a nonresident, the form says the LLC must also file Form 740NP-WH.
What you'll need
- All supporting federal forms and schedules, including federal Schedule(s) C, E, and/or F.
- The LLC’s Kentucky Corporation/LLET account number, FEIN/SSN, and business information requested on page 1.
- Schedules explaining other income or other deductions reported in Part I.
- Schedule A if using an apportionment fraction in Part I, line 12.
- Kentucky Schedule(s) K-1 for nonrefundable LLET credits reported in Part II, line 4.
- Schedule TCS for nonrefundable or refundable tax credits reported on the lines requiring it.
- Form 2220-K for the estimated tax penalty reported in Part II, line 14.
- Schedule DE if disregarded entities are included in the return.
- Schedule COGS for cost of goods sold reported on Schedule L.
Schedule Q also asks for information about who keeps the LLC’s books and the names and federal ID numbers of pass-through entities in which the LLC was a partner, if those entities did business in Kentucky during the tax year.
How to file
Complete the applicable parts and schedules, attach all supporting federal forms and schedules, and have the member sign and date the return.
If enclosing a payment, mail to:
Kentucky Department of Revenue
Frankfort, KY 40620-0021
Make the check payable to Kentucky State Treasurer.
For a refund or no payment, mail to:
Kentucky Department of Revenue
Frankfort, KY 40618-0010
The form lists www.revenue.ky.gov for electronic payment options. It does not provide electronic return-filing instructions.
Common mistakes
- Leaving out or incorrectly formatting the Kentucky Corporation/LLET account number. It is required and must contain nine digits. If it has six digits, add leading zeros.
- Skipping required Schedule Q questions. Answer questions 1 and 2 for an initial return or if the preceding year’s return was not filed under the same name and federal ID number. The form warns that failing to do so may result in a request for a delinquent return. All single-member LLCs must complete questions 3 through 7.
- Reporting too much capital loss on Part I, line 7. If there is a net loss, do not include more than $3,000.
- Missing explanations for special returns. Complete Part IV for a final or short-period return and Part V for an amended return.
- Overlooking the Schedule L shortcut. If Section B, line 1 or line 3 is $3,000,000 or less, skip Sections C and D. Enter $175 in Section E, line 1 and Part II, line 1.
Questions people ask
Does a nonresident owner trigger another filing requirement?
Yes. The form says an LLC with a nonresident single member must also file Form 740NP-WH.
What minimum LLET amount does the form show?
Part II, line 6 uses the greater of line 3 minus lines 4 and 5 or the $175 minimum.
What if disregarded entities are included in the return?
Check “Yes” on Schedule Q, question 4, and attach Schedule DE.
How do I explain an amended return?
Check the amended return box on page 1 and explain the changes in Part V.
Can an overpayment be applied to the next year’s LLET?
Yes. Part II, line 19 provides a place to credit an overpayment to 2025 LLET. Line 20 calculates the refund after subtracting amounts credited to 2024 interest, 2024 late filing/payment penalties, and 2025 LLET.