725: Kentucky Single Member LLC Individually Owned Income and LLET Return (2025)

Who files this form

Form 725 is Kentucky’s income and limited liability entity tax (LLET) return for individually owned single-member LLCs.

The form includes boxes for Kentucky resident and nonresident owners. If the single member is a nonresident, the LLC must also file Form 740NP-WH.

What you'll need

Have the LLC’s Kentucky Corporation/LLET account number, FEIN/SSN, business information, and income and deduction amounts ready. The form also asks for the owner’s residency status and information about the LLC’s books and accounting method.

Include all supporting federal forms and schedules, including federal Schedule C, E, and/or F, as applicable.

Other supporting schedules and forms depend on the entries you make:

• Attach schedules for other income and other deductions reported in Part I.
• Use Schedule A if reporting an apportionment fraction.
• Attach Schedule TCS for nonrefundable or refundable tax credits reported in Part II.
• Attach Form 2220-K for the estimated tax penalty entry.
• Attach Schedule DE if disregarded entities are included in the return.
• Attach Schedule COGS for cost of goods sold entries in Schedule L.

Part II also uses nonrefundable LLET credit amounts from Kentucky Schedule(s) K-1 and asks for estimated payments, extension payments, and prior-year tax credit amounts.

How to file

Complete the applicable parts of the return and supporting schedules. The member must sign and date the return and print their name and title. The form also includes a paid preparer section.

Refund or no payment: Mail the return to:

Kentucky Department of Revenue

Frankfort, KY 40618-0010

With payment: Mail the return and payment to:

Kentucky Department of Revenue

Frankfort, KY 40620-0021

Make checks payable to Kentucky State Treasurer. The form lists www.revenue.ky.gov for electronic payment options.

Include all supporting federal forms and schedules, including federal Schedule C, E, and/or F, as applicable.

Common mistakes

• Leaving out or incorrectly formatting the account number. The Kentucky Corporation/LLET account number is required and must have 9 digits. If it has 6 digits, add leading zeros.
• Skipping required questionnaire answers. Schedule Q questions 1 and 2 must be answered 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 missing answers may lead to a request for a delinquent return. All single-member LLCs must complete questions 3 through 7.
• Reporting too much capital loss. Part I, line 7 says not to include more than $3,000 if there is a net capital loss.
• Missing 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.
• Omitting required explanations. Complete Part IV for a final or short-period return and Part V for an amended return.

Questions people ask

Does a nonresident owner mean the LLC needs another form?

Yes. Form 725 states that if the single member is a nonresident, the LLC must also file Form 740NP-WH.

What minimum LLET amount does the form show?

Schedule L, Section E requires a minimum of $175. Part II, line 6 also uses a $175 minimum when computing LLET liability after the listed nonrefundable credits.

Can an overpayment be applied to the next year?

Yes. Part II includes a line to credit an overpayment to 2026 LLET. It also includes lines for amounts credited to 2025 interest and late filing or payment penalties. The refund is the remaining overpayment after those amounts.

How do I report an amended return?

Check the “Amended return” box and complete Part V, “Explanation of Amended Return Changes.” Part II also includes lines for LLET paid and LLET overpayment on the original return.

Official sources

• https://revenue.ky.gov/Forms/Form%20725%20(10-25).pdf