Schedule L-C: Limited Liability Entity Tax- Continuation Sheet (2025)
Kentucky · Kentucky DOR · Used for tax years 2025
Kentucky Schedule L-C is a continuation sheet for the Limited Liability Entity Tax (LLET). It combines a corporation’s or limited liability pass-through entity’s Kentucky and total gross receipts and gross profits with amounts reported by pass-through entities it owns. It is atta
Who files this form
Schedule L-C is a continuation sheet for Kentucky's Limited Liability Entity Tax (LLET).
A corporation that is a partner or member of a limited liability pass-through entity or a general partnership must include its proportionate share of sales when calculating LLET. This requirement extends through each level of multiple-tiered pass-through entities.
Schedule L-C must be submitted with the applicable return: Form 720, 720U, PTE, or 725.
What you'll need
- Applicable tax return: Form 720, 720U, PTE, or 725.
- Entity identification: The filing entity's name, federal identification number, and Kentucky Corporation/LLET account number. Also gather these details for each entity that provided a Kentucky Schedule K-1.
- Kentucky Schedules K-1: Use Section B to obtain gross receipts and gross profits from pass-through entities owned by the filer.
- Schedule COGS: Attach this schedule to the applicable return if the company computes LLET based on gross profits.
- Receipts and cost information: Gather Kentucky and total gross receipts, returns and allowances, and applicable cost of goods sold. Pass-through entities also need amounts allocable to a qualified exempt organization for the specified Kentucky reductions.
How to file
Attach Schedule L-C to Form 720, 720U, PTE, or 725. The supplied text does not give a mailing address or e-filing directions.
- Use Column A for the corporation or limited liability pass-through entity filing the return.
- Use Column B for information received on Kentucky Schedules K-1 from pass-through entities the filer owns.
- Complete Section A for Kentucky gross receipts and gross profits and Section B for total gross receipts and gross profits.
- Add Columns A and B for Section A, lines 2 and 5, and Section B, lines 1 and 3.
- For Form 720, PTE, or 725, carry those totals to the matching sections and lines on Schedule L.
- For unitary filers, carry the totals to Form 720U, Schedule U8, Section A, lines 2 and 5, and Section B, lines 1 and 3, in the respective column.
Common mistakes
- Leaving a six-digit Kentucky Corporation/LLET account number unpadded: The form requires nine digits. Add leading zeros if the number has six digits.
- Forgetting an attachment: Schedule L-C must accompany the applicable return. Schedule COGS must also be attached if LLET is computed based on gross profits.
- Using pass-through-only reductions for a corporation: Section A, lines 1(b) and 3(b), are for pass-through entities only and do not apply to corporations.
- Claiming costs for other activities: The instructions allow no cost-of-goods-sold claims for activities other than manufacturing, producing, reselling, retailing, or wholesaling.
Questions people ask
What counts as gross receipts?
The instructions list sales, rent, proceeds from sales of real and tangible personal property, interest, and dividends. This is not a complete list.
Which Kentucky Schedule K-1 amounts go in Column B?
For Schedule L-C, Section A, use Schedule K-1, Section B, line 1 for Kentucky gross receipts and line 3 for Kentucky gross profits. For Schedule L-C, Section B, use Schedule K-1, Section B, line 2 for total gross receipts and line 4 for total gross profits.
Where do the cost-of-goods-sold amounts come from?
For Schedule L-C, Section A, Column A, line 3(a), use Schedule COGS, Column A, line 8. For Schedule L-C, Section B, Column A, line 2, use Schedule COGS, Column B, line 8.
Does the sales-sharing requirement cover multiple tiers of entities?
Yes. The instructions state that interests in limited liability pass-through entities and general partnerships extend to each level of multiple-tiered pass-through entities.