Annual Filing Requirements for Kentucky LLCs

Learn about Kentucky LLC annual report and tax filing procedures.

To establish and operate a Kentucky limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses the most significant continuing reporting and state tax filing obligations for Kentucky limited liability companies.

Report Annual

The state of Kentucky requires you to submit an annual report for your limited liability company. Annual report alerts should be issued to your LLC automatically. You must give the names and addresses of your LLC’s members and management, confirm the principle and registered office/agent, and sign and date the report when completing your first annual report. You must reaffirm the same information in successive yearly reports. Reports may be submitted online at the SOS website, or you can fill out and return the card that the SOS provides you. Between January 1 and June 30, the yearly report is required. The filing cost is now $15.

State Corporation Tax

Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay federal income taxes by default; only its members do.

Kentucky, on the other hand, charges a Limited Liability Entity Tax (LLET) on LLCs with gross revenues or earnings over $3 million. The tax is levied on the same revenues or profits and is due to the Kentucky Department of Revenue (DOR). To pay this tax, use DOR Form 720.

In certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Kentucky, like practically every other state, taxes corporate revenue. Kentucky’s corporate income tax is determined at a modest range of marginal rates and applies to taxable net income. To pay the tax, use DOR Form 720.

Employer Taxes in the State

Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) However, Kentucky companies must additionally pay state taxes.

To begin, you must withhold and pay employee income taxes to the DOR. Begin by registering your company with the DOR, either online (through the Kentucky One Stop Business Portal) or in paper form (using Form 10A100, Kentucky Tax Registration Application). After you’ve enrolled, you must submit withholding taxes on a regular basis. Form K-1 is used for twice-monthly, monthly, and quarterly filings, while Form K-3 is used for yearly files. Each year, you’ll also need to utilize a form of Form K-3 to reconcile your LLC’s tax withholding. Check the DOR website for further information, including on online filings.

You’ll also need to register to pay state unemployment insurance (UI) taxes. The Kentucky Career Center handles these taxes (DWD). These taxes may be registered for online. Then, each quarter, utilize Form UI-3 to record your salary and pay your unemployment insurance taxes.

Taxes on Sales and Use

If your LLC sells items to clients in Kentucky, you must collect and remit sales tax. This implies you’ll have to register with the Department of Revenue for this reason and then make periodic sales tax payments for products sold. You may sign up online or by mailing Form 10A100. After you register, you will get a sales tax permit. Then, on a regular basis, you must file sales tax returns with the DOR. You may submit on paper (although keep in mind that the state does not make sales tax returns (forms 51A102, 51A102E, 51A103, and 51A113) accessible online) or online (through the KY E-Tax website)

Other States Registration

If you want to do business in states other than Kentucky, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.