Form 725 – Fill Out and Use This PDF

The Form 725 is an essential document for single member limited liability companies (LLCs) operating in the Commonwealth of Kentucky, serving as the means to file the annual income and Limited Liability Entity Tax (LLET) return. Specifically designed for those entities that are individually owned, it helps in the declaration of taxable income and calculation of tax liability or refunds for a defined fiscal or calendar year. For those preparing to submit their annual tax documentation, understanding the nuances of this form is crucial.

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Form 725 PDF Details

In the intricate landscape of taxation for businesses within the United States, single-member LLCs (Limited Liability Companies) in Kentucky navigate their tax obligations through the Form 725. This document, prescribed by the Commonwealth of Kentucky's Department of Revenue, serves as the Income and Limited Liability Entity Tax (LLET) Return for the 2020 tax year. Designed specifically for individual owners of LLCs, it caters to a spectrum of filing statuses, from the initial returns and amendments to adjustments related to changes in the accounting period, ownership, or business operations. Furthermore, it addresses the particulars of Kentucky net distributable income calculations, deductions, and credits, while also detailing the computation of LLET obligations. Accommodating both residents and non-residents, the form mandates comprehensive reporting, including ordinary income, net gains, or losses from various activities, alongside interest, dividend, and royalty income. The structure of the form facilitates the clear documentation of financial information, extending to the apportionment and calculation of tax liabilities or overpayments. Additionally, it invites declarations regarding amendments and final or short-period returns in the event of substantive changes to the LLC's status or operations, underscoring the regulatory commitment to accuracy and transparency in the tax reporting process.

Question	Answer
Form Name	Form 725
Form Length	6 pages
Fillable?	No
Fillable fields	0
Avg. time to fill out	1 min 30 sec
Other names	ky form, kentucky 725 form revenue, kentucky llet 4, 725 instructions form

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725

Commonwealth of Kentucky

Department of Revenue

KENTUCKY SINGLE MEMBER LLC

INDIVIDUALLY OWNED INCOME

AND LLET RETURN

2020

For calendar year 2020 or tax years beginning (MM-DD-YY) __ __ – __ __ – 20__ __ , and ending (MM-DD-YY) __ __ – __ __ – 20__ __

A LLET	B FEIN/SSN	__ __ – __ __ __ __ __ __ __	C Kentucky Corporation/LLET	__ __ __ __ __ __
Exemption Code		__ __ – __ __ __ __ __ __ __	Account Number (Required)	__ __ __ __ __ __

	Name of LLC		Change of Name	Telephone Number


D Provider 3-Factor	Number and Street
Apportionment Code

City

State

ZIP Code

ECheck applicable boxes



Initial return

Change of accounting period Qualiﬁed investment partnership Final return (Complete Part IV) Short-period return (Complete Part IV) Amended return (Complete Part V)

State of Organization	Principal Business Activity in KY

Date of Organization	NAICS Code Number in KY

__ __ / __ __ __ __

F	 Kentucky Resident  Non-Resident If non-resident, LLC must also ﬁle Form 740NP-WH
Single Member is a:

PART I—KENTUCKY NET DISTRIBUTABLE INCOME

1Ordinary income (loss)

2Net income (loss) from rental real estate activities

3 Net income (loss) from other rental activities

4 Interest income

5 Dividend income

6 Royalty income

7Net short-term and long-term capital gain (loss). If net loss, do not include more than $3,000.

8IRC §1231 net gain (loss)

9Other income (attach schedule)

10Other deductions (attach schedule)

11Total net distributable income (lines 1 through 9 less line 10)

12Enter 100% or the apportionment fraction from Schedule A.

1 2 3 4 5 6

7 8 9 10 11

0 0

__ __ __ . __ __ __ __ %

OFFICIAL USE ONLY

	V
	A
	L
	#

200270 41A725 (10-20)		Page 1 of 6

FORM 725 (2020)

Page 2 of 6

PART II—LLET COMPUTATION

1	Schedule L, Section E, line 1 (Page 6)			1		0 0
				2
2	Tax credit recapture			2		0 0
				3

3	Total (add lines 1 and 2)					0 0
				4
4	Nonrefundable LLET credit from Kentucky Schedule(s) K-1			4		0 0
				5
5	Nonrefundable tax credits (attach Schedule TCS)			5		0 0
6	LLET liability (greater of line 3 less lines 4 and 5 or			6

						0 0
	$175 minimum)					0 0
				7
7	Estimated tax payments			7		0 0
				8

8	Certiﬁed rehabilitation tax credit					0 0
				9
9	Film industry tax credit			9		0 0
				10
10	Extension payment			10		0 0
				11

11	Prior year’s tax credit					0 0
				12
						0 0
12	LLET paid on original return					0 0
				13
13	LLET overpayment on original return			13		0 0
				14

14	Estimated Tax Penalty (attach Form 2220-K)					0 0
15	LLET and Estimated Tax Penalty due (lines 6, 13,			15
15	LLET and Estimated Tax Penalty due (lines 6, 13,					0 0
	and 14 less lines 7 through 12)		OWE
	and 14 less lines 7 through 12)			16

16	LLET overpayment (lines 7 through 12 less lines 6,13, and 14)					0 0
17	Credited to 2020 interest			17
17	Credited to 2020 interest			17
18	Credited to 2020 penalty			18
18	Credited to 2020 penalty			18
19	Credited to 2021 LLET			19
19	Credited to 2021 LLET			19		0 0
20	Amount to be refunded (line 16 less lines			20
20	Amount to be refunded (line 16 less lines
	17 through 19)	REFUND
	17 through 19)

PART III—LLET CREDIT FOR MEMBER

				1
1 LLET liability (Part II, the total of lines 4 and 6)				1		0 0
2	Minimum tax			2	1 7 5 .00
				3
3 Member’s LLET credit (line 1 less line 2)				3		0 0

200271 41A725 (10-20)

FORM 725 (2020)

Page 3 of 6

PART IV—EXPLANATION OF FINAL RETURN AND/OR SHORT–PERIOD RETURN



Ceased operations in Kentucky Change of ownership Successor to previous business



Change in ﬁling status Merger

Other _________________________________________________

PART V—EXPLANATION OF AMENDED RETURN CHANGES

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

	Signature of Member			Date

Sign				__ __ / __ __ / __		__ __ __
Sign
Here	Name of Member (Please print)			Title

	Signature of Preparer			Date
				__ __ / __ __ / __		__ __ __
Paid
Paid	Name of Preparer or Firm (Please print)			ID Number
Preparer	Name of Preparer or Firm (Please print)			ID Number
Preparer
Use
Use	Email and/or Telephone No.			May the DOR discuss this return with this preparer?
	Email and/or Telephone No.			May the DOR discuss this return with this preparer?
				 YES	 NO


	All supporting federal forms and schedules, including	Refund	Kentucky Department of Revenue
Enclose	All supporting federal forms and schedules, including	or No	P. O. Box 856905
Enclose	Federal Schedule(s) C, E, and/or F.	or No	P. O. Box 856905
	Federal Schedule(s) C, E, and/or F.	Payment	Louisville, KY 40285-6905
		Payment	Louisville, KY 40285-6905
Payment	Check Payable: Kentucky State Treasurer	With	Kentucky Department of Revenue
Payment	E-Pay Options: www.revenue.ky.gov	Payment	Frankfort, KY 40620-0021
	E-Pay Options: www.revenue.ky.gov	Payment	Frankfort, KY 40620-0021

200272 41A725 (10-20)

FORM 725 (2020)

Page 4 of 6

SCHEDULE Q—SINGLE MEMBER LIMITED LIABILITY COMPANY QUESTIONNAIRE

IMPORTANT: Questions 1 and 2 must be answered if this is the single member LLC’s initial return or if a return was not ﬁled under the same name and same federal I.D. number for the preceding year. Failure to do so may result in a request for a delinquent return.

1Single member’s (owner) name, address, and Social Security number or federal I.D. number

Name

FEIN __ __ – __ __ __ __ __ __ __

Address

2If a foreign limited liability company, enter the date qualiﬁed to do business in Kentucky.

__ __ / __ __ / __ __ __ __

Questions 3—7 must be completed by all single member limited liability companies (LLC).

3The limited liability company’s books are in care of:

Name

Address

4Are disregarded entities included in this return?

 Yes  No

If yes, attach Schedule DE.

5Was the limited liability company a partner in a pass-through entity doing business in Kentucky

for the tax year being reported?  Yes  No

If yes, list name and federal I.D. of the pass-through entity(ies).

Name

FEIN __ __ – __ __ __ __ __ __ __

Name

FEIN __ __ – __ __ __ __ __ __ __

Name

FEIN __ __ – __ __ __ __ __ __ __

Name

FEIN __ __ – __ __ __ __ __ __ __

Name

FEIN __ __ – __ __ __ __ __ __ __

Name

FEIN __ __ – __ __ __ __ __ __ __

Name

FEIN __ __ – __ __ __ __ __ __ __

6Was the limited liability company doing business in Kentucky other than through its interest held in a

pass-through entity doing business in Kentucky?

 Yes  No

7Was this return prepared on:

(a)cash basis

(b)accrual basis

(c)other __________________________________

200343 41A725 (10-20)

FORM 725 (2020)

Page 5 of 6

SCHEDULE L—LIMITED LIABILITY ENTITY TAX COMPUTATION

Check the box and complete Schedule L-C, Limited Liability Entity Tax—Continuation Sheet, if the single member limited liability company ﬁling this tax return is a partner or member of a limited liability pass-through entity or general partnership doing business in Kentucky. Enter the total amounts from Schedule L-C in Section A of this schedule.

SECTION A—Computation of Kentucky Gross Receipts and Gross Proﬁts

1(a)	Gross receipts less returns and allowances	1(A)
(b)	Kentucky statutory gross receipts reductions	(B)
2	Adjusted gross receipts (line 1(a) less line 1(b))	2
3(a)	Cost of goods sold (attach Schedule COGS)	3(A)
(b)	Kentucky statutory cost of goods sold reductions	(B)
4	Adjusted cost of goods sold (line 3(a) less line 3(b))	4
5	Gross proﬁts (line 2 less line 4)	5

SECTION B—Computation of TOTAL Gross Receipts and Gross Proﬁts

1	Adjusted gross receipts	1
2	Cost of goods sold (attach Schedule COGS)	2
3	Gross proﬁts (line 1 less line 2)	3

If Section B, Line 1 or 3 is $3,000,000 or less, SKIP Sections C and D and enter $175 in Section E, Line 1 and then enter $175 on page 2, Part II, Line 1. Otherwise, continue to

Section C on the next page.

0 0

200276 41A725 (10-20)

FORM 725 (2020)

Page 6 of 6

SCHEDULE L—LIMITED LIABILITY ENTITY TAX COMPUTATION—continued

SECTION C—Computation of Gross Receipts LLET

1If gross receipts from all sources (Section B, line 1) are greater than $3,000,000, but less than $6,000,000, enter the following:

	(Section A, line 2 x 0.00095) –	[	$2,850 x ($6,000,000 – Section A, line 2)	]
		[	$3,000,000	]
	but in no case shall the result be less than zero.				1
2	If gross receipts from all sources (Section B, line 1)
	are $6,000,000 or greater, enter the following: Section A,				2
	line 2 x 0.00095.				2
3	Enter the amount from line 1 or line 2.				3

SECTION D—Computation of Gross Proﬁts LLET

1 If gross proﬁts from all sources (Section B, line 3) are greater than $3,000,000, but less than $6,000,000, enter the following:

(Section A, line 5 x 0.0075) –	[	$22,500 x ($6,000,000 – Section A, line 5)	]
		$3,000,000
			1
but in no case shall the result be less than zero.
2 If gross proﬁts from all sources (Section B, line 3) are
$6,000,000 or greater, enter the following: Section A,			2
line 5 x 0.0075.
3 Enter the amount from line 1 or line 2.			3
SECTION E—Computation of LLET
1 Enter the lesser of Section C, line 3 or Section D, line 3
here and on Page 2, Part II, line 1. If less than $175, enter			1
the minimum of $175 here and on Page 2, Part II, line 1.

0 0

200273 41A725 (10-20)

How to Edit Form 725 Online for Free

Handling PDF documents online is always a piece of cake using our PDF editor. Anyone can fill in llet number 3 here effortlessly. The tool is consistently improved by our team, receiving new awesome functions and becoming greater. If you are seeking to start, here's what you will need to do:

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With regards to the fields of this precise form, this is what you should do:

1. To begin with, while filling out the llet number 3, start in the page that features the next blank fields:

How to prepare 725 instructions form stage 1

2. Once your current task is complete, take the next step – fill out all of these fields - Net income loss from rental real, Net income loss from other rental, Interest income, Dividend income, Royalty income, Net shortterm and longterm, If net loss do not include more, IRC net gain loss, Other income attach schedule, Other deductions attach schedule, Total net distributable income, and Enter or the apportionment with their corresponding information. Make sure to double check that everything has been entered correctly before continuing!

Part # 2 in submitting 725 instructions form

3. This next part is generally quite easy, PART IILLET COMPUTATION, Schedule L Section E line Page, Tax credit recapture, Total add lines and, Nonrefundable LLET credit from, Nonrefundable tax credits attach, LLET liability greater of line, minimum, Estimated tax payments, Certiﬁed rehabilitation tax credit, Film industry tax credit, Extension payment, and Prior years tax credit - every one of these blanks will have to be filled in here.

A way to complete 725 instructions form portion 3

4. To go ahead, your next stage requires filling out a couple of blank fields. Examples include Prior years tax credit, LLET paid on original return, LLET overpayment on original, Estimated Tax Penalty attach Form, LLET and Estimated Tax Penalty, and less lines through, TAX DUE, LLET overpayment lines through, Credited to interest, Credited to penalty, Credited to LLET, Amount to be refunded line less, through, REFUND, and PART IIILLET CREDIT FOR MEMBER, which you'll find vital to moving forward with this process.

The right way to complete 725 instructions form part 4

5. This last notch to conclude this form is essential. You need to fill in the necessary form fields, for example PART IIILLET CREDIT FOR MEMBER, LLET liability Part II the total, Minimum tax, and Members LLET credit line less, before submitting. Otherwise, it may give you an incomplete and potentially invalid paper!

In terms of PART IIILLET CREDIT FOR MEMBER and LLET liability Part II the total, make sure you review things in this current part. Both of these are considered the key ones in the page.

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Form 725 – Fill Out and Use This PDF

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