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Corporation, LLC, and Pass-Through Tax Frequently Asked Questions

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​Account Information

​The best way to access company account numbers is via Kentucky One Stop Business Portal.  Another way would be if the interested party is listed on form 20A100 (Power of Attorney/Declaration of Representative) on file with the Department of Revenue. This info may be provided via phone contact but the caller would need to identify as the business owner, tax preparer and/or representative, and be prepared to provide material information to cross-reference in order to establish caller identification. The Department of Revenue is limited on the information that can be given out over the phone because of confidentiality.

​Contact the Division of Corporation Tax at (502) 564-8139 and provide the Corporate/LLET Account Number or FEIN. 

​All required tax returns must be filed and paid from the date of incorporation or organization.  Tax notices must be paid in full, unless the notice(s) are still within the protest period, have been timely protested, or are under a valid pay agreement with the Division of Collections. 


​Business Closing/Ceased Operations

​When the last return is filed, clearly mark the box as a "FINAL" return. For the return to be accepted as final, the corporation should attach a balance sheet reflecting zero assets. The final Corporation Income and Limited Liability Entity taxes must be paid with the return. The corporation must also timely close their account with the Secretary of State by filing Articles of Dissolution.

Federal Conformity​​​

  • Net Operating Losses limitations (IRC Sec 172)
  • Net Interest Expense Limitations (IRC Sec 163(j))
  • Repeal of the Domestic Production Activity Deduction (IRC Sec 199)
  • Taxation of Foreign Derived Intangible Income (FDII) (IRC Sec. 250)
  • ​Full Depreciation Expensing (IRC Sec 168(k))
  • Deduction for Qualified Business Income of Pass-Through Entities (IRC Sec 199A)

​Filing Requirements and Information

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​​Filing Form Guide​


 Kentucky Form and Tax​
​Type of Entity
 ​Form Required
 Corporation Income Tax​ LLET​
​C corporation
​720
​Yes
Yes​
C corporation​ (elective consolidated group as provided by KRS 141.201)
720​
​Yes
Yes​
​C Corporation (unitary combined group as provided by KRS 141.202)
720U​
Yes​
Yes​
​Publicly traded partnership (taxed as a corporation for federal income tax purposes) 
​720
​Yes
​Yes
​S corporation
PTE
​Yes*
​Yes
​Single member limited liability company whose single member is an individual 
​725
​No
​Yes
​Limited liability company (two or more members)
​PTE
​No
​Yes
​Limited partnership
PTE
​No
​Yes
​Limited liability partnership
PTE
​No
​Yes
​General partnership
PTE
​No
No​
​Publicly traded partnership (taxed as a partnership for federal income tax purposes) 
PTE​
​No
​No
*If the S corporation has built-in gains, passive investment income or installments of tax on the
recapture of LIFO benefits as provided by KRS 141.040(4), corporation income tax is due. ​


​Corporation and Pass-through Entity tax returns are due the 15th day of the 4th month following the close of the taxable year end.

Note: If the filing/payment date falls on a Saturday, Sunday or a legal holiday, the filing/payment date is deemed to be on the next business day. 

The Kentucky Department of Revenue does not have a method of e-filing a business entity return directly through its website.  Filing must be done through a supported software program.

Kentucky Department of Revenue Software Approval List​

​To find out the status of your refund request, please contact the Division of Corporation Tax at (502) 564-8139 and provide the Corporate/LLET Account Number or FEIN along with the form year in which the refund was requested.

​The tax imposed by KRS 141.0401 is a tax imposed on those entities with limited liability in the state of Kentucky and not an income tax. Therefore, the Limited Liability Entity Tax (LLET) paid is not an add-back to determine Kentucky taxable income; it is deductible for Kentucky and federal purposes.

​No, KRS 141.039(2)(c) states that any deduction allowed under Chapter 1 of the Internal Revenue Code must be reduced by the expenses related to the general stewardship of the assets that produced the non-apportionable or nontaxable income. Actual expenses are preferred; however, several approved formulas can be found in Regulation 103 KAR 16:060, Sec. 7.

​Yes, when a company is registered with the Secretary of State, they are considered to be "doing business" in the state of Kentucky per KRS 141.010(13)(a) and are therefore required to file a tax return for the year that the company registers. A foreign corporation registered with the Secretary of State may not be required to file a return if they did not actively conduct any business during the year. The Department of Revenue may ask for a signed statement from a responsible party in the business to confirm no activity in Kentucky during the given tax year. Foreign corporations register because there may be potential for business in the Commonwealth of Kentucky.

​A name reservation allows a company to pay a fee to reserve a name before starting a business. No legal entity exists at the point that a name reservation is done; therefore, the company is not registered with the Secretary of State or considered to be "doing business" in the state of Kentucky per KRS 141.010(13​)(a) and does not need to file a return with the Department of Revenue. If and when a legal entity is incorporated or organized in Kentucky under that reserved name, it will have a filing requirement with the Department of Revenue.​

​Yes, a taxpayer should file a return on the correct form type and mark it "AMENDED" to void the tax return filed on the incorrect form type. Taxes paid with the incorrect form type may be transferred to the correct form type upon written request by the taxpayer.

​Yes. A Homeowner's Association may owe Kentucky income tax even though the association may not owe federal Corporation Income Tax (federal Form 1120-H).  The company may owe Kentucky Corporation Income Tax because of the differences between federal and Kentucky tax law. 


​Nonprofit/Exempt

​A copy does not have to be filed with the Kentucky Department of Revenue. However, the Kentucky Attorney General's Office​ requires a copy of Form 990 to be filed with its office for any non-profits soliciting in the state. (See KRS 367.657)​


​Nonresident Withholding​ Returns

No. Composite return language was stricken from KRS 141.206 for tax years beginning on or after January 1, 2022.

A pass-through entity should file Form 740 NP-WH. For tax years beginning on or after January 1, 2022, withholding is required only for nonresident individual partners, shareholders, or members of pass-through entities. Nonresident C-Corporations that are partners or members of pass-through entities are not subject to withholding but still have a Kentucky filing obligation under the doing business standard of KRS 141.010(13).

​Yes. Per KRS 141.206(5)(a), if the tax liability for an individual partner, member, or shareholder can be expected to be over $500, then estimated payments are required. Use Form 740 NP-WH-ES to remit paper checks in payment of estimated tax or pay electronically. Penalties will be assessed​ for underpayment of estimated payments.

Individual Partner, Member or Shareholder estimated installment payments:

1st installment: due the 15th day of the 4th month of the taxable year end
2nd installment: due the 15th day of the 6th month of the taxable year end
3rd installment: due the 15th day of the 9th month of the taxable year end
4th installment: due the 15th day of the 1st month following the close of the taxable year end

Note: If the filing/payment date falls on a Saturday, Sunday or a legal holiday, the filing/payment date is deemed to be on the next business day. 

​The Kentucky Form 740NP-WH would not have to be filed.


​Opening/Starting a Business in Kentucky

​You may open an account through the Kentucky One Stop Business Portal to register your business with the Kentucky Department of Revenue and get all of the tax accounts you need for your particular business.  You may also file Kentucky Form 10A100, Kentucky Tax Registration Application. 


​Other Form Questions

No.  Per KRS 141.220, an extension of time to file is not an extension of time to pay.  Payments are due on or before the original due date of the taxpayer's return. Interest and penalty will be assessed for late payments per KRS 131.180(2).

​Yes, Kentucky Form 20A100 can authorize certain professionals to represent taxpayers with the Department of Revenue.  Federal Form 2848 is also accepted.

At this time, the Kentucky Department of Revenue does not require federal Form 1099 'state' copies to be filed for corporation tax purposes. It is recommended that copies be kept in the taxpayer's records should the Department need to make reference to them.

NOTE:

  • Federal Form 1099 may be required for Individual Income Tax filing if there is Kentucky withholding claimed on the Kentucky individual return.
  • Federal Form 1099 with state withholding should be submitted to W-2 Processing using a Transmitter Report for Filing Kentucky W2/K2, 1099 and W2-G statements.


​Statutes and Regulations

​Taxpayers can find information on Kentucky requirements in the Kentucky Revised Statutes (KRS) and the Kentucky Administrative Regulations (KAR). Both can be found on the Legislative Research Commission website. Most of the authority for income taxation may be found in KRS Chapter 141 and KAR Title 103.  

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​​Additional Resources

File a Corporate Income Tax ​Extension​​​​​

Return to Corporation Income and Limited Liability Entity Tax Page

Download the Taxpayer Bill of Rights

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under the authority of the Finance and Administration Cabinet.

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