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Level 2
posted Feb 20, 2023 4:21:41 PM

Living in Indiana with KY LLC filing question

Hello,

 

I lived in the state of Indiana all of the year I am filing for and all the income made was made in the state of Indiana not KY. The business is an LLC in the state of KY and filing some of  the federal income under this LLC's EIN #/name for self-employment. The 1099-NEC was paid directly to the LLC not to me. The 1099-NEC I received for self-employment is from a KY source, however, as I understand this part doesn't matter. 

 

Do I have to file a full KY  (740-NP) tax return in-order/alongside to file the 725 LLET form which as I understand I do have to file for the LLC?

 

Please advice and thank you kindly!

0 1 179
1 Replies
Expert Alumni
Feb 21, 2023 11:08:50 AM

Yes, according to the Kentucky Department of Revenue, ​​Individual Income Tax is due on all income earned by Kentucky residents and all income earned by nonresidents from Kentucky sources.

 

However, if you file a separate federal business return for the LLC, you would file a Kentucky business return instead. 

 

In either case, you would also pay Limited Liability Entity Tax (LLET). If either total gross receipts or total gross profits amounts to $3 million or less, then you would just pay a $175 minimum LLET.