Kentucky Related Entity

State:
Multi-State
Control #:
US-TC05082H
Format:
Word; 
PDF; 
Rich Text
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Description

This is a rider to the software/services master agreement order form. It provides that a related entity of the customer may use the software purchased from the vendor.

How to fill out Related Entity?

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FAQ

A Kentucky LLC is taxed based on the number of members, which is what owners of an LLC are called. Single-member LLCs (SMLLC), where you are the only owner, file taxes as a sole proprietorship. If your LLC is owned by multiple people, it is considered a multi-member LLC and is taxed as a partnership by default.

Kentucky now joins a majority of states that have enacted PTE taxes as a workaround for the cap on the federal deduction for state and local taxes.

These instructions have been designed for pass-through entities: S-corporations, partnerships, and general partnerships , which are required by law to file a Kentucky income tax and LLET return. Form PTE is complementary to the federal forms 1120S and 1065.

The Kentucky Limited Liability Entity Tax (KY LLET) serves the same purpose. The tax is calculated using the lesser of $0.095/$100 of Kentucky gross receipts or $0.75/$100 of Kentucky gross profits. Regardless of which calculation method is used, business owners are required to pay a minimum Kentucky LLET of $175.

The state of Kentucky has many strengths that make it a good place to start a business. Generally, it has a business-friendly environment. It also offers various incentives and programs that aim to help businesses. Ideal location ? Kentucky is in the middle of multiple states.

At the tail-end of this spring's tax filing season, the Kentucky General Assembly passed House Bill (HB) 5, which included a retroactive pass-through entity (PTE) tax effective for taxable years beginning on or after January 1, 2022. The Governor signed HB 5 on March 31, making it the law effective immediately.

?Calculating KY Limited Liability Entity Tax (LLET) Kentucky imposes a tax on every business that is protected from liability by the laws of the state. This includes corporations, LLCs, S-Corporations, limited partnerships, and other types of businesses.

These changes are the result of House Bill 8 that passed in 2022. The bill lowers income taxes from 5% to 4.5% but expands sales taxes to a variety of services to offset that loss in state revenue. For example, a person making $50,000 currently pays $2,500 in state income taxes.

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Kentucky Related Entity