AN ACT relating to the limited liability entity tax.

Amend KRS 141.0401 to prevent entities doing business in Kentucky with gross receipts of less than $100,000 from paying the limited liability entity tax for taxable years beginning on or after January 1, 2026.

Introduced: February 19, 2025

Last action: February 27, 2025

To Appropriations & Revenue (H)

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This bill would exempt businesses organized as limited liability entities from paying Kentucky's limited liability entity tax if their gross receipts are under $100,000, starting with the 2026 tax year. Currently, these businesses may owe this tax regardless of how little revenue they bring in. The change is intended to reduce the tax burden on lower-revenue businesses operating in Kentucky. Who it may affect: small business owners and self-employed individuals operating as limited liability entities in Kentucky.

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