Select your state

Taxes

franchise tax

A franchise tax is a state tax on businesses and other entities (corporations, limited liability companies, trusts, etc.) that are formed in or doing business in a state.

A franchise tax is said to be a tax on the privilege of doing business in a state and is sometimes referred to as a privilege tax. The amount of tax due is often calculated as a percentage of a business’s income, for example.

In Kentucky, the franchise tax is known as the Limited Liability Entity Tax (LLET), which applies to limited liability pass-through entities such as S corporations, partnerships, limited liability partnerships (LLPs), and limited liability companies (LLCs) that are doing business in Kentucky or are organized under Kentucky law. The LLET is based on Kentucky gross receipts or gross profits, depending on the entity's level of gross receipts. The minimum LLET is $175 for entities with gross receipts or gross profits of $3 million or less. For entities with gross receipts above $3 million, the tax rate is $0.095 per $100 of the base. It's important for businesses operating in Kentucky to understand their obligations under the LLET to ensure compliance with state tax laws.

Legal Articles

State Statutes

As a LegalFix Member You Will Be an Important Client of Local Law Firms

For about 82¢ a day you can have a LegalFix Legal Plan that includes initial consultations with an attorney at no additional charge—and additional legal services at reduced rates—all from top law firms in your state. Don't wait—be prepared for life's inevitable legal challenges, starting today.

And ask your employer, credit union, or membership group to offer LegalFix for even better pricing.

Learn More

Articles

There are currently no articles in this section.

Taxes

franchise tax

As a LegalFix Member You Will Be an Important Client of Local Law Firms

Articles

Kentucky State Code

Taxes

franchise tax

Kentucky State Code

Articles