Kentucky LLC Incorporation


Kentucky Incorporation


Limited Liability Companies

  • Easier to organize than corporations
  • May have unlimited number and type of
  • Limited liability for all members
  • Favorable pass through tax treatment
  • Single member LLCs treated as
    “disregarded entities” for federal taxes
  • May allocate start-up losses to investors
  • Tax free contributions of appreciated
  • Liquidation of an LLC is generally a tax-
    free event

  • To file as a partnership the LLC must
    have more than one member; whereas
    an S corporation may have only one
  • Members cannot be employees, rather
    distributive income is subject to SE tax
  • Some states may tax LLCs, while they
    may not tax partnerships
  • Businesses operating in more than one
    state may receive inconsistent treatment
  • Sale of 50% or more of interest may
    terminate LLC for federal tax purposes