Kentucky Schedule DE is the Disregarded Entity Schedule used by a taxpayer filing a Kentucky business tax return to report disregarded entities connected with that taxpayer. A disregarded entity is usually an entity that is legally separate from its owner but not treated as separate from the owner for income tax reporting purposes. Common examples include certain single-member LLCs and qualified subchapter S subsidiaries, often called Q Subs. This schedule gives Kentucky the name, federal identification number, and entity type of each disregarded entity included with the taxpayer’s return. The form does not calculate tax by itself. Instead, it works as a supporting schedule that helps identify which disregarded entities are connected to the Kentucky taxpayer filing Form 720, Form 720U, Form PTE, or Form 725. It is important to complete it clearly because Kentucky requires the taxpayer’s Kentucky Corporation/LLET account number and the identifying details for each disregarded entity listed.
How To File Kentucky Schedule DE (Form 720)
Attach Kentucky Schedule DE to the applicable Kentucky business tax return. It may be attached to Form 720, Form 720U, Form PTE, or Form 725. Complete the taxpayer information at the top first, then list each disregarded entity in Section A. If the taxpayer has more than one disregarded entity, enter each one on a separate numbered line. For each disregarded entity, provide the entity name, FEIN, and check whether it is an LLC or Q Sub. Keep the information consistent with the taxpayer’s records and the federal identification numbers used for business reporting.
How To Complete Kentucky Schedule DE (Form 720)
Line 1: Schedule DE
Use this schedule for reporting Kentucky disregarded entities.
Line 2: Disregarded Entity Schedule
This title shows that the schedule is used to list disregarded entities connected to the taxpayer filing the Kentucky return.
Line 3: Tax Year 2025
Use this version for the 2025 tax year.
Line 4: Commonwealth Of Kentucky Department Of Revenue
This identifies the Kentucky agency that receives and processes the schedule with the return.
Line 5: Attach To Form 720, 720U, PTE, Or 725
Attach the completed schedule to the Kentucky business tax return that applies to the taxpayer.
Line 6: Name Of Taxpayer Filing Kentucky Tax Return
Enter the legal name of the taxpayer filing the Kentucky return. This should be the main taxpayer, not the disregarded entity unless the disregarded entity is the taxpayer shown on the return.
Line 7: Federal Identification Number
Enter the federal identification number of the taxpayer filing the Kentucky tax return.
Line 8: Kentucky Corporation/LLET Account Number, Required
Enter the taxpayer’s Kentucky Corporation/LLET account number. This field is required.
Line 9: Account Number Formatting Rule
The Kentucky Corporation/LLET account number must contain 9 digits. If the number has only 6 digits, add leading zeros at the beginning.
Section A, List Of Disregarded Entities
Line 1: Disregarded Entity Name
Enter the name of the first disregarded entity.
Line 1: FEIN
Enter the federal employer identification number for the first disregarded entity.
Line 1: LLC Box
Check this box if the first disregarded entity is an LLC.
Line 1: Q Sub Box
Check this box if the first disregarded entity is a qualified subchapter S subsidiary.
Line 2: Disregarded Entity Name
Enter the name of the second disregarded entity, if applicable.
Line 2: FEIN
Enter the federal employer identification number for the second disregarded entity.
Line 2: LLC Box
Check this box if the second disregarded entity is an LLC.
Line 2: Q Sub Box
Check this box if the second disregarded entity is a qualified subchapter S subsidiary.
Line 3: Disregarded Entity Name
Enter the name of the third disregarded entity, if applicable.
Line 3: FEIN
Enter the federal employer identification number for the third disregarded entity.
Line 3: LLC Box
Check this box if the third disregarded entity is an LLC.
Line 3: Q Sub Box
Check this box if the third disregarded entity is a qualified subchapter S subsidiary.
Line 4: Disregarded Entity Name
Enter the name of the fourth disregarded entity, if applicable.
Line 4: FEIN
Enter the federal employer identification number for the fourth disregarded entity.
Line 4: LLC Box
Check this box if the fourth disregarded entity is an LLC.
Line 4: Q Sub Box
Check this box if the fourth disregarded entity is a qualified subchapter S subsidiary.
Line 5: Disregarded Entity Name
Enter the name of the fifth disregarded entity, if applicable.
Line 5: FEIN
Enter the federal employer identification number for the fifth disregarded entity.
Line 5: LLC Box
Check this box if the fifth disregarded entity is an LLC.
Line 5: Q Sub Box
Check this box if the fifth disregarded entity is a qualified subchapter S subsidiary.
Line 6: Disregarded Entity Name
Enter the name of the sixth disregarded entity, if applicable.
Line 6: FEIN
Enter the federal employer identification number for the sixth disregarded entity.
Line 6: LLC Box
Check this box if the sixth disregarded entity is an LLC.
Line 6: Q Sub Box
Check this box if the sixth disregarded entity is a qualified subchapter S subsidiary.
Line 7: Disregarded Entity Name
Enter the name of the seventh disregarded entity, if applicable.
Line 7: FEIN
Enter the federal employer identification number for the seventh disregarded entity.
Line 7: LLC Box
Check this box if the seventh disregarded entity is an LLC.
Line 7: Q Sub Box
Check this box if the seventh disregarded entity is a qualified subchapter S subsidiary.
Line 8: Disregarded Entity Name
Enter the name of the eighth disregarded entity, if applicable.
Line 8: FEIN
Enter the federal employer identification number for the eighth disregarded entity.
Line 8: LLC Box
Check this box if the eighth disregarded entity is an LLC.
Line 8: Q Sub Box
Check this box if the eighth disregarded entity is a qualified subchapter S subsidiary.
Line 9: Disregarded Entity Name
Enter the name of the ninth disregarded entity, if applicable.
Line 9: FEIN
Enter the federal employer identification number for the ninth disregarded entity.
Line 9: LLC Box
Check this box if the ninth disregarded entity is an LLC.
Line 9: Q Sub Box
Check this box if the ninth disregarded entity is a qualified subchapter S subsidiary.
Line 10: Disregarded Entity Name
Enter the name of the tenth disregarded entity, if applicable.
Line 10: FEIN
Enter the federal employer identification number for the tenth disregarded entity.
Line 10: LLC Box
Check this box if the tenth disregarded entity is an LLC.
Line 10: Q Sub Box
Check this box if the tenth disregarded entity is a qualified subchapter S subsidiary.
Line 11: Disregarded Entity Name
Enter the name of the eleventh disregarded entity, if applicable.
Line 11: FEIN
Enter the federal employer identification number for the eleventh disregarded entity.
Line 11: LLC Box
Check this box if the eleventh disregarded entity is an LLC.
Line 11: Q Sub Box
Check this box if the eleventh disregarded entity is a qualified subchapter S subsidiary.
Line 12: Disregarded Entity Name
Enter the name of the twelfth disregarded entity, if applicable.
Line 12: FEIN
Enter the federal employer identification number for the twelfth disregarded entity.
Line 12: LLC Box
Check this box if the twelfth disregarded entity is an LLC.
Line 12: Q Sub Box
Check this box if the twelfth disregarded entity is a qualified subchapter S subsidiary.
Line 13: Disregarded Entity Name
Enter the name of the thirteenth disregarded entity, if applicable.
Line 13: FEIN
Enter the federal employer identification number for the thirteenth disregarded entity.
Line 13: LLC Box
Check this box if the thirteenth disregarded entity is an LLC.
Line 13: Q Sub Box
Check this box if the thirteenth disregarded entity is a qualified subchapter S subsidiary.
Line 14: Disregarded Entity Name
Enter the name of the fourteenth disregarded entity, if applicable.
Line 14: FEIN
Enter the federal employer identification number for the fourteenth disregarded entity.
Line 14: LLC Box
Check this box if the fourteenth disregarded entity is an LLC.
Line 14: Q Sub Box
Check this box if the fourteenth disregarded entity is a qualified subchapter S subsidiary.
Line 15: Disregarded Entity Name
Enter the name of the fifteenth disregarded entity, if applicable.
Line 15: FEIN
Enter the federal employer identification number for the fifteenth disregarded entity.
Line 15: LLC Box
Check this box if the fifteenth disregarded entity is an LLC.
Line 15: Q Sub Box
Check this box if the fifteenth disregarded entity is a qualified subchapter S subsidiary.
Important Completion Rules
Line 1: Use One Row Per Entity
List each disregarded entity on a separate numbered line.
Line 2: Do Not Combine Entities
Do not place multiple disregarded entities on the same line.
Line 3: FEIN Accuracy Rule
Enter each disregarded entity’s FEIN carefully because this identifies the entity for tax reporting.
Line 4: Entity Type Rule
For each listed entity, check only the box that matches the disregarded entity type, LLC or Q Sub.
Line 5: Required Account Number Rule
The Kentucky Corporation/LLET account number is required for the taxpayer filing the Kentucky return.
Line 6: Attachment Rule
Attach Schedule DE to the Kentucky return when disregarded entities must be reported with Form 720, Form 720U, Form PTE, or Form 725.