50 State Series: How to move your LLC or corporation out of Kentucky and keep your EIN

Attorney and CPA Chad D. Cummings examines Kentucky’s tax reform progress and remaining challenges in this presentation. The state has reduced its individual income tax rate to 3.5 percent with a phased path toward further cuts and eventual elimination, representing one of the more ambitious reform efforts in the country. However, business owners must currently navigate a Limited Liability Entity Tax on gross receipts, local income taxes that vary by jurisdiction, an inventory tax, a low Section 179 expensing cap, and a pension system funded at only 54 percent. These structural burdens remain even as the state works toward lower rates. Florida and Texas impose no state personal income tax and offer far simpler, more competitive environments. This presentation shows how redomestication allows Kentucky business owners to convert their company’s legal domicile to Florida or Texas without dissolving the entity, without creating a new company, and on a completely tax-free basis while preserving the same FEIN, contracts, credit history, and bank accounts. If you own a business in Kentucky, the current costs while waiting for further phase-outs may justify making the move now. Learn more: https://www.cummings.law/redomestication/