How to Syndicate an Apartment Deal in Kentucky: A Sponsor Guide
On this page
To syndicate an apartment deal in Kentucky, you form the deal LLC (or register an outside LLC with the Kentucky Secretary of State), raise under Rule 506(b) or 506(c), and file a Form D notice with a $250 fee through NASAA's EFD. Two Kentucky details matter for planning: the deal LLC pays the state's limited liability entity tax (LLET) each year, with a $175 minimum, and tenant rules depend on whether the city or county has adopted Kentucky's version of the Uniform Residential Landlord and Tenant Act.
This is the Kentucky version of our general syndication guide. It covers what changes when the building, the investors or both are in Kentucky. It is general information, not legal advice.
What is the Kentucky Rule 506 notice filing?
Kentucky treats Rule 506 interests as federal covered securities and asks for a notice: a copy of the SEC Form D and the fee, filed through the NASAA Electronic Filing Depository (EFD) for the Kentucky Department of Financial Institutions. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $250. File within 15 days of the first sale to a Kentucky investor. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings and blue sky fees by state.
How do you form the deal LLC in Kentucky?
A Kentucky LLC is formed by filing Articles of Organization with the Kentucky Secretary of State; the published fee is $40. Each year the LLC files an annual report, due by June 30, with a $15 fee. An LLC formed elsewhere that will own Kentucky property applies for a certificate of authority as a foreign LLC. Confirm fees on the Secretary of State's site before you file. See forming an LLC for a syndication and foreign qualification in the property state.
What is the Kentucky limited liability entity tax?
Kentucky charges LLCs and partnerships with limited liability a yearly limited liability entity tax (LLET), filed with the Department of Revenue. It is based on Kentucky gross receipts or gross profits, with a $175 minimum, and a pass through entity may also have to withhold for nonresident owners or file a composite return. Put the LLET in the operating budget and ask your CPA how it interacts with the owners' state returns. The investor side is in state tax returns for nonresident syndication investors.
What Kentucky landlord and tenant rules should a sponsor know?
Kentucky's Uniform Residential Landlord and Tenant Act (KRS 383.505 to 383.715) applies only where a city or county has adopted it. Louisville and Lexington have. Where it applies, a landlord must keep security deposits in a separate account and tell the tenant where it is, and for unpaid rent gives a 7 day written notice before ending the lease. Where it does not apply, older Kentucky landlord and tenant law and the lease govern, so the rules can differ a few miles apart. Your property manager should confirm which rules apply at the building's address.
How does Kentucky property tax work for an apartment building?
Kentucky assesses real estate at 100% of fair cash value as of January 1 each year, and the property valuation administrator (PVA) in each county sets the value. A recent sale is strong evidence of fair cash value, so expect the assessment to move toward your purchase price. Owners can appeal to the county board of assessment appeals. Underwrite taxes from your purchase price and the combined state, county, city and school rates, not the seller's bill. See property tax reassessment in apartment underwriting.
How DoorRaise fits in
DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), and verifies that every investor is accredited before they sign. Investors fund by wire into the deal's escrow account at Enterprise Bank & Trust. By default DoorRaise files the notice in the property's state; on new deals, the first investor from another state pays that state's filing fee by card when they sign, later investors from that state pay nothing, and the sponsor never fronts it. Sponsors pay a $1,500 setup fee (non-refundable) and a flat $5,000 a year administration fee; see pricing or how it works.
FAQ
How much is the Kentucky Rule 506 notice fee?
$250, per NASAA's fee schedule. EFD shows the final amount before you pay.
When is a Kentucky LLC's annual report due?
By June 30 each year.
What is the minimum Kentucky LLET?
$175 a year.
Do Louisville and Lexington follow the Uniform Residential Landlord and Tenant Act?
Yes. Check other cities and counties one by one.
Sources
- Kentucky Department of Financial Institutions: securities
- NASAA: Form D fee schedule
- Kentucky Secretary of State: business filings
- Kentucky Department of Revenue: limited liability entity tax
- Kentucky Revised Statutes, Chapter 383
This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.