Kentucky Code § KRS 275.520

Issuance of membership interests and distributions by nonprofit limited liability company prohibited -- Exception for some business entities
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(1) Unless a nonprofit limited liability company has only business entities formed for a nonprofit purpose as its members, a nonprofit limited liability company shall not have or issue membership interests in the limited liability company, and no distribution shall be paid, and no part of the income or profit of the limited liability company shall be distributed to its members or managers. (2) No part of the income or profit of a nonprofit limited liability company shall be distributed to its manager or managers. (3) A nonprofit limited liability company may pay compensation in a reasonable amount to its members or managers for services rendered and may confer benefits upon its members in conformity with its purposes, and these payments or benefits shall not be deemed to be a distribution of income or profit.

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