Including Class with .h and .cpp files
That version of the IDE (it seems to change from version to version) differentiates between includes with &lt;...&gt; and includes with "...".

If you use &lt;...&gt; it only looks in the system and library areas.  If you use "..." it also looks inside your sketch.

So in your main INO file change the LED include from:

#include &lt;LED.h&gt;


To:

#include "LED.h"


and it should compile.