How to Form an LLC in Kansas

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It is possible to form a limited liability corporation (LLC) within the Sunflower State. It is important to know how to proceed and follow the right steps in the right order.

This guide to setting up an LLC is designed to provide step-by–step guidance on filing paperwork, obtaining tax IDs, as well as how to set up company records.

Overview

Because LLCs are relatively inexpensive, flexible, and easy to operate, they are the most common business structure. Your LLC legal establishment limits your personal liability and provides tax flexibility. The steps that follow will assist you in this process.

Step-by Step Kansas LLC Instructions

  1. Verify Name Availability

    Your LLC’s legal address may not conflict or be used in conjunction with another registered name. A name search can help you find out if your name is available.

    Name Search Kansas Secretary Of State

    Search

    Name Reservation Optional
    Suffix: Should include the words “limited responsibility company” (or “limited company”), or the abbreviation LLC, “LC”, oder the designation “LLC”, or “LC”.

    K.S.A. §17-7920

  2. Get a Registered Agent

    Before you file to form your Kansas LLC LLC, you’ll need to determine who your Kansas registered administrator will be. A registered agent can be described as a company’s legal appointee for receiving notices of lawsuits and other legal or official notices.

    The state law requires that every LLC has a registered representative. When you file Kansas articles, an agent must be designated.

  3. Kansas Certificate Of Formation

    Fill out the articles of incorporation to establish your limited liability company.

    Agency: Kansas Secretary Of State
    Form:
    DL Form Kansas Limited Liability Company Articles of Organization
    Filing Method Mail, fax, in person, or Online
    Agency Fee $165 + $20 optional fax fees
    Turnaround: Online instantly You can get it within 2-3 business days on paper.
    Law:
    K.S.A. SS17-7673
  4. Establish Company Records

    Your LLC must keep complete and accurate books and records. Your LLC’s original articles of organization will be the first document you keep. Other records will be created by your LLC, including:

    • Minutes of the meeting
    • Operating agreement
    • EIN verification letter
    • All modifications and other filings made to LLC throughout its existence

     

  5. You must create the Operating Agreement

    It is possible to use a template to draft an Operating Agreement. This document will serve as the governing document. It specifies the legalities of the LLC’s operation, including the annual meeting. At your organizational meeting you will review and agree to the agreement.

  6. Hold the Organizational Meeting

    The organizational meeting, which is the initial meeting of LLC members, is the most important. In order to hold this meeting, you’ll need your operating agreements and the filed articles. Keep a log of the meeting, and keep them in your company record books.

  7. Get a federal employer identification number (EIN)

    EIN is needed if the LLC will have multiple members or hire employees. EINs can also be required to open a bank or other financial account.

    Agency: Internal Revenue Service
    Form:
    IRS SS-4
    Filing Method Mail, phone and fax. online.
    IRS fee $0
    Turnaround: Online immediately, or by phone. By fax, it takes 4 business working days. 4-5 weeks by postal mail
    Notes: The IRS website cannot be accessed outside of certain hours. Before closing your session you should print your EIN. IRS Publi 1635: Understanding the EIN.
  8. Kansas State Tax Identification Nos/Accounts

    Register if Kansas Tax is required by your organization

    Submit to
    Kansas Department of Revenue

    http://www.ksrevenue.org

    Form:

    CR-16 Kansas Business Tax Application
    Filing Method
    Mail or
    Fee:
    The tax accounts/licenses required to calculate the state fee will impact the amount charged.
  9. Consider Electing C-Corp and C-Corptaxation

    Your LLC is automatically subject to passthrough taxation. However the vast majority (95%) of LLCs) keep this tax classification. Some LLCs are eligible to elect S-Corp, C-Corp tax treatment.

    • S-Corp treatment is an option that can help owner-employees making more than $75,000 annually to lower their self-employment taxes.
    • C-Corps face double taxation. First, the corporation pays income taxes and then the members pay distribution taxes. C-Corp treatment may allow you to benefit from low tax rates on retained earnings, if you have more than $250,000 in profits per owner.
  10. Get business permits & licenses

    It is necessary to obtain the required licenses and permits in order for your business to be legally operated. The Small Business Administration Business License & Permit lookup tool makes it easy to navigate the large number of state, federal, and local requirements.

    Kansas Business License

    Not Required

    Kansas does NOT require general business licensure.

    Kansas does NOT have a general business license at the state or local level.

  11. To Maintain Your LLC, You Need to File Ongoing Filings

    You must file your federal and state taxes returns.

    For good standing with the secretary, many states also require business entities that file an annual reporting. Check out the table below to see if Kansas LLCs must file an annual return.

    Kansas Corporation Annual Report Requirements:

    Agency: Kansas Secretary Of State
    Form:
    Formula AR: Corporate Annual Return
    Filing Method Email or .
    Agency Fee $50 online or $55 via mail
    Due: Annually by the fifteenth day after the end of the fourth month. This is usually April 15th. You may file an annual report as early at January 1. The calendar year following initial registration does not allow for the filing of the first annual reporting.
    Law:
    Kansas Statutes SS 17-7503.
    Penalties: No late fee. If you miss 90 days, your registration will be cancelled.
    Notes:
    • The paper form must have the signature of a partner, officer or member.
    • Original signatures are not necessary.

Kansas LLC FAQs

  • How much does an LLC cost in Kansas? Kansas LLC formation fees range from $160 to $200 depending on the method you use to file and whether or not you reserve your business name. You should always check the Kansas Secretary Of State website for the latest filing fee schedule.
  • What are the benefits of an LLC in Kansas? You may want to learn about the advantages of an LLC over other business entities before you register an LLC in Kansas. Limited liability companies are a popular choice for entrepreneurs. This type of business structure provides a lot of protection and doesn’t require you to follow a lot of requirements. LLCs are more flexible than corporations and can avoid certain types of taxation. Kansas is not an exception. An LLC is a great option for small business owners. There are many benefits to forming a Kansas LLC:
    • Protect your assets and personal assets against legal liability.
    • Flexible management and ownership structures that are tailored to your business and the people involved.
    • Corporations have fewer reporting requirements.
    • Exemption from double taxation, in which owners pay personal taxes only and not corporate profits or individual earnings.
  • How is a Kansas LLC taxed? LLCs, as mentioned, provide the advantage of avoiding double taxation. The business doesn’t pay taxes on income but its owners do. The IRS assesses federal taxes for each member based on their share of the LLC, unless they choose to file as corporations. Kansas follows a similar taxing approach for LLCs at the state level. An LLC is not subject to income tax unless it chooses to file as an LLC. However, LLC members must pay various taxes depending on the nature of their work. Kansas business taxes could include:
    • State employer taxes (if you have employees)
    • If you sell products, state sales tax
    • If you have employees, state unemployment tax
    • Certain products, such as tobacco or liquor, are subject to tax
    • Use of certain minerals and other public resources is subject to tax
    • LLET (Limited Liability Entity Tax)

    First, create an account at the Kansas Department of Revenue Customer Service Center to understand your state’s tax burden. To help you determine which state taxes to pay, you can complete a questionnaire. You may need to register with Kansas Department of Labor if you have employees for unemployment taxes.

  • What licenses and permits do I need for my Kansas LLC? It is important that your LLC obtains all licenses and permits required by law. Because licensing is subject to change by industry and location, and can take place at the federal, state and local levels, it’s not easy to find the right licenses or permits. It’s important to research.Our business license report service is available if you don’t have time or the desire to research all of this, or you simply want to be sure that your business has all the permits and licenses it legally needs.
  • What is the processing time to form my Kansas LLC? Your Articles of Organization will be approved usually within 24 hours if you file online with Kansas Secretary of State. However, approval can take up to five business days if you file by mail.
  • Do I need to file my Kansas LLC operating agreement with the state?You do not have to file the LLC’s operating agreement with Kansas. It is still a good idea to have one even though you are not the only member of your LLC.
  • What tax structure should I choose for my Kansas LLC? Many entrepreneurs choose to tax their LLCs as sole proprietorships, general partnerships at both the state and federal level. The LLC is not subject to income taxes. However, owners will pay federal and state taxes on any income earned by the business. An LLC that has multiple members is considered a partnership by the IRS. Each member must pay their fair share of taxes. A few LLCs, especially those with high earnings, may opt to file taxes as corporations. Certain LLCs have distinct advantages to this option. It can be very helpful to seek the advice of qualified accountants when evaluating these options.
Note: To form an LLC in your state, you can do the filing paperwork yourself or hire an LLC formation service.
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