How to Start an LLC in Kansas | 2024 Guide

Start a LLC in Kansas

How to Start an LLC in Kansas: If you’re looking to launch a business in Kansas, starting a Limited Liability Company (LLC) may be the right choice for you. An LLC provides personal liability protection for its owners while giving them flexibility in managing and taxing the business. This guide provides a step-by-step process for starting an LLC in Kansas. From choosing a unique name to registering with the state and obtaining necessary licenses and permits, Webinarcare Editorial Team will walk you through setting up your new business entity. So grab a pen and paper, and let’s get started!

What is a Limited Liability Company?

A Limited Liability Company (LLC) is a type of business entity that combines a corporation’s limited liability protection with a partnership’s tax benefits. LLCs are popular among small business owners for their flexibility and ease of formation. In Kansas, an LLC must have a unique name and file Articles of Organization with the Secretary of State. Depending on their business needs, LLCs may also elect to be taxed as a corporation or an S-corp. Owners of an LLC, called members, are not personally liable for the company’s debts and losses, and the company’s profits and losses are passed through to the member’s personal tax returns. This makes an LLC an attractive option for those seeking personal liability protection and simplified taxation.

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Steps on How to Start an LLC in Kansas

To form an LLC for your business, you must follow the guidelines that include naming your LLC, hiring a Registered Agent, filing your Articles of Organization, creating your LLC operating agreement, getting an employer identification number, opening a bank account and getting business licenses and permits.

Step 1: Name your LLC in Kansas

After you have decided on the idea to form an LLC in Kansas, deciding the name for your LLC is significant. There is a complete guide on LLC name guidelines for you to have a proper LLC business name. Here are some regulations you must follow while naming your LLC,

  • The name should not be confused with a government entity.
  • The name should be unique.
  • The name should be available to use.
  • Any other business does not use the name.
  • The new name must include “LLC” if it is a limited liability company.

In Kansas, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 120 days. You must file a name reservation application in Kansas Secretary of State to keep the name.

Recommended: We recommend a professional service that can offer you unlimited name search, trademark and copyright registration at a reasonable price. We recommend using –

LegalZoom($0 + State Fees for LLC Formation)

You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for filing Kansas DBA (doing business as). In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it.

Step 2: Hire a Registered Agent in Kansas

Hiring a Registered Agent in Kansas is a must since a Registered Agent is a person or business entity responsible for receiving important legal documents on behalf of your Kansas LLC. Most states require you to designate a Registered Agent when forming your LLC.

The qualifications of a Registered Agent vary depending on the jurisdiction. Still, generally, a Registered Agent must meet the following criteria:

  • Availability: A Registered Agent must be available during regular business hours to receive and process legal documents and official correspondence.
  • Physical Address: A Registered Agent must have a physical street address within the state where the LLC is registered. This address, known as the registered office, cannot be a P.O. Box.
  • Residency or Authorization: For individuals serving as Registered Agent, they must be residents of the Kansas where the LLC was formed. A business entity acting as a Registered Agent must be authorized to do business within that state.
  • Age: A Registered Agent must be at least 18 years old.
  • Good standing: A Registered Agent should not have any legal or financial issues that impede their ability to fulfill their duties.

Choosing a reliable and responsible Registered Agent is essential, as failure to receive and respond to legal documents can seriously affect your business. Some businesses use professional Registered Agent services to ensure compliance and proper handling of legal matters.

However, if you would like to have an easier process in filing the necessary documents, you can get Kansas Registered Agent Services.

Step 3: File your Articles of Organization in Kansas

The Articles of Organization for an LLC is an important document to start your limited liability company (LLC). Kansas Articles of Organization is a simple document that contains the business name and address as well as the name and address of the person who received lawsuits on behalf of the organization.

Here are the guidelines and specific requirements in filing your Articles of Organization in Kansas.

1. Obtain the Necessary Forms: Visit the Kansas’s business filing office website, usually the Kansas Secretary of State’s office, to download the required forms or file online.

2. Provide the Required Information: Fill in the necessary details in the form, which typically include:

  • The name of your LLC (must include an LLC designator such as “LLC,” “L.L.C.,” or “Limited Liability Company”)
  • The purpose of your LLC (a general statement or specific business activities)
  • The address of your LLC’s principal place of business
  • The name and address of your registered agent (the person or business entity responsible for receiving legal documents on behalf of your LLC)
  • The management structure of your LLC (member-managed or manager-managed)
  • The duration of your LLC, if not perpetual
  • The names and addresses of the LLC’s organizers or members

3. Sign and File the Form: Submit the completed form in the {state} state office, either by mail, in person, or online. You may mail it at Kansas Office of the Secretary of State, Memorial Hall, 1st Floor, 120 S.W. 10th Avenue, Topeka, KS 66612.

4. Pay the Filing Fee: When you submit your Articles of Organization, you’ll need to pay a filing fee of $165. Make sure to check and include the correct payment with your submission.

5. Receive Confirmation: After your Articles of Organization have been filed and processed, you’ll receive a confirmation from Kansas, typically a stamped and approved copy of the document or a Articles of Organization.

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Once you have successfully filed your Articles of Organization and it has been approved, your Kansas LLC is officially formed. However, remember to complete additional steps, such as creating an Operating Agreement, obtaining an EIN, and registering for any required licenses and permits.

Step 4: Create Your Kansas Operating Agreement

An operating agreement is a document that contains all of your company’s organizational details. Drafting an operating agreement in most states is not required. Yet, having one as an internal document is strongly advised. An operating agreement includes information like-

  • About Business
  • Members and management
  • Capital contribution
  • Profit Distribution
  • Change of membership
  • Dissolution

To understand how an operating agreement works, you should check out how to create an operating agreement in Kansas.

Recommended: Get oprating agreement drafts ready on your table with a help of a professional service. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 5: Get an EIN

After documenting the operating agreement, you should get or request an Employer Identification Number (EIN) in Kansas. An EIN will serve as the tax ID for your professional corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.

The application of an EIN in Kansas can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

In obtaining an EIN for your LLC, you should be aware to ensure that your LLC is eligible for an EIN. You need an EIN if you have employees, operate as a corporation or partnership, or meet other specific IRS criteria. Before applying, gather the required information, including your LLC’s name, mailing address, and the responsible party’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Also, you can apply for an EIN through various methods, including online, by fax, mail, or telephone (for international applicants).

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 6: Open a Bank Account and Prepare for Taxes

After you have filed for and received your Employer Identification Number, you should open a bank account because you will use this account for yourself, your clients, and your employees.

Your business dealings in Kansas might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Most banks demand an EIN to create a business bank account for firms other than sole proprietorships. Also, having an EIN makes tax preparation easier. You can anticipate paying employment and corporate taxes with Kansas LLC.

Opening a bank account is necessary for Kansas business. If you are still wondering where to open an account in your Kansas, you should check the Best Bank for Small Business in Kansas.

Step 7: Get a Business and License Permit

You must get a business license in Kansas before establishing your LLC. A business license is a legal document granted by a state government body that permits you to conduct business within the area under its jurisdiction. The price of business licenses and permits in Kansas ranges from $50 – $300. If there is a requirement for a specific license or city-based permit, you must inquire with the Kansas Secretary of State.

Cost to Form an LLC in Kansas

Even if you have a business name and structure in mind, you should consider whether you can afford the costs of forming an LLC in Kansas. Articles of Organization costs around $165. The initial filing fee is $165 (by mail and $160 online) , and the annual fee is $25 online and $27.5 by mail.

If you forget to pay the annual fee for your Kansas LLC, you will have a penalty of $50. However, you can check the Kansas LLC Cost for additional information.

Advantages of Creating Kansas LLC

Even though some people decide on what to do with their businesses, some choose to put it in their own individual name, while others still choose to set it up via LLC in Kansas. Important benefits will help you set up an LLC in Kansas.

  • Pass-Through Taxation: The pass-through structure will make the company not pay twice the tax. Most start-ups and entrepreneurs in Kansas apply for an LLC because of this structure. Pass-through taxation refers to how income and losses from an LLC (Limited Liability Company) are passed through to its members (owners) for tax purposes rather than being taxed at the business entity level. This means the LLC does not pay federal income taxes; the members’ profits and losses are allocated based on their interests. Each member then reports their share of the LLC’s income or losses on their personal tax returns and pays taxes at their individual tax rates.
  • Ownership Flexibility: If you need sole and primary control over your company’s operations, a sole proprietorship will allow you to do so. If you apply for an LLC in Kansas with flexibility, you will have default rules set by law and need an operating agreement.
  • Personal Liability Protection: Personal Liability Protection protects your business from damage, debts, or legal obligations. In personal liability protection, the company’s profits and earnings will stay as is even if your company is about to be sued. This protection of having an LLC in Kansas can also be extended to the company’s properties and assets. Many start-up companies will benefit from this since most are starting to build a company. Even if liability exists, the LLC in Kansas will protect its assets.

FAQs

What is an LLC?
An LLC is a legal entity that offers protection to its owners by limiting personal liability for business debts and obligations.
Why should I consider starting an LLC in Kansas?
Starting an LLC in Kansas has many benefits, including favorable tax treatment and low start-up costs.
How do I name my LLC in Kansas?
The name of your LLC must comply with the naming requirements of Kansas law.
What are the naming requirements for an LLC in Kansas?
Your LLC name must contain the words “limited liability company” or “LLC”.
How do I register my Kansas LLC name?
You can register your LLC name by filing articles of organization with the Kansas Secretary of State.
What are the filing fees for registering an LLC in Kansas?
The filing fees for a Kansas LLC are $160.
What are the limitations on Kansas LLC names?
Your LLC name cannot contain any words that imply governmental connection or words that are trademarked by someone else.
Can I change the name of my Kansas LLC?
Yes, you can change your LLC name by filing appropriate documents with the Kansas Secretary of State.
How do I file for a trademark for my Kansas LLC?
You can file for a trademark for your business name with the United States Patent and Trademark Office (USPTO).
How do I choose a registered agent in Kansas?
Your registered agent must be an individual or a company with a physical address in Kansas where legal documents can be served.
Who can be a registered agent for my Kansas LLC?
A registered agent for an LLC in Kansas can be an owner, employee, or a third-party service provider.
Can I act as my LLC’s registered agent in Kansas?
Yes, you can act as your Kansas LLC’s registered agent as long as you have a physical address in the state.
Can I change my registered agent in Kansas?
Yes, you can change your registered agent by filing appropriate documents with the Kansas Secretary of State.
Do I need an operating agreement for my Kansas LLC?
An operating agreement is not required by law in Kansas, but it is strongly recommended for limiting member liability and establishing rules and procedures for the LLC.
How do I obtain an Employer Identification Number (EIN) for my Kansas LLC?
You can obtain an EIN from the Internal Revenue Service (IRS) either online or by mail.
What taxes does my Kansas LLC need to pay?
LLCs in Kansas are subject to state and federal income taxes, employer withholding tax, sales and use tax, and other taxes depending on the nature of the business.
How do I apply for a seller’s permit for my Kansas LLC?
You can apply for a seller’s permit with the Kansas Department of Revenue.
Do I need to file an annual report for my Kansas LLC?
Yes, Kansas LLCs are required to file an annual report with the Secretary of State and pay a filing fee of $50.
Can out-of-state LLCs do business in Kansas?
Yes, out-of-state LLCs can do business in Kansas as a foreign LLC and are required to register with the Kansas Secretary of State.
Can Kansas LLCs do business in other states?
Yes, Kansas LLCs can do business in other states by registering as a foreign LLC in those states.
Is there a requirement for the number of members in my Kansas LLC?
No, there is no minimum or maximum number of members required for an LLC in Kansas.
Can I have a single-member LLC in Kansas?
Yes, you can have a single-member LLC in Kansas.
What is the liability protection for members of a Kansas LLC?
Members of a Kansas LLC are generally not personally responsible for the debts and liabilities of the LLC.
Can I change the ownership structure of my Kansas LLC?
Yes, you can change the ownership structure of your Kansas LLC by amending your articles of organization and operating agreement.
What happens if I don’t file an annual report for my Kansas LLC?
If you don’t file an annual report for your Kansas LLC, your LLC will be administratively dissolved by the Secretary of State.
How do I reinstate an administratively dissolved Kansas LLC?
You can reinstate an administratively dissolved Kansas LLC by filing for a reinstatement with the Secretary of State and paying a reinstatement fee.
How long does it take to form an LLC in Kansas?
The processing time for forming an LLC in Kansas is typically 2-3 business days.
Can Kansas LLCs have offices outside of Kansas?
Yes, Kansas LLCs can have offices outside of Kansas, but they must be registered as a foreign LLC in the other state.
Is it mandatory to have an attorney to form a Kansas LLC?
No, it is not mandatory to have an attorney to form an LLC in Kansas, but it is recommended to seek legal advice.
What is an LLC in Kansas?
An LLC stands for a limited liability company and is a business structure that provides liability protection to its members in Kansas.
What are the benefits of forming an LLC in Kansas?
Some of the benefits of forming an LLC in Kansas include protecting personal assets from business liabilities, flexibility in management and taxes, and ease of formation.
How do I start an LLC in Kansas?
You can start an LLC in Kansas by filing formation documents, naming a registered agent, drafting an operating agreement, and obtaining any necessary licenses and permits.
What are the filing fees for starting an LLC in Kansas?
The filing fees for starting an LLC in Kansas depend on the type of filing and can range from $165 for a standard filing to $285 for a same-day filing.
How long does it take to start an LLC in Kansas?
Starting an LLC in Kansas can take as little as a few days or up to several weeks, depending on the type of filing and processing times of the Kansas Secretary of State’s office.
Does Kansas require an operating agreement for an LLC?
Kansas law does not require an operating agreement for an LLC, but it is highly recommended as it outlines the rights and responsibilities of members and can help avoid disputes.
What is a registered agent in Kansas?
A registered agent in Kansas is a person or entity designated to receive legal documents on behalf of an LLC, such as lawsuits or government notices.
Can I be my own registered agent in Kansas?
Yes, you can be your own registered agent in Kansas, but it is recommended to use a commercial registered agent service to ensure legal documents are properly received.
What is a foreign LLC in Kansas?
A foreign LLC in Kansas is an LLC formed in another state that is authorized to do business in Kansas.
What is the process for registering a foreign LLC in Kansas?
The process for registering a foreign LLC in Kansas involves filing an Application for Registration with the Kansas Secretary of State’s office and naming a registered agent.
What are the annual requirements for maintaining an LLC in Kansas?
In Kansas, LLCs must file an annual report by April 15th and pay a $55 fee to remain in good standing with the state.
What taxes does an LLC have to pay in Kansas?
LLCs in Kansas may need to pay sales tax, employment tax, and/or income tax depending on their business activities and income earned.
Does Kansas offer a tax break for LLCs?
Kansas offers a tax exemption for certain LLCs, such as agricultural cooperatives and nonprofits.
Can an LLC in Kansas have a sole owner?
Yes, an LLC in Kansas can have a sole owner, who is known as a single-member LLC.
Can an LLC in Kansas have unlimited members?
Yes, there is no limit on the number of members an LLC in Kansas can have.
Do I need a lawyer to start an LLC in Kansas?
No, you do not need a lawyer to start an LLC in Kansas, but it is recommended to consult with one for legal advice and assistance.
What happens if my LLC in Kansas is sued?
If your LLC in Kansas is sued, the LLC’s assets are at risk but the personal assets of the members are generally protected under the limited liability shield.
Can an LLC in Kansas change its name?
Yes, an LLC in Kansas can change its name by filing Articles of Amendment with the Kansas Secretary of State’s office.
Can an LLC in Kansas change its business purpose?
Yes, an LLC in Kansas can change its business purpose by amending its operating agreement.
What is a tax ID number and does my LLC in Kansas need one?
A tax ID number, also known as an EIN, is a unique identifier assigned by the IRS for tax purposes. It is recommended for most LLCs in Kansas to obtain an EIN.
Can an LLC in Kansas convert to a corporation?
Yes, an LLC in Kansas can convert to a corporation by filing Articles of Conversion with the Kansas Secretary of State’s office.
Can an LLC in Kansas convert to a different LLC type?
Yes, an LLC in Kansas can convert to a different type of LLC, such as a single-member LLC or a multimember LLC, by amending its operating agreement and filing appropriate paperwork.
If I move my LLC to Kansas, do I need to dissolve it and start a new one?
No, you do not need to dissolve your LLC and start a new one if you move it to Kansas. You can instead register your LLC as a foreign LLC with the Kansas Secretary of State’s office.
What is a Certificate of Good Standing, and does my LLC in Kansas need one?
A Certificate of Good Standing is a document issued by the Kansas Secretary of State’s office indicating that an LLC is compliant with state regulations. It may be required for certain business transactions and activities.
How do I dissolve my LLC in Kansas?
You can dissolve your LLC in Kansas by filing Articles of Dissolution with the Kansas Secretary of State’s office and completing any final business activities, such as paying outstanding debts or distributing assets.
Does Kansas offer expedited processing for LLC filings?
Yes, Kansas offers same-day and next-day expedited processing for certain LLC filings for an additional fee.
How can I find resources and assistance for starting and running my LLC in Kansas?
The Kansas Secretary of State’s office and local small business associations may offer resources and assistance for starting and running your LLC in Kansas.

Also Read

How Fast Can I Form an LLC in Kansas

The good news is that forming an LLC in Kansas is typically a relatively straightforward process that can be completed in a relatively short amount of time. However, the actual timeline for forming your LLC will depend on a few different factors, such as how quickly you can gather and submit the necessary paperwork, how busy the Secretary of State’s office is at the time, and whether you choose to expedite the process.

One of the first steps in forming an LLC in Kansas is selecting a name for your business. Your chosen name must be unique and not already in use by another business in the state. You can check the availability of your desired business name through the Secretary of State’s website. Once you have a name that is available, you can reserve it for a small fee to prevent another business from using it while you complete the rest of the LLC formation process.

After you have chosen a name, the next step is to file Articles of Organization with the Secretary of State. This document outlines basic information about your business, such as its name, address, and the names of its members. You can file the Articles of Organization online, by mail, or in person. Once the Secretary of State receives your completed Articles of Organization and the required filing fee, your LLC will officially be formed.

In most cases, the processing time for the Secretary of State to approve your Articles of Organization and form your LLC is relatively quick. Typically, you can expect to receive your approved documents within a few business days to a couple of weeks, depending on their current workload.

If you are in a hurry to get your LLC formed, there are options available to expedite the process. For an additional fee, you can request expedited processing of your filing, which can significantly reduce the time it takes for your LLC to be formed. If time is of the essence, this can be a valuable option to consider.

In conclusion, forming an LLC in Kansas is a relatively quick and straightforward process that can typically be completed in a matter of days or weeks, depending on the specifics of your situation. By taking the necessary steps and being proactive in gathering and submitting the required paperwork, you can get your LLC up and running in no time. If you’re eager to start your business as soon as possible, forming an LLC in Kansas is a great first step towards achieving your entrepreneurial goals.

Conclusion

In conclusion, starting an LLC in Kansas is a strategic choice for entrepreneurs seeking a flexible, straightforward business structure with limited liability protection. By following the essential steps, including choosing a business name, filing Articles of Organization, appointing a Registered Agent, creating an Operating Agreement, obtaining an EIN, and securing the necessary licenses and permits, you can successfully establish your LLC. This business structure offers numerous advantages, such as pass-through taxation and ownership flexibility, making it an attractive option for small business owners looking to grow and protect their ventures. As always, consult legal and business professionals for guidance specific to your situation and state requirements.

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