Forming an LLC in Kansas: Various Costs Revealed
Hire Professionals to Start a Kansas LLC for You
Despite your brilliant ideas, you will need to make a little investment before your business can fully take off. There are startup costs associated with forming an LLC (limited liability company) in Kansas, and we’re not just talking about office space leases or employee pay.
Make sure you consider all the potential initial costs for an LLC. To assist you, we’ve included the most common starting prices in Kansas below. In Kansas, forming an LLC online costs $160. This fee is paid to the Kansas Secretary of State when the LLC’s articles of incorporation are submitted.
Perhaps you want to form a Kansas LLC. People believe that forming an LLC is challenging and expensive. Although not generally difficult, the cost would vary by state. We have all the information you need on the cost of forming an LLC, including the cost of forming an LLC in Kansas.
In addition, don’t hesitate to read our full guide on how to start a Kansas LLC.
- Hire Professionals to Start a Kansas LLC for You
- Forming LLC in Kansas: Various Costs
- How to Form a Kansas LLC on Your Own
- Key Steps to Maintain After Creating an LLC
- Filing Requirements for Kansas LLCs
- FAQ: Forming an LLC in Kansas – Various Costs
- Form an LLC in Kansas with the Help of Experienced Attorneys
- In conclusion
Forming LLC in Kansas: Various Costs
Description | Fee |
Filing a Kansas LLC online | $160 – $185 |
Annual Reports | $50 (online) / $55 (mail) |
Registered Agent | $175/yr. |
Forming a Foreign LLC | $165 |
Reservation of LLC Name | $10 |
Filling a DBA Name | $30 (online) / $35 (mail) |
Copies of Certified Documents | $15 + $1/pg. |
Existence Certificate | $10 (online) / $15 (mail) |
$160 – $185 – Fee for filing a Kansas LLC Online
The filing fee for Kansas LLC Articles of Organization is $160 if you submit them online using your KanAccess login. You can pay $165 to have your Articles of Incorporation delivered to the Secretary of State. You can also fax your file for an additional $20 fee.
$50 (online) / $55 (mail) – Fee for Kansas Annual Reports
Every year, all LLCs doing business in Kansas must submit an annual report to the Secretary of State. The annual report is due on the fifteenth day of the fourth month after the end of the LLC’s tax year. If the tax year finishes in December, for example, the payment is due on April 15 of the following year. The annual report can be filed as early as January 1. Form LC-50, Limited Liability Company Annual Report, must be submitted. The report can be sent either online or via mail. The filing fee for online filing is $50, while the filing fee for postal filing is $55.
You can submit this form online or by mail to the Kansas Secretary of State. The filing cost is $50 for online filing and $55 for postal filing.
$175/yr. – Fee for Registered Agent
Kansas requires LLCs to have a resident agent, who will accept important legal papers on your company’s behalf. If you are at least 18 years old and have a physical address in the state, you or another LLC member may be nominated to the position. “Registered office” is the name given to this location.
As an alternative, you can pay a firm to serve as your LLC’s resident agent; in exchange, they will manage your company’s paperwork. For these treatments, you should normally be prepared to pay between $50 and $300. Do your homework to ensure you get the greatest possible offer for the price you agree to pay.
$165 – Fee for Forming a Foreign LLC in Kansas
If you currently have an LLC in another state and want to extend your business into Kansas, you’ll need to register it as a foreign LLC in Kansas.
Assume you formed your LLC in another state and now want to do business in Kansas. In that case, you must register as a foreign covered entity. You will submit a Foreign Entity Application for Registration to the Kansas Secretary of State. In Kansas, online filing is not possible for this form. Send your application together with the $165 filing fee by mail.
A foreign LLC registration in Kansas costs $165. An Application for Registration of Foreign Covered Entity can be used to register a foreign LLC in Kansas (Form FA).
Permits and Licenses for Businesses
Depending on the kind and location of your business, you may need to get specific professional licenses before starting a business in Kansas. CPAs, for example, are required to submit licensure applications to both the Real Estate Commission and the Board of Accountancy. Furthermore, certain communities or counties may have their own licensing requirements.
Which Kansas LLC business licenses are often required? If your company operates in a regulated field, you almost surely need some kind of professional license to do business legally. Zoning permits, construction permits, and alarm permits are all often used at the municipal level.
Total Costs for Kansas LLC Breakdown & Best Options
Who forms the LLC? | Total fees |
You form the LLC in Kansas yourself | $160 + ($30+ LLC Name + $10+ Certificate of Existence) |
by using ZenBusiness | $49+ |
by using Northwest Registered Agent | $39/mo |
see our other top-rated LLC service providers | varies |
Other Fees for Forming an LLC
There are additional costs involved with forming an LLC:
$30 (online) / $35 (mail) – Reservation of LLC Name
Name reservations are the first optional expenditure for a Kansas LLC. If you aren’t yet prepared to organize your firm but want the name to be accessible when you are, you simply need to reserve it for a Kansas LLC. In this state, reserving a company name costs $30 online or $35 postal filing fee, and grants you exclusive use of the name for 120 days.
$15 + $1/ pg. – Copies of Certified Documents
You may get certified copies of your Kansas business records from the Secretary of State for $15 + $1 per page.
$10 (online) / $15 (mail) – Existence Certificate
When applying for a loan, renewing a company license, or paying taxes, you may be obliged to get a Certificate of Good Standing (also known as a Certificate of Existence). The Certificate confirms that your company is legally functioning in the state, in accordance with all applicable legislation, and in good standing.
To get your Certificate of Good Standing, you may locate your LLC via the Secretary of State’s Business Entity Search. Click the button to get your Certificate for $10. You may also place a phone or mail order for $15.
How to Form a Kansas LLC on Your Own
The Articles of Organization must be filed with the Kansas Secretary of State, which costs $160-$165. You have the option of applying online or by mail. The Articles of Organization are the official legal documents that establish your Kansas Limited Liability Company.
In Kansas, there are five basic steps to forming an LLC.
Step 1: Choose a name for your Kansas LLC |$30 (online) / $35 (mail)|
The first and most significant step in forming a Kansas LLC is deciding on a name. Make sure your name conforms with Kansas naming regulations and is easily searched by potential customers.
According to Kansas law, the words “Limited Liability Company,” “Limited Company,” or the acronyms “L.L.C.,” “LLC,” “LC,” or “L.C.” must appear as the last words of an LLC name.
The name of your LLC must distinguish itself clearly from other company names that are currently on record with the Kansas Secretary of State. The Kansas Secretary of State’s company name database may be searched to see if a name is available. The Secretary of State will let you hold a name reservation for up to 120 days. By submitting a Temporary Reservation of Business Entity Name, the reservation may be made online or by mail (Form NR 52-01). For online filing, the charge is $30; for mail-in filing, it is $35.
Read the Kansas Name Availability Guidelines for a comprehensive list of name requirements
Step 2: Choose a Registered Agent ($125/yr.)
For a Kansas LLC, you must choose a Kansas Resident Agent. In some states, a Resident Agent is referred to as a Registered Agent.
What is the role of a Resident Agent? A resident agent is an individual or corporate organization charged with receiving vital legal documents on your behalf. Consider your resident agent to be the state’s point of contact for your company.
The selection of a Kansas resident agent, also known as a registered agent, is an important step in the establishment of your LLC. Your resident agent’s responsibilities include maintaining sensitive legal and tax data and ensuring that your company complies with Kansas business laws. In essence, you want a dependable representative.
Even while you are entitled to function as your own LLC’s resident agent, doing so will impose additional responsibility to keep track of paperwork and any legal concerns. At times, it makes more sense to delegate the duty to a skilled individual. Using a resident agent service to guarantee that your yearly reports and other documentation are completed correctly can help you avoid late filing fines and the stress of doing it yourself.
Because not all resident agent services are created equal, you should exercise caution while selecting one. The good news is that Northwest Registered Agent received top marks in our study for you. Northwest offers LLC formation as well as resident agent services, and if you create your firm with them, they’ll throw in a free resident agent for a year. Despite the fact that we believe they are the most dependable option, you may weigh all of your alternatives by reading our review of the best services.
Look at our in-depth lectures on these issues if you need to replace your resident agent or resign as a resident agent in Kansas.
The Best Registered Agent Service in Kansas
Based on overall quality and honest price, Northwest is the finest registered agent service. Northwest provides a flawless user experience as well as industry-leading customer service and data security.
You’ll obtain an online account to access important papers, mail forwarding, and business address services when you pick Northwest as your registered agent service.
Northwest’s virtual mailbox service will scan your mail and electronically transmit it to you. This means that no matter where you are on the globe, you can maintain track of your mail.
Standard Registered Agent Fee: $125 per year
LLC Formation + 1 yr. Free Registered Agent Service
One Year Free Registered Agent with LLC Formation $39 (Plus State Fees)
Kansas’s Top 3 LLC Services
These are the three organizations we trust and rely on the most if you want a trustworthy LLC creation service to undertake the heavy lifting on your behalf. These businesses also provide a wide range of additional services, from business formation to LLC dissolution!
1. ZenBusiness ($39) — ZenBusiness provides a comprehensive LLC formation solution at an affordable price. A full year of registered agent service and a customized operating agreement are included in their basic LLC package. ZenBusiness also gets rave reviews from customers.
2. IncFile (FREE) – No, that’s not a mistake! Free LLC formation is possible with IncFile. Even better, their complimentary bundle includes 12 months of registered agent service. With over 500,000 delighted clients and a wealth of knowledge, IncFile is always a safe bet.
3. Northwest Registered Agent ($39) – Northwest is a premium service provider. Northwest, like ZenBusiness and IncFile, gives a year of registered agent service with every LLC creation package. They also provide the greatest customer service in the market, with experienced staff who are versed with the ins and outs of every state’s business formation procedure.
Step 3: File the Articles of Organization |$160 – $185|
You should also consider the cost of securing your company’s website and domain name in your budget. Because the URL you select for your website is critical, we always advise our readers to register their domain names as soon as possible after completing their articles of incorporation. Obtaining the desired domain name is almost as important as obtaining the desired LLC name, especially given how much of the business world occurs online these days. Although the cost of a domain name might vary, you should anticipate paying $20 or less every year.
OPTION 1: File Online with the Secretary of State
– OR –
OPTION 2: File by Mail
State Filing Cost: $160 Online, $165 by Mail (Nonrefundable)
Mail to:
Kansas Office of the Secretary of State
Memorial Hall, 1st Floor
120 S.W. 10th Avenue
Topeka, KS 66612
This is the most important (and expensive) document you’ll file to create your Kansas LLC. If you don’t have the Articles of Organization, the state won’t recognize your company as genuine. It costs $160 to file online, $165 to mail or $185 to fax. The good news is that, although being quite expensive, you won’t need to fill out this form or pay this fee again. If your request is accepted, you won’t have to worry about the Articles of Organization.
The information you’ll need to include in your Articles of Organization includes your LLC’s formation date, legal name, registered agent’s name, and address, major business address, tax closing month, and organizer’s signature.
__________
File by Mail or by Fax with the Kansas Secretary of State
Fee: $165 (Nonrefundable)
Mail to:
Kansas Secretary of State
Memorial Hall, 1st Floor
120 S.W. 10th Avenue
Topeka, KS 66612
If you need assistance with this level, you’re in luck. Several reputable LLC formation companies will take care of the creation and submission of your Articles of Organization on your behalf. There are a number of options for this service, but we prefer ZenBusiness. They provide amazingly affordable rates and thorough services, and by using our promo code, you may save 20%!
Incorporating a Kansas series LLC requires the adoption of a specific form of the Articles of Organization, which should be noted before moving on. For additional information, see our extensive guide on the subject.
Step 4: Create an Operating Agreement |FREE|
An operating agreement should be in place for every Kansas LLC owner to secure their company’s activities. An operating agreement, while not legally needed by the state, will define clear norms and expectations for your LLC while also establishing your legitimacy as a legal company.
What is the definition of an operating agreement? An operating agreement is a legal document that spells out an LLC’s ownership structure and practices.
According to Kansas law, LLCs are not required to create an operating agreement. However, LLC operating agreements are useful to have since they spell out each member’s administrative and financial responsibilities, avoiding uncertainty in the future. These documents describe daily operations, the division of earnings and losses, and voting rights. An agreement is worth the effort to establish since it will give your LLC definition and legality.
Your operating agreement should include all of the items below, whether you’re creating a single-member or multi-member LLC. Some of these provisions will have little impact on the day-to-day operations of a single-member LLC, but they must be included for legal reasons.
Although it is strongly advised, an LLC operating agreement is not required in Kansas. This internal document outlines how your LLC will function. It describes the management’s and members’ roles and rights, as well as how the LLC will be administered. It can also help you keep your limited liability by establishing that your LLC is a separate legal entity from other firms. If your LLC lacks an operating agreement, state LLC statute governs its operations.
Although operating agreements are not necessary in Kansas for LLCs, they are strongly suggested as part of the startup process. Operating agreements create the framework for your company’s day-to-day operations and are useful for resolving disputes among LLC founding members. Consider an operating agreement to be a customized constitution for your business. Your LLC operating agreement, like the Declaration of Independence, outlines the rights, obligations, and principles of the signatories. It may also be used as a roadmap for how the firm should behave in the event of an unexpected event.
Your operating agreement should cover the name of your LLC, the management and voting structure of your LLC’s members, the financial contributions made by each member to the LLC, any distributions made to members of the LLC, the process for evicting current members and accepting new members, and the process for winding up the business.
Step 5: Obtain an Employer Identification Number |FREE|
An EIN is necessary for the majority of businesses. These are also known as Federal Tax Identification Numbers (FTINs) or Federal Employer Identification Numbers (FEINs) (FTIN). Single-member LLCs without any workers are permitted to utilize the owner’s Social Security number in place of an EIN. Nevertheless, EINs are a perfect SSN substitute since they may provide a person a company identity while protecting their personal identity from theft. You may simply acquire free EINs by visiting the IRS website.
Additionally, you’ll need to get a federal tax ID number (also known as an EIN, or employer identification number). This nine-digit code, which is needed to pay taxes, recruit staff, create business banking accounts, and other things, is effectively the equivalent of a Social Security number for your company.
What is the purpose of having an EIN? An EIN is necessary for the following:
- Open a bank account for your business.
- Managing and filing federal and state taxes
- Employ people
What if my single proprietorship already has an EIN? When changing to an LLC, the IRS requires sole proprietorships to get a new EIN.
Where can I obtain an EIN? The IRS will provide you with an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or through the mail.
Make a profile for your new business on the internet. You will receive your Tax Identification Number right away upon the completion of the online registration process (TIN). You should call the organization at (785) 368-8222 after three to five working days have elapsed to inquire about how frequently you must file.
If I don’t have a Social Security number, how can I acquire an EIN? An EIN does not require a Social Security number. You can just leave section 7b blank on the IRS Form SS-4. Then, to finish your application, call the IRS at (267) 941-1099.
What is the best tax structure for my Kansas LLC? When you apply for an EIN, you will be told of the many tax categorization options accessible to you. The default tax status is chosen by most LLCs. However, by electing the S corporation (S corp) classification, some LLCs can lower their federal tax liability.
Is an EIN required for my LLC? An EIN is required for any LLC with employees or more than one member. The IRS requires you to do so.
Key Steps to Maintain After Creating an LLC
After completing everything in the preceding step, you should concentrate on keeping your LLC in good shape. The opening of a business bank account is the initial stage in this procedure. This can greatly assist you with your accounting and tax obligations as well as help you keep your personal and company costs completely separate.
Additionally, you need to maintain thorough records of all business dealings involving your LLC. This entails keeping a record of all receipts for purchases and sales, as well as details on your staff or contractors and the job they do for your company.
As we’ve already indicated, filing yearly reports is essential to maintaining an LLC in this state, and failing to file annual reports can result in severe financial penalties. Additionally, although this is an optional step, you might wish to have an annual meeting to talk about the objectives and priorities for your LLC.
Filing Requirements for Kansas LLCs
You may be needed to register for one or more types of state taxes, depending on the nature of your business.
Sales Tax in Kansas
If you’re selling a tangible item, you’ll need to apply for a seller’s permit with the Kansas Department of Revenue’s Division of Taxation.
A firm can use this certificate to collect sales tax on taxable transactions.
State, county, and municipal governments levy sales taxes on commercial transactions involving the exchange of specified taxable products or services.
Employer Taxes in Kansas
If you have workers in Kansas, you must register with the Kansas Department of Labor for the Unemployment Insurance Tax. You’ll also need to register with the Kansas Department of Revenue for the Employee Withholding Tax.
FAQ: Forming an LLC in Kansas – Various Costs
What is the cost of forming a corporation in Kansas?
Creating an LLC is sometimes less expensive than forming a corporation. On the other hand, incorporating a corporation in Kansas is less expensive. Paper filings for articles of incorporation cost $90 and $85 respectively.
What are the Kansas state company tax rates?
If your LLC is taxed similarly to a sole proprietorship or general partnership, you must pay taxes on business revenue at the state’s personal income tax rates (between 3.1 percent and 5.7 percent, depending on your income level). If your LLC is taxed in the same way as a corporation, you must pay Kansas’ 4-7 percent corporate income tax on your company’s revenue.
How many small enterprises are now operating in Kansas?
There are approximately 275,000 small enterprises in Kansas. Kansas is an excellent environment for business owners of various backgrounds and types to own and operate a small business.
What Happened to the State Fees I Paid When I Founded My LLC?
When you incorporate your Kansas business, we will charge you this sum at cost and make the payment to the Secretary of State on your behalf.
What are the best websites and tools for Kansas small businesses?
The Kansas Small Business Development Center is an excellent place to begin since it offers a wealth of tools and information for Kansas LLCs. Additional helpful information is available at the Kansas District Office of the United States Small Business Administration and on the state’s small business resource website.
How much does Kansas’ annual LLC maintenance cost?
The yearly cost of an LLC is determined by the industry-specific licenses required, as each sector has different criteria for license renewals (and hence different rates you’ll have to pay each year). Regardless, each LLC must pay the $55 annual report fee once a year.
Should I create an LLC in Kansas or another state, such as Wyoming or Delaware?
Some people prefer to incorporate their LLCs in nations with favorable legal frameworks. For example, Delaware, one of the states often regarded as the most business-friendly, has an entire court system dedicated just to business problems. To put it plainly, Wyoming has some of the most accommodating anonymity rules for LLC owners.
In Kansas, how are LLCs taxed?
Although doing taxes is about as enjoyable as going to the dentist, it is necessary for establishing and managing your LLC properly. The IRS instantly classifies a Kansas LLC as a pass-through business. As a result, profits are allocated to the owners (members) and “transit through” the LLC itself before being recorded as earnings on the owners’ individual tax returns. A Kansas LLC’s profits are subject to the federal self-employment tax rate of 15.3 percent, as well as any relevant state and local taxes. Do you want your LLC’s tax status to change? LLCs can file papers with the IRS to be taxed as an S-corporation or a C-corporation.
Starting a business in your home state, on the other hand, is the greatest option for the majority of people. Forming in a separate state might be difficult and complicated tax matters unnecessarily.
Form an LLC in Kansas with the Help of Experienced Attorneys
Forming a Kansas limited liability company can be complicated and time consuming. We’ve produced a list of two of the best services for forming an LLC in case you need some help.
#1 – Creating an LLC in Kansas is made simple with ZenBusiness
ZenBusiness offers low-cost LLC formation services with a variety of essential features. A majority of LLCs will gain from two of these features in specific. A free year of registered agent service is included with each and every ZenBusiness package. With their Pro and Premium Packages, they guarantee that you will be compliant without having to worry. You may rest easy knowing that ZenBusiness will file your annual report and tell you if there are any additional requirements from the state. A year’s worth of worry-free compliance may be purchased for $119 with the basic package.
There is a $160 fee for ZenBusiness to help you create an LLC in Kansas. They have a 98 percent customer satisfaction rating and more than 4,500 verified reviews.
$0 + State Fees
Rating: 4.8/5
Review count: 4830+
Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.
#2 – Northwest Registered Agent can help you form an LLC in Kansas
Northwest Registered Agent is a top-notch LLC-creation service with decades of experience. Customer service is top-notch because of their thorough knowledge. However, their main advantage is the privacy they give. They don’t outsource any of their services to other parties, don’t sell your information, and even write their own code. They are completely self-sufficient.
If you’d want to set up an LLC in Kansas, Northwest can assist. More than 4150 verified customer reviews give them a customer satisfaction rating of 98 per cent. A free year of registered agent service is included!
$39+State Fees
Rating: 4.9/5
Review count: 4850+
Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!
In conclusion
For about $160, you may form a limited liability business in Kansas. You must pay $55 annually for your LLC’s annual report even if you don’t need any more filings or company licenses. Depending on your sector and business income, your taxes will change. Spend an additional $100 on hiring a registered agent service, plus an additional $50 to reserve your company name and obtain a certified copy of the articles of organization for your LLC.
State taxes and company licensing charges, if required, will also be variable costs. Comparing Kansas’ costs to other company models, they are significantly cheaper. You could be responsible for paying the registered agent’s fees in addition to state filing costs and yearly taxes. Choose the cheapest professional LLC service by comparing prices. A regular LLC will be required to pay several of the fees stated above in Kansas. There might be additional one-time, ongoing, or ad hoc expenses in some exceptional cases that weren’t included above.
In addition, starting a Kansas LLC isn’t as expensive as it seems.
The total cost shouldn’t exceed:
$49 if you’re forming a basic LLC with all the basic options with ZenBusiness.
$39/mo if you’re forming a top-notch LLC with Northwest.
~$160+ if you’re forming an LLC yourself.
$500 should be plenty to establish a Kansas LLC after taking into account these expenses and adding a safety net for the unanticipated. It’s crucial to know what to anticipate because taxes and licensing can increase your beginning costs by hundreds or thousands of dollars. You may stay on top of these expenditures by contacting your local taxation body and engaging with a tax expert.