Kansas LLC (7 Step Guide) – How to Form an LLC in Kansas

Get Professional Help & Form Your Kansas LLC Hassle-free

If you are looking to form an LLC in Kansas, in this article you will find plenty of information on the steps required to form the LLC in KS, frequently asked questions, steps to follow after your LLC has been formed and where you can get help to form your LLC if required.

If you are aware of the process, it can be simple and affordable to do, however, if you don’t have enough time in your day, or the knowledge required to do it yourself, there are plenty of options for services that will form your LLC for you (which we will cover later as well).

To Begin With – What is an LLC?

First things first! An LLC is a type of business entity. It is owned by one or more individuals, and these are referred to as ‘members’. If you are the sole owner of an LLC, then this is known as a single-member LLC, and if an LLC has more than one member, then it is known as a multi-member LLC.

In business entity types like sole proprietorships or partnerships, the owner can be personally liable for lawsuits against the business. An LLC is different, as it is a separate legal entity, which is what helps protect the business owner’s personal assets and keeps them separate.


Why would you want a Kansas LLC?

There are many reasons that an LLC is a popular business entity choice for those starting a business in the state of Kansas. It provides personal liability protection for those that are running the business and also has the potential to save money on taxes.

Most people choose Kansas LLCs if they live there or plan to do business there specifically.

Many people to chose to form this type of business as it is also relatively easy to manage, it is one of the easiest business entities to form and there is flexibility in the management structure.

Kansas LLC Main Pros and Cons

Pros

  • One of the biggest pros of having an LLC in Kansas is there is no maximum number of members.
  • An LLC startup company in Kansas is given the option to select different ways of distribution of profits. This is different from a partnership where the distribution has to be 50/50.
  • You will not have to maintain any minute of the meetings or resolutions if you have an LLC in Kansas.
  • In the state, there are a number of business incentives and programs that your new LLC may be able to benefit from, such as economic development grants, and state small business credit initiatives.
  • The cost of living in Kansas is generally low.
  • Kansas does not require all of the names of the members to be included in the Articles of Organization, which is good if you want to remain private.
  • The state does not impose and corporate or franchise taxes on LLCs.

Cons

  • The state of Kansas has a pretty slow economy, with the growth way behind the national average.
  • There is a surcharge of corporate tax in Texas. There is a 3% surcharge tax on all corporate income over $50,000.

7 Step Guide on Forming an LLC in Kansas

Creating an LLC in KS is fairly simple and straightforward if you know what you’re doing. We’ll try to explain it in a simple manner as possible. So let’s start!

Step 1: Name Your LLC

Business-Name-Reservation

The first, and likely most important step in the process is to name your LLC. You should think deeply about what you name your LLC. Ideally, it should be a name that is searchable and outlines the sort of thing your business does to make it easy for potential clients. You must also make sure that your LLC name meets all the Kansas LLC naming guidelines. The guidelines can be found below:

   

  • Your LLC name must include the term ‘limited liability company’ or an abbreviation of the phrase, such as LLC or L.L.C. If your name does not include these, then it will not be accepted.
  • It must also not include any words that might confuse your business with a government agency. These are restricted words and include terms such as FBI, State Department, or Treasury, so make sure you leave these out of your business name.
  • In addition to these restricted words, there are also a number of other restricted words that can’t be included such as Bank, Attorney and University. If you do want to include any of these terms, this may mean some additional paperwork, and a licensed individual to be a member of your LLC.

Once you have come up with a name that you feel is suitable, and meets all of the Kansas naming requirements, it is time to see if your chosen name is still available. You can do this by doing a  name search on the government website, which is free and easy to do.

At this point, it might be a good idea to check that the business name URL is available. Even if you are not planning on creating a business website any time soon, it might be a good idea to purchase the web domain so that others do not acquire it.


Step 2: Choose a Resident Agent in Kansas

Registered-Agent

The state of Kansas requires you to have a Resident Agent (also known as “Registered Agent” in other states) when you are filing your LLC, the same as most states. For those new to the business world, the term could be a little confusing, as it is usually known as a registered agent.

A registered agent is an individual, which could be yourself, someone you know, another member of the LLC, or a business entity that is responsible for receiving important legal documents on behalf of your business. In other words, they are the point of contact with the state for your business.

Who can be a registered agent is relatively flexible, and there are only a few requirements. For a start, they must be a resident of Kansas or a corporation that is authorized to conduct business in the state. They must also be over 18 and be available during business hours.


Step 3: File Your Articles of Organization

Articles-of-Organization

Now comes the time to actually file your Articles of Organization with the state, which is a vital step. The Articles can be filed both online or by mail. It costs $160 to file online, and $165 to file by mail, and must be submitted to the Kansas Office of the Secretary of State.

The Articles of Organization is a legally binding document that once filed with the Secretary of State, is used to officially and legally form your LLC. Without this document, your Kansas LLC is not a legal business entity.

Different things can be included in an Article of Organization, but usually, they will contain the following:

  • The name of the LLC
  • The address of the LLC
  • The name and address of your chosen registered agent.
  • The tax closing month
  • The effective date of the LLC
  • The name of the organizer that is filing the paperwork

Step 4: Prepare an Operating Agreement

LLC-Operation-Agreement

An operating agreement is a document that essentially governs the framework of the LLC. It outlines a range of items include the ownership rights for the LLC, the responsibilities of the members, how the LLC will be dissolved, and how the profits and losses are distributed.

Some states require you to have an operating agreement before you can conduct business, but Kansas is not one of these states. Although it is not required to have an operating agreement, it is still advisable that you create one.

If you create an operating agreement properly, they can be invaluable for a business and they ensure that the business owners are on the same page, reducing the chance of conflict further down the line.

As you are not required to submit an operating agreement, it does not need to be filed with the state. Instead, it should be kept safe as an internal document with other important business documents, ready to be used if needed.

Again, what is included in your Operating Agreement can differ, but usually, these documents will include some form of the following information:

  • The distribution of profits
  • A list of the members and the managers and their roles within the business
  • The designation of authority in the LLC
  • Voting designations
  • Meeting schedule
  • Member transfer and additional rules and restrictions

Step 5: Get an EIN for Your Kansas Business

EIN-Employee-Identification-Number

When going through the formation process, it is usually a good idea to get an EIN at this stage. An EIN stands for Employer Identification Number and works in a similar way to a Social Security, but for a business. An EIN is 9 digits long, and is free and easy to acquire. You should apply and be assigned one from the Internal Revenue Service, and is used to help identify the business for tax purposes.

There are certain circumstances that require you to have an EIN, so you might as well get one as soon as possible. For example, you will need one if you want to open a business bank account, if you are planning on hiring any employees, and to file and manage Federal and State Taxes.

You can either request an EIN from the IRS online, or alternatively, you can apply by mail or fax. If you apply online however, it is pretty instant, so this is the method to use if you want the number sooner rather than later.


Step 6: Apply for Any Necessary Kansas Business Licenses and Permits

Licenses-and-Permits

Depending on what type of business you have and where is located, there might be some licenses and permits that you need in order to conduct business. The state of Kansas as a whole does not require businesses to have licenses, however, some cities in the state of Kansas may require business licenses, so it is always worth checking.

Some specific service businesses, such as a contractor, bed and breakfasts, and businesses that sell on the internet require licensing, so you will have to apply for these before getting started.

File the Annual Reports

In Kansas, if you own an LLC, you will have to file an annual report every year. These have to be filed with the Secretary of State and is dues on the 15th day of the forth month which follows the LLC’s tax closing month. There is a $55 fee for filing your annual report by mail, and $50 if you are filing it online.

If you miss state filings, then your business could face fines or automatic dissolution. A registered agent can help with this, as they will be able to notify you when there are any upcoming filing deadlines, ensuring you don’t miss them.


Step 7: Separate Your Personal and Business Assets

Business-Bank-Account

One of the main reasons that people chose to have an LLC is because it can help to protect your personal assets, so once you have formed your LLC, you should do what you can separate your personal and business assets.

If your business and personal assets are mixed, your personal assets could potentially be at risk if something happens to your business, such as if it is sued or if you come into debt. There are a few processes you can do to stop this from happening.

  • Open a business checking account. When you open a business bank account, your personal assets will easily be separated from your company’s. This is a necessary step for personal asset protection, but can also make accounting and tax filing easier.
  • If possible, you should also get a business credit card. This will separate your personal and business expenses and make it easier to see what was spent purely on the business. This has the added benefit of building your company’s credit history. With good credit history, it will be much easier for you to get a small business loan or similar.
  • Lastly, you could hire a business accountant to help keep business and personal assets separate. An accountant can help manage your business funding more efficiently and could potentially help you spot areas where you could make extra profit. They can prevent you from overpaying on taxes, avoid penalties, and will in general make the bookkeeping and payroll process easier.

Create a Kansas LLC with Professional Help Today

Although it is possible to form an LLC on your own by following the steps outlined above, some people prefer to get some professional help. Not only will this save time, but it can also take the stress out of the whole process, so you can concentrate on your business and rest assured that your LLC will be formed properly. There are many companies that offer the LLC formation service, some of which are better than others, so it is worth doing a little research to find out which is right for you. Below are a couple of the best in the industry.

#1: Forming a Kansas LLC With Zenbusiness

Zenbusiness is one of the most popular LLC formation services as they are not only one of the cheapest, but also one of the best. They have some seriously good reviews online, and lots of them, despite not being around as long as some of the others. You can get their basic package for just $39, which includes everything you need to successfully form an LLC, and the helpful customer service team is always on hand if you need help or guidance through the process.

$49

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Rating: 4.8/5
Review count: 4500+

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Form an LLC today with ZenBusiness for only $49. They Have 98% customer satisfaction rating and over 4500+ verified reviews.


#2: Forming a Kansas LLC With Northwest

In comparison to Zenbusiness, Northwest is a lot more expensive, charging $225 for its service, which includes a full year of registered agent service. Although they are one of the more expensive options, sometimes you get what you pay for, and the company are known for their exceptional customer service, and offers real quality to their customers.

From $35+State Fees

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Rating: 4.9/5
Review count: 4150+

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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!


Kansas LLC FAQ

How long does it take to form an LLC in Kansas?

The time it takes to form an LLC in Kansas varies case by case, and is determined by a number of factors such as how many applications are in front of you and how complicated your LLC applications is. On average though, it will take around 24 hours for LLC approval if you are filing online, or 3-5 days if you are filing by mail. If you want your LLC formed a little quicker, then there is always the expediting option, which means your LLC filing will be prioritized, and this is available for a small fee.

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About the Author
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Founder & author

Ian Broderick is an avid author and owner of LLCGuys.com. He's been involved with the LLC formation field for over 4 years. On top of that, he has worked in several well-known LLC formation service providers. Now he decided to share his knowledge and advice with everybody. Since there are a lot of questions and concerns surrounding this field - his aim is to make LLCGuys a top-notch information provider in regards to LLC creation, service reviews and etc..

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