To form an LLC in Kansas, you are expected to file the articles of organization with the Secretary of State. The state of Kansas charges a $160 online or $165 by mail fee, to process and record this document.
Also for one-day processing, you can file online using the state’s KanAccess portal. Filing by mail is like choosing the road with the most construction: it’ll get you there, but it’s not a smooth ride. When you file by mail, you wait longer for approval (about 3-5 business days) and you pay a higher filing fee.
There are other expenses that go into forming an LLC in Kansas. Although these expenses may not be really necessary, they are recommended in Kansas. Each of the services below will make the process of setting up your business easier, however, they aren’t required.
- LLC Formation Service
Note that although it’s possible to form an LLC in Kansas without the help of a professional, many business owners choose to hire a service for the ease and relaxation it brings. Online services like ZenBusiness ($39 + State Fee) and LegalZoom ($79 + State Fee) can help you handle all the filing process for a fraction of the cost of a business attorney. This cost is estimated at $39 – $79.
- Operating Agreement
An operating agreement is a governing document that states the ownership and management structure of an LLC. So whether you’re starting a single-member or multi-member LLC in Kansas, it’s imperative to create an operating agreement. Purchasing a custom operating agreement from an online formation service is an easy way to ensure you’ll have a thorough and legally-binding document governing your new LLC, and this might cost around $40-$99.
- EIN Registration
Also note that once you form an LLC, you will have to obtain an EIN (or Employer Identification Number)—more commonly referred to as a social security number for your business. If you’d prefer not to apply for your EIN directly through the IRS, you can delegate this task to your formation provider for an extra fee. This will cost around $60-$70.
- Registered Agent Service
You will have to designate a registered agent, known as a resident agent in Kansas, for your Kansas LLC when you complete the articles of organization. This registered agent is more or less the individual or business entity tasked with receiving and processing legal documents on behalf of your business. Even though Kansas doesn’t prohibit business owners from acting as their own registered agents, many people choose to appoint a professional for the sake of privacy, convenience, and discretion. Expect to pay and maintain this service with about $0-$125 per year.
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How to Form an LLC in Kansas
To start an LLC in Kansas, you are expected to file Articles of Organization with the Kansas Secretary of State. You can file the document online or by mail. The Articles of Organization cost $166 to file. Once filed with the state, this document formally creates your Kansas LLC. However, to actually ready the LLC to do business, here are additional steps you will have to complete.
Pick a Name for Your LLC
Just like in most states in the US, every LLC name in Kansas must contain as the last words, “Limited Liability Company,” “Limited Company,” or the abbreviations “L.L.C., “LLC,” “LC,” or “L.C.” Any name you choose should also be recognizably different from the names of other business entities already on file with the Kansas Secretary of State. However, you can check for availability by searching the Kansas Secretary of State’s business name database. You may reserve a name for up to 120 days with the Secretary of State. The reservation may be filed online or by mail by filing a Temporary Reservation of Business Entity Name (Form NR 52-01). The filing fee is $30 for online filing, $35 for filing by mail.
Appoint a Resident Agent
Kansas requires LLCs to appoint and maintain a Kansas registered agent. You could appoint an individual like yourself, but note that you have to list your address in your public Articles of Organization, leaving you prone to junk in your mailbox and unwanted visitors on your doorstep. Also note you have to actually be regularly available at the address you list. Also, when you appoint yourself or a friend as registered agent, there’s going to be a lot of adjustments. If you or your friend decides to leave small-town Kansas for Wichita or Kansas City, then whenever you change up your registered agent or office, you’ll shell out a minimum of $30 to file an LLC Change of Registered Office or Agent form with the state. .
File Articles of Organization
In the State of Kansas, an LLC is created by filing Kansas Limited Liability Articles of Organization (Form DL 51-09) with the Kansas Secretary of State. The articles must include:
- The LLC’s name
- The name and address of the LLC’s registered agent
- The LLC’s mailing address
- The closing month of its tax year (usually December), and
- The signature of an authorized person.
Create an Operating Agreement
Operating agreements explicitly state out who invested what, how profits and losses will be allocated, and what happens if you shut it all down. Members and managers will want to see your operating agreement. Also note that potential business partners and investors will expect to see it too. Banks will also ask to see your operating agreement when you go to open a business bank account.
Fulfil Other Tax and Regulatory Requirements
In the State of Kansas, other tax and regulatory requirements you need may include:
- EIN: Note that if your business has more than one member, it will have to obtain its own IRS Employer Identification Number (EIN), even if it has no employees. If you form a one-member LLC, you can still obtain an EIN for it only if it will have employees or you elect to have it taxed as a corporation instead of a sole proprietorship (disregarded entity).
- Business Licenses: These licenses will surely depend on your type of business and where it is located; your LLC may need to obtain other local and state business licenses. So check with the clerk of the city where the LLC’s primary place of business is located (or county if it is in an unincorporated area).
- Kansas Department of Revenue: In Kansas, if you will be selling goods and collecting sales tax or if you have employees, you’ll need to register with the Kansas Department of Revenue (DOR). However, you can register either online at the Kansas Business Center website or by mail with Form CR-16, Kansas Business Tax Application.
File Annual Reports
Have it in mind that every LLCs doing business in Kansas are expected to file an annual report with the Secretary of State every year. The annual report is due on the 15th day of the fourth month following the end of the LLC’s tax year. Example: If the tax closing month is December, the due date is April 15 of the following year. The annual report may be filed as early as January 1st. File Form LC-50, Limited Liability Company Annual Report. Also note that this report can be filed online or by mail. The filing fee for online filing is $50, while the fee for mail filing is $55.
Foreign LLCs Doing Business in Kansas
Note that to do business in Kansas, all LLCs formed outside of the state will have to register with the Kansas Secretary of State. Foreign LLCs will also have to appoint a registered agent for service of process physically located in Kansas. To register, file Form FA, Application for Registration of Foreign Covered Entity. The application must be filed by mail (or fax). The filing fee is $165, $185 by fax. The completed application will also have to be accompanied by a Certificate of Good Standing or Existence from the foreign LLC’s home state, dated no more than 90 days prior to the filing of the certificate.
There is a filing fee for all LLCs in Kansas and your business might need licenses and permits. However, the specific cost to start a Kansas limited liability company (LLC) is $160 online or $165 by mail. This fee is paid to the Kansas Secretary of State when filing the LLC’s Articles of Organization.
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