Our picks for LLC formation services

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FAQs

What is a Certificate of Good Standing and do I need one for my LLC in Kansas?

A Certificate of Good Standing verifies your LLC’s compliance with state requirements. It’s often needed for financial transactions and business expansion but is not mandatory for every business. You can obtain it through the Kansas Secretary of State’s online portal or by mail for a $20 fee.

What taxes does an LLC in Kansas have to pay?

LLCs in Kansas are pass-through entities for tax purposes, meaning profits are taxed on the members’ personal tax returns. LLCs with employees must also withhold state income tax and pay unemployment insurance taxes.

What is the difference between a member-managed and a manager-managed LLC in Kansas?

A member-managed LLC is managed by its owners, while a manager-managed LLC appoints one or more managers (who can be members or outsiders) to handle daily operations.

Do I need an EIN for my Kansas LLC?

If your LLC has more than one member or if it will hire employees, you need to obtain an Employer Identification Number (EIN) from the IRS. Other businesses may not, but they can be helpful to have to protect your own information.

Can I operate multiple businesses under one LLC in Kansas?

Yes,  this is allowed. However, it may be beneficial to form separate LLCs for personal liability protection and organizational clarity.

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When starting a new company, the founders’ most important decision is choosing a business entity. For most businesses with more than one founding member, forming an LLC is often the best option. An LLC is an uncomplicated business structure that affords business owners legal protection by separating personal assets from business debts.

Starting an LLC in Kansas step-by-step

1. Select a name for your Kansas LLC

Follow naming requirements

There are two major guidelines to follow when naming your LLC in the state of Kansas:

  1. An LLC’s name must be distinguishable from the names of existing business entities on file with the Kansas Secretary of State.
  2. An LLC’s name must contain one of the following phrases or abbreviations at the end: “Limited Liability Company”, “Limited Company”, “L.C.”, “LC”, “LLC”, or “L.L.C.”

Need help coming up with a business name? Check out our free business name generator.

Reserve your LLC name with the Secretary of State

After selecting a name for your LLC, you should reserve it with the Kansas Secretary of State to prevent another business entity from using it before you are ready to file your LLC’s Articles of Organization.

First, use the Kansas Business Filing Center’s Name Availability Status search to make sure that your chosen name is available. Then, reserve your LLC name online at the Secretary of State website or mail in a completed Temporary Reservation of Business Entity Name application.

A name may be reserved for 120 days, and the reservation filing fee is $30 for online filing and $35 for mail filing.

2. Designate a registered agent

As in every U.S. state, forming an LLC in Kansas requires the appointment of a registered agent service to handle state and federal legal documents as well as service of process on the business’s behalf.

The registered agent must either be a state resident or business entity with a street address in Kansas OR if the individual or business is based out-of-state, they must have a business office in Kansas.

Our picks of the best registered agent services

  • Northwest Registered Agent: Starting a business requires a lot of state-mandated paperwork, which can be confusing for new business owners. Northwest offers business services that can help entrepreneurs find the right documentation, fill it out, and file it on time with the right government agency. In addition to helping you set up an LLC, Northwest has a host of additional services, like registered agent services, that new owners will find useful too.
  • ZenBusiness: There’s no need to stress about filing paperwork when you work with ZenBusiness. This company offers a great variety of LLC services, the focus of which is to ensure your business is set up correctly with the proper paperwork filled out and delivered to the right branch of your state government. Of course, ZenBusiness does charge for their services, but customers say they get the most bang for their buck.
  • Harbor Compliance is a great fit for organizations that register in multiple states and for those who don’t want to pay excessive service fees. With their network and electronic document delivery, they help ensure your business never misses a legal notification.

FAQs

What is a Certificate of Good Standing and do I need one for my LLC in Kansas?

A Certificate of Good Standing verifies your LLC’s compliance with state requirements. It’s often needed for financial transactions and business expansion but is not mandatory for every business. You can obtain it through the Kansas Secretary of State’s online portal or by mail for a $20 fee.

What taxes does an LLC in Kansas have to pay?

LLCs in Kansas are pass-through entities for tax purposes, meaning profits are taxed on the members’ personal tax returns. LLCs with employees must also withhold state income tax and pay unemployment insurance taxes.

What is the difference between a member-managed and a manager-managed LLC in Kansas?

A member-managed LLC is managed by its owners, while a manager-managed LLC appoints one or more managers (who can be members or outsiders) to handle daily operations.

Do I need an EIN for my Kansas LLC?

If your LLC has more than one member or if it will hire employees, you need to obtain an Employer Identification Number (EIN) from the IRS. Other businesses may not, but they can be helpful to have to protect your own information.

Can I operate multiple businesses under one LLC in Kansas?

Yes,  this is allowed. However, it may be beneficial to form separate LLCs for personal liability protection and organizational clarity.

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3. File Articles of Organization

An LLC is formed in Kansas through the filing of Kansas Limited Liability Articles of Organization with the Kansas Secretary of State. The articles may be filed online (signing up for a KanAccess account is required) or via postal mail.

Your Kansas LLC’s Articles of Organization must include the following details:

  • LLC name and mailing address
  • Registered agent name and address
  • Closing month of the LLC’s tax year
  • LLC authorized organizer signature

The filing fee is $160 ($165 for mail filing), and payment can be made by credit card, check, or money order.

4. Create an operating agreement

Although not a legally mandated step for forming an LLC in Kansas, drafting a comprehensive LLC operating agreement is strongly recommended for all newly formed limited liability companies.

The operating agreement should do the following:

  1. Describe the LLC’s business structure
  2. Establish the individual responsibilities and obligations of LLC members
  3. Detail how the LLC will be run

Without an operating agreement clarifying the specific duties of its members, an LLC may face significant legal and operational difficulties.

5. Obtain an IRS Employer Identification Number (EIN)

All newly formed LLCs in the United States must acquire an Employer Identification Number (EIN) from the Internal Revenue Service (with the exception of single-member LLCs). The nine-digit EIN is like a business’s social security number. It is necessary to pay income tax, file tax returns, open business bank accounts, and perform many other important functions.

You can apply for an EIN online on the IRS website without paying a filing fee.

6. Fulfill your Kansas LLC’s additional legal obligations

Once an LLC is registered, its members must devote attention to fulfilling legal requirements that apply for the duration of the company’s existence.

File annual reports

All LLCs active in Kansas–including those formed in the state and foreign LLCs doing business in the state–are required to file an Annual Report with the Secretary of State each year. The report is due by the 15th day of the fourth month after the end of an LLC’s tax year (as an LLC’s tax year typically ends in December, the due date for annual reports is usually April 15th).

Annual reports may be filed online or by postal mail. The online filing fee is $50, and the mail filing fee is $55.

Obtain business licenses and permits

Kansas does not require a general business license that applies to all businesses statewide. This means that, unlike in some other states, there is no single license that every Kansas business needs to acquire to operate. This can simplify the initial setup process for many businesses, but it’s important to note that this doesn’t exempt businesses from obtaining other specific licenses and permits required for their particular industry or location.

  • Get a seller’s permit: One essential permit that many businesses in Kansas will need is the Seller’s Permit, also known as a Sales Tax Permit. This permit is required for LLCs that intend to sell goods or services subject to sales tax within the state. Obtaining a Seller’s Permit allows a business to collect sales tax on taxable sales and then remit those taxes to the state. The process for applying for a Seller’s Permit in Kansas is straightforward and can typically be completed online at no fee through the Kansas Department of Revenue’s website.
  • Check on occupational licensing: In addition to the Seller’s Permit, certain professions and businesses may require occupational licensing. This type of licensing is specific to the profession or trade a business operates in and is meant to ensure that businesses meet certain standards of practice and expertise. For example, businesses in healthcare, legal services, and construction often require such licenses. Many cities and counties in Kansas have their own licensing and permit requirements for businesses operating within their jurisdictions. These can range from zoning permits to home occupation permits, depending on the nature of the business and its location. Ensuring compliance with both state and local regulations is key to the successful operation of an LLC in Kansas.
  • Check the state website for more specifics: You can find detailed information on Kansas state business licensing requirements by visiting the Kansas Business Center website. For information on local licensing regulations, consult with a city clerk in the city or county where your LLC is based.

Understand state taxes

In Kansas, LLCs are typically treated as pass-through entities for tax purposes, meaning the income generated by the LLC is passed through to the individual members (owners) and reported on their personal tax returns. Kansas’ personal income tax rates range from 3.5% to 6.45%, depending on the income bracket.

  • Taxes for LLCs with employees: Aside from personal income taxes on their share of profits, LLCs with employees in Kansas face additional tax responsibilities as employers. These include withholding state income taxes from their employees’ wages, contributing to unemployment insurance taxes, and paying into workers’ compensation insurance. These employer tax obligations are essential for the lawful operation of an LLC in Kansas, ensuring compliance with state employment and tax laws, as well as federal tax law.
  • Register with the Kansas Department of Revenue: Certain Kansas LLCs, including those that collect sales tax and those with employees, must register with the Kansas Department of Revenue. You can register with the DOR online or by mailing in a Kansas Business Tax Application.

Understand BOI reporting

Effective January 1, 2024, the Corporate Transparency Act (CTA) mandates that most corporations, LLCs, and similar entities in the U.S. report their beneficial owners’ information to FinCEN. In Kansas, a beneficial owner is identified as someone with significant control or at least 25% ownership of the entity. Required information includes the owner’s name, birth date, address, and ID number from an approved document, along with its image.

Filing deadlines

Entities established or registered before the 2024 cutoff must file their initial reports by January 1, 2025. For businesses formed in 2024, there is a 90-day window after confirmation of formation to file, while those established afterward have 30 days from their creation or registration date to comply. Filings are processed electronically via FinCEN’s BOI reporting portal.

Learn more about BOI Reporting.

LegalZoom can help you file a compliant and stress-free BOI Report for only $149.

FAQs

What is a Certificate of Good Standing and do I need one for my LLC in Kansas?

A Certificate of Good Standing verifies your LLC’s compliance with state requirements. It’s often needed for financial transactions and business expansion but is not mandatory for every business. You can obtain it through the Kansas Secretary of State’s online portal or by mail for a $20 fee.

What taxes does an LLC in Kansas have to pay?

LLCs in Kansas are pass-through entities for tax purposes, meaning profits are taxed on the members’ personal tax returns. LLCs with employees must also withhold state income tax and pay unemployment insurance taxes.

What is the difference between a member-managed and a manager-managed LLC in Kansas?

A member-managed LLC is managed by its owners, while a manager-managed LLC appoints one or more managers (who can be members or outsiders) to handle daily operations.

Do I need an EIN for my Kansas LLC?

If your LLC has more than one member or if it will hire employees, you need to obtain an Employer Identification Number (EIN) from the IRS. Other businesses may not, but they can be helpful to have to protect your own information.

Can I operate multiple businesses under one LLC in Kansas?

Yes,  this is allowed. However, it may be beneficial to form separate LLCs for personal liability protection and organizational clarity.

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Post LLC tasks

Set up business bank accounts

Setting up a business bank account for your Limited Liability Company (LLC) is not only a recommended step but also essential for the financial health and success of your business.

  • Keep your finances separate: By creating a dedicated business bank account, you separate your personal and business finances, which helps with tracking income, expenses, and tax obligations. Moreover, it adds a layer of professionalism and credibility to your LLC, allowing you to manage and grow your business efficiently.
  • Look for a small business bank: When choosing a bank, consider the fees it might charge and the benefits it offers. If you’re interested in things like credit cards or lines of credit, be sure those are offered at fair rates. You may also want to look into its customer service and how it handles large deposits to help you make a sound decision. Many online banks are tailored to LLCs and small businesses; some we recommend include Found, Relay, and Mercury.

Obtain a Certificate of Good Standing

Obtaining a Certificate of Good Standing is crucial for LLCs in Kansas, particularly those wishing to confirm their operational and legal conformity within the state.

This certificate is necessary for:

  • Obtaining funding
  • Opening business bank accounts
  • Signing contracts
  • Providing official evidence that the LLC is correctly registered, current on all state filings, and compliant with all relevant Kansas laws

The quickest and most convenient method to acquire this certificate is through the Kansas Secretary of State’s online portal, which requires a $20 fee for processing.

Alternatively, LLCs can opt for a traditional approach by downloading and completing the “Request for Certificate of Good Standing” form and mailing it along with the $20 fee to the Secretary of State. While this method also costs $20, it has a longer processing time compared to the online application.

Build a website 

A website is not just a luxury; it is a necessity for any LLC. It provides a platform for you to showcase your products or services, allowing potential customers to get a glimpse of what you offer. Without a website, you’re essentially invisible to the millions of people who rely on the internet to find businesses like yours.

There are several essential elements to consider when creating a successful website for your LLC:

  1. Search for and purchase a domain name.
  2. Sign up for web hosting.
  3. Pick a web builder like Domain.com or GoDaddy to create a site with no coding experience necessary.
  4. Tailor your site to your customers, adding appropriate pages, content, and images.
  5. If you’re selling goods, add an e-commerce section to your site.
  6. Review and test your site.
  7. Publish it.

Cost to set up an LLC in Kansas

Average cost to set up an LLC in Kanas: $210-$410

  • Incorporation fees: You’ll pay fees to set up your business. The fee to register your business in Kansas is $160.
  • Annual report filing fees: Each year, you need to file an Annual Report with the state. In Kansas, you’ll pay $50 to file this report to the Secretary of State.
  • Registered agent fees (optional): During formation, you need to list a registered agent. You can serve as the company’s registered agent, or you can also choose to hire a registered agent service to accept the service of process and other documents on your behalf. Depending on the level of involvement, this cost can range from $50 to $200.

Foreign LLCs doing business in Kansas

LLCs formed outside of Kansas that intend to do business in the state must register with the Kansas Secretary of State.

Follow these steps to do business in Kansas as a foreign LLC:

  1. Comply with Kansas LLC naming rules and make sure that the business name is available for use in the state by using the Kansas Business Filing Center’s Name Availability Status search.
  2. Appoint a Kansas registered agent to handle the service of process in the state.
  3. File an Application for Registration of Foreign Covered Entity with the Kansa Secretary of State. The application can ]be filed through the mail or by fax. The filing fee is $165 ($185 for fax filing). Along with the application, you must include a Certificate of Good Standing or Certificate of Existence from the LLC’s home state. The certificate must be dated from 90 days or less of its filing with the Kansas Secretary of State.

FAQs

What is a Certificate of Good Standing and do I need one for my LLC in Kansas?

A Certificate of Good Standing verifies your LLC’s compliance with state requirements. It’s often needed for financial transactions and business expansion but is not mandatory for every business. You can obtain it through the Kansas Secretary of State’s online portal or by mail for a $20 fee.

What taxes does an LLC in Kansas have to pay?

LLCs in Kansas are pass-through entities for tax purposes, meaning profits are taxed on the members’ personal tax returns. LLCs with employees must also withhold state income tax and pay unemployment insurance taxes.

What is the difference between a member-managed and a manager-managed LLC in Kansas?

A member-managed LLC is managed by its owners, while a manager-managed LLC appoints one or more managers (who can be members or outsiders) to handle daily operations.

Do I need an EIN for my Kansas LLC?

If your LLC has more than one member or if it will hire employees, you need to obtain an Employer Identification Number (EIN) from the IRS. Other businesses may not, but they can be helpful to have to protect your own information.

Can I operate multiple businesses under one LLC in Kansas?

Yes,  this is allowed. However, it may be beneficial to form separate LLCs for personal liability protection and organizational clarity.

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