If you’re starting an LLC in Kansas, you’ve chosen an excellent place for your new business. Kansas has a good business environment and a growing, diverse economy.
Kansas has its own set of specific requirements, and it’s crucial to understand them thoroughly. By learning about these requirements, you’ll feel more informed and prepared, ensuring a smoother process for your LLC paperwork submission.
Starting an LLC in Kansas will include the following steps:
Step 1: Name Your Kansas LLC
Step 2: Select a Kansas Registered Agent
Step 3: Get Ready to File Kansas LLC Articles of Organization
Step 4: Acquire a Federal Employer Identification Number (EIN)
Step 5: Prepare an Operating Agreement
Step 6: Learn About Your LLC’s Yearly Reports and Legal Duties
Step 1: Name Your Kansas LLC
When starting a business in Kansas, you must pick a formal company name that meets specific rules. Here’s what your business name needs to be:
- Unique in Kansas
- Different from other business names in Kansas
- Include terms like Limited Liability Company, Limited Company, LLC., L.C., or L.C.
Reserve Your Kansas LLC Name: Once you’ve got a unique name, consider reserving it for up to 120 days. This action holds the name while you do a nationwide trademark search, register a website with that name, and start the trademark process.
Check for conflicts now to avoid costly legal battles later. You can reserve the name online or by mail using the Temporary Reservation of Business Entity Name form (Form N.R. 52-01). The fee is $30 for online filing and $35 for filing by mail.
Additional Consideration: When you start your business, make sure your website name is available, just like you would with your business name. If you find a domain name that fits your business, buy it. Prices range from 99 cents to $49.99. Choose a name that suits your business plan and register it.
Step 2: Select a Kansas Registered Agent
Every Kansas LLC must have a registered agent in its paperwork. This person, also called an “agent for service of process,” gets legal papers and government notices for the LLC.
Your agent must be a Kansas resident at least 18 or a company allowed to do business in Kansas.
They need a physical address in the state, which you can change later. You or another LLC member can be the registered agent, but the business itself can’t. Most companies offer registered agent services for a small fee. They handle your business mail and notify you quickly. Make sure to choose a reputable company to avoid missing important notices.
Alternatively, you can hire a company to act as a resident agent for your LLC, paying them annually to handle the paperwork for your business. Typically, you’ll pay between $50 and $300 for these services. Do your research to find the best deal for what you’re paying.
Step 3: Get Ready to File Kansas LLC Articles of Organization
Once you submit the necessary forms to register your business, the state will confirm the existence of your new company and grant permission for it to operate. These forms are articles of organization. To prepare these forms, you’ll need the following information:
- The registered agent’s name and address for your LLC
- The closing month of your LLC tax year (most businesses choose December)
- The legal name of your LLC
Remember to sign the document and include the required fee when you file this paperwork. When you’re ready, you can submit your Articles of Organization paperwork. If you file a paper application, the fee is $165, payable by check or money order; do not send cash. Note that any checks your financial institution returns will incur a $25 service fee.
Foreign entities are also charged $165 but must submit a different application.
On the other hand, domestic LLCs can finalize the process online for $160. Foreign entities do not have access to the online option.
Step 4: Acquire a Federal Employer Identification Number (EIN)
Before opening a bank account, hiring workers, or filing business taxes, you must apply for a federal employment identification number (EIN) online. The IRS website gives this number, like a social security number (SSN) for your business.
Your business will get a unique number that no other company in the country has. Creditors, the government, and lenders use this number to check your business’s identity and look into your business credit history.
Tip: If you’re starting a single-member LLC., using your SSN on something other than business-related paperwork is safer. Instead, get an EIN and keep your SSN private. It helps lower the chance of identity theft and keeps your personal and business money separate.
Remember, a federal EIN differs from the business entity I.D. number the state will give your business. The state will issue this I.D. number automatically once they get your Kansas LLC articles of organization.
Step 5: Prepare an Operating Agreement
In Kansas, you don’t have to make an operating agreement for your LLC, but it’s wise to do so. These agreements help raise funds and prevent disagreements that might cause legal problems later on.
Operating agreements are a good idea for a few reasons:
- They make clear who does what in the LLC, such as their duties and powers.
- They outline details of essential business operations, such as taxes, member ownership distribution, and profit and loss sharing.
- They’re legally binding contracts that protect your rights.
Tip: To ensure your protection, consider having a lawyer review your operating agreement before you sign it.
Step 6: Learn About Your LLC’s Yearly Reports and Legal Duties
Annual reports should be submitted to the Secretary of State by the 15th day of the fourth month after your LLC’s tax year ends. You can file these reports as early as January 1, either online or by mail.
Make sure to include:
- The Secretary of State provided your Business Entity Identification Number when you formed the LLC
- The LLC’s name and mailing address
- The tax closing date
- The name and address of each member.
- The EIN (Employer Identification Number)
- A dated signature, name, and phone number of a member
- Ongoing legal obligations involve state taxes, annual reports, and more.
Follow this complete guide on how to start an LLC in Kansas to get your business up and running fast. Knowing these steps can simplify the process and get your LLC on the right track.
LLC State Guides
FAQs About How To Start an LLC in Kansas
What is the cost of starting a Kansas LLC?
Filing an Articles of Organization costs $165. To reserve your LLC name, it’s $30 online or $35 by mail. Filing yourself is usually the cheapest option, but it can get complicated with all the forms. Hiring a lawyer is another choice, but it can be costly, sometimes hundreds or thousands of dollars.
How can I request a name change for my LLC?
To change your business name in Kansas, use the online process. You’ll need your state business ID number or your LLC’s name. If you need to change any other details in your articles of organization, you must submit a certificate of amendment to the Kansas Secretary of State.
Do I have to get a business license in Kansas?
Depending on your business type and where it’s based, your LLC might need other licenses from the local and state authorities. To learn about local permits, ask the city clerk if your business is in a city or the county clerk if it’s in a rural area. For state licenses, visit the Kansas Business Center website.
Can I start a one-person LLC in Kansas?
In Kansas, authorities mainly treat a one-person LLC the same as a multi-person LLC—the steps to initiate one mirror those mentioned above.
