Kansas LLC – How to Form an LLC in Kansas [5 Easy Steps]

Forming an LLC (Limited Liability Company) in Kansas is easy and affordable. The following are few easy steps on how to start an LLC in Kansas. LLCs form in two ways, domestic or foreign. Suppose you plan to set up an LLC in states other than Kansas; visit How to Start an LLC for a quick list of the states.

Kansas LLC

How to Start a Kansas LLC

Suppose you’re planning to invest in some profitable business where you won’t have to put your personal assets at risk. Maybe you have a prospective business or corporation that you want to set up in Kansas. In that case, forming an LLC in Kansas is the simplest option for you.

An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. This section gives you a step-by-step guide on How to Start an LLC in Kansas. 

Step 1: Decide a Name for Your LLC

name llc

If you are to start an LLC in Kansas, the first thing you do is decide on a business or company name, and how to name your LLC may be tricky. Take note, however, that any successful business started with coming up with a name. Thus, you have the option to choose a name that complies with the Kansas business naming requirements. It must also be easily searchable for potential clients.

Why do you need a proper business name?

If you want your LLC to have special identification, your company name is essential. However, many people face many issues by avoiding focus on choosing a business name for their LLC business formation filings.

Here are some of the major benefits of choosing the best LLC names.

  • Helps establish a company’s presence in the market;
  • Creates a new identity that will resemble your LLC;
  • Allows ease in finishing your LLC registration process;
  • You can get the EIN once you have your name registration certificate 
What are the requirements when deciding a name for your LLC? 

name search is vital to make sure your business’ name is unique. Check the name availability of your name with Business Entity Search on the Kansas Secretary of State Business Center. Reserve the name by filling out the online Name Reservation Form.  

  • Don’t include words that could confuse people about your company. Words like ‘treasury, state department.’
  • You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
  • As for a business website and your URL name, check if your name is still available for domain use with NameCheap.
Reserve a business domain

Even if you don’t have plans to set up a website today, it will help if you buy a domain to avoid others from using your name for their website, so do visit NameCheap for your domain name and Kinsta for web hosting.

If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.  

Step 2: Assign a Registered Agent in Kansas

get registered agent

A registered agent for service is your authorized person or business entity that will act or work on your behalf. This person or business will receive significant tax forms, legal documents, a notice of lawsuits, and other official government correspondence in Kansas. Choosing Kansas-registered agents for your LLC is required.

Make sure your registered agents are residents of Kansas. It could also be a business. Here are the recommended agents:

LLC Service

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These LLC formation services are recommended agents’ registered services as they are authorized to conduct business in Kansas. Compare them to check the best yet cheapest option for you. Besides, these professional service providers can guarantee you professional service because they have been running a successful business for years. 

Step 3: File Articles of Organization in Kansas

file formation certificate

A Certificate of Name Reservation is needed to file Articles of Organization, as other states call it. You need to make reports of this certificate with the Kansas Secretary of State, which costs $160-$165. You may file them online or by mail. 

This Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in Kansas, like if it is a member-managed or managers-managed. LLCs with employees need to check the Kansas government portal for the requirements before they hire employees.

Before you start filing your forms, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Kansas LLC will offer.

How to File Online

Go to the Secretary of State Online Service and create an account to access the form that you must fill out and submit.

How to File by Mail

If you prefer filing real-life forms for your Indiana LLC registration, then you can download the Kansas Limited Company Certificate of Formation and send it by fax to Business Services, 785-296-4570.

Step 4: Create Your Kansas LLC Operating Agreement

create operating agreement

An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts. 

Starting an LLC in Kansas does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all your details of business operation. This document would be useful if you decide to dissolve our Kansas LLC later.

Step 5: Filing a Kansas LLC EIN

The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes and taxes in general. It is like a Social Security number dedicated to a business’ taxes. The EIN is necessary for any active business or any form of business for that matter. 

It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for tax filing and to determine tax classification options and flexibility.

Mail to:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

After Starting your Kansas LLC 

After forming your LLC, there are still some things that you will need. Take note of the following:

  • Get a company business account
  • File Kansas business permits & licenses
  • Get liability for business insurance with coverage for employees
  • File a Kansas LLC annual report or biennial report
  • Already existing LLCs that wish to operate in Kansas must register as a foreign Kansas LLC.  

This page has provided you with steps to LLC formation and filing processes. You now have to remember LLC’s tax-closing month, annual reports and upcoming filing deadlines, and filing fees, including fees for late filings to make sure your LLC is up-to-date.  

Why an LLC in Kansas

The primary reason for having an LLC in Kansas is its economic structure. However, around 45% contribution in GDP comes from agriculture in the state. But there are oil, gas, manufacturing units, and other industries that help in economic growth. An LLC in Kansas can receive various business funding options. Depending on the viable business structure, LLCs will receive the line of credit. Any business can opt for a business credit card to differentiate their personal and professional spending.

Along with a strong economic structure, there are some other long-lasting benefits of starting a Kansas LLC.

Freedom in Distribution of Profit

Unlike a partnership, in Kansas, LLCs have the freedom to decide the distribution of profit among the partners. In the case of a partnership, the distribution is always 50-50. However, in setting up an LLC, it can be anything per the members’ contribution to the business.

Business Incentives & Tax Benefits

Like many other states in the United States, the Kansas government also provides incentives to small businesses. There are different types of incentives and tax credits one can expect while forming an LLC in Kansas. In the case of business incentives, LLCs can receive up to $500,000 as financial assistance. It can go up depending on the criteria and forms of business.

State Small Business Credit Initiatives

Under this program, the new businesses will get financial assistance starting from $25,000 to $500,000. Once your LLC gets qualified for the program, any amount between these will be provided to you. 

Economic Development Grants

Under this program, an LLC can receive up to $750,000 and a minimum of $35,000. In this program, if the LLCs can create job opportunities in the state through their investment, then they can receive this assistance.

Foreign Trade Zones and Benefits

There are some specific locations in Kansas considered as Foreign Trade Zones. If any new business sets up an LLC in such zones, then ut can enjoy the benefits of FTZ. LLCs will get to operate in such areas without paying any duty. There will be a quota but no prominent tax to be paid for operating in FTZ. 

Top Businesses in Kansas

When you want to form an LLC in Kansas, you should know what Kansas is known for? Top business industries that are established in the state of Kansas are discussed below.

Resource Mining

It is noticed that the state of Kansas has huge farmland with extensive resources of minerals present in it. The state has topped in the production of minerals in which helium is the leading example. Also, the state is the leading producer of coal, in which the bituminous coal is present in the maximum amount.

Advanced Manufacturing

Kansas is the state that is house to many advanced industries. The biggest one is the Aerospace and Transportation equipment which contributes around $6,802 million to the state economy. After that comes the Food and tobacco-based production that contributes around 4,602 million dollars which is enormous for Kansas state.

These are the leading contributions followed by various small and large-sized contributions from the manufacturing sector, including fabricated metal, motor vehicles, printing, and related support activities, etc.

Corporate services

It is noticed that there are more than 60,000 companies present in the state that are providing corporate and professional services. The reason behind such a vast number is people who are involved in professional courses that are producing more than 7.000 or more graduates in a year. The corporate services may include accounting, legal services, financial service providers, and much more.

Agriculture

The agriculture sector is becoming the most significant contributor of the state, which has also grown to a 4.8 million dollar export industry. The state is also number 1 in the production of wheat and sorghum, which is the staple food of most countries. Moreover, the dairy sector is also growing as a golden sector of the state with plenty of prospects.

Some of the small investment businesses in Kansas are:-

  • Tutor services
  • Food processing
  • Animal healthcare business

Kansas LLC Formation Review

Time needed: 1 hour and 5 minutes.

 Just to recap, here are the simple steps again when forming an LLC in Kansas. Click on the steps in this list to read the full detail.

  1. Name your Kansas LLC

    The first thing you must do is to choose a company name, which should include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
    name llc

  2. Choose a registered agent

    In Kansas, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
    get registered agent

  3. File a formation certificate

    Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
    file formation certificate

  4. Create operating agreement

    An operating agreement is not a strict requirement but something encouraged when you start an LLC.
    create operating agreement

  5. Get an EIN

    The Employer Identification Number (EIN), also called  Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
    get an ein

F.A.Qs

What is the difference between ‘domestic LLC’ and ‘foreign LLC’?

A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.

What do I need for Domestic and Foreign LLCs?

For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.

Is the cost to form an LLC the same across states?

The cost to form an LLC varies per state.

Does an LLC need to use a DBA?

Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here

Why are operating agreements important?

This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.

Is there anything else I should keep in mind when naming my LLC?

>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.” 
>Do not include words that could create confusion between your LLC and any government business. 
>Words like ‘bank, attorney, university’ are restricted as well. 
>Lastly, your name should distinguish from other limited liability corporations, limited partnerships, or registered limited liability partnerships.

Where can I file my LLC name?

Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the fees for business names may also vary per state.  

How can I know if my URL name is available?

As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website. 

Can I mail the LLC Certificate of Formation to the Secretary of State?

No. Never mail these documents or payments to the Secretary of State directly. 

Why do I need an EIN?

The reason you might need an E.I.N. is that it would help for three reasons:
>Opening a business bank account
>Filing and managing federal and state taxes
>Hiring employees or agents

How do I get an EIN when I do not have a Social Security number?

You are not required a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.

I already have an EIN for a sole proprietorship; what now? 

Note that an LLC is different from a sole proprietorship. If you already have an EIN for your sole proprietorship, the IRS will require you to get a new one when your convert to an LLC. 

Do foreign applicants need an SSN to get an EIN?

International EIN applicants do not need an SSN to get an EIN.

What is an IRS?

The IRS is the one that will issue your EIN. You can request an EIN from the IRS ONLINE or download the FORM, fill it out, and send it by mail or fax.

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