Forming an LLC (Limited Liability Company) in Kansas is easy and affordable. The following are few procedural steps on how to start an LLC in Kansas. LLCs can be formed in two ways, domestic and/or foreign. If you are planning to set up an LLC in states other than Kansas, visit How to Start an LLC.
On this page, you’ll learn about the following:
- Why an LLC in Kansas
- How to Start a Kansas LLC
- After Starting your Kansas LLC
- Top economic contributor businesses of Kansas
Why an LLC in Kansas
The primary reason for having an LLC in Kansas is its economic structure. Though 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. Along with a strong economic structure, there are some other benefits of starting a Kansas LLC.
Freedom in the 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 as 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.
How to Start a Kansas LLC
Suppose you’re planning to invest in any profitable type of business or maybe about to set up your business in Kansas. In that case, forming an LLC in Kansas is the simplest option for you.
An LLC or a Limited Liability Company a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. 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
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. 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. Here is a step-by-step guide to follow when naming your Kansas LLC.
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 lots of issues by avoiding focus on choosing a business name for their LLC business formation filings.
Because of this, here are some of the major benefits of choosing the best LLC corporate names.
- To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
- After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
- You can only get the EIN number when you have your name registration certificate with you.
What are the requirements when deciding a name for your LLC?
A name search is vital to make sure your business’ name is unique. Check the availability of your name with Business Entity Search on the Kansas Secretary of State’s website. Reserve the name by completing the Name Reservation Request Form for Domestic Entities.
- 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
A registered agent, or business entity, is a person 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 sent to your mailing address in Kansas. Choosing a Kansas resident agent for service in Kansas for your LLC is required.
Make sure your registered agents are residents of Alabama. It could also be a business. Here are the recommended agents and employees for you:
These five 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, they can guarantee you professional service because they have been running a successful business for years.
Step 3: File Articles of Organization in Kansas
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.
Before you start filings, 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. Select “non-subscriber.” Fill out the online form. The website will alert you if your county does not support online filings after selecting your principal county.
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. Read the form thoroughly and fill it out. It will have to fill, among others, your name, city, state, zip code, and signature.
Step 4: Create Your Kansas LLC 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 an operating agreement, but it is ideal to have one that contains all your details of business operation.
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. It is like a Social Security number dedicated to a business.
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.
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
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.
Top economic contributor businesses of 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.
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.
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.
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.
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 easy steps again when forming an LLC in Kansas. Click on the steps in this list to read the full detail.
- 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.).
- 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.
- 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.
- Create operating agreement
An operating agreement is not a strict requirement but something encouraged when you start an LLC.
- 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.
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.
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.
The cost to form an LLC varies per state.
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.
This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
>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.
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.
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.
No. Never mail these documents or payments to the Secretary of State directly.
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
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.
International EIN applicants do not need an SSN to get an EIN.
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