Forming an LLC in Kansas: A Comprehensive Guide

Interested in starting a limited liability company (LLC) in Kansas? You've made a wise choice! Known for its reasonable cost of living, attractive tax rates, and a pool of talented professionals, Kansas provides a favorable environment for small businesses. To help you navigate the administrative formalities, we've compiled a comprehensive guide on how to form an LLC in the Sunflower State.

How to Form an LLC in Kansas. | © CreateHer Stock.

Steps to Start an LLC in Kansas: A Comprehensive Guide

Step 1: Choose a business name for your Kansas LLC

Kansas Trademark Registration Form. | © Kansas SOS.

Selecting a distinctive business name is the initial step in forming your LLC in Kansas. The state has specific naming requirements, and it's crucial to ensure your chosen name is distinguishable from other active entities. The Kansas Secretary of State provides a name search tool to verify availability, and you can reserve a name for up to 120 days by filing a name reservation form, costing $35 if mailed and $30 if filed online.

Step 2: Select a registered agent

Before filing formation documents, designate a registered agent, responsible for receiving legal documents on behalf of your LLC. While you can serve as your own registered agent, outsourcing this role to a professional service (around $100 annually) allows flexibility and ensures compliance with availability requirements.

Step 3: File the Kansas LLC Articles of Organization

To officially form your LLC, file Form DL, Articles of Organization, with the Secretary of State. The filing fee is $165, and the form includes details like your LLC's name, address, and registered agent information. Unlike some states, Kansas doesn't require listing the names of all LLC members, offering an extra layer of privacy.

Name availability tool. | © Kansas Secretary of State.

Step 4: Get certified copies of LLC registration documents

After approval, obtain certified copies of your Articles of Organization for business records and potential requirements like opening a bank account. In Kansas, certified document copies cost $35 plus $1 per page.

Step 5: Draft an LLC operating agreement

For multi-member LLCs, creating an operating agreement is advisable. This document outlines management principles, voting rights, profit distribution, and other operational matters. While not required by the Kansas Secretary of State, having an operating agreement prepared (using templates or legal assistance) is a valuable precaution in case of disputes.

Step 6: Acquire an EIN (Employer Identification Number) from the IRS

Determine whether your LLC needs an EIN, a unique nine-digit number for federal tax and employment tracking. Multi-member LLCs require an EIN, while single-member LLCs opting for sole proprietorship taxation need one only if they hire employees. Application is made on the IRS website, and an EIN is essential for establishing business credit and opening bank accounts.

Costs to set up an LLC in Kansas

Kansas offers an affordable environment for LLC formation. Costs vary based on factors like name reservation, trademark registration, a professional registered agent, filing Articles of Organization, certified document copies, and operating agreement preparation. The total can range from $375 to $2,375.

Last Steps

Complete your LLC setup by registering with the Kansas Department of Revenue if applicable and obtaining a sales tax permit. Additionally, open a business bank account to maintain legal separation between personal and company assets.

By following these comprehensive steps, you'll establish your LLC in Kansas efficiently and navigate the essential requirements for a successful business foundation.

Unlock a wealth of expertise by exploring Nikki Winston's articles covering small business accounting, entrepreneurship, career insights, personal finance, and the realities of motherhood. For a deeper dive into these topics, visit NikkiWinstonCPA.com. Connect with Nikki on LinkedIn to stay informed and inspired.