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Kansas LLC Simple Start Guide

Kansas LLC Simple Start Guide

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Kansas LLC Simple Start Guide

If you’re researching how to start a business, you may have decided to form an LLC and are looking for what to do first. There are specific steps to creating a Kansas LLC, and this guide will walk you through them so you can get started right.

Related: Guide to starting a business in Kansas

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Steps to Form a Kansas LLC

Step 1: Choose an LLC Name

The first step in forming a Kansas Limited Liability Company is to make sure the name you want is available. This is an important first step because the name of each LLC must be distinguishable from other entity names registered in the state of Kansas. Fortunately, the Kansas Secretary of State makes it easy to do a Kansas LLC name search, so you can quickly search and verify if your LLC name is available. 

In addition to the name being unique, the entity designator (identifier used at the end of the business name) must be either:

  • Limited Liability Company
  • Limited Company
  • LLC
  • LC

You can choose to use a comma or not before the designator. For example: “Sunflower State Solar LLC” and “Sunflower State Solar, LLC” are both fine to use.

Differences in grammar often do not create distinguishability. For example:

  • The singular, plural, and possessive use of a word
  • A, An, or The anywhere in the name
  • The use of and, or, &
  • A written number vs. the number itself. Example one vs. 1

The name may also contain the following words: “company,” “association,” “club,” “foundation,” “fund,” “institute,” “society,” “union,” “syndicate,” “limited,” or “trust” (or abbreviations of like import)

If there is a name you want but are not ready to register the LLC, you can reserve a name with the Kansas Secretary of State. The name reservation will hold a name for up to 120 days.

Last, you may also want to see if a domain name is also available to have a matching website address.

Step 2: Appoint a Kansas Resident Agent

In Kansas, every LLC will need to designate a resident agent (called a registered agent in a lot of state). A resident agent is simply an individual or company with a Kansas street address who will be responsible for any legal correspondence. This commonly includes the receipt of legal documents, such as lawsuit notifications, on behalf of the business.

While many LLC owners opt to fulfill this role themselves, some owners choose to hire resident agent services like Northwest Registered Agent. Utilizing a resident agent service ensures that your LLC adheres to state requirements while offering an added layer of convenience and confidentiality since the owner’s personal address isn’t disclosed in public records.

Related: What is a Kansas registered agent?

Step 3: File the Kansas LLC Articles of Organization

In the last step of starting an LLC in Kansas, the Articles of Organization needs to be filed with the Kansas Secretary of State. To file, either file online with KanAccess Kansas Business Center or fill out and mail in the Kansas Articles of Organization (Form DL 51-09).

Related: How to fill out the Kansas Articles of Organization

When filling out the Articles of Organization, there are a couple of sections that commonly trip people up. I’ll explain a few of those sections.

Tax closing month: The tax closing month is the end of the LLCs fiscal year.  This date is important for tax filings.  Most business owners will choose December for their tax closing month as most businesses run on a calendar fiscal year, January 1st to December 31st.

Effective date: The effective date is the day the LLC officially starts.  There are two choices.

  • Upon filing: Selecting this will have the LLC start on the day the Kansas Secretary of State processes the Articles of Organization.
  • Future effective date: If you want the LLC to begin at some point in the future, select this option and enter the date the LLC should officially start. This date can’t be more than 90 days from the Secretary of State receiving the Articles of Organization.
If you are worried about making a mistake when forming your LLC, or just don't want to deal with filling out state paperwork, an LLC formation service will help guide you through the process. My top recommended services include:

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What To Do After Starting A Kansas LLC

Once the LLC has been formed, there are a few additional steps to take care of. Below is a list of the most common tasks.

Prepare a Kansas LLC Operating Agreement

The operating agreement is a document that governs the framework of an LLC.  This document covers items like ownership rights, LLC member responsibilities, how profits and losses are distributed, and more.

Most states (including Kansas) do not require an LLC to have an operating agreement, but it is still worth considering. Without an operating agreement:

  • The LLC could be subject to generic state rules that may be detrimental in the event of a lawsuit.
  • Member’s personal liability protection may be diminished.
  • Members may not fully understand their roles and responsibilities, which could lead to costly disputes in the future.

Related: Kansas operating agreement template

Obtain an EIN

If the LLC will hire employees or is owned by more than one member, an EIN is required. 

The EIN or Employer Identification Number (also referred to as a Federal Employer Identification Number, FEIN, or Federal Tax ID Number) is a unique 9-digit tax identification number assigned to a business by the Internal Revenue Service (IRS). Similar to a social security number for an individual, the EIN identifies business entities for tax purposes.

Related: How to apply for an EIN

Open an LLC Bank Account

Opening a bank account for your LLC is important for liability protection as the account separates the business’s funds from the member’s personal funds.

Several documents will be needed to open a business bank account, such as:

  • A banking resolution is a document that authorizes the members to open a business bank account on behalf of the LLC.
  • Copies of the original formation paperwork from the state showing the creation of the LLC.
  • Goverment ID of the members.
  • In some circumstances, a Kansas Certificate of Good Standing may be needed to prove the LLC is active and in good standing with the state.

Related: How to open a business bank account for your LLC

Apply for Business Licenses and Permits

Depending on what your business does and where it is located, there will likely be various business licenses and permits needed before starting. Some common registrations include:

  • Business licenses: The state of Kansas doesn’t have a general business license; however, many cities require a business license in order to operate.
  • Business tax application: Businesses will need to register for a Business Tax License (Form CR-16) with the Kansas Department of Revenue. The Business Tax Application allows for the registration of several licenses, such as sales tax, withholding tax, and several others.
  • Professional licensing: Some services such as contractors, bakeries, bed & breakfasts, kennels, and businesses selling on the internet require licensing in Kansas. While this isn’t a license on the business, licensing is required to operate.

Related: What business licenses are needed in Kansas?

File Kansas LLC Biennial Reports

Before 2024, businesses were required to file a report every year, but it has changed to every other year. If you formed your LLC in an even-numbered year (for example, 2024), then your report will be due every even-numbered year starting in 2026. The biennial report state filing fee is $55.

Related: How to file a Kansas Biennial Report

File the Beneficial Owner Information Report

Beginning in 2024, any individual who owns at least 25% or has “substantial control” of an LLC or corporation in Kansas or any other state must file the Beneficial Ownership Information (BOI) form with the Financial Crimes Enforcement Network (FinCEN). BOI reports are filed electronically through FinCEN’s website.

This material is property of StartingYourBusiness.com

Kansas LLC FAQs

How much does an LLC cost in Kansas?

Forming an LLC in Kansas costs $160 to file the Articles of Organization online with the Kansas Secretary of State.

Do you have to renew an LLC every year in Kansas?

No, beginning in 2024, the state of Kansas moved from an annual report (once per year) to a biennial report (every other year). Every other year, the Kansas Biennial Report will need to be filed, along with the Secretary of State Annual Report fee of $55.

How long does it take to get an LLC in Kansas?

Online filings are processed immediately, and filings sent by mail normally take 3-5 business days to be processed.

What is a Foreign Limited Liability Company?

A foreign LLC refers to an LLC that is physically operating in states outside of the state where it was formed. Physically operating means having a presence, such as having an office or employee. The LLC will need to register as a foreign LLC in each state where it plans to operate.

Learn more about the foreign LLC

What is a Professional Limited Liability Company?

Companies offering professional services can form a special type of LLC known as a Professional Association (PA), which is sometimes referred to as a professional LLC. A few types of licensed professional services include accountants, attorneys, architects, real estate brokers, and others.

Learn more about a professional LLC

Is an LLC the same as a corporation?

The LLC is one of four main types of business entities. You can learn more about each here:
What is a sole proprietorship?
What is a general partnership?
How to form a Kansas corporation

Author

  • Greg Bouhl

    With over two decades as an entrepreneur, educator, and business advisor, Greg Bouhl has worked with over 2,000 entrepreneurs to help them start and grow their businesses. Fed up with clients finding and acting on inaccurate and outdated information online, Greg launched StartUp101.com to be a trusted resource for people starting a business.

    View all posts

Kansas LLC Simple Start Guide

Kansas LLC Simple Start Guide

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