No matter how long a person has been in business, deciding to create an LLC changes things. Fortunately, many states are relatively business friendly, and they want to see companies be created, grow, and develop there. With that in mind, each and every company that decides to become an LLC in Kansas has a process they must go through. Like every state, Kansas has requirements for taxes, insurance, and licensing, along with specific guidelines that must be met when it comes to being legally recognized as an LLC.

Getting Started

Naming the LLC

To name an LLC in Kansas, business owners can search online for a name that they want to use and that hasn’t already been taken. If it is something popular or common, there is a good chance it is in use and the LLC will have to pick something else. This name has to be distinguishable on record, which means the guidelines for Kansas are stricter than what would be found in most states. Many states do not have these extra requirements, but because they exist in Kansas there are fewer names there that can be used for an LLC. This is mostly because names that are too close to one another, or that are only different because of something minor like punctuation, won’t be allowed to be used by an incoming LLC.

Selecting a Registered/Statutory Agent

A registered agent is an entity that is allowed to receive official correspondence for the LLC. This can be a person or a corporation, but there are still specific guidelines that have to be met. The person must be a resident of Kansas, and the corporation must be authorized to do business there. It’s possible for the owner of an LLC to elect themselves or someone else in the company as a registered agent, provided whoever they elect is a resident of the state. If the person or corporation they want to use does not qualify, they must select someone else.

Filing Articles of Organization

When it comes to Articles of Organization for a Domestic LLC is Kansas, filing online is the method most people use. The cost is $160. However, an LLC can still file paper documents if they would prefer to do so, and the fee for that is $165. No matter which way is chosen, the Articles are essentially what makes the LLC official. They must be filed correctly, and with the proper fees, in order to establish a Kansas LLC legally

Creating an Operating Agreement

Like other states, Kansas does not require an operating agreement for people who want to create an LLC. Many people still use this kind of agreement and recommend it as a good business practice, but the state will not ask to see it or penalize an LLC that chooses not to use it.

Running Your Business

Getting Your EIN

What’s an EIN?

An EIN is an employee identification number, issued by the Internal Revenue service. Sometimes it is also called a Federal Tax Identification Number. It’s a unique number issued to each business.

You’ll need an EIN to

  1. Open a business bank account.
  2. File Federal and State Taxes
  3. Hire employees.

Before you get your EIN:

  1. Make sure your new business has been properly formed before applying.
  2. Be wary of paid sites. EINs are free direct from the IRS.

How do I get an EIN?

  1. Apply online: The easiest way is to apply online for an EIN. Note, the IRS website has office hours, and is only available Monday through Friday, 7am to 10pm. Yes, we also agree this is one of the most ridiculous things we’ve ever seen.
  2. Call: You can call 1-800-829-4933, between 7am to 7pm of your time zone, Monday to Friday.
  3. Snail Mail – You can download the form and mail it in.

Keep Business and Personal Accounts Separate

  1. Get a business bank account for your business. This will help you protect your personal assets from potential creditors and lawsuits, and will also make life A LOT easier come tax time.
  2. Get a business credit or debit card. This will help you keep your expenses separate and easier to track.

Accounting

No matter what business you run, accounting software and processes is a must for any small business. If you have an accountant, ask them which software they work with and recommend.

A good accounting system is necessary to:

  1. Track income and expenses, so you can easily see if you’re making money
  2. Makes filing income taxes so much easier.

Always try and find something that will:

  1. Sync with all of your bank and credit card accounts automatically – not just downloads, but auto sync.
  2. Automatch vendors, customers and other accounts.
  3. Let you accept credit cards and ach drafts with ease.

Kansas LLC Taxes

In Kansas, an LLC will need to set up for various types of taxes.

Unemployment

The unemployment insurance tax protects people who are in need of unemployment benefits by ensuring money is available to them.

Income Tax

An employee withholding tax ensures that income taxes are paid.

Sales Tax

The majority of LLCs in Kansas must pay sales tax on their goods or services.

A number of permits and licenses may be required. These are all a part of life for LLCs doing business in that state and most other states, and they cannot afford to be overlooked. By setting up for each one of these an LLC can be ready to do business. It is important to note that an LLC that does not sell taxable goods or services in the state may not need to pay sales tax, and that the permits and licenses will be different for every company, depending on exactly what they do.

Getting Insurance for your LLC

Kansas requires that an LLC have Workers’ Compensation insurance. That protects both the business and the workers. However, there are no other insurance requirements, and that could leave businesses without adequate protection. Even though the state doesn’t require things like general liability insurance, any LLC doing business there may want to have this insurance anyway. That way there is less risk of financial harm if there is a problem with the business in the future.

Keeping Your LLC Compliant

There are hiring guidelines and an annual report requirement for LLCs in Kansas. The annual report is due by the 15th of the month, on the fourth month after the closing tax month for that LLC. A tax closing month of December, for example, would make the report due by April 15th. The fee is $50 online and $55 if filed as a paper copy. A Certificate of Good Standing can be obtained online, as well.

How to File a Foreign LLC in Kansas

A foreign LLC can be registered online and the cost is $165.