How To Form A Kansas LLC
By Bazal Razzaq
Chief Editor
Updated: August 29, 2023, 12:30pm
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- Decide a name for your Kansas LLC
- Create a business plan for your company
- Hire a registered agent
- Prepare and file your Articles of Organization report with the Secretary of State
- Draft an Operating Agreement
- Apply for the nine-digit federal employer identification number from the IRS
- Submit your Statement of Information
- Final Word
- How To Form An LLC In 50 States
- Frequently Asked Questions (FAQs)
Looking to form an LLC in the Sunflower state? Look no further ’cause you’re at the right place! Our detailed guide covers all the necessary steps required to set up a Kansas LLC.
#1 Decide a name for your Kansas LLC
The first step in your Kansas LLC formation process is to select a name for your company. Coincidentally, your business name is also the very first thing your customers notice about your brand.
Here are some naming requirements and regulations you need to keep in mind,
- The LLC’s name must be unique and distinguishable from the names of existing entities registered in Kansas. You can check the availability of a name through the Kansas Secretary of State’s online business name search tool.
- Your chosen name must include words like “Limited Liability Company,” “Limited Company,” “L.L.C.,” “LLC,” etc., or similar abbreviations, following Kansas Statute 17-7673. This requirement indicates that the entity is an LLC and is organized with limited liability protections.
- Certain words might be restricted or require additional approvals. For example, words that imply “banking” or “insurance services” might require approval from appropriate government agencies.
- If the LLC includes members/owners with professional licenses (such as doctors, lawyers, or architects), there may be specific requirements for including their professional titles in the LLC name.
- Some words might be reserved by the state and can only be used with specific conditions or permissions.
- Names that could mislead the public about the nature of the business or its services might be rejected.
- In some cases, if the name includes certain words (like “FBI” or “Treasury”) that might imply a government affiliation, you might need to obtain consent or authorization to use such terms.
Still confused? You can check Kansas’s naming rules and regulations. Once you’re done reading, you can decide on a legally compliant name that best reflects your brand identity.
In case your chosen LLC name is available but you don’t wish to form your LLC right away, you can always consider reserving the name by filing a Temporary Reservation of Business Entity Name (Form NR 52-01). The filing fee is $30 for online applications and $35 for filing by mail. Using the form, you can save your name for up to 120 days. The filing fee is $30(nonrefundable).
Note: Kansas doesn’t allow for the usage of DBAs or assumed names. It absolutely doesn’t have a formal DBA filing process.
#2 Create a business plan for your company
Successful small businesses always have well-thought-out business plans, and Kansas LLCs are no different. A clear, thorough, and structured business plan for your LLC should include its name, business address, and main objective and also explain how it works.
It should also include a careful study of the market, a plan for how the LLC will be set up, details about the products or services it offers, who the ideal customers are, and strategies for marketing, managing things, and handling money.
A well-drafted business plan also helps you grab the investors’ attention. How? Well, investors like to see a strategic plan as it helps them decide if your LLC can make any profits.
#3 Hire a registered agent
Like every other state in the United States, Kansas also requires you to appoint a registered agent for your LLC. A registered agent accepts and receives all legal, official, and financial documentation and notices on behalf of your LLC. It can either be an individual or a business entity and is basically your business’s point of contact with the state.
You have the following options when it comes to choosing a statutory agent for your Kansas LLC:
- Be your own registered agent.
- Another business entity.
- Hire a registered agent service.
- An individual within the company(manager/employee/member)
- An Attorney, lawyer, or legal facility.
To be a registered agent for a Kansas LLC, one should:
- Have a physical street address in Hawaii.
- Be a resident of the state.
- Be at least 18 years old.
- Have the legal authority to accept legal documents on behalf of the company and forward them to the appropriate parties within the company.
- Be available during regular business hours to receive legal documents.
- Consent to act as the LLC’s registered agent.
Note: A PO Box is not sufficient as a business address.
#4 Prepare and file your Articles of Organization report with the Secretary of State
To officially register your LLC with the Kansas Secretary of State, you need to file your Articles of Organization (Form DL 51-09) document. It’s a legal form that includes all the basic details of your LLC.
Here’s preferably what you need to include in your article form,
- Your LLC’s official name.
- The business address of your LLC.
- Registered agent’s name and address.
- Effective date (the official formation date of your Colorado LLC)
- Name and address of the person forming the LLC
- A brief purpose statement.
- Choose the management structure, whether it will be member-managed or manager-managed.
- Confirm that the LLC will have at least one member/owner managing.
- The signature of the individual forming the LLC is mandatory.
- Details of the person filing the LLC articles – name and address.
You can file it online or have the option to download the form and then send it in by mail or in person to the address listed below,
Mailing Address:
Kansas Office of the Secretary of State
Memorial Hall, 1st Floor
120 SW 10th Ave.
Topeka, KS 66612
The filing fee is $165 and $160 by mail. The fee will be completely nonrefundable.
#5 Draft an Operating Agreement
While it’s not obligatory to have an operating agreement in Kansas, you should still draft one to avoid any future legal or financial troubles. It is basically a legal document that outlines the internal and external structure, operations, and management structure of an LLC.
It explains how important decisions will be made, what ideally should be done in the face of a crisis, and how the daily operations of the business will go about. A well-drafted agreement also helps establish the roles, rights, responsibilities, and relationships between the members/owners, as well as the rules for the company’s governance.
Here are some key elements you can include in your agreement.
- Specify the ownership percentage of each member in the LLC.
- Outline the roles and responsibilities of each member, including decision-making authority.
- Detail the initial investments made by each member to start the LLC.
- Explain how profits and losses will be divided among members.
- Define whether the LLC will be managed by members or appointed managers.
- Describe how voting on important business decisions will work, including majority or unanimous decisions.
- Outline how and when meetings will be held, including regular and special meetings.
- Detail the process for admitting new members or removing existing ones.
- Specify procedures for members selling or transferring their ownership interests.
- Explain the steps for dissolving the LLC and distributing assets if necessary.
- Dispute Resolution: Include methods for resolving disputes among members.
- Describe how the operating agreement can be modified or amended.
- Have all members sign the operating agreement to show their agreement and commitment.
#6 Apply for the nine-digit federal employer identification number from the IRS
An EIN is a unique nine-digit tax identification number the Internal Revenue Service (IRS) assigns to businesses, including corporations, partnerships, LLCs, sole proprietors, and other entities.
It’s like a social security number for taxation purposes. It identifies a business entity for taxes and keeps track of the business’s tax reporting.
The main purpose of an EIN is to help with the following purposes:
- Hire employees
- Apply for business licenses and permits
- Conduct daily business operations
- Meeting federal and state tax obligations
- Opening professional business bank accounts
You have the option to apply online or download the required form and then turn it in by mail or in person to the address mentioned below:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
There are no filing charges.
#7 Submit your Statement of Information
Like most US states, Kansas requires all their LLCs to submit an annual report(just another name for a statement of information) every year. It’s due on the 15th day of the fourth month following the end of the LLC’s tax year. You can file it as early as January 1st.
You can file Form LC-50, Limited Liability Company Annual Report, online or by mail, or in person. Online applications can be done here, and the filing fee is $50. At the same time, it’s $55 for by-mail filings.
Final Word
Once your LLC is registered, you’re finally authorized to complete the following tasks,
- Open a business bank account for your LLC
- Apply for a business credit card.
- Apply for necessary licenses and permits.
- Purchase insurance for your business.
- Protect your name and logo with a trademark.
Also, if you plan on hiring employees for your Kansas LLC, you need to stay compliant with the laws and focus on doing the following,
- Obtain your EIN (Employee Identification Number).
- Ask your employees to fill out the Employee Eligibility Form.
- Set up a process for the collection and payment of taxes.
- Make sure you have workers’ compensation insurance
- Report to the state about new hires within 20 days of hiring them.
- Pay unemployment taxes.
Lastly, always make sure that your LLC is legally compliant and in “active” status on the State website. You can also check the Department of Labor website for any further information.
And that’s a wrap! That was all you needed to know before finally creating your Kansas LLC.
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Frequently Asked Questions
An LLC, or Limited Liability Company, is a flexible business structure that offers limited liability protection to its owners while allowing for pass-through taxation. Starting an LLC in Kansas can provide personal asset protection and simplified business management, making it an attractive option for small business owners.
The main steps to start an LLC in Kansas include:
- Choosing a name for your LLC that’s compliant with state naming rules.
- Appointing a registered agent with a physical address in Kansas.
- Filing Articles of Organization with the Kansas Secretary of State.
- Creating an operating agreement to outline how your LLC will be managed.
- Obtaining any necessary licenses or permits for your business activities.
Your LLC’s name must include the words “Limited Liability Company” or abbreviations like “LLC.” It must also be distinguishable from existing business names in Kansas. You can search the Kansas Secretary of State’s business name database to check name availability.