A Kansas LLC operating agreement is a legal document outlining operating procedures and ownership of your company. It ensures that all the business owners agree, reducing future conflict. The operating agreement clearly defines the terms of company management, providing more options and additional protection for its members.
Is an LLC Operating Agreement Required in Kansas?
NO, Kansas has no direct statute requiring an operating agreement. But while it’s not required, it’s always best to have one. .
Types of LLC Operating Agreements
Kansas LLCs can be formed by one individual or multiple members. Your operating agreement should match your ownership structure and explain how your business will operate.
Single-Member LLC Operating Agreement
Establish a set of rules for running a limited liability company that is owned and managed by one individual.
Multi-Member LLC Operating Agreement
Establish a clear and concise operating plan for your LLC.
Laws
LLC operating agreements in Kansas are featured in Chapter 17, Article 76 – Limited Liability Company Act of the Kansas Statutes:
- KS Stat § 17-7672: Interpretation and enforcement of operating agreement.
- KS Stat § 17-7687: Classes; voting; meetings of members; amendment of operating agreement.
- KS Stat § 17-7691: Remedies for breach of operating agreement by member.
- KS Stat § 17-7696: Remedies for breach of operating agreement by manager.
- KS Stat § 17-76,134: Construction and application of act and operating agreement.
Costs and Fees
You need to cover the following fees for a Kansas LLC:
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- Articles of organization filing fee – $165 (or $160 online).
- Name reservation fee – $30.
- Annual report filing – $55 (or $50 online).
Note that the fees may change, so it’s always best to check with the Kansas Secretary of State to ensure you have the correct fees.
How to Form an LLC in Kansas
Below are the steps needed to start an LLC in Kansas:
Step 1 – Create a Name for your LLC
The first step is to name your LLC. Choose a name that complies with the state’s requirements and ensure clients can easily search for it. It should not include words that may be associated with a government agency. You may need additional paperwork like licenses for restricted words like university or bank.
Do a name search first and ensure it’s not taken. Check the URL to make sure the domain is also available. Consider securing the domain name for your LLC to help you build credibility and create brand awareness. You can also reserve the business name so no one else can take it. If you already have a business logo, visit the US Patent and Trademark Office website to ensure the name and logo aren’t trademarked.
Step 2 – Nominate a Resident Agent in Kansas
You are required to choose a Kansas resident agent, a person, or a business entity responsible for filing or managing your legal documents. They must be a state resident or a corporation authorized to do business in Kansas. Anyone in your company or yourself can also serve as the registered agent.
Step 3 – File the LLC Articles of Organization
File the articles of organization with the Secretary of State to register your LLC. You can do this either by mail or online.
Step 4 – Create the LLC Operating Agreement
It’s best to have an operating agreement as it separates the business from the personal assets. Operating agreements prevent conflicts, as they clearly show each member’s role, rights, and responsibilities.
Step 5 – Get an EIN
EIN, or Employer Identification Number, is a 9-digit number assigned by the IRS for tax purposes. Think of it as a Social Security number for your business.
It’s important for opening a business bank account, hiring employees, and managing taxes. If you’re converting a sole proprietorship into an LLC, you’ll need to get a new EIN by mail or online.
Sample
View the sample Kansas LLC operating agreement below. Customize it using our document editor, then download the finished version in PDF or Word format.
