Are you planning to start an LLC in Kansas? Thankfully, forming an LLC in the Sunflower State is cost-effective and pretty straightforward. An LLC in Kansas also offers benefits to the members, including fewer reporting requirements compared to corporations, flexible management, and avoiding double taxation.
Read on to find out how to form and register an LLC in the state of Kansas.
Is an LLC Operating Agreement Required in Kansas?
While it’s not required to have an LLC operating agreement in Kansas, it’s always best to have one. The operating agreement serves as the legal document outlining operating procedures and ownership of your LLC. It ensures that all the business owners agree, reducing future conflict.
Kansas Operating Agreement Laws
Although an LLC is not required in Kansas, there are still state laws to follow –§ 76-7672.
The LLC must have one or more managers or members. In Kansas, it doesn’t specify that the members of the LLC must reside in the state. However, all members must be listed in the articles of organization.
All LLCs in Kansas are required to file an annual report, due on the 15th of April; the fee is $55 by paper and $50 to file online.
Kansas law also permits a Series LLC structure, where several LLCs operate under one umbrella. Each LLC is called a cell and may have different managers or assets. The fee for forming a Series LLC in Kansas is $165.
How Much Does it Cost to Form an LLC in Kansas?
Filing an LLC in Kansas costs $160 to file online or $165 on paper. 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.
In Kansas, you have the option to expedite the turnaround time for your LLC. A 24-hour turnaround time is also available.
How to Form an LLC in Kansas?
Below are the steps needed on how 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. The LLC name must include the “limited liability company,” LLC, or L.L.C. It should not include words that may be associated with a government agency. For restricted words, such as university or banks, you may need additional paperwork like licenses.
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 that no one else can take it. There is a business name reservation in Kansas that can help you with this. 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 resident of the state or a corporation, authorized to do business in Kansas. Anyone in your company or yourself can also serve as the registered agent.
You may pay fines and automatic dissolution in Kansas if you miss state filings.
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 not required, but having an LLC operating agreement is advised. The operating agreement clearly defines the terms of company management and ownership, providing more options and additional protection for the members and managers.
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. Use our template to help you get started with your LLC operating agreement.
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.
EIN is also referred to as Federal Tax Identification Number or Federal Employer Identification Number. 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 either by mail or online. You can get it for free from the IRS.
Kansas LLC Operating Agreement Template
Now that you have all the information you need to create an LLC in Kansas, the next step is to create an LLC operating agreement. Use our Kansas operating agreement template below:
LLC Operating Agreeement