State Processing Times and Fees
Nearly every state has standard processing times, but not all states provide expedited processing for filing a corporation. We have the average wait times for both standard and expedited filings. They vary among states and they're subject to change periodically.
Kansas charges a filing fee for incorporating, which you can find under “compare pricing” in our incorporation center.
Choosing Between a Kansas S Corp and a C Corp
There are similarities between a Kansas S Corp and a C Corp. The differences in personal liability, management, structure and compliance in Kansas come down to the following:
- Ownership Rules: A C Corp is taxed as a separate entity from its shareholders. Shareholders report and pay taxes on what the corporation pays them. An S Corp is taxed like a partnership with a “pass-through” tax structure. It's not doubly taxed because the corporate entity can pass corporate income, losses, deductions and credits to its shareholders. The corporate owners pay taxes on their share of the corporation’s profits, and they are taxed at their individual tax rate. To qualify as an S Corp, your business must be a domestic corporation, provide only one class of shares, have no more than 100 shareholders, and your shareholders can only be individuals, estates or certain trusts.
- Documents: If you want to form an S Corp, you must file IRS Form 2553 to elect this status.
Each state has its own personnel requirements for incorporating. In Kansas, you must follow these rules:
- Age requirement: Directors need to be at least 18 years of age.
- Number of directors: At least one director is required.
- Residency: Directors need not live in Kansas.
Other Requirements for Your Articles of Incorporation
In addition to personnel requirements, include the following in your Kansas Articles of Incorporation:
You must appoint a registered agent. A registered agent is a person or business designated by you to receive important tax, government and legal documents, including service of process of lawsuits, on behalf of your corporation. Your agent needs to be available during normal business hours. Kansas requires that the name of your registered agent be included in your Articles of Incorporation and have a physical address in the state of Kansas. We can help you designate your registered agent when you incorporate with us.
You must include the following information in your Articles of Incorporation:
- The number of shares authorized to be issued.
- If there is more than one class or series of authorized shares, identify them.
- The name and address of the corporate office.
Other Required Paperwork
Kansas requires that you file additional paperwork with your Articles of Incorporation, including an annual report with the Kansas Department of State. This is due by the fifteenth day of the fourth month after the close of your company’s fiscal year. If you use the calendar year, your report would be due on April 15. Failure to do this could jeopardize your corporate status.
Guidelines for Your Name
Your corporate name should be unique and make a statement about your business. Make sure it complies with the following Kansas requirements:
- Your name should be distinguishable from any other registered business in Kansas, and end with “Company,” “Corporation,” “Corp.,” “Incorporated,” “Limited,” or an abbreviation of one of these terms.
- Your name cannot be deceptive. If you're selling hot dogs, you can't name your company "Sal’s Kansas Internet Sales."
- Ensure that your name is distinguishable from all other existing corporate names.
Kansas Corporate Taxes & Reports
Yes, your new corporation does have to pay taxes. Before getting started, apply to the IRS for an employer identification number. An EIN is similar to your Social Security number, but it's for a business. All corporations with employees require one. You will also need an EIN to open your corporate bank account. Many business owners choose S-Corps because they're generally exempt from federal income tax and there is no double taxation. A C-Corp offers more flexibility because you can have several classes of shareholders with different voting rights, but there are additional tax implications.
Keeping Corporate Records and Ongoing Filing Requirements
Kansas requires that you create corporate records, such as bylaws and corporate minutes, to maintain your business's corporate status. Bylaws set forth your company’s operating rules and define the responsibilities of your directors. They also explain the rights and powers of your shareholders, and they can address all other corporate matters. Your corporation does not have to file its bylaws with the state, but you'll have to provide them to banks, lending institutions, creditors, the IRS and the courts to prove that your corporation is valid and legitimate. Bylaws also help to establish rules so you can keep your corporate assets and debts separate from your personal ones.
Keeping minutes of your director and shareholder meetings is also required in Kansas. You should maintain your corporate minutes at your corporate office with your other company records. The minutes keep track of all votes on important business decisions and help secure your corporate status.
Best of luck with your new Kansas corporation! We have all the legal documents, filing and tax information you'll need to get started.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.