How to start a Kansas corporation

It might seem like a lot at first, but once you understand the steps, it’s very doable. This guide will walk you through everything you need to know to start your Kansas corporation.

How to start a corporation in Kansas

Incorporating means registering your business as a corporation so the law sees it as its own entity, separate from you. Each state has its own rules for how to do this, so the process can seem confusing. Let’s go through each step: 

1. Choose a name for your Kansas corporation

Your corporation’s name should be unique and make a statement about your business. Make sure it complies with the following Kansas requirements:

• Your name should 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 business names.

Need help coming up with a business name for your corporation? Try the Rocket Copilot™ AI Business Name Generator, a free tool to help you brainstorm business names and get started registering your corporation.

2. Decide between a Kansas S-Corp and C-Corp tax designation

There are similarities between a Kansas S-Corp and a C-Corp regarding personal liability, management, structure, and compliance. The differences, however, 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.

3. Appoint directors and shareholders for your Kansas corporation

Each state has its own personnel requirements for incorporating. In Kansas, you must have at least one director and directors need to be at least 18 years of age. Directors are not required to live in Kansas.

State the number of your corporation's directors in either your Bylaws or your business's Articles of Incorporation. 

4. Choose a Registered Agent

A Registered Agent is the person or business responsible for receiving tax, legal, and government documents during regular business hours. It's important that every business has one. You can either serve as your own registered agent (if you have a Kansas address) or choose one to do that service for you (if you are not located in Kansas or would like an extra layer of privacy).

5. File your Articles of Incorporation with the state of Kansas

Once you have a business name and registered agent, you can register your business as a Kansas corporation with the state by filing your Articles of Incorporation. This document may be referred to informally as a corporation's "Articles," or in other states, it may be called a "Certificate of Organization," "Certificate of Filing," or "Certificate of Formation."

Kansas also 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.

6. Get an Employer Identification Number (EIN)

Before opening your doors for business, apply to the IRS for an employer identification number, or EIN. All corporations with employees in Kansas must have an EIN. An EIN is similar to your Social Security number, but it's for businesses. You'll also need an EIN to open your corporate bank account.

Congratulations! After you have completed all these steps, you have formed your Kansas corporation.

What to do after incorporating in Kansas

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 Corporate 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.

We have more detailed information about Kansas' requirements for Bylaws and Corporate Meeting Minutes.

Still have questions? Learn more about how to start your own business with Rocket Lawyer and get started today!

 

Key takeaways Starting a corporation in Kansas means following state rules, like choosing a unique name, filling out paperwork, and paying fees to make it official. One important choice is deciding how your corporation will be taxed in Kansas, either as an S-Corp or a C-Corp. This affects how the business and owners pay taxes, and the differences between the two change from state to state. After forming the corporation, you have to keep records like bylaws and meeting notes to stay in good standing with the state and prove your business is real and operating correctly.

Additional resources

Learning how to enforce a contract is just one step. Explore these additional topics to learn more and take the next steps.

• What is a corporation?
• What is an S-corporation?
• How are corporations taxed?
• How to start a corporation
• How to register a corporation by state