How to start a Kansas LLC

An LLC is a type of business that helps protect its owners (called members). This means that if the business owes money or gets sued, the members' personal assets, like their house or car, are usually safe. 

In the state of Kansas, an LLC is defined as “a business entity that combines the limited liability of a corporation with the flexible management options of a general partnership.”

If that sounds like a lot of legal jargon - that's because it is! What you need to know is that LLCs are popular with business owners because they are simple and flexible to run. They have fewer rules compared to comportations and the owners can choose if they want to manage the business themselves or appoint managers to do it. 

Another benefit is how taxes work: LLC owners can pay taxes through their own personal tax returns, or they can choose to have the business pay taxes separately, like a corporation. This gives owners more choices in how they handle taxes as their business grows.

Why should I register for an LLC in Kansas?

You may want to register for an LLC in Kansas when:

• You own or want to start a business in Kansas, or want to expand an existing business into Kansas, and want to stay legally compliant. 
• You own or want to start a business, and want more flexibility on how you will manage the business or pay taxes than a corporation would provide.
• You want to protect your personal assets from potential liability resulting from business you conduct in the state of Kansas. 
• You own or want to start a business, and want to register in Kansas to open accounts, lease or buy property, secure funding, or hire employees.

Do I need to file my LLC in Kansas if I live in another state?

Any LLC that does business in Kansas must file with the State of Kansas. LLCs based in Kansas are called "domestic LLCs," and out-of-state LLCs are called "foreign LLCs." If your LLC was organized and operates outside of Kansas, establishing a foreign LLC within Kansas will allow for you to conduct business there.

Foreign LLCs and domestic LLCs may have different filing and compliance requirements -- Rocket Lawyer can help you navigate foreign LLC registration, regardless of where you live.

How to start an LLC in Kansas

1. Find a unique name for your Kansas LLC

The state of Kansas requires that the names of all LLCs in the state:

• They include one of the following phrases: "limited liability company" or "limited company."
• They include one of the following abbreviations: "L.L.C." or "L.C."; or one of the following designations: "LLC" or "LC."
• The name of a limited liability company may contain the name of a member or manager.
• The name of a limited liability company may contain one or more of the following words: "Company"; "association"; "club"; "foundation"; "fund"; "institute"; "society"; "union"; "syndicate"; "limited"; "trust"; or abbreviations of like import.
• They are not too similar to existing LLCs in the state.

Rocket Lawyer can help you determine whether your business' name is eligible for registration in Kansas and may be able to help you reserve the name before you file your LLC.

2. Include your other LLC members (if any)

In Kansas, you can in fact form as a one-person LLC. In this case, the LLC would be referred to as a single-member LLC (SMLLC), whereas if there is more than one owner, the LLC may be called a multi-member LLC. 

The main difference between single-member and multi-member LLCs lies in ownership structure and management. With a single-member LLC, you have full control over the business. In contrast, a multi-member LLC has multiple owners, each with a specific percentage of ownership as defined in the operating agreement. This means that in a multi-member LLC, owners share profits, losses, and tax responsibilities based on their ownership percentage.

3. Provide a Kansas address

This will be used as your official LLC address. The address that you list may either be your home, an office, or another physical location, but it cannot be a PO box.

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. Register your LLC with the state of Kansas

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

6. Get an Employer Identification Number (EIN)

Kansas LLCs are required to have a Federal EIN tax number. Think of your tax ID as the social security number for your company. It will be important for business contracts, tax filings, and all manner of documents down the line. Every company should have one to remain in good standing.

7. Pay the state filing fee

Every state has different fees for forming an LLC, which can also vary from one year to another.

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

What to do after forming a Kansas LLC

There are a few steps you need to take to maintain your Kansas LLC:

1. Create an Operating Agreement: we can help you create your Kansas LLC Operating Agreement online.
2. Hold a meeting: a first meeting with members of an LLC is not required by law, but it is highly suggested in order to get organized. Also, unlike corporations, LLCs are also not required to maintain Meeting Minutes, but these documents are also recommended as they provide records for important decisions made.
3. Pay taxes according to how you chose to be taxed: traditionally, LLCs are "pass-through entities." This means that you pay your business taxes on your personal tax form. That said, you can elect to be taxed like a corporation, if you choose to do so.
4. Submit an Annual Report: this is required for all LLCs registered in the state every year on the 15th day of the fourth month after the tax closing month. Only officers of the LLC are the ones that are authorized to sign this report.

What is needed to keep records for my Kansas LLC

In Kansas, it is required that members of the LLC have access to certain records concerning the business such as:

• True and full information regarding the status of the business and financial condition of the limited liability company.
• Promptly after becoming available, a copy of the limited liability company's federal, state and local income tax returns for each year.
• A current list of the name and last known business, residence or mailing address of each member and manager.
• A copy of any written Operating Agreement and articles of organization and all amendments thereto, together with executed copies of any written powers of attorney pursuant to which the Operating Agreement and any certificate and all amendments thereto have been executed.
• True and full information regarding the amount of cash and a description and statement of the agreed value of any other property or services contributed by each member and which each member has agreed to contribute in the future, and the date on which each became a member.
• Other information regarding the affairs of the limited liability company as is just and reasonable.

Still have questions? Rocket Lawyer can help you with the process of forming a Kansas LLC. Get started today!

  

Key takeaways Registering an LLC in Kansas can give you a lot more flexibility than a corporation, as well as protection for your personal assets from potential liabilities. Even if you live in another state, you must register your LLC in Kansas if you do regular business there, like selling things or having employees. After starting your LLC, it's advisable to create an Operating Agreement and hold a first meeting. You'll also need to file an Annual Report.  Keep records of your Kansas LLC, like the names of all members, tax documents, and your business rules. These help you stay organized and follow the law.

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 an LLC
• How are LLCs taxed
• How to start an LLC
• Do I Need a Registered Agent?
• How and when to file an Annual Report