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Step-by-Step Guide: How to Set Up Your LLC in Kansas | Expert Kansas LLC Formation | BetterLegal

Learn how to establish your LLC in Kansas hassle-free with our comprehensive guide. Follow our step-by-step instructions and expert tips to navigate the process of forming your LLC. Get started today!

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Are you considering setting up an LLC in Kansas? BetterLegal has developed a complete yet concise guide to help you through the process through our years of experience. The five critical steps to properly set up an LLC in Kansas in order are:

  1. Prepare by choosing a Name and Registered Agent
  2. File Certificate of Formation with the State of Kansas
  3. Apply for an EIN with the IRS
  4. Obtain an Operating Agreement
  5. Handle Ongoing Kansas Compliance and Maintenance

What are the benefits of setting up an LLC in Kansas?

An LLC (Limited Liability Company) is a fairly new business structure which combines the best aspects of two older structures. Corporations have existed since before the US existed, but require heavy maintenance such as quarterly meetings with officially recorded minutes, board approval and distribution of ownership, and more. On the other side of the spectrum is a sole proprietorship (or partnership if more than one person) that possesses tax benefits, but doesn't provide the owners with liability protection.

Combining the liability protection of a corporation and the tax benefits of a partnership, LLCs were created and slowly adopted by all 50 states between 1977-1998. This means that, as the owner of an LLC, you are not personally liable for any debts or obligations of the business. This can be a crucial safeguard for a sole proprietor, as transitioning to an LLC protects your personal assets, such as your home or savings, in the event that the business is sued or faces financial difficulties.

In addition to liability protection, an LLC helps establish credibility for your business. When you officially register your business as an LLC, you are signaling to the public that you are a professional and legitimate operation. This is especially important for a sole owner of a business as customers have more options than ever and are more likely to choose a company that feels more trustworthy. Any credibility you can build with your future customers is extremely important.

1. Choose a Name and Registered Agent in Kansas

The first step in setting up an LLC in Kansas is choosing a name for your business. The name you choose will represent your company and be used on all official documents, so it's essential to take the time to carefully consider your options.

It may seem tempting to have a very specialized name like "Irene's Kansas Ice Cream." However, if you're still iterating on your business offering or may expand, a somewhat generalized name may work in your favor. Don't fret too much as you can always change a Kansas LLC's name or use a nickname by filing a Kansas DBA. More on those post-formation options can be found under Step 5: Changes and Maintenance.

It's important to choose a name that is unique and not already in use by another business. You can use the Kansas Secretary of State's name check service to verify the availability of your desired LLC name. If you are having trouble accessing the name check service, you can also call the Kansas Secretary of State.

When choosing a name for your LLC, it's important to keep the following guidelines in mind:

1) LLC name must include a business designation, such as Limited Liability Company, Limited Company, L.L.C. L.C, LLC, LC

2) One of these words may be included in the name: Association, Club, Company, Co., Co, Foundation, Fund, Institute, Limited, Ltd., Ltd, Society, Syndicate, Union, and Trust

3) The following words or phrases may not be included in the business name: Also Known As, AKA, A.K.A., A/K/A, Assumed Name, Bank, Banc, Chartered, Chtd., Chtd, Church, College, Corporation, Corp., Corp, Cooperative, Coop, Co op, Co-op, Co@op, Co*op, Credit Union, Credit Unions, Doing Business As, DBA, D.B.A., D/B/A, Incorporated, Inc, Inc., Insurance, Limited Partnership, Limited Liability Partnership, LP, L.P.,LLP, L.L.P., Professional Association, PA, P.A., PBC, P.B.C., Public Benefit Corporation, Registered Limited Liability, Partnership, RLLP, R.L.L.P., Savings and Loan, SPBLLC, S.P.B.L.L.C., Statutory Public Benefit Limited, Liability, Company, Trust Companies, Trust Company, Trust Co, Trust Co.,University

When choosing a name, it's also important to consider available domain names and social handles. One of our early customers owned austineventcollective.com as well as austineventcollective across every social platform. Unfortunately, someone in Kansas already had a registered "Austin Event Collective LLC" and rejected her filing.

If you're not ready to file, it is possible to reserve your Kansas LLC's name before officially registering your LLC with the Kansas Secretary of State. Please note that this is an additional and separate cost from officially filing your LLC and only holds the name, so you have to decide whether reserving a name for a few months is a better option than simply setting your Effective Start Date for the future (more on this in Step 2).

Choosing a Registered Agent

The next step in setting up an LLC in Kansas is choosing a registered agent. This person or entity will be responsible for receiving official mail from the State of Kansas and legal documents on behalf of your business.

The Registered Agent for your LLC in Kansas must have a physical street address in Kansas. PO Box addresses aren’t allowed.

It's worth noting that this information is considered a public record and may be accessed by anyone. This means that anyone can view the names and addresses of the managers or members of your LLC by requesting a copy of your Articles of Organization from the Kansas Secretary of State. If you are concerned about privacy, you may want to consider using a third party to act as a registered agent for your LLC rather than using your own personal information. This step helps protect your operator's and owner's privacy and shield your personal information from public view.

There are countless options for Registered Agent Service, but we believe BetterLegal provides the best value. Click here to sign up.

Some additional guidelines in Kansas for Registered Agents:

The Registered Agent can be an individual, your own LLC, or a Kansas Registered Agent Service

BetterLegal has helped tens of thousands of business owners across the US set up their LLC. Sign up today to start yours!

Prepare and File the Kansas Articles of Organization

Once you have chosen a name and registered agent for your LLC, you'll need to file the Articles of Organization with the Kansas Secretary of State for a fee of $160 Online and $165 by Mail which is non-refundable and provide a digital, scanned, or wet signature of the organizer.

Filing Options

1) Online - Go to https://www.kansas.gov/businesscenter/secure.html?appid=2&submit=aoi and fill out the form.

2) Mail
(a) Print and sign this form https://www.sos.ks.gov/forms/business_services/DL.pdf
(b) Mail the Articles of Organization and the $165.00 filing fee to:
Kansas Secretary of State
Memorial Hall, 1st Floor
120 S.W. 10th Avenue
Topeka, KS 66612-1594

Payment Options

If filing online, you may use credit card or E-check.

If by mail: check, money order, or credit card. Checks and money orders need to be
made payable to the Secretary of State
Note: There is a $25 service fee for all returned checks.

Turnaround Time

The turnaround time for LLC formation in Kansas is advertised by the Secretary of State as one (1) minute after payment if submitted online. However, if it was by mail, it can take up to two (2) to three (3) weeks. Keep in mind that this can take longer based on state examiner's workload at the time of filing. BetterLegal's internal experience with Kansas is twenty-four (24) hours from the time of payment receipt, as long as the filing request was received during BetterLegal's operating hours (Monday to Friday from 9 a.m. to 7 p.m. EST). Expedited services are not available for Alaska LLC formation.

Please note that the Secretary of State's office in Kansas is closed on weekends and state holidays. The office is open from 8:00am to 5:00pm, Monday through Friday.

Also note, that you should not apply for an EIN (Step 3) until Kansas has approved and delivered your Articles of Organization in case your LLC's name is rejected.

Setting a Future Effective Date

If you want to set a future "start date" for your LLC, this the date when you submitted your LLC application or a future effective date that may not be more than ninety (90) days from the date of filing. in the State of Kansas.

Address Requirements

In Kansas, you're required to provide Registered Agent, Mailing Address If you want your address information to be private rather than public record, make sure your Registered Agent allows for all addresses. BetterLegal's $90/year service provides full privacy.

State's Mailing Address: Mailing address can be your home address, an office address, or the address of your Registered Agent.

Manager Information

The Manager's Information section of your LLC's Articles of Organization may include the names and addresses of the managers or members of your LLC. Here is extra information Kansas will want to know about your Managers:

1) Manager's Name - It may be an individual or non-individual manager.

Receiving your documents

After the Articles of Organization has been filed and accepted by the Kansas Secretary of State, the LLC is officially formed. Here's what Kansas will provide back to you based on your method of submission: If filed online, you will receive an email notification containing the link to the state website to download the approved documents. If by mail, approved documents will be mailed to the return address

The official deliverables will include: the following documents:
1) Certified copy Limited Liability Company Articles of Organization filing
2) Letter from the Office of the Secretary of State

You should keep a copy of the Articles of Organization for your records and use it to open a bank account, apply for business licenses, and conduct other business.

What if my filing is rejected?

If your filing is rejected, you'll receive information from the Kansas Secretary of State explaining the reason for the rejection. You can then make the necessary corrections and resubmit your documents. Regardless whether filed online or by mail, the document must be refiled since fees are non-refundable

Additional information

Apply for an EIN from the IRS

Obtaining an Employer Identification Number (EIN) is a crucial step in starting an LLC in Kansas because banks require it to open a business bank account and the IRS requires it to pay taxes. So if you plan on making money, you'll need one. You don't need to employ anyone to need an EIN, it's simply a poor name choice by the IRS for what is essentially your LLC's Social Security Number or Tax ID.

An EIN is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business for tax purposes and formatted as 12-3456789. EINs are free to get from the Internal Revenue Service's website, but can be tricky if you're not careful when answering their questions.

An EIN is a Tax ID for the federal government, it is not your Tax ID for the State of Kansas.

Here are some key points to keep in mind when obtaining an EIN for your LLC:

  1. A Sole Proprietorship's EIN cannot be transferred to your Kansas LLC.
  2. A Manager or Member must provide their personal information to link the EIN to your Kansas LLC.
  3. You cannot use an existing business' information for an EIN since a business doesn't have a Social Security Number.
  4. If you're not a US citizen that is in possession of an SSN, you will need to first obtain an ITIN before applying for an EIN through a paper filing.
  5. Once the EIN is obtained, it must be included on all federal tax returns and other documents that require the business's tax identification number.
  6. Keep a copy of the EIN confirmation letter for your records.

It's important to note that the EIN is for tax purposes only and does not give any rights or privileges to the holder.

The turnaround time for an EIN is instant and the fee is $0. However, the IRS' website that generates EINs only works normal business hours EST, so it's a good idea to plan ahead if getting this item is time sensitive. Also note, that you should not apply for an EIN until Kansas has approved and delivered your Articles of Organization in case your desired business name is rejected.

Obtain an Operating Agreement

An operating agreement is an important document for any LLC, as it lays out the rights and responsibilities of the members (owners), as well as the management structure of the LLC. It's not a mandatory document filed with the State of Kansas, but it's highly recommended to have notarized as it can help prevent disputes and misunderstandings among members later on.

While it's your preference to decide whether the Kansas LLC is manager-managed or member-managed, BetterLegal prefers to set up LLCs as manager-managed since an individual can be both a manager and a member. If a manager/member wants to become passive at a later stage of the company and the Operating Agreement is set up as member-managed, then it opens up a can of worms that could have been avoided by retaining the separation of duties from the beginning.

Here are some key points to keep in mind when creating an Operating Agreement for your LLC:

  1. Identify the members of the LLC and their respective ownership percentages.
  2. Outline the decision-making procedures, such as how many members must be present for a meeting to be considered quorate and how many votes are required to pass a resolution.
  3. Specify the process for admitting new members or removing existing members.
  4. Include information about how profits and losses will be distributed among members.
  5. Set out the procedures for amending the Operating Agreement and dissolving the Kansas LLC.

This is an important document for a Kansas Limited Liability Company and is too often overlooked or skimped on. If setting up a single-member LLC, be wary of professionals that charge hundreds or thousands of dollars for a single-page document. We have seen attorneys charge $3500 for a simple document providing zero ability for supporting multiple owners in the future. While you may start as a sole owner, that may not always be the case. It's best to plan ahead during these early phases before the grind of entrepreneurship sets in.

We've also seen instances where an individual helping with the business early on later claims ownership upon the business' later success. Never refer to someone paid or unpaid as a "partner" in public, especially if you don't have a signed and notarized Operating Agreement in place.

If you're setting up your Kansas LLC on your own and need an Operating Agreement, BetterLegal can provide one for a reasonable fee.

The Operating Agreement should be reviewed periodically and updated to ensure that it accurately reflects the current state of the Kansas LLC.

BetterLegal has helped tens of thousands of business owners across the US set up their LLC. Sign up today to start yours!

State Compliance and Maintenance

As an LLC in Kansas, you'll need to comply with certain Kansas regulations.

This includes, but not limited to:

  1. Obtaining any necessary licenses and permits
  2. Keeping records of your business's financial transactions
  3. Staying on top of Kansas's Annual Report
  4. Notifying the State of changes to your LLC

Commonly Asked Questions

Can I file an LLC in Kansas myself?

You can file an LLC in Kansas yourself by visiting the Kansas Secretary of State's website and submitting the necessary paperwork and fees. The process involves filling out the Articles of Organization and paying a filing fee. Additionally, you will need to choose a unique name for your LLC and appoint a registered agent for your business. Once you have completed the necessary steps and paid the filing fee, you can submit your application to the state for review and approval.

How much does it cost to file an LLC in Kansas?

The cost to file an LLC in Kansas is $160 Online and $165 by Mail. This fee is for filing the Articles of Organization with the state and is non-refundable. You may also need to pay additional fees for obtaining a registered agent or for expediting the processing of your application.

Can you file an LLC in Kansas for free?

No, there is a fee to file an LLC in Kansas. The fee for filing an LLC is $160 Online and $165 by Mail and is non-refundable. You may also need to pay additional fees for obtaining a registered agent or for expediting the processing of your application.

How fast can you get an LLC in Kansas?

The turnaround time for LLC formation in Kansas is advertised by the Secretary of State as one (1) minute after payment if submitted online. However, if it was by mail, it can take up to two (2) to three (3) weeks. . This turnaround can take longer based on state examiner's workload at the time of filing.

Can I file for an LLC in Kansas Online?

Yes, you can file for an LLC in Kansas online through the Kansas Secretary of State's website. The process involves filling out the Articles of Organization, choosing a unique name for your LLC, and appointing a registered agent. Once you have completed the necessary steps and paid the filing fee, you can submit your application to the state for review and approval.

What is the minimum number of members in a Kansas LLC?

The minimum number of members in an LLC is one. An LLC can have any number of members, and the members can be individuals or other entities such as corporations or other LLCs.

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