Last Updated on June 13, 2022 by Fair Punishment Team
A Limited Liability Company, which is also known as LLC, is a type of business model unique to the USA that blends the liability protection of a corporation with the laid-back structure of a sole proprietorship, as well as offering unique tax advantages other business types do not.
In other words, it’s great for start-ups and small businesses.
How do you go about starting up an LLC in Kansas, though? If you’re currently wondering how to do this, then rest assured that you have clicked on the right article.
Below, we are going to be sharing with you a 6-step process that will help you to get the basics covered and your Kanas LLC up, running smoothly and ready to begin operating. Read on!
1. Choose A Name For Your Kansas LLC
The first thing that you are going to need to do when starting your LLC is to choose a name for it!
When choosing a name for your LLC, you’re going to want to make sure that the name that you select is going to not only stand out from the rest of the competitors within your industry, but clearly give your potential customers an insight into what your LLC is going to be offering.
A great way to pick a name is by having a brainstorming session!
Along with doing this, you are also going to need to make sure that the name that you choose complies with the requirements set in place by Kanas.
Currently, in the state of Kansas, it is a legal requirement to name your LLC with either “Limited Liability Company” “LLC” or “L.L.C” somewhere in the name.
Even though this is a legal requirement, you do have control over where your chosen term appears in the name, although most LLC owners will often include their chosen term at the end of the name of their LLC.
In addition to this, you are also going to need to make sure that you haven’t picked a name that is the same as or nearly identical from other LLCs and business entities that have already been registered in Kansas.
To figure out whether or not the name that you would like to name your business is appropriate for you to use, we recommend that you check the following database by the Kansas Secretary of State.
Once you have selected the name that you would like to use for your business, you can then go ahead and make the reservation for the name, and this will give you 120 days to file it.
2. Choose A Registered Agent
Along with a name that meets the requirements of the state, all LLCs that are opened and operated within Kansas will also need to make sure that they have a registered agent that has been appointed to it by the owner.
Your registered agent will either be a person or a company that will essentially be able to accept all of your LLCs business mail on your behalf.
When it comes to the state of Kansas, even though the role of your LLCs registered agent can be undertaken by anyone, you will need to make sure that the registered agent you choose is a person or business that resides in Kansas with a registered address.
In addition to this, you will also need to make sure that your registered agent will be able to accept mail and external legal and government correspondence during normal business hours in Kansas.
Along with making sure that the registered agent that you choose meets the requirements of the state of Kansas law, we also recommend that you opt for a registered agent that has proven experience of working as a registered agent so you will receive reliable service.
For those who are just starting out with an LLC, it is common to appoint an online company to become the registered agent, although you will need to make sure that they are able to operate within Kansas.
3. File The Articles Of Incorporation
While setting up your own LLC, you are also going to be required to file a number of different business documentation, starting with something that is referred to as the Articles of Incorporation.
The Articles of Incorporation will be able to establish your LLC and begin operating it by outlining important information about your business.
Even though the Articles of incorporation can sound a little off putting, rest assured that they are relatively easy to create.
To help you understand this important piece of documentation better, here is a simple breakdown of some of the information that you will be required to include in your Articles of Incorporation:
- The name of your Limited Liability Company and the address that it has been registered to.
- The full name and contact details of the person or company that you have decided to appoint as your registered agent.
- The mailing address of your LLC so that you can receive business correspondence.
- The closing month of your LLCs tax year.
- The management structure of your LLC.
- The name and contact details of all the members within your LLC at the time of creating the Articles of Incorporation.
- The signature of the person who is opening the LLC.
At the time of writing this article, it currently costs $165 to file the Articles of Incorporation in the state of Kansas, and remember that it is a legal requirement that you do so.
Once you have created your Articles of Incorporation and it has been approved by the Kansas Secretary of State, you will then be able to begin legally operating your business within the state.
As a side note, If you haven’t already filed your Articles of Incorporation and you would like to do so, then please click here for the form that you can use and then send to the Kansas Secretary of State for approval.
4. Create An Operating Agreement
The next documentation that you are going to need to create and file is the operating agreement, which will allow you to clearly outline important information regarding the way that your LLC is going to be run, as well as provide your business with legal credibility.
Technically speaking, the operating agreement isn’t a piece of documentation that is legally required within the state of Kansas for LLCs to have.
However, it is strongly recommended that you do so.
This is because an operating agreement will not only allow you to clearly outline important information regarding your business, but it will also be able to assist you in the event that your LLC received a legal notice or dispute.
With an active operating agreement, you will have control over settling any disputes that may come your way over the duration of your Limited Liability Company.
However, if you choose to not create one for your business, any potential disputes or notices that your LLC may receive will fall to the state of Kansas to resolve.
Due to this, it means that any settlements that are reached will not only be entirely out of your control, but might not actually be in the best interest of your Limited Liability Company!
In addition to this, filing an operating agreement can also help to maintain your limited liability, which will prove that your LLC is a separate business entity.
For these reasons, it’s easy to see why an operating agreement is such a necessary internal document to have.
5. Get An EIN Number
Once you have finished filing all of the most important documentation you’re going to need to establish your business, you are then going to need to go ahead and assign your Limited Liability Company to an EIN, which stands for Employer Identification Number.
It is a legal requirement within Kanas for all business entities to have a unique Employer Identification Number for tax reporting purposes.
If you do not have one, not only will you be unable to legally operate your business within Kansas, but you will also be liable for potential fines if you do not have one.
As a side note, if your LLC currently has more than one member or if you are planning to hire employees in the future or elect it as a corporation, then you will still need to make sure that you are obtaining an EIN.
The good news is that it is completely free to file for an Employer Identification Number! All you will need to do is to simply complete the online form that is available directly from the Internal Revenue System’s website.
Along with allow the IRS to be able to identify your LLC, as well as providing you with the ability to file any relevant tax returns that you might need to over the course of the business year, an Employer Identification Number will also allow you to do the following things:
- Open up a business bank account or apply for a business credit card.
- Hire new employees as and when you need to.
- The ability to apply for financial assistance or funding loans for your business.
6. Decide If You Need A BIN
After you have completed all of the above steps, your LLC is going to be more or less ready for launch!
However, the final step that you will need to do is to figure out whether or not you are going to be required to get a BIN (Business Identification Number) or not.
Before we get any further, you might notice a similarity to the EIN, however, despite the fact that these terms are often used interchangeably, it is important to note that the two unique identifiers are used for different purposes.
With that being said, even though you’ll need an EIN so that you can make general tax returns, you will only need to get a Business Identification Number if you are planning to hire employees, or if you currently have them and are planning to launch your LLC with a team.
This is because the BIN will allow the IRS to be able to tax and issue payroll, which is something that the EIN doesn’t necessarily handle.
If you would like to uncover more information about the various rules and regulations of registering and running a Limited Liability Company within the state of Kansas, then we recommend that you click here to discover more helpful information.
Frequently Asked Questions
Do I Need A Business License?
Along with all of the above, when it comes to setting up a Limited Liability Company, many new LLC owners often find themselves wondering whether or not they are going to be required to purchase and attain a business license so that they can legally operate their company within the state that they have started it in.
As you might already be aware, the rules and regulations surrounding LLCs often tend to vary from state to state.
So, while a business license might be required in one state for a person to run a business entity, in another state a business license might not be a requirement.
When it comes to the state of Kansas, if you are planning on starting up your own LLC within certain industries, then you are going to need to make sure that you have an active and recognized Kansas business license.
You can make an application for a business license via the Department of State in the city that you are located in.
The main industries within Kansas that will require you to set up a business license are industries such as the child care service, construction and food/hospitality service.
As a side note, in addition to this, regardless of what industry your LLC is going to be situated in, you are going to need to make sure that you have registered your Limited Liability Company with the state of Kansas Department of Revenue so that your business will be registered for any potential business tax purposes.
What Are LLC Tax Requirements?
Similar to business licenses, tax requirements of a Limited Liability Company often change depending on the state that the LLC has been registered and is going to be conducting business within.
Unlike some other states across the country that do not deem LLCs to be taxable, at the time of writing, Kansas does currently tax LLCs via its corporation tax rate.
The corporation tax rate is currently a flat rate of 4% of all federal taxable income (although this can sometimes be adjusted) and is payable via Kansas’s Departmenr of Revenue (DOR).
For this reason, you are going to need to make sure that you are filing your tax reports using the state’s corporation income tax return (which is also referred to as simple Form K-120) so that you will be able to pay the taxes that you owe to the state for operating your LLC within it.
If you would like to discover more information about Limited Liability Companies within the state of Kansas, we strongly recommend that you click here for additional information regarding the rules and regulations of running one within this state.