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How to Start an LLC in Kansas: 2024 Step-by-Step Guide

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Using an LLC Formation Service

Small business entrepreneurs can benefit from online LLC services to establish their Limited Liability Companies (LLC). These services will help file the necessary documents, allowing small business owners to focus on running their businesses. They have features like guaranteed acceptance by the state, assistance with the EIN application, registered agent service, and drafting of operating agreements. Online LLC services can be a reasonable and worthwhile cost.

Business owners can customize these packages to suit their individual needs. If you want to compare services and costs before deciding, you can choose from several options. Northwest Registered Agent, Swiftfilings, and Bizee LLC services are the most popular choices and have the best ratings.

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If you are an entrepreneur or a small business owner in Kansas, setting up a Limited Liability Company (LLC) can be brilliant. LLCs allow you to enjoy several advantages, such as tax benefits, operational flexibility, and security of personal assets against business debts. This guide offers a step-by-step breakdown to ensure you can successfully set up your LLC in Kansas.

Step 1: Choose a Business Name

The first step in creating your LLC is picking a unique name. Your LLC’s name identifies your business and plays a vital role in branding. In Kansas, your LLC name must include “Limited Liability Company” or its abbreviations (LLC or LLC). 

Here are the guidelines you must follow: 

  • It must be different from other business names already registered in the state.
  • Avoid restricted words without licenses (e.g., Bank, Attorney, University).
  • It must end with “Limited Liability Company” or one of its abbreviations (LLC or LLC).

It can differ from existing business names registered in Kansas, so you’ll need to check the availability on the Kansas Secretary of State’s website or do a quick, free name check to see if your chosen name is available. If you are considering getting a website name that matches your business name, You can find good deals for your domain names on Namecheap.

 

Step 2: Hire a Registered Agent

Like in other states, your LLC must have a registered agent in Kansas. A registered agent is a person or company that agrees to receive legal papers on behalf of your LLC, ensuring you get all important legal notices. The agent must have a physical address in Kansas and be available during business hours. You can act as your registered agent, choose someone you trust, or hire a professional service like Northwest Registered Agent, Swiftfilings, or Bizee.

Check out our blog: ‘Is a Registered Agent Necessary? Your Guide to Finding an Affordable Option

 

Step 3: File Your Articles of Organization in Kansas

The cornerstone of creating your LLC in Kansas is filing the Articles of Organization with the Kansas Secretary of State. This document registers your LLC with the state and includes important details about your business.

What to Include in Your Articles of Organization:

  • LLC Name: Your LLC’s name must include “Limited Liability Company” or its abbreviation “LLC” to comply with Illinois naming conventions.
  • Mailing Address: List a mailing address if it’s different from the LLC’s physical location.
  • Registered Agent: Illinois requires you to appoint a registered agent to accept legal documents on your LLC’s behalf. Include their full name and physical address in Illinois. The registered agent must consent to this appointment.
  • Management Structure: Indicate whether your LLC is member-managed or manager-managed, including the members’ or managers’ names and addresses. A P.O. box may be used for addresses if privacy is a concern.
  • Purpose: While a specific purpose isn’t necessary, you may briefly describe your business activities.
  • LLC Organizer: The person or entity filing the Articles of Organization should be identified here.
  • Formation Date: You can choose the LLC’s start date, either the filing date or a specific date, within 60 days of filing.
  • Signing: Ensure all information is accurate before signing. The form must be signed by either an LLC member, manager, or organizer.

 

How to Send Your Form:

  • Online: The most efficient method to file your Articles of Organization in Kansas is through the Kansas Secretary of State’s online portal. This platform facilitates an expedited process for submitting your paperwork and payment.
  • By Mail: If online filing doesn’t suit you, you can file by mail. Fill out the Articles of Organization form and mail it with the appropriate fee to the Kansas Secretary of State, Memorial Hall, 1st Floor, 120 SW 10th Ave., Topeka, KS 66612-1594.
  • In-Person: For those who prefer a more direct approach, you can file your documents in person at the Secretary of State’s office at the same address above.

Filing Fee: The filing fee is $160 for domestic and foreign LLCs wishing to establish or expand their business in Kansas.

Filing the Articles of Organization is crucial in establishing your LLC in Kansas. It’s essential to ensure the accuracy and completeness of all information before submission to avoid any delays or issues.

 

Step 4: Making an Operating Agreement for Your Business

Let’s discuss setting up some ground rules for your business. This is where an Operating Agreement comes in. Think of it as a handbook that explains how your business runs. It’s important because it helps everyone understand their role and what’s expected in your LLC.

Here’s what an Operating Agreement usually includes:

  • Ownership: This part talks about who owns what percentage of the business. 
  • Member’s Rights and Responsibilities: Here, you’ll write down what each person in the LLC can and cannot do and what they’re responsible for. It’s like a job description for each member.
  • Joining & Leaving: This section covers how new people can enter your business and what happens if someone decides to leave. It’s good to have this figured out so there are no surprises later.
  • Dissolution: This might sound a bit gloomy, but it’s practical. It’s about how to close down the LLC if you ever need to. It includes the steps to take and how to handle everything when wrapping up the business.

Creating an Operating Agreement is a smart move. It keeps things clear and organized so everyone knows what to expect, and it can save you a lot of time. 

 

Step 5: Getting Your EIN from the IRS

Your business needs a number called an EIN from the IRS. It’s like an ID number for your business. This number will help you as an identification number when getting bank accounts and credit accounts, filing taxes, and hiring employees.

It’s free, and you can get it from the IRS website.

 

Step 6: Steps After Forming Your LLC 

Open a Business Bank Account 

Keeping your personal and business finances separate is crucial for financial management and legal protection. Opening a business bank account requires your EIN and Articles of Organization. It makes tracking business expenses easier and simplifies tax filing.

Get a Business Credit Card

A business credit card is an excellent tool for handling business purchases and can help build your company’s credit history. Just like with personal credit, a good business credit score can make it easier to get loans and may qualify you for better terms. Visit our website to see our favorite business cards review.  

Check out our blog: Novo Review: The Best Business Banking Account in 2024?

Hire an Accountant

Managing finances can get complicated, especially as your business grows. An accountant can help you navigate tax laws, handle bookkeeping, and plan for financial growth. This professional guidance can save you time and money in the long run.

Create a Professional Website 

A website makes your business look legit. WordPress is a great tool to build your site. You can check out SiteGround or Hostinger for web hosting. They’re both good options to get your site up and running.

 

Kansas LLC: Permits, Licenses, Tax Requirements, and Annual Reporting

Setting up an LLC in Kansas involves more than just filing paperwork; it’s about ensuring your business complies with all state regulations for a smooth operation. This means getting the proper permits and licenses, understanding tax obligations, and meeting annual reporting requirements. Here’s what you need to guide you to the regulatory landscape for your Kansas LLC.

Obtain Any Additional Permits and Licenses

Your LLC may need permits and licenses for your different activities and locations within Kansas.

  • Local Business Licenses: Many Kansas municipalities require local business licenses. For specific requirements, consult your city or county clerk’s office or their website.
  • Professional Licenses: If you need a license to work in a specific profession, you’ll need to get it from one of the regulatory boards in Kansas. The Kansas Department of Revenue’s website has more information.
  • Health Permits: Food, healthcare, or beauty businesses might need a health permit. The Kansas Department of Health and Environment or local health departments usually issue these permits.

Tax Requirements in Kansas

Managing your LLC’s tax obligations is crucial for legal compliance and financial health.

  • Employer Taxes: If you plan to have employees in your Limited Liability Company (LLC), you must register with the Kansas Department of Labor for Unemployment Insurance Tax and the Kansas Department of Revenue for Employee Withholding Tax.
  • State Taxes: Kansas treats LLCs as pass-through entities for tax purposes like many states. If your LLC sells goods or specific services, you must register for a Sales Tax Permit through the Kansas Department of Revenue.
  • EIN: Obtaining an Employer Identification Number (EIN) from the IRS is necessary for tax purposes, hiring employees, and more.

Annual Reporting in Kansas

Maintaining good standing with the state involves submitting an annual report for your LLC.

  • Filing Requirements: All Kansas LLCs are required to file an annual report with the Secretary of State.
  • Fees and Filing: The filing fee for the annual report is $55 when filed online through the Kansas Secretary of State’s website or $50 if filed by mail.
  • Importance: This report keeps your LLC’s contact information current with the state and is vital for maintaining your good standing.

Following guidelines for permits, licenses, tax obligations, and annual reporting is crucial for operating your Kansas LLC successfully and complying with state laws. For the most accurate and detailed information, you can visit the Kansas Secretary of State website and the Kansas Department of Revenue website. 

 

New 2024 Reporting Requirements (BOI)

Effective from January 1, 2024

Big news! Starting January 1, 2024, there are new reporting requirements for both domestic and foreign reporting companies. This includes LLCs, corporations, and other entities. Here’s what you need to know:

First Report Deadlines:

  • Existing Entities: If your LLC was already around before 2024, you’ve got until January 1, 2025, to submit your first report.
  • New Entities: If you’re forming your LLC in 2024, you must file your report within 90 days of your company’s creation.

Who Needs to Report:

  • Domestic Reporting Companies: This includes LLCs and similar entities within the U.S.
  • Foreign Reporting Companies: Entities registered foreign entities must also adhere to these new rules.

Exceptions to Reporting:

  • For specific exceptions, you’ll want to refer to the Beneficial Ownership Information Reporting Regulations at 31 CFR § 1010.380(c)(2) and the Small Entity Compliance Guide.

What Must Be Reported

What you need to report is all about transparency. The exact details can be found in the compliance guide, but it generally involves information about your LLC’s ownership and control.

When Must Reporting File Reports

Remember, if you’re an existing entity, your deadline is January 1, 2025. For new LLCs formed in 2024, it’s within 90 days of creation.

Filing Reports & Noncompliance Penalties

Starting January 1, 2024, all BOI reports must be filed electronically. Here are some critical points:

  • Filing Before the Date: You must file on January 1, 2024.
  • Accuracy: Filer certification of accuracy is mandatory – you need to double-check that everything you report is correct and accurate.

Penalties for Noncompliance:

  • False Information Penalties: Mistakes or misinformation can lead to a fine of up to $10,000 or up to 2 years in prison.
  • Penalties: If you slip up here, you could face a fine of up to $10,000 or even imprisonment for up to 2 years.
  • FinCEN’s Approach: The Financial Crimes Enforcement Network (FinCEN) focuses on education and outreach to ensure compliance. 
  • Safe Harbor Rule: Did you make a mistake? If you discover inaccuracies in your initial report, you have a 90-day grace period to submit a corrected report.

If you need more information or specific guidance, please visit the FinCEN website for all the details.

Forming an LLC in Kansas ensures your business starts on solid ground. Each step is crucial in establishing and maintaining your LLC, from choosing a name to filing your annual report. By following this guide, you’ll be well on your way to launching your LLC in Kansas and embarking on your entrepreneurial journey. 

Remember, starting an LLC is a significant step toward entrepreneurship. Stay informed about legal and tax obligations to ensure your business thrives. If you need help, services like Northwest Registered Agent, Swiftfiling, or Bizee exist. They can handle any legal details your LLC requires, like getting your EIN and sorting out your operating agreement.

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