Guide to Starting a Kansas LLC

Looking to start an LLC in the Sunflower state? Let’s help you bring your vision to life. Whether you’re in the bustling streets of Wichita, the historic avenues of Topeka, or the vibrant business districts of Kansas City, setting up an LLC in Kansas is an adventure in its own right. And if you’re feeling like sifting through the state’s legal requirements is harder than predicting a tornado, don’t worry. You’re not alone. 

In this guide, we’ll walk through the essential steps you’ll need to navigate, covering everything from choosing a distinctive name to understanding state-specific guidelines and everything in between.

How to Start an LLC in Kansas

Grab your most trusted business hat, and let’s explore the five steps to starting an LLC in Kansas.

1. Name your Kansas LLC
2. Appoint a Kansas resident agent
3. File Kansas Articles of Organization
4. Create an operating agreement
5. Apply for an EIN
6. File your LLC’s BOI report

Now, a word to the wise: This guide focuses on starting a domestic LLC in Kansas. If you’re looking to start a foreign LLC, professional LLC (PLLC), or a Series LLC, you’ll need to follow slightly different steps, which aren’t covered here.

Step 1: Name your Kansas LLC

Select a unique name for your LLC. Start the LLC formation process by naming your business. It’s not just about branding: Without a distinct name, your business doesn’t exist in the eyes of the Kansas Secretary of State. Accordingly, you’ll need to decide what to call your business before you proceed with your Kansas LLC registration.

Kansas Limited Liability Company Name Requirements

To some, this step may seem simple: Perhaps you have an LLC name in mind already or want to use your own name in the title of your business. However, you’ll need to keep two official requirements in mind when picking a company moniker.

• Your name must be completely unique. It can’t match (or be too close to) the name of another registered business in Kansas. To check if your name is available, it’s essential to run a Kansas business name search. You should also run a trademark search on the U.S. Patent and Trademark Office’s website (and Kansas’s website) to ensure you’re not infringing on federally or state-protected trademarks. 
• Your name must include a designator, such as “LLC,” “Limited Liability Company,” or an accepted abbreviation.

Reserving a Business Name

Once you have a name selected, you have the option to reserve it so that no one can grab it before you can form your business. This isn’t required, but it could be helpful if you have a good name in mind but aren’t yet ready to file your LLC paperwork.

You can reserve a name for 120 days by completing a form and paying a small fee. At the time of this writing, Kansas currently charges a $30 filing fee for this reservation.

Get a matching domain name

If you can, try to pick a business name that matches an available domain name. That way, you can set up a website that’s easy for potential customers to find. This isn’t a legal requirement, but it’s a strategic choice.

You’ll need to do a domain name search to see what’s available to use. Once you’ve decided on a name, take advantage of our services to easily register your domain name.

‘Doing Business As’ Names

If you want to use a DBA, or “doing business as” name in Kansas, you can. Kansas actually doesn’t even require you to register your DBA. That said, if you eventually expand to other states, you will likely be expected to register your DBA in that state.

Step 2: Appoint a Kansas resident agent

Name a resident agent for your LLC. As in every state, Kansas requires new LLCs to designate a registered agent as part of the business formation process. In Kansas, the official term for a registered agent is “resident agent,” although these terms mean the same thing.

The primary purpose of a registered agent is to receive documents related to legal proceedings as well as certain state correspondence on behalf of your business. Simply put, if your business is subpoenaed or sued, the state of Kansas and process servers need to know how to get the paperwork to your LLC’s leadership.

Kansas Registered Agent Requirements

Kansas lays out the following criteria for who can serve as a registered agent. The agent: 

• Can be an individual or business entity allowed to do business in Kansas
• Must have a physical office in Kansas (called the “registered office”)
• Must be present at the address during normal business hours

Hiring an Outside Registered Agent Service

Many entrepreneurs assume they should serve as the registered agent and use their business location as the registered office address. Technically, that’s legal. Unfortunately, this approach can have serious downsides.

Some benefits of hiring an outside registered agent service include:

• Privacy: If you receive notice of a lawsuit against the company, it won’t happen in front of customers.
• Flexible hours: Because a registered agent must be available during traditional business hours, you can work whenever you’re most productive in growing your company.
• Organization: If you use our resident agent service for Kansas, we’ll accept your important legal documents and store them in your electronic dashboard. This way you can view, download, or print them anytime online.

Step 3: File Kansas Articles of Organization

File the LLC paperwork. Next, you’ll need to file Kansas LLC Articles of Organization. Now that you have all the necessary information, like name and registered agent, you should have the information needed to file the paperwork with the Kansas Secretary of State. The official form name is the “Limited Liability Company Articles of Organization,” and you can file online or by mail. You must include a filing fee of $166.

To complete the form, have the following information handy. Bear in mind that this information will become public record:

• Your LLC’s name
• Your resident agent’s name and registered office address
• Mailing address for your business
• Tax closing month (most businesses select December to stay on the calendar year)
• Effective Date
• Signature of the authorized person (such as an owner of the LLC in Kansas)

Usually, the day your LLC becomes effective is the day it’s filed. However, if you want to delay your filing, you can select a future filing effective date by writing “Effective date: [the date you want the LLC to become effective]” under the signature of the authorized person’s signature. The date can’t be more than 90 days from the day you file.

Some LLCs do this if they’re filing toward the end of the year and don’t want their LLC to take effect until January 1 of the new year.

LLC Formation Services

Filing official government documents like this can be intimidating and/or complicated for many people, which is why we’re here. With our business formation plans, our professionals handle the filing for you to make sure it’s done quickly and correctly the first time.

If you do your formation with us, once the state approves your LLC in Kansas, your paperwork will be available from your ZenBusiness dashboard. There you can keep it and other important paperwork digitally organized. And, once you get your physical paperwork back from the state, you’ll want to keep it in a safe location along with your other important documents, such as your Kansas LLC operating agreement, contracts, compliance checklists, etc. We offer a customized business kit to help you keep these important documents organized and looking professional.

Step 4: Create an operating agreement

Draft an LLC operating agreement. Kansas law doesn’t require new LLCs to have operating agreements before being formed. However, it’s highly advisable to create one anyway, whether you’re operating alone or with other partners.

Operating agreements clearly define the terms of ownership and management, providing additional protection and options for everyone involved. Without an agreement, you’ll be subject to Kansas’s default rules for limited liability companies, which may not reflect your wishes.

Here are just a few of the benefits an LLC operating agreement offers to business owners:

• An operating agreement helps further separate your business from your personal assets in the eyes of the courts, thus providing more shelter for your personal assets from legal liability.
• Operating agreements can help prevent and resolve conflict between multiple members (LLC owners), clearly indicating each member’s powers and privileges.
• Potential investors and lenders typically wish to review the agreement before making any financial commitments to an LLC.

What to Include in Your Operating Agreement

No two businesses will have the exact same operating agreement; it’s a custom document. Some companies hire a lawyer to complete this step, while others use a template to draft their own. No matter how you create the agreement, here are some of the most common topics you’ll probably want to include:

• Membership responsibilities
• How profits will be distributed
• How to add or remove members
• How the LLC will be managed
• Procedure to dissolve the LLC, if applicable
• Conflict resolution process
• Other items that fit your business’s unique needs

If you’d like additional insight into how to write your operating agreement, we offer a customizable Kansas operating agreement template to help you start.

Step 5: Apply for an EIN

Get an IRS Employer Identification Number (EIN). After officially setting up an LLC in Kansas, you may want to apply for an EIN. An EIN (also known as a Federal Employer Identification Number or Federal Tax Identification Number) is registered with the Internal Revenue Service (IRS). An EIN functions much like a Social Security number for your business. It allows you to perform key tasks, such as hiring employees and paying taxes.

If you operate your LLC alone, it’s possible you may not need an EIN for your business. However, if your LLC has any employees or multiple partners involved, you need to obtain an EIN. Moreover, if an EIN isn’t a requirement for your LLC, it may help open a business bank account or obtain financing.

You can apply for an EIN through the IRS website. However, if you’d like to minimize your interactions with that particular government agency, our Federal Employer Identification Number service can obtain one for you.

Step 6: Submit your LLC’s beneficial ownership information report

The Corporate Transparency Act is now in effect, meaning small businesses like your LLC have a new filing requirement: submitting a beneficial ownership information report. This act was passed in hopes of reducing and deterring financial crimes like money laundering by making it more difficult for companies to hide illegal activities behind shell corporations. To accomplish this, the act requires businesses to report information about their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). 

The beneficial owners of your LLC are those who hold 25% or more of the ownership interest, exercise substantial control over it, or get significant economic benefit from its assets. For each beneficial owner you have, you’ll be asked to provide their name, address, and identifying documents. Failing to disclose this information can have hefty civil and criminal penalties. 

You can file your BOI report on FinCEN’s website through the online form or uploading a PDF version to the site. It’s free to file, and you’ll only need to submit the federal form (Kansas doesn’t have a state version). If you create your LLC during 2024, your BOI report is due within 90 days of Kansas approving your Articles of Organization; that time period drops to 30 days for LLCs formed in 2025 and beyond. If you organized before 2024, you’ll have until January 1, 2025 to file. 

You can learn more about the BOI report and the Corporate Transparency Act on FinCEN’s website. And if you’d like help filing this report, our BOI report filing service has you covered.

Steps to Take After Establishing Your LLC in Kansas

After forming your Kansas LLC, it’s important to take additional steps to ensure your business is set up correctly and remains compliant with state regulations.

Getting Business Licenses and Permits

Secure the necessary licenses and permits for your business, as there’s a very good chance you’ll need at least one. License requirements vary depending on your LLC’s industry and location within Kansas. For example, while Kansas doesn’t have a general business license at the state level, it’s possible your city or county might administer this license. 

For example, in Topeka, there isn’t a general business license but there are license requirements for salvage, alcohol distribution, and more. Kansas City is similar, but they also require commercial zoning applications and occupation taxes. Similarly, in Overland Park, there isn’t a general business license but many occupations will need to get a license from the county clerk. 

There are also industry-specific licenses and permits to account for, ranging from medicine to cosmetology and everything in between. Long story short: every business will have slightly different requirements. Our business license report can greatly simplify the task of determining what licenses and permits your business requires. 

Opening a Business Bank Account

Once you have an EIN, you’ll be able to open a business bank account. Having separate accounts for your business and your personal banking is critical for sorting out your finances at tax time. It also helps you avoid commingling funds, which helps maintain your personal liability protection and makes logistics simpler at tax time.

We offer a discounted small business bank account for your new business. This allows for unlimited transactions, online banking, a debit card, and more. When you want to authorize others in your business to use the account, we offer a banking resolution template to simplify the process.

Setting Up an Accounting System

After you’ve got your business bank account set up, you should also implement a system to manage your finances. This tool will help you track expenses, prepare for tax season, and see at a glance how your business is doing.

There are lots of different options from a simple spreadsheet to downloading software. Some businesses use our ZenBusiness Money tool. What matters most is that you set up a system and stick to it.

Kansas Formation Fees

The cost of starting an LLC in Kansas varies a little bit from one business to another, but here are some of the most common fees you can expect:

• Articles of Organization: $160 for online filing, $165 for paper filing
• Registered Agent Service Fee: Varies, usually between $100 and $300 annually
• Annual Report Fee: $50 for online filing, $55 for paper filing (annually)

Many businesses will have other expenses, such as license fees. It’s also important to note that these fees are subject to change, so be sure to consult the Secretary of State for the most up-to-date fees.

Kansas Legal Requirements

Running an LLC in Kansas involves adhering to specific legal obligations to ensure compliance and maintain good standing. This includes maintaining accurate business records that reflect the LLC’s financial status and operational decisions. Every year, your LLC must file an annual report with the Kansas Secretary of State, detailing essential information about your business. It’s also crucial to stay informed about state and federal tax requirements, including any industry-specific taxes that may apply. 

Additionally, if your LLC has employees, you must comply with employment laws, which cover aspects like workplace safety and payroll taxes. For example, Kansas employers are required to maintain a workers’ compensation insurance policy if their payroll exceeds $20,000 per year. There are also unemployment insurance taxes to account for. And, of course, you’d be remiss not to keep your business licenses up to date.

Ultimately, keeping up with these legalities is essential for the smooth operation of your Kansas LLC. It’s highly recommended to consult with a local attorney or tax professional on a regular basis to help ensure that you’re up to date with all Kansas requirements.