When forming a Kansas LLC, you must follow specific filing processes, including paying the necessary filing fees to the Kansas Secretary of State.
To give you an idea of how much you'll need to form a Kansas LLC, we consulted our LLC experts and spent a month compiling this ultimate guide.
Here’s what you need to know.
Quick Summary
- The Kansas LLC Articles of Organization cost $166, paid to the Kansas Secretary of State.
- All Kansas LLCs must file an annual report to the SOS for $50 to update the company's information and stay compliant.
- As per the KS Stat 17-6202 statute law, all LLC owners in Kansas must appoint a registered agent to handle all compliance and receive legal documents from the state.
How Much Does an LLC Cost in Kansas?
An LLC in Kansas costs $166 to submit your Articles of Organization to the Kansas Secretary of State.
However, you may bear other filing costs during the process, including resident agent fees, annual reports, Kansas business licenses, and many more.
Kansas LLC Filing Fee
The Kansas LLC filing fee is $166. This is the initial and one-time fee you must pay when forming your first LLC in the state, and it covers your Articles of Organization.
During the incorporation process, the Kansas Secretary of State will approve your paperwork in three weeks, the standard processing time.Â
However, if you want accelerated approval, you can pay an additional $50 for expedited shipping and have your registration processed within one business day.
Although this filing fee is a one-time cost, if your LLC registration is denied for one reason or another, you'll have to pay the amount again during your subsequent registrations.
Also, while you can submit the registration documents for free, you can hire a professional LLC formation service to file the paperwork and submit it to the SOS on your company's behalf for a fee.
Kansas Registered Agent Service Fee
The appointment of a Kansas registered agent, also known as a resident agent, is required to create a Kansas LLC.
All Kansas LLCs are required by state law (KS Stat 17-6202) to retain a registered agent with a Kansas mailing address.
To receive court papers for your company, your resident agent must be on duty at that location throughout regular hours of operation.
Although you or any LLC partner can serve as your own resident agent, many LLCs opt to use a specialized registered agent company.
By restricting the number of private details you put on your formation papers, using a registered agent service may help you safeguard your privacy.
A professional registered agent service will also ensure that your court orders are always handled and taxes filed on time; this maintains your company in good standing with the state.
The Kansas LLC cost of a registered agent service varies per business but expect to pay anything between $70-$300 per year.
Kansas Business/License Tax
Kansas has different business taxes for LLCs, including:
- State Income Tax: Kansas's state income tax rate ranges from 3.7% to 5.7%. After submitting articles of formation and an operating agreement, the amount you are due to the Secretary of State will be determined by the business income you generate.
- Sales Tax: Based on Kansas law, the sales tax rate is 6.5%. This is valid for any transaction you make following your online LLC formation and liability protection filing.
- Withholding Tax: A Kansas LLC manager must deduct 7.65% from employment income to cover federal taxes. This sum will be required when you file the company's federal taxes.
- Self-Employment Tax: As a self-employed business owner, you will be liable for paying a federal self-employment tax of 15.3%. The federal state determines this, which may be predicated on the LLC's tax closing month or tax closure date when you finish registering your business.
Other LLC Filing Costs
Let's take a closer look at other costs related to starting an LLC in Kansas.
1. Business Name Reservation
Suppose you wish to secure a business name for 120 days with the Kansas Secretary of State without immediately forming your limited liability company.
In that case, you can complete a Temporary Reservation of Business Entity Name form and incur a $35 filing fee or $30 for online filing.
To ensure your business name complies with state laws, run a Kansas LLC business search and read about the criteria for business names.
2. Kansas Annual Report Fee
According to the Kansas department office, annual reports are essential for a company's activities.
Thanks to these reports, the state can stay on top of any modifications implemented during the previous year, for example, a change in your organizational structure, registered agent service name, and address, or the location of your firm.
Businesses must submit an annual report to the Secretary of State once a year in Kansas [1]. A $50 filing fee is due when you submit your annual report online, and $55 for mail filings.
The Kansas Secretary of State will not assess a late fee if an annual report is not filed.
Yet, if you don't file a report within 90 days after your specified deadline, the state will effectively disband a domestic firm or terminate the incorporation of a foreign corporation.
3. Certified Document Copies
A certified copy is a replica copy of a legal file attested as an accurate, legitimate copy of the original record.
The Secretary of State will charge $15 for certification plus $1 per page for certified copies of legal papers.
You should have certified copies made for your documentation, or if you need to give a financial institution or regulatory agency a copy of a document, such as your incorporation documents.
Orders may be placed in person, via mail, or by fax. For certified copies to be faxed back to you, an extra $1 per page is required.
4. Kansas Certificate of Existence
In Kansas, a certificate of existence costs $15 ($10 if ordered online). A certificate of good standing certifies that your LLC has submitted all necessary state paperwork and that all the state fees and taxes are current.
A certificate of good standing could be required if you want to register your LLC in a different jurisdiction or request business financing.
You must first locate the details of your LLC via the Secretary of State's Business Entity Search and then order the certificate of existence online via KanAccess.
5. LLC Operating Agreement
Your operating agreement serves as the legal framework for your Kansas business, whether it’s an LLC or a sole proprietorship.
An operating agreement is a binding legal agreement between members that establishes the guidelines and policies your company will adhere to, including voting procedures, profit and loss sharing, and partnership interest.
Since it’s an internal document, you can create your own operating agreement for $0 or hire a professional LLC service to draft it for you for a fee ranging between $100-$250.
6. Employer Identification Number
The Federal Revenue Service should provide an exclusive Employer Identification Number (EIN) to each LLC operating in the United States.
As a Kansas business owner, you must have an EIN when you file your state and federal taxes, register a Kansas business bank account, and make employee monthly payments.
You can get one for free from the IRS website, or you can have an LLC service provider get one for you for anything between $50-$100.
7. Professional Business License Fee
In professions requiring specific education or certification, professional licenses are necessary. This includes a broad range of occupations, such as therapists, accountants, doctors, and tattoo artists, to mention a few.
In Kansas, you can obtain a professional license from the organization overseeing your sector [2]. For example, suppose you're a CPA expert and run an accounting firm.
In that case, you need to contact the Kansas Board of Accountancy to obtain the proper professional license before doing business in Kansas.
The professional license requirements and costs vary by field and granting body.
Kansas Foreign LLC Registration
A Kansas foreign LLC is one that was established in another jurisdiction or nation and wants to expand the business to Kansas.
These LLCs are mandated to submit an Application for Registration as a Foreign LLC with the Kansas Secretary of State to start operating an LLC in Kansas.
If you're registering a foreign LLC, remember to attach your certificate of existence from the domestic country where your company was founded, along with other registration documents as specified by the SOS.
A Kansas Foreign LLC costs a $165 filing fee.
FAQs
How Long Does It Take To Form an LLC in Kansas?
It takes 3 weeks to form an LLC in Kansas. Note that this is the standard processing time, but you can pay an additional $50 for a one-business-day turnaround.
Does an LLC Need an EIN in Kansas?
Yes, an LLC needs an EIN in Kansas for federal and state tax purposes. Additionally, an EIN is essential for preventing business identity theft, showing LLC authenticity, opening a bank account, and building business credit.
Do You Need Professional Help with Your Kansas LLC?
Establishing a Kansas LLC business structure offers several benefits to company owners, including tax savings, minimal paperwork, increased business freedom, and exposure to limited liability shields.
If you need assistance with the LLC formation process, consult the top Kansas LLC providers specializing in this area.
These LLC formation services will help you navigate the steps of creating your articles of organization, drafting the operating agreements, and obtaining an EIN, allowing you to enjoy hassle-free compliance as an entrepreneur.
Several of these companies also provide free registered agent services and premium services such as assistance with business licenses and establishing a business bank account for your Kansas startup firm.
References:
- https://www.kansas.gov/annual-reports/index.do
- https://ksbiz.kansas.gov/plan/research-licenses-permits/
