Form a Kansas LLC
At LawInc we are Kansas LLC formation experts who can help you form a Kansas LLC, the right way. We file the Kansas LLC Articles of Organization with the Kansas Secretary of State Corporations Division and prepare a customized operating agreement. We can also obtain the Kansas LLCâ€™s EIN, in an quickly as 24 hours. Let LawInc guide you through the process of forming your Kansas LLC.
Let LawInc walk you through the Kansas Limited Liability Company formation process. Our clear, concise and easy to use website, helps keep things simple.
Kansas LLC Name
The first step in forming a Kansas Limited Liability Company (LLC) is selecting the business name. Kansas LLC names:
- Must contain the words must contain the words â€śLimited Companyâ€ť or â€śLimited Liability Companyâ€ť or the abbreviation â€śL.C.â€ť or â€śL.L.C.â€ť
- The name of a Kansas LLC must be distinguishable on the records of the Kansas Sec. of State.
An available Kansas LLC name may be reserved for 120 days.
LawInc.com permits you to choose up to three names and will conduct a name search for your Kansas LLC, prior to filing.
Kansas LLC Formation
Kansas LLC Filing Procedure: When forming a Kansas LLC, the Kansas Articles of Organization must be filed with the Kansas Secretary of State. The Kansas Articles of Organization must state:
- The Kansas LLC name.
- Name and address of each Kansas LLC organizer.
- Street address of Kansas registered agent.
- Street address of principle place of business.
Kansas LLC Organizers: An Kansas limited liability company can be formed by one (1) or more organizers.
Kansas LLC Members: Kansas LLCs require 1 or more members. There is no residence or age requirement. Kansas LLC members are not required to be listed in the Articles of Organization.
Kansas LLC Duration: The period of duration of a limited liability company shall be perpetual unless the Kansas Articles of Organization place a limitation on the companyâ€™s existence or until dissolution or termination.
Kansas Registered Agent: An Kansas LLC must maintain a registered agent and office to receive service of process in Kansas. The Kansas registered agent should be available, at an Kansas physical address, during normal business hours to accept important legal and tax documents on behalf of the Kansas LLC. The registered agent can either be (1) a domestic entity or a foreign entity that is registered to do business in Kansas or (2) an individual resident of the state. A Kansas LLC may not act as its own agent.
Kansas LLC Operating Agreement: After filing, it is highly advised that an operating agreement is drafted which dictates the LLC internal affairs and management. There is no set criteria, but an Kansas LLC operating agreement should reference how the Kansas LLC is managed, allocation of profits and losses and member capital contributions. The Kansas LLC operating agreement does not need to be filed.
Kansas LLC Post-Filing Requirements
Kansas LLC Annual Report: Kansas LLCs must file an annual report which is due on the fifteenth day of the fourth month after the end of the tax year. This is typically April 15. The Kansas LLC annual reports cost $50.00. To file and pay online, visit https://www.accesskansas.org/ssrv-annual-reports/index.do.
Kansas LLC Taxes
Kansas State Income Tax: The LLC tax rate for Kansas is variable, depending on Kansas taxable net income.
Federal Income Tax: An advantage of the LLC is its tax flexibility. LLC members are allowed to select how the entity will be taxed. An LLC may be classified for federal income tax purposes as either a:
- Sole proprietorship
- Partnership, or
Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on Kansas LLC net income must be paid just as you would with any self-employment business.
Most Kansas multi-member LLCs elect to be treated as partnerships by the IRS and file IRS Form 1065. On this form, Kansas LLC profits are reported and allocated to each of the owners according to the Kansas LLC’s operating agreement. Each owner is given a Schedule K-1, which shows each owner’s share of LLC income or loss. The owner then reports and pays taxes on this income on the owner’s annual 1040 income tax return. It is important to note that as with sole proprietorships, all Kansas LLC profits are taxed to the owners, even if they are not actually distributed by the LLC. This situation can arise when the LLC needs to use its profits to pay ongoing expenses.
If pass-through taxation is not desired, an LLC may elect to be taxed as a corporation by completing IRS Form 8832. If this election is made, the LLC is taxed as a C corporation by the federal government. Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to the taxable income of non-corporate taxpayers, it is possible a net income tax savings can result from this tax election. Additionally, an LLC can be taxed like an S corporation by filing IRS Form 2553.
Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. An EIN is typically required if the Kansas LLC has more than one owner or any employees.
Kansas LLC Dissolution/Cancellation
Kansas LLC Dissolution/Cancellation: In order to dissolve or cancel an Kansas LLC, the members or managers must file a Certificate of Cancellation with the Kansas Secretary of State. The LLC must be current and in active status prior to filing a Certificate of Cancellation. If you have any delinquent annual reports, the Kansas Secretary of State will not process the dissolution until they are filed. For online filing, visit the Kansas.gov Business Center website.
Acts Triggering Kansas LLC Dissolution: A Kansas LLC can be dissolved upon the happening of one of the following:
- At a time specified in the Articles of Organization or operating agreement;
- Upon occurrence of events specified in the Articles of Organization or operating agreement;
- Consent by the specific number or percentage of members indicated in the operating agreement;
- At any time there are no members; or
- Judicial decree to dissolve by a Court.