journey. LLCs come with fantastic benefits, including personal liability protection, tax incentives, and a level of flexibility corporations lack.
Unfortunately, the legal paperwork and numerous Kansas LLC fees can be enough to scare people away from obtaining LLC licenses from which many could benefit.
To help alleviate your concerns, we’re here to walk you through the main fees that Kansas companies are required to pay when forming an LLC and when they are due. We’ll also suggest additional documents you should consider that can make the process less stressful.
Are you ready to form your LLC? Let’s get started:
Kansas Business Name Reservation Fees
Kansas is home to more than 250,000 small businesses, so even if you already have a company name in mind, you need to make sure that it’s not already taken.
Since it’s an LLC, your organization must include “Limited Liability Company,” “LLC,” “L.L.C.,” “LC,” or “L.C.” in its name. Also, because it’s an LLC, you can’t include words that falsely imply what your business is, like “corporation,” “incorporated,” or any of their abbreviation thereof. You also cannot include anything that implies you’re a government entity, like “FBI” or “FDA,” or words like “insurance” or bank.”
You should also check your LLC name’s availability in the Trademark Electronic Search System (TESS) database. This database aims to show you if your business name is already trademarked by another organization. If you were to market your company with a name that’s already trademarked (e.g., Apple), you are committing trademark infringement.
Check Kansas’ business entity search station (BESS) to verify whether or not your company’s name is available and distinguishable from other Kansas LLCs. If it is, you can reserve it for $30, giving you exclusive rights to it for 120 days, which should give you enough time to form your LLC.
For extra credit, check to see if a variation of your business’ domain name is available. In the digital age, many of your potential customers may find your business online. By securing a domain name similar to your organization’s name, your customers will easily find you online.
You can check your organization’s domain availability on who.is. Who.is will show you multiple variations of your domain (e.g., .com, .co, .org, etc.) and how much your available options may cost you. Often, your domain name will cost you as little as $8.99 or $9.99; more competitive domains can cost thousands.
LLC In Kansas Fees For Resident Agents
Next, it’s time to select a resident agent.
A resident agent is a person or business entity that receives the financial and legal documents on your LLC’s behalf. Choosing to be your own registered agent won’t cost you anything, but some business owners and entrepreneurs prefer to hire a commercial resident agent service instead. There are two many reasons why.
First, your resident agent has to have a physical address in the state of Kansas (hence the term “resident”). Simply having a P.O. Box won’t do. If no one in your LLC lives in Kansas, you’ll need to hire a Kansas-based service.
Second, when you become an official LLC, the physical address of your resident agent becomes public knowledge. Many business owners are uncomfortable with this for multiple reasons — one of which being that their resident agent’s address is also their home address. Hiring a commercial resident agent service provides the privacy business owners want while they’re operating their businesses.
If you work with a commercial resident agent service, you can expect to pay between $100 and $300 per year.
How To Register A LLC In Kansas
Once you have your business name and resident agent squared away, it’s time to file your articles of organization. While this document is as important as it sounds, it’s far from intimidating. It’s not even a full page!
Your articles of organization is the legal document that outlines your LLC’s basic information, including your:
Review this document carefully before submitting. Any errors can cause you problems later on.
Your articles of organization cost $165 to file.
Kansas LLC Fees For Your Operating Agreement
Kansas doesn’t require you to draft an operating agreement when forming your LLC. However, we strongly recommend having one.
An operating agreement is a crucial document that outlines your LLC’s rules, regulations, and liabilities. Think of it as your organization’s constitution. Whether you’re a single-member LLC or a multi-member startup with hundreds of employees, your operating agreement serves as a reference point. A signed agreement can help address critical questions and protect your business during legal and financial disputes. Without one, critical decisions may end up getting made by the courts, which may not be in your or your LLC’s best interests.
Here are a few elements you should consider including in your operating agreement:
You can create an operating agreement for free, but it may be deemed inadequate in court, so we recommend hiring an attorney to create one for you instead. Attorney fees are known for being steep, but it’s worth it.
Business License Fees For Kansas LLCs
Kansas requires you to have all of your necessary licenses and permits before you can operate in the state. The state doesn’t have a general business license, but most organizations must obtain specific local, state, and federal licenses and permits based on their industry and location. For example, if you’re operating in Greenwood County, you’re required to obtain a Conditional Use Permit from the Office of Zoning.
Here are a few other licenses you may be required to have:
Given the sheer number and variety of these licenses, their costs and renewal periods will vary. However, many of them will require variations of the following information:
Sales Tax Registration Fees
If you want to sell or lease tangible assets subject to sales tax you're also required to have a sales tax license. To register for this license, visit Kansas’ Department of Revenue website.
Beyond withholding and paying sales tax when required, there’s no fee to obtain this license.
Kansas LLC Annual Fees
Your business is now a fully-operational LLC. Congratulations!
Now that you’re officially in business, you need to remain in good standing by complying with federal, state, and local requirements. Besides paying your taxes, the most significant condition to meet is to file your annual report.
This report is due between January 1st and April 15th of each year and costs $50 to file online and $55 via mail. If needed, you can also request a 90-day extension to file.One of the benefits of having a Kansas LLC is that your annual report is pretty affordable to file. In comparison, Delaware LLC fees are $300 annually, California LLC fees are $800 or more, and Tennessee LLC fees are $300 plus an additional $50 for each partner or owner.
Total Cost Of Kansas LLC Fees
Here’s a complete list of the LLC fees we’ve covered and how often they’re due:
Business name reservation
DBA name designation
$0, or $100 - $300
Articles of organization filing fee
Operating agreement costs
$0, or the cost of legal fees
Business license fee
Sales tax registration fees
$50 online, $55 by mail
Do you still have more questions about Kansas’ LLC fees or about LLCs in general? We’re here to help!
The information needed for your annual report is very similar to that of your articles of organization. The form requires:
If any of these have changed, it’ll help your vendors, creditors, and the local, state, and federal governments contact you more easily.
Yes. If you want to open a business bank account or work with a lending institution, they’ll usually require you to present a Certificate of Good Standing. You can request one online for $10 or a physical copy for $15.You can also validate your Good Standing status by visiting the Secretary of State’s website.
Single-member LLCs have just one owner or managed, while multi-member LLCs have more than one. Whether you’re operating as a single-member LLC or an LLC with hundreds of members, the requirements are the same.
We strongly recommend forming an LLC.
LLCs enjoy many of the tax benefits a sole proprietor receives. However, LLCs also separate your business and personal assets. If you lack this protection, you’ll be responsible for any of your company’s liabilities and debts. If your company experiences hardship or you get sued, your personal assets, including your home and car, could be in jeopardy.
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