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Welcome to the world of launching a business in Kansas! If you’re considering forming an LLC, it’s important to understand the costs involved. These include application fees and ongoing expenses to keep your LLC running.
This guide will walk you through all potential expenses when forming an LLC in Kansas. If you need assistance, LLC services like ZenBusiness can help with paperwork to ensure everything is done correctly.
With the right information and support, you’ll be ready to manage the costs and steps of creating your Kansas LLC.
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What Is the Cost of Forming an LLC in Kansas?
The primary expense for initiating an LLC in Kansas is the $160 fee required to electronically submit your LLC’s Articles of Organization to the Kansas Secretary of State.
Here’s the LLC Cost Guide for all US States:
Kansas Foreign LLC Formation Costs
If your existing LLC is registered in a different state and you intend to extend your business operations to Kansas, you must establish your LLC as a foreign entity in Kansas.
The fee for registering a foreign LLC in Kansas amounts to $165. This registration process involves submitting an Application for Registration of Foreign Covered Entity (Form FA).
Annual Cost for LLCs in Kansas
When establishing an LLC in Kansas, it’s crucial to comprehend the ongoing expenses tied to LLC upkeep.
By factoring in these costs, you can approximate the total financial commitments involved in operating a Kansas LLC. The key continual expenditures encompass the Resident Agent Fee, which mandates each LLC to possess a registered agent responsible for legal documents; employing a professional service might incur fees between $100 to $300 yearly.
Additionally, an Annual Report is obligatory, necessitating filing with the Secretary of State at a cost of $50 for online submissions and $55 for mail-in submissions.
How Much Does It Cost to Start an LLC in Kansas With the Best LLC Services?
ZenBusiness LLC Formation Cost
The initial essential expense for filing an LLC in Kansas amounts to $160, with possibilities for increased costs based on chosen options. Regarding processing time, the standard duration stands at 2 – 3 weeks. Should you require a faster process, there’s the option to expedite it for $50, resulting in a quicker 4 – 6-day processing period. Alternatively, for the most accelerated processing, a rush service is available at $100, reducing the timeline to 1 – 2 days.
ZenBusiness presents a range of three pricing tiers for their business formation services: Starter, Pro, and Premium. The Starter option, priced at $0 plus state fees, caters to fundamental business formation requirements. Stepping up, the Pro plan, costing $199 plus state fees, encompasses added benefits like expedited filing and registered agent service.
For those seeking the utmost coverage, the Premium plan, available at $349 plus state fees, not only includes all Pro plan features but also offers unlimited Worry-Free Compliance to assist businesses in maintaining conformity with both state and federal mandates.
Additionally, with the purchase of any plan, ZenBusiness extends a complimentary year of Worry-Free Compliance.
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Additional Costs When Starting an LLC in Kansas
Kansas LLC Name Costs
The expense for registering a business name in Kansas is $0. When you submit your Articles of Organization filing and it’s approved by the state, your chosen Kansas LLC Name is granted approval without any additional charges.
However, if you wish to secure your selected name before forming your LLC, you can file an LLC Name Reservation Form (Form NR) and pay either $30 online or $35 through mail to reserve the name for up to 120 days.
Kansas Registered Agent Costs
Kansas registered agent Fee can either be $0 or $125 annually. When establishing your LLC in Kansas, it’s a legal requirement to assign a registered agent, also known as a Resident Agent. This individual or entity acts as the recipient of legal documents and official state notifications on behalf of your LLC.
The registered agent must possess a physical address within the state and remain available during regular business hours. Opting to serve as your own registered agent or having someone you know take on this role incurs no extra charges.
Alternatively, you have the choice to enlist a registered agent service, typically costing between $100 and $300 each year. These companies often extend additional beneficial business services and can safeguard your confidentiality.
It’s advisable to consider a registered agent service if you lack a state address, as Kansas law mandates registered agents to maintain a physical address in the state. Additionally, if you wish to shield your address from public disclosure, some companies might allow you to use their address for privacy purposes.
Kansas Operating Agreement Costs
There’s no cost associated with creating an LLC Operating Agreement in Kansas. An LLC Operating Agreement is a documented agreement among the LLC Members that outlines intricate details about ownership, management procedures, and profit allocation within the LLC.
It’s advised for both Single-Member and Multi-Member LLCs to formulate an Operating Agreement, retain it in their business records, and provide copies to all Members. This agreement holds particular significance for LLCs with multiple members.
While various websites usually impose fees ranging from $50 to $200 for LLC Operating Agreements, in Kansas, there’s no such expense involved.
Kansas EIN Cost
Obtaining an EIN Number, which is also referred to as an Employer Identification Number (EIN) or Federal Employer Identification Number (FEIN), comes with no charge. This unique identifier is essential for tasks such as filing income taxes, establishing an LLC bank account, and employing personnel, if necessary.
While various online platforms often levy service fees for acquiring an EIN for your LLC, it’s important to note that this can actually be accomplished without any cost. The process involves obtaining an EIN from the Internal Revenue Service (IRS) through an online application, which typically takes just a few minutes to complete.
Kansas LLC Taxes
The annual cost of various Kansas LLC taxes that owners are obligated to pay can vary significantly. Some of these taxes comprise:
Federal Income Taxes
When it comes to your LLC’s federal income taxes, the IRS offers different treatment options based on its structure. For Single-Member LLCs, the IRS considers them as Disregarded Entities, meaning the LLC doesn’t file its own federal income tax return. Instead, the owner handles the return and tax payment.
The taxation method depends on ownership: individual ownership is akin to a Sole Proprietorship, while ownership by another company treats it as a branch of the parent company.
Multi-Member LLC Taxes
For LLCs with multiple owners, they’re taxed as Partnerships. The LLC must file a 1065 Partnership Return and provide a Schedule K-1 to owners detailing their share of profits. The individual owners then report K-1 income on their personal tax return (Form 1040) and pay taxes accordingly.
Husband and Wife LLC Taxes
In specific states like Texas, a husband and wife LLC can choose to file taxes as a Single-Member LLC (Qualified Joint Venture) rather than a Multi-Member LLC. However, this option isn’t available in non-community property states like Kansas.
Electing Corporate Taxation
Apart from the defaults, an LLC can opt for corporate taxation. This requires careful consideration and consulting an accountant. There are two corporate election types: S-Corporation and C-Corporation.
- S-Corporation Taxation: An LLC can request S-Corporation taxation by submitting Form 2553 to the IRS. This choice can reduce self-employment taxes for established businesses with profits, though it involves additional LLC costs. Generally recommended for businesses with consistent revenue exceeding $70,000 per LLC Member.
- C-Corporation Taxation: Form 8832 allows an LLC to elect C-Corporation taxation, mostly beneficial for large employers seeking healthcare fringe benefit savings. However, this election is uncommon among most business owners.
Kansas State Income Tax
In Kansas, Single-Member LLCs don’t file a state-level return; their owner includes LLC profits/losses in their personal state-level return. For Multi-Member LLCs, both the LLC and owners might need to file a Partnership return at the state level.
Local Income Tax
Local income taxes might be necessary for your LLC in municipalities. Seeking an accountant’s assistance is advisable, and contacting the local municipality can clarify requirements.
Kansas Sales Tax
Selling products in Kansas may require collecting sales tax via a Seller’s Permit obtained from the Kansas Department of Revenue (KDOR). This permit allows tax collection on retail sales, often termed as a resale, wholesale, or sales tax permit/license.
Kansas LLC Payroll Taxes
Kansas LLCs with employees must handle payroll taxes encompassing various federal, state, and local elements. While you can manage these taxes yourself, their complexity might lead to errors and penalties. Many opt for payroll companies or consult their accountants for guidance.
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Kansas LLC Cost FAQs
How Much Does It Cost to Open an LLC in Kansas?
The initiation of a Kansas LLC involves a fee of $160, which covers the single payment needed for filing the LLC Articles of Organization. For the swiftest LLC establishment process, it’s advisable to opt for online submission.
Certain Kansas LLCs might necessitate obtaining a business license. The need for such a license hinges on both the industry your LLC operates in and its specific location. The expenses tied to local business permits exhibit variability.
How Much Does an LLC in Kansas Cost Per Year?
Every Kansas LLC is obligated to remit a $50 Annual Report fee to the Secretary of State each year, constituting the sole obligatory annual state fee for maintaining your LLC’s compliant status. This payment is essential to ensure the active standing of your Kansas Limited Liability Company. In addition, if you’ve engaged a Resident Agent service, you will have an annual subscription charge, typically amounting to around $125 annually.
Depending on your LLC’s industry and geographical location, certain LLCs might be required to obtain a business license in Kansas, necessitating potential annual renewal fees for the business permit, a matter that can be confirmed by consulting your local municipality.
Should I Hire an LLC Formation Service?
While it’s not obligatory to hire a professional service for establishing your Kansas LLC, you do have the option to manage the formation independently. Yet, for those seeking efficiency and precise filing, enlisting the services of a ZenBusiness is advised.
With a track record of exceptional customer support, they even provide complimentary registered agent services for the initial year, alongside additional offerings like creating an Operating Agreement and handling Annual Report submissions.
Conclusion
In conclusion, establishing an LLC in Kansas necessitates a thorough evaluation of associated costs. While Kansas presents an appealing business environment with its regulatory advantages and potential economic benefits, the formation of an LLC requires consideration of filing fees, registered agent expenses, and potential legal or advisory costs. Notably, LLC service providers like ZenBusiness extend streamlined options to facilitate the procedure.
Business owners must judiciously balance these expenses against the state’s conducive legal infrastructure and business standing to ascertain whether creating an LLC in Kansas harmonizes with their overarching business objectives and fiscal capacities.
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About the author
Dr. Gabriel O'Neill, Esq., a distinguished legal scholar with a business law degree and a Doctor of Juridical Science, is a leading expert in business registration and diverse business departments. Renowned for his academic excellence and practical insights, Dr. O'Neill guides businesses through legal complexities, offering invaluable expertise in compliance, corporate governance, and registration processes.
As an accomplished author, his forthcoming book is anticipated to be a comprehensive guide for navigating the dynamic intersection of law and business, providing clarity and practical wisdom for entrepreneurs and legal professionals alike. With a commitment to legal excellence, Dr. Gabriel O'Neill, Esq., is a trusted authority dedicated to empowering businesses within the ever-evolving legal landscape.