How to Start a Business in Kansas
Kansas Business Facts
Kansas is known to be the breadbasket of the United State. Recently, Kansas has made changes to its unemployment insurance policies to promote economic development. The state has transformed laborers pay laws in the course of recent years to guarantee that they are even-handed and reasonable for all groups. Kansas is additionally a right-to-work state, with association participation at around 6.8 percent, well beneath the national standard. Kansas is one of the few states to restrict necessary association enrollment through the constitution as opposed to state statute.
Major Companies Headquartered in Kansas
Kansas is the headquarters of many major companies including Koch Industries, Butler Transport, Inc., Dillons Supermarkets, YRC Worldwide, and Sprint.
Startup Environment
Kansas recently ranked 5th in America for being Pro-Business. It also ranked 10th for its infrastructure, workforce, education, as well as cost of living. It has various public schools and colleges, airports, and great roads. Kansas continuously improves its transportation. Eligible new employers who launch their operations after July 1, 2014, are qualified for the new unemployment insurance contribution rate of 2.7 percent. On the other hand, if the business moves to Kansas from another state, the business may pay the Kansas rate comparing with the business’ earned involvement from the past state rather than the standard 2.7 percent.
Step 1: Decide on a Business Structure
There are 3 basic options: a Corporation, LLC or DBA. Click here to learn more about business entities.
- A Corporation is a separate entity (provides liability protection to the owners) with a structure that includes shareholders, directors and officers. It’s more complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
- An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity and provides very easy management (doesn’t require directors or officers) and taxation. The LLC has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
- A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
Step 2: Choose a Business Name
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Kansas, but we highly recommend you do the following before searching Kansas state databases:
- Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
- Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
- Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself. Tip: Search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.
- Make sure your company name choice is available by searching the Kansas Business Entity Database and doing a name search on the State of Kansas website. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).
NOTE: Familiarize yourself with the Kansas naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.
Restrictions on Kansas Business Name & Business Purpose
The state requires that the business name should be unique. Names of business entities that have been cancelled or forfeited remain unavailable for one year.
Step 3: Register the Business
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Kansas.
How to form an LLC in Kansas
- File the “Articles of Organization” with the Kansas Secretary of State.
- Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.
How to Incorporate in Kansas
- File the “Articles of Incorporation” with the Kansas Secretary of State.
- Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
- Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
NOTE: When registering a new company the Secretary of State can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.
TIP: Check our order form to see how long Kansas is currently taking to process regular and expedited orders.
Considerations when incorporating or forming an LLC in Kansas
- The Kansas Secretary of State could take anywhere from 4 to 5 weeks for mail filings to process the paperwork. This may increase during peak periods.
- TIP: Check our order form to see how long Kansas is currently taking to process regular and expedited orders.
- A Registered Agent is required for every Kansas Corporations and LLC. The chosen registered agent must have a physical street address in Kansas. A professional Registered Agent who will provide their address and forward any important documents to you. This is convenient if you have to move, since you won’t have to file forms or pay fees, (just update your address with your agent).
How to File a DBA in Kansas
Considerations when registering a Kansas business
- Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).
Ready to register a business in Kansas?
- We specialize in registering businesses in Kansas.
Step 4: Obtain your Federal Employer Identification Number (FEIN or “EIN”)
- Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
- To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.
- You can read more about corporate tax laws in Kansas on the Kansas Department of Revenue Taxation Division site.
Step 5: Open Company Accounts: Bank and Credit Cards
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
Top 5 Major Banks in Kansas
- UMB Bank
- Commerce Bank
- Bank of America
- U.S. Bank
- Capitol Federal Savings Bank
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Obtain Business Licenses and Permits
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.
Step 7: Annual and Ongoing Requirements
DBA: Your Fictitious Business Name should be valid for 5 years at which point you’ll need to renew it with the county.
LLC: Kansas corporations are required to file a Periodic Report with the Kansas Secretary of State each year on or before April 15 following the end of the taxable year, in addition to general taxation. Information on your business’ taxes can be found here.
Corporation: Business in Kansas should file a report annually with the Secretary of State of Kansas on or before April 15 following the end of the taxable year. LLCs and Corporations will pay a filing cost of $50.
Important Kansas Contacts
Kansas Secretary of State
Business Services Filing Center (for Corporation and LLC filings)
Memorial Hall, 1st Floor
120 SW 10th Avenue
Topeka, KS 66612-1594
Phone: 785-296-4564
Kansas Taxation Departments
Kansas Labor and Employment Departments
Kansas Startup Resources
1. Small Business Administration (SBA) Kansas District Offices
2. SCORE Kansas
- The Kansas City SCORE chapter has 65 volunteers with a wide variety of business backgrounds.
3. Kansas Legal Statutes
4. Kansas Chambers of Commerce
- Kansas Chamber of Commerce
- Greater Kansas City Chamber of Commerce
- Doniphan County Chamber of Commerce
- Hutchinson/Reno County Chamber of Commerce
5. 24/7 Missouri
6. Angel.co Kansas Startups
- A list of all 80+ Kansas Startups and 4,800+ Kansas angel investors registered with Angel.co. Good research resource.
7. Kansas Business News
8. EDCKC
- Development Corporation of Kansas City, Missouri (EDCKC) is a recognized economic development leader. With a mission to attract and retain businesses domestically and internationally, the EDCKC serves as a resource and advocate to cultivate the competitiveness of business locating or expanding to the City of Kansas City, Missouri.
9. Kansas Small Business Association
10. Bridging the Gap
- Bridging The Gap’s Green Business Network is a network of environmental professionals and business people who all share a common goal: making sustainable business decisions that protect our natural resources AND make good business sense.
