How to Start a Business and Form Your LLC in Kansas

Kansas Business Facts and Environment

Kansas Business Facts

Kansas is known as the breadbasket of the United States. In 2018, the SBA reported there were 251,985 small businesses operating in the state. Recently, Kansas has made changes to its unemployment insurance policies to promote economic development. Labor pay laws have been updated in recent years to guarantee even-handed and reasonable pay for all groups. Kansas is additionally a right-to-work state, with association participation at around 6.8 percent, well beneath the national standard. The Sunflower State is one of few states to restrict necessary association enrollment through the constitution as opposed to state statute.

Major Companies Headquartered in Kansas

Some of Kansas’ largest companies are Koch Industries, Butler Transport, Dillons Supermarkets, Synergy Group and AMC Theatres. Sprint, NPC International, and YRC Companies are also among the state’s leaders in business and employment.

Startup Environment

Kansas recently ranked 5th in America for being Pro-Business. It also ranked 10th for its infrastructure, workforce, education, as well as the 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 compared 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 DBA, a Corporation, or an LLC. Click here to learn more about business entities.

• 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.
• A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. 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 but provides very easy management (doesn’t require directors or officers) and taxation. 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.

Step 2: Pick 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 fewer 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 canceled 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.

How to File a DBA in Kansas

• Kansas does not have DBA registration requirements at the state or local level. You can register your business name for 120 days while you form a corporation or LLC.

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.

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 Name Registration in Kansas

• Find out the availability of the business’ name.
• Go to the Kansas Secretary of State website and search the state database of names.
• Pay $50 for the filing fee.

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 Start Now? Let Us Do The Work

Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.

• Learn how we can file your Corporation or LLC formation for you
• Read our verified reviews and 100% Satisfaction Guarantee
• Contact our friendly support team if you have any questions

Step 4: Obtain Your Federal Employer Identification Number

Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLCs 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.

TIP: We will obtain your EIN for you if we form your company.

Step 5: Open Company Bank and Credit Accounts

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 about 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

Click here to view a list of our recommended banks in our Vendor Network.

TIP: Our business formation service includes a free banking resolution for your use.

Step 6: Set-up An Accounting System

Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.

Company documents generally are required to be kept for 3 years, including a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments, or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.

Review our list of Accountants, Accounting Software, and Bookkeepers in our Vendor Network.

Step 7: Obtain 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 8: Hire Employees (if applicable)

If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.

Review our list of recommended Payroll Providers in our Vendor Network.

Step 9: Obtain Business Insurance

There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.

Click here to view our list of insurance providers in our Vendor Network.

Step 10: Systemize and Organize

Prepare the business as if someone needed to take it over and run it for you. This means having a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.

Step 11: Branding and Marketing

Now that you’ve set up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.

Step 12: Annual and Ongoing Requirements

DBA: Kansas does not have DBA registration statutes.

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: Businesses 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.

Click here to view our MyCompanyWorks Premium™ service which can automate most of your ongoing compliance tasks.

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 Department of Revenue – Division of Taxation

Kansas Labor and Employment Departments

• Kansas Department of Labor

Kansas Startup Resources

1. Small Business Administration (SBA) Kansas District Offices

• Wichita District Office

2. SCORE Kansas

• The Kansas SCORE chapter has 65 volunteers with a wide variety of business backgrounds.

3. Kansas Legal Statutes

• Kansas Corporation Law – note this is the broad code that includes various other topics including business corporation.
• The Kansas Revised Limited Liability Company Act – the specific act that applies to Kansas LLCs.
• Kansas State Board of Technical Professions – Rules and Regulations – this includes regulations on Kansas’s professions and businesses

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. Kansas Angel Investors

• List of Angel Investors in Kansas

6. Kansas Business News

• The Wichita Eagle
• The Kansas City Star
• Wichita Business Journal

7. Kansas Department of Commerce

• Kansas Business Incentives and Services is an excellent resource for doing business in the state of Kansas.

8. Kansas Small Business Association

• The Kansas Small Business Development Center (Kansas SBDC) is part of America’s Small Business Development Center Network, the most comprehensive small business assistance network in the United States.

9. 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.