Form A Limited Liability Company in Kansas

Name Your LLC

The first thing you need to do is name your LLC.   You must make sure that the name of your LLC is original, and you can do so by checking Kansas’s business center website to determine if the name is available.  Names must contain “Limited Liability Company” or “Limited Company” or an abbreviation thereof, such as L.L.C. or LLC.  The company name must also not confuse it with known government entities such as the FBI or CIA.

 

Articles of Organization and Registered Agent

Next you can file your Articles of Organization online at this website or by printing out these online forms and mailing them to the address designated therein.  Be prepared to pay the non-refundable filing fee required to incorporate your LLC.

In the Articles of Organization you must assign a registered agent, which must be a person or business designated by your new company.  It cannot however, be the new company, but may be a person within the company.  The purpose of a registered agent is to have one person in charge of officially receiving papers or important documents on behalf of the company, such as service of process for a lawsuit, during normal business hours.  The registered agent must have a Kansas State address or be authorized to conduct business in Kansas.   This agent will be designated in the Articles of Organization.  There are companies who provide the service of being a registered agent for other companies.

 

Operating Agreement

It is recommended (but not required in Kansas) that you also file an Operating Agreement with the State, which will be the governing agreement between the members or co-owners of the LLC. (See this article that talks briefly about how the Operating Agreement protects members of the LLC.)  There are many free Operating Agreements that can be obtained online, but it is recommended that you contact your local counsel to draft a custom operating agreement that is tailored to your situation and business needs.

 

Post Filing Requirements

In Kansas, LLCs are required to file an Annual Report statement that is due 4th months after the close of the business’s fiscal year.  Those businesses that are valued at over $1,000,000 are subject to a franchise tax.

To operate a business successfully in the United States LLCs must have an EIN, which is a Federal Tax identification Number.  An EIN is obtained free of charge from the IRS after a company is formed. This number tracks the business entity and allows the IRS to properly assess and collect taxes, similar to the way a social security number does so for citizens.   Business owners can apply online for an EIN, or print the necessary form and mail it in.  Companies should figure out their State tax obligations at SBA.gov.

Depending on the type of business that your LLC will operate, certain business licenses or local permits are required by each state for its operation.  In addition, there are many employer requirements for insurance, employment eligibility verification, income tax withholding, and other reporting requirements depending on your state.  Contact your local counsel or employment specialist to determine which of these requirements you must fulfill.

 

Photo By: Roy Montgomery