Kansas LLC: Everything You Need to Know
Registering a Kansas LLC (limited liability company) provides business owners many advantages compared to forming a corporation or running a business as the sole proprietor. 3 min read
Registering a Kansas LLC (limited liability company) provides business owners many advantages compared to forming a corporation or running a business as the sole proprietor. Benefits include tax savings and less paperwork, greater business flexibility, and access to limited liability protections.
How to Start an LLC in Kansas
Forming an LLC in Kansas might sound like a challenging process, but it's simple if you know where to begin and understand what's required. The Kansas Secretary of State will process your paperwork, taxes, and more, so register with this organization to begin. After you've registered, you can file forms, pay fees, and meet all other requirements through the Kansas Secretary of State.
Of course, the first step isn't to start the paperwork to create an LLC. This is one of many entity types, and whether it's right for you depends on your business requirements and whether the benefits of forming an LLC are worth your time. Consider these factors carefully before you begin the application process.
- An LLC is a business structure that is more tax efficient than larger corporations and also has the benefit of giving its members greater flexibility in leading the organization. It provides limited liability protections for all LLC partners. Moreover, an LLC can have as many members as the current members desire. In this case, members include individuals, corporations, and more. This is considered one of the biggest benefits over corporations and other entities.
- Because an LLC is part of a corporation and partnership, it is a hybrid structure that provides the benefits and flexibility of doing business on a small scale without the limitation of running a corporation.
- An LLC offers much more flexibility to manage the company than corporations or sole proprietorship. Moreover, liability protections are provided in proportion to the amount a person invests in the LLC. This keeps each member's assets separate from the LLC and protects those items in the event of a lawsuit or bankruptcy. Finally, LLC members pay taxes based only on their ownership share.
Forming a Kansas LLC: Name Your LLC
Before you begin, remember to research all entity options available to you. Consider your business goals and your ability to reach potential clients. If you still decide that an LLC is right for you, note the following rules for naming your LLC:
- In Kansas, the name must have “Limited Liability Company” or the abbreviation “L.L.C.” or “LLC.”
- Words like “Bank,” “Attorney,” and “University” are restricted under Kansas law. You'll have to file extra paperwork to use them, and names like “Attorney” require that a licensed individual — an attorney in this case — be a member of the LLC. Similarly, words like “FBI” and “Secret Service” are prohibited to avoid confusion with government agencies. The Kansas Guidelines & Restrictions page has more information about these regulations.
- Search the State of Kansas website to confirm that the name you want is available.
- You can use your name or a member's name in the LLC title. It can also have words such as “company,” “institute,” and “trust.” Once you've found an available name, you can register it for a $35 fee.
- If you like a name but aren't ready to file, you can reserve it with the Kansas Secretary of State for 120 days. Complete a Temporary Reservation of Business Entity Name (Form NR 52-01) form online or print and mail it. This will cost an additional $35 fee.
Remember to confirm that your desired name is available before filing. If you have other work to do before moving forward with filing, take advantage of the 120-day reservation to keep others from claiming the LLC name.
Forming a Kansas LLC: Choose Your Members/Managers
In Kansas, you can run an LLC on your own or select partners and/or members to help run the business. Though working in a partnership might seem like a good idea, it introduces new responsibilities to you as an LLC owner. Consider these factors before deciding:
- In the case of a professional LLC, members need to be licensed in order to practice the similar type of profession as the LLC.
- Having at least one member can prevent a court from liquidating your assets in the event of a lawsuit or bankruptcy.
- Multi-member LLCs must file partnership tax returns, which are complex.
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