Many Kansas entrepreneurs choose to form a limited liability company (LLC) because of the many benefits of this business entity type. An LLC provides liability protection, for instance, so your assets are not at risk if your business is sued or cannot pay debts.
An LLC is a “pass-through entity” for tax purposes, meaning that the LLC itself is not taxed. Instead, income passes through the business to the LLC owners or members, who report it on their tax returns. LLCs also offer flexibility in terms of management and taxation.
Creating an LLC is relatively straightforward, but ensuring it’s done correctly is crucial to getting your Kansas business on the right foot. The most critical step is filing articles of organization.
What Are Articles of Organization for an LLC?
The articles of organization is a legal document filed with the Kansas Secretary of State to form an LLC officially. It will include your business name, address, resident agent information, and more, as detailed below.
First, Select a Resident Agent for Your Kansas LLC
Kansas requires LLCs to appoint a resident agent, a person or company authorized to accept and respond to official business correspondence, such as legal, tax, or financial documents.
The resident agent ensures all important notices and documents are received. In Kansas, the resident agent can be an LLC member, individual, or entity that meets state requirements. In Kansas, a resident agent must:
- Be 18 years or older
- Have a physical address in the state
- Be available during regular business hours
- Be registered to operate in the state of its business
Many business owners hire a resident agent service to ensure their LLC stays fully compliant and for convenience.
If you choose to be your resident agent, you must be at your resident agent’s address for all business hours. A resident agent service allows you to be wherever you need to be to run and grow your business.
How to Submit Articles of Organization in Kansas
To start, visit the Kansas business portal and create an account to access the articles of the organization online.
In Kansas, the articles of organization require the following information:
- LLC name
- Principal office address
- Resident agent information
- Resident office address
- Tax closing month
Once signed in, select “Kansas Business Center” from the drop-down menu and click submit. Next, click “Kansas Business Entity Formation.” You’ll create a Kansas Business Filing Center account on the following screens.
Once that’s done, you’ll select limited liability company and go to the articles of organization form.
You’ll go through several screens to fill in the required information, electronically sign the form, and then go to payment.
The filing fee is $165. You should receive confirmation within 24 hours if you file online. The turnaround time for filing by mail can be up to five days.
Some entrepreneurs hire an LLC formation service like ZenBusiness to handle this step, saving time and ensuring the process is done correctly.
Draft an Operating Agreement
Kansas does not require an operating agreement, but it’s a crucial document that defines members’ ownership percentages and profit allocations. Those are the two key elements, but it should also include the following:
- Each member’s rights and responsibilities
- Management structure and roles
- Voting rights of each member
- Rules for meetings and voting
- What happens when a member sells their interest, becomes disabled, or dies
You can find operating agreement templates online, but it’s best to have them drawn up or reviewed by an attorney. The language of an operating agreement is crucial and can often help determine how member disputes will be resolved. Here you can obtain a free operating agreement template for your Kansas LLC.
Contact Information for the Kansas Secretary of State
Main website: State of Kentucky – Secretary of State
Resources for business owners: Kansas Business One Stop Website
Online portal website: KanAccess
Kansas Secretary of State
Memorial Hall, 1st Floor
120 SW 10th Avenue
Topeka, KS 66612-1594
Business Services Division
There’s only one way to create an LLC in Kansas: successfully filing articles of organization. If you make any mistakes, you’ll likely have to refile, so be sure to do it right the first time and set your business up for serious success!