You might be wondering if you can utilize a DBA if you want to launch a business in Kansas. DBAs, or “doing business as,” are names used by companies to conduct their operations that are distinct from their legal names. DBAs in Kansas are known as “trade names.”
The good news is that trade names are permitted by Kansas law for commercial entities. There are several crucial considerations, though. To begin with, you must file a trade name registration form with the Kansas Secretary of State’s Office. There is a $35 cost for this, which can be paid online or by mail. No one else in Kansas may use your registered trade name for their company after that.
It’s crucial to understand that registering a trade name will not provide you with any legal protection for such brand. You must file a trademark application with the United States Patent and Trademark Office if you wish to safeguard your company name.
The use of a trade name does not establish a distinct legal entity, which is another item to bear in mind. Depending on how you’ve set up your company, it will still be regarded as a single proprietorship, partnership, LLC, or corporation. Simply put, using a trade name enables you to conduct business under a name other than your legal corporate name.
You must follow a few steps if you choose to organize your company in Kansas as a S corporation. Here is a quick summary:
1. Pick a name for your company and confirm that it is legal to use in Kansas. On the website of the Kansas Secretary of State, you may see if the name you want is available. 2. Submit your incorporation papers to the Kansas Secretary of State’s office. You must include details such the name of your corporation, the address of the registered agent, and the total number of authorized shares. 3. Acquire any required licenses and permits. You might need to get state and municipal licenses and permissions to lawfully run your business, depending on your industry and region. 4. Hold the board of directors’ first meeting. You must elect officers, enact bylaws, and distribute stock during this meeting. 5. Request from the IRS an employer identification number (EIN). This is required for tax-related reasons. 6. Submit the IRS with your S corporation election. As a result, your corporation is able to be taxed as a pass-through entity, allowing income and losses to be transferred to the shareholders’ individual tax returns.
What Is a Closed Corporation, People Also Ask? Closely held corporations, usually referred to as closed corporations, are a particular kind of corporation that are owned by a small number of people, frequently relatives or close acquaintances. A closed corporation does not offer stock to the public way a publicly traded company does.
Small enterprises that seek to preserve ownership and control within a close-knit group sometimes use closed corporations. Decision-making can be streamlined and there is less chance of outside interference because there are fewer stockholders.
In Kansas, closed corporations are subject to the same regulations as other corporate entities. Due to their smaller size and restricted ownership structure, there might be some changes in how they are taxed and run. The best course of action if you’re thinking about forming a closed corporation in Kansas is to speak with an attorney or accountant who can inform you of the particular legal and tax ramifications.