Changing Ownership of an LLC in Kansas: A Step-by-Step Guide

Because it offers flexibility in management and taxation, an LLC is a common business structure among entrepreneurs. Changes in ownership, however, can occur for a number of reasons, including mergers, purchases, or just the desire to sell an ownership stake. What you need to know if you own an LLC in Kansas and want to change who owns it is as follows:

1. Examine the Operating Agreement

Examining the operating agreement is the first step in altering an LLC’s ownership. The guidelines and steps for transferring ownership are laid out in this paper. In the absence of an ownership transfer clause in the operating agreement, the Kansas Revised Limited Liability Company Act’s default provisions will take effect.

2. Obtain the agreement of all participants Prior to the transfer of ownership, it must be approved by all LLC members. You need to find a buyer willing to buy your ownership stake if you want to sell it. Make sure they are prepared to assume the obligations of an LLC member before transferring ownership to a family member or friend.

3. Submit Articles of Amendment

Following approval from all members, you must submit Articles of Amendment to the Secretary of State of Kansas. The ownership details for the LLC are updated in this document. Articles of Amendment must be filed for $35.

4. Update Tax Information

Following the ownership transfer, you must notify the Kansas Department of Revenue of any changes to the LLC’s tax information. You must give the department the required records if you have achieved tax exemption. If you don’t already have one, you might also need to get a Kansas business entity ID number.

You must submit an application to the Kansas Department of Revenue in order to become tax exempt in Kansas. At least 30 days must pass before the exempt activity starts in order to submit the application. A letter from the IRS awarding tax-exempt status or verification of your organization’s status as a nonprofit must also be included with your application.

The Kansas Secretary of State issues businesses with a unique identification number known as a Kansas business entity ID number. It is used on legal papers to identify firms and for tax purposes. By submitting the necessary paperwork to the Kansas Secretary of State, you can get a Kansas business entity ID number if you don’t already have one.

You must fill out the Kansas Business Tax Application and submit it to the Kansas Department of Revenue in order to register for Kansas’s sales tax. A Kansas sales tax number is also required because it is a special number that is given to businesses for sales tax purposes. The nine-digit sales tax number is commonly formatted as 00-0000000.

Finally, to change an LLC’s ownership in Kansas, all members must agree, articles of amendment must be submitted to the Kansas Secretary of State, and tax information must be updated. Follow the steps given by the Kansas Department of Revenue if you need to become tax exempt in Kansas, get a Kansas business entity ID number, or register for sales tax.