In Kansas, forming an LLC is a reasonably simple process that may be finished in a few quick steps. A common business structure that offers personal liability protection for its owners while also being adaptable and simple to run is an LLC, or limited liability company. This article will explain how to form an LLC in Kansas.
Step 1: Pick a Name for Your Company Choosing a name for your company is the first step in creating an LLC in Kansas. Your company name must be original and not being used by another company in the state. You can use the Kansas Secretary of State’s business name database to see if your preferred business name is available. Upon deciding on a name, you can reserve it with the Secretary of State’s office for 120 days by submitting a Name Reservation Application.
Step 2: Submit Articles of Incorporation You must submit Articles of Organization to the Secretary of State’s office in Kansas to formally create your LLC. The name of your company, the name and address of the LLC’s registered agent, and the names and addresses of the LLC’s members must all be listed in the Articles of Organization. The Articles of Organization must be filed for a price of $165.
Step 3: Obtain All Required Licenses and Permits You might need to apply for particular licenses and permits from the state of Kansas or your local government, depending on the kind of business you intend to run. For instance, the Kansas Department of Revenue may require you to obtain a sales tax authorization if you intend to offer products or services. On the website of the Kansas Business Center, you can obtain details on the essential permits and licenses.
Create an operating agreement in step four. It is a good idea to draft an operating agreement for your LLC even though it is not legally necessary. A legal document known as an Operating Agreement describes how your LLC will be managed, including the duties and rights of its members, how profits and losses will be allocated, and how significant decisions will be made. An Operating Agreement can offer a clear structure for how your firm will run and help prevent disputes amongst members. The price of forming an LLC in Kansas. The $165 filing fee for the Articles of Organization is included in the price of forming an LLC in Kansas. Depending on the kind of business you plan to run, you might also need to pay for permissions and licenses. How Long Does It Take in Kansas to Form an LLC? In Kansas, processing for LLC filings normally takes 3-5 business days. However, if the Secretary of State’s office needs to seek more data or if there are mistakes or omissions in your file, it can take longer. Positive aspects of LLCs Compared to other business arrangements, LLCs have a number of advantages. Personal liability protection, or the general protection of LLC members’ personal assets from corporate debts and liabilities, is one of the key benefits. Additionally, LLCs provide administrative and tax flexibility and are typically simpler, cheaper, and easier to set up and run than corporations.
An LLC may have a larger tax burden than other business arrangements like sole proprietorships or partnerships, which is one of its possible drawbacks. The LLC owners’ portion of the company’s profits may also be subject to self-employment taxes. The fact that LLCs could have more paperwork and formalities than other business arrangements is another possible drawback. Finally, compared to other business formats, LLCs may be less adaptable in terms of capital raising.