Selecting an entity type is one of the initial steps in creating a business in Kansas. Due to its adaptability, simplicity, and immunity from personal liability, a Limited Liability Company (LLC) is a popular choice among business owners. However, there are expenses and restrictions associated with creating an LLC. This post will cover the price of creating an LLC in Kansas as well as other crucial elements of operating a company there.
In contrast to other states, Kansas has one of the lowest formation costs for LLCs. The charge for submitting articles of organization, the legal paperwork that creates your LLC, is $165. You can pay this fee online or by mail. All LLCs must also submit an annual report to Kansas, which costs $55. Every year on April 15th, this report is due.
It is important to keep in mind that even though establishing an LLC in Kansas is reasonably priced, there can be additional expenses related to running your company. For instance, you can be required to acquire specific licenses and permits, such a professional license or a sales tax permit. The price of these licenses will be covered later in the article.
Yes, state taxes are levied on LLCs in Kansas. However, the structure of an LLC affects how it is taxed. An LLC is by definition a pass-through entity, which means that the business’s gains and losses are transferred to the owners’ individual tax returns. However, by submitting Form 8832 to the IRS, LLCs also have the choice of being taxed as corporations. In this scenario, in addition to any personal income tax, the LLC would also be subject to corporate income tax. How Long Does It Take in Kansas to Form an LLC?
In Kansas, creating an LLC is a reasonably simple process that may be finished in a few quick stages. To start, you must decide on a name for your LLC and make sure it is available. Searching the Secretary of State’s database will enable you to achieve this. The Secretary of State must then receive your organization’s papers of incorporation. After the IRS has recognized your LLC, you can apply for an Employer Identification Number (EIN), which is required for tax purposes.
Your unique situation and business objectives will determine whether you should set up an LLC or run a single proprietorship. A sole proprietorship is easier to set up and needs less paperwork, but it does not provide liability protection for the owner. This means that your personal assets may be at danger if your company is sued or goes into debt. An LLC, on the other hand, provides immunity from personal liability and could be more appealing to lenders or investors. An LLC can also have more than one owner, but a sole proprietorship can only have one owner.
Depending on the kind of license you require, Kansas business license costs can change. For instance, a contractor’s license might cost anywhere between $60 and $200 while a sales tax permit is only $50. In addition, some occupations, like those of a doctor, lawyer, or accountant, demand a professional license. Depending on the occupation, these licenses might cost anything from a few hundred dollars to several thousand dollars.
In conclusion, creating an LLC in Kansas is a simple and reasonably priced process. But starting a business has additional expenses, such paying for licenses and permits. The choice of whether to set up an LLC or run a sole proprietorship ultimately depends on your unique situation and business objectives.