The Limited Liability Company (LLC) is probably the most preferred business structure for many entrepreneurs planning to start a business in Kansas because of its flexibility and the personal liability protection it provides to business owners.
In addition to being the most flexible way to legally structure a company, an LLC offers several other benefits over other business structures, including numerous incentives, multiple tax options, ease of administration, flexibility in management, and lack of formalities as involved in a partnership, sole proprietorship, and corporation.
Starting an LLC in Kansas may be one of the fastest and easiest ways to start a business with a little research and the right steps. If you're sure that an LLC is a viable business structure for your company, and are planning to begin the application process, below is a step-by-step guide to starting an LLC in Kansas.
Steps to Start an LLC in Kansas
Here are the steps to follow to get started:
Step 1: Decide a Name for Your LLC in Kansas
The first step requires you to decide on a name for your LLC in Kansas according to the laws of the State of Kansas that apply when naming a business.
This includes the state laws that apply when naming your business. You should also consider that the name of your LLC is easy for your future clients to find.
Here are some tips and guidelines for choosing your LLC name in Kansas:
Consider an easy name so that your future clients can easily find it
Your LLC name must be unique and not include words that could confuse with government agencies
As per the 17-7673 Statute from Kansas, it must end with the phrases like "Limited Liability Company", “Limited Partnership” or one of its abbreviations, such as LLC, LC, Ltd. Co., etc.
Fortunately, you can easily check the availability of a preferred on the Kansas Secretary of State's website.
Do not forget to check if a matching domain name for your website is also available. Consider buying the URL at this point whether you've decided to create a website or not. This way you'll secure a URL before others buy it.
Step 2: Choose a Kansas Registered Agent
Appointing a registered agent is a requirement in the State of Kansas to start an LLC.
A registered agent can be an individual or a corporation licensed to do business in Kansas and have a permanent address there. It can be a company's owner with a physical address in Kansas or a registered agent services providing company.
Registered agents serve as a point of contact for your LLC in the state you're starting a business and accept important legal documents on your LLC's behalf, including legal documents, tax information, lawsuit notices, etc.
The professional registered agent service must:
have a physical address in Kansas
be authorized to do business in Kansas
must have an authorized agent available during normal business hours to receive legal documents.
Fortunately, you can be a registered agent for your own LLC in Kansas, if:
you have a physical address (not a P.O. box) in Kansas
you are 18 years or older
However, hiring a registered agent service is best to avoid spam and ensure reduced phone calls and a stress-free process.
Step 3: File the Articles of Incorporation for Your LLC in Kansas
To create an LLC in Kansas, you need to file the certificate of incorporation or Articles of Organization (the document that establishes your LLC in Kansas) with the office of the Kansas Secretary of State. You can file online or by mail on Form DL 51-09. The cost to register your documents with the state of Kansas is $160 online or $165 by mail.
For online registration, first, sign up with the KanAccess, and from the drop-down menu, select 'Kansas Business Center' and then go to the 'Business Entity Formation (AOI).' If your business offers professional services, you can form a 'Professional Association (PA)', a special type of LLC known as a professional LLC.
It takes no longer than 2 days by mail to an LLC in Kansas.
Step 4: Create an Operating Agreement for a Kansas LLC
Once the LLC is created, you need to create an operating agreement for it.
Although it is not a requirement in Kansas, having one is a good practice, especially if your LLC has more than one member. It ensures that you and your members are on the same page from the start.
An operating agreement is recognized as a governing document by the state of Kansas. It establishes who owns your LLC and clarifies the procedure your LLC will be run.
Step 5: Get an EIN for Your Kansas LLC
The next step requires you to get an Employer Identification Number (EIN), known as the Federal Tax Identification Number (FTIN), from the IRS for tax purposes if your LLC has more than one member. Just like a social security number is unique to a person, an EIN is unique to your business.
You need an EIN to:
open your business's bank account
for tax purposes, state and federal
to hire employees
If you already own a sole proprietorship and have an EIN for it, the IRS requires you to obtain a new EIN for an LLC in Kansas.
If all of the above steps seem overwhelming, you can opt for a paid entity formation service that will walk you through the entire process and make your LLC registration as easy as possible. It may be a paid online service, such as websites providing LLC formation services and other startup services, or an attorney to help you get through the process.
Step 6: Create a Website for Your LLC
Think of a website as your LLC marketing license. If you don't invest now, you will suffer in the future. It is a great step towards legitimizing your company.
You might have already secured a URL in the first step when you decided on your LLC's name. If not, you can do it now as soon as possible.
Many business owners do not consider creating a website because they think their company is very or belongs to a sector where there's no internet. However, having a website, regardless of your company size and the types of products or services you offer, expands your reach, improves your visibility, and helps you gain new customers and profits.
It is like an investment that benefits you in the long term. Although generic templates for websites are available online for people who have no experience in creating one, it is not as simple as it sounds. Also, you will need a professionally designed website to make your business stand out, which involves several steps, from finding a hosting company and designing its layout to creating and publishing the website. For this, you need a professional web-building service like Trady.com, dedicated to trades and home services companies.
Partnering with Trady.com enables you to benefit from exclusive features such as online bookings and service-based billing and get a well-designed top-notch website fast and cheap. In addition, the platform also offers additional benefits such as scheduling, follow-ups, invoicing, reminders and website management so that you can focus on growing your business.
And the services do not stop there. Trady.com also provides high-quality and personalized marketing services to businesses to help them increase their traffic, expand their online reach, climb search engine rankings, as well as promote them on traditional marketing channels.
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