Cost of Starting an LLC in Kansas 2024: A Comprehensive Guide

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Cost of Starting an LLC in Kansas

Embark on your exciting entrepreneurial journey in Kansas with confidence, as our comprehensive guide helps you navigate the LLC world. Discover the costs of starting an LLC in Kansas, and determine if this flexible business structure aligns with your company’s goals and needs.

LLCBase supports you every step of the way, covering everything from initial setup fees to ongoing expenses. Dive into the dynamic world of Kansas LLCs and make informed decisions that make your business successful. Unleash the full potential of your Kansas LLC and soar to new heights!

Let’s explore the costs of starting an LLC in Kansas together! We’ve broken them down into initial costs, annual costs, and any extra expenses you may need to consider. Happy planning!

Initial Costs of Forming an LLC in Kansas

Are you curious about the initial costs of forming an LLC in Kansas? Check out the list below for a breakdown of expenses to get your business up and running!

1. Secretary of State Filing Fee

To form an LLC in Kansas, you must file Articles of Organization with the Kansas Secretary of State. The regular filing fee is $165 (by mail and $160 online) ; if you need expedited processing, it will cost an additional fee.

Kansas Domestic LLC
  • Online Filing: $165 (by mail and $160 online) + No franchise tax Franchise Tax.
  • Filing Statement of Information within 1 year of registration: $25 online and $27.5 by mail.
  • By Mail: Complete the application form and mail it to Kansas Office of the Secretary of State, Memorial Hall, 1st Floor, 120 S.W. 10th Avenue, Topeka, KS 66612. This costs $165 (by mail and $160 online) + Not available for counter drop off (non-refundable).
Kansas Foreign LLC
  • Online Filing: $165 (by mail and $160 online) + No franchise tax Franchise Tax.
  • Filing Statement of Information within 1 year of registration: $25 online and $27.5 by mail.
  • By Mail: Complete the application form and mail it to Kansas Office of the Secretary of State, Memorial Hall, 1st Floor, 120 S.W. 10th Avenue, Topeka, KS 66612. This costs $165 (by mail and $160 online) .

2. Name Reservation Fee

If you want to reserve your desired LLC name before filing the Articles of Organization, you can do so for a $30 (online) and $30 (offline) fee. The name reservation is valid for 120 days, giving you ample time to prepare and submit your Articles of Organization. To reserve a name, you must submit a Name Reservation Request form to the Secretary of State by mail or in person, along with the required fee.

3. Registered Agent Fee

Kansas requires all LLCs to have Registered Agent for the service of process. Registered Agent services typically cost between $50 – $150 per year, depending on the provider. Some popular Registered Agent service providers in Kansas include Northwest Registered Agent, LegalZoom, and Incfile. Besides the annual fee, these providers offer additional services such as mail forwarding and compliance notifications.

4. Business Licenses and Permits

Depending on your business type and location, you may need to obtain various licenses and permits in Kansas. The costs for these can vary widely, so it’s essential to research your specific business requirements. To identify the licenses and permits applicable to your business, you can use the Kansas Business Center (https://www.kansas.gov/businesscenter/) website.

5. Operating Agreement

Although not required by law, having an operating agreement for your Kansas LLC is a good idea. You can draft one yourself or enlist the help of an attorney, which can cost anywhere from $1,000 or more. The operating agreement outlines your LLC’s ownership structure, management, and procedures. It can help prevent member disputes and provide clear decision-making and profit distribution guidelines.

6. Employer Identification Number (EIN)

Most LLCs need an EIN for tax purposes, bank account opening, and hiring employees. You can obtain an EIN in Kansas for free from the Internal Revenue Service (IRS) by submitting an online application or mailing Form SS-4. The online application is the fastest method; you will receive your EIN immediately upon completion. If you choose to mail the form, the processing time can take up to four weeks.

Starting an LLC in Kansas involves certain costs, making selecting the right support for a smooth experience crucial. The best LLC formation services in Kansas offer expert assistance in comprehending, managing, and reducing expenses. Not only do these services simplify the setup process, but they also help identify solutions tailored to your unique needs. Consequently, your new LLC builds a solid foundation, optimally utilizing available resources and budget in Kansas.

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Annual Costs of Maintaining an LLC in Kansas

Wondering about the yearly expenses for sustaining an LLC in Kansas? Peruse the list below to discover the costs of keeping your business compliant and thriving!

1. Annual Franchise Tax

All Kansas LLCs are required to pay an annual franchise tax of No franchise tax, regardless of income or activity. This tax is due on the Not applicable in Kansas. It’s important to note that newly formed LLCs are not exempt from this tax and must pay the No franchise tax fee for their first year of operation. You can pay the franchise tax online through the Kansas Department of Revenue website or by mailing a payment voucher.

2. Annual Report

Kansas LLCs must file an annual report with the Kansas Secretary of State every the 15th day of the fourth month following the LLC’s tax closing month. The filing fee is $25 online and $27.5 by mail. The Statement of Information is due within 1 year of the initial filing of the Articles of Organization and then every the 15th day of the fourth month following the LLC’s tax closing month during the anniversary month. The Statement of Information form can be submitted online or by mail.

3. Registered Agent Fee

As mentioned earlier, LLCs in Kansas must maintain Registered Agent with an annual fee. This fee typically ranges from $50 – $150 per year, depending on the provider. When choosing Registered Agent, consider additional services offered, reputation, and customer support.

4. Business License and Permit Renewals

Depending on your business and location, you may need to renew licenses and permits periodically, which can incur additional fees. It’s essential to stay up-to-date on the renewal requirements and fees for your specific business licenses and permits to maintain compliance and avoid penalties. You can use resources like the Kansas Business Center (https://www.kansas.gov/businesscenter/) website and your local city or county government websites for information on renewal requirements and fees.

Recommended: Effortlessly manage your LLC’s annual expenses and obligations in Kansas – choose a reliable LLC Formation Service to simplify the maintenance process. Focus on growing your business today! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online LLC Setup

Additional Costs to Consider for Your Kansas LLC

Ready to explore the extra expenses you may encounter with your Kansas LLC? Browse the list below to be well-prepared, ensuring your business flourishes without surprises!

1. Tax Preparation and Accounting Services

Depending on the complexity of your business finances, you may need to hire a tax professional or accountant, which can cost anywhere from $100 to $1,000 or more per year. The cost of these services typically depends on factors such as the accountant’s experience, the size of your business, and the level of service required. To find a suitable tax professional or accountant, consider seeking recommendations from other business owners or using professional organization directories, such as the American Institute of Certified Public Accountants (AICPA).

2. Legal Services

Enlisting the help of an attorney for legal advice or to draft contracts can add to your LLC’s expenses. Attorney fees can range from $150 to $500 per hour or more, depending on the attorney’s experience and location. To save on legal costs, consider using online legal services, which offer legal document templates and attorney consultations at a fraction of the cost of traditional legal services.

3. Business Insurance

Depending on your industry and business activities, you may need various types of insurance, such as general liability, professional liability, or workers’ compensation. The insurance cost can vary widely based on factors like the size of your business, the amount of coverage needed, and the level of risk associated with your industry. For example, a small consulting business may pay around $500 annually for general liability insurance, while a construction company may pay several thousand dollars annually. To find the best insurance rates, consider getting quotes from multiple insurance providers and working with an insurance agent specializing in your industry.

4. Office Space and Utilities

Depending on your business, you may need to rent office space, which can add to your monthly expenses. The cost of office space in Kansas can vary greatly depending on location, size, and amenities. Remember that in addition to rent, you’ll also need to cover utilities, such as electricity, water, and internet service, which can add several hundred dollars per month to your expenses.

5. Marketing and Advertising

To grow your business, you’ll likely need to invest in marketing and advertising, which can vary widely in cost depending on your strategy. Other marketing expenses may include social media advertising, email marketing, and print materials like business cards and brochures. To maximize your marketing budget, consider researching low-cost or free marketing strategies, such as social media engagement, content marketing, and networking events.

How to Save on Kansas LLC Costs

Looking for ways to save on your Kansas LLC costs? Check out the strategies below to keep expenses in check and ensure your business thrives!

1. Do-It-Yourself (DIY) Formation

You can save on professional fees by handling the LLC formation process yourself. You can file the Articles of Organization, obtain an EIN, and draft an operating agreement by researching the necessary steps and required documents. The Kansas Secretary of State‘s website provides detailed information on forming an LLC, and the IRS website allows you to apply for an EIN online at no cost.

2. Utilize Online Resources

Many free or low-cost resources are available online to help with various aspects of your business, such as drafting an operating agreement or creating a marketing plan. For example, websites like SCORE and the U.S. Small Business Administration (SBA) offer free business templates, guides, and resources. Additionally, you can find low-cost marketing tools and platforms like Canva for designing marketing materials or Mailchimp for email marketing campaigns.

3. Shop For Professional Services

We recommend exploring various providers, including LegalZoom, for services such as Registered Agents and legal assistance to find the best value. By comparing rates and service offerings, you can ensure you obtain the most cost-effective solution for your business needs. Don’t hesitate to negotiate prices or inquire about discounts, as numerous providers are often willing to work with you to win your business.

4. Bundle Services

Some companies offer packages for LLC formation, Registered Agent services, and other business essentials, potentially saving you money. By bundling these services, you may save on individual service costs and streamline setting up and maintaining your Kansas LLC. However, carefully compare bundled packages to ensure they include the services you need and offer true cost savings compared to purchasing services individually.

FAQs

What is the minimum cost to start an LLC in Kansas?
The minimum cost to start an LLC in Kansas is $160.
What documents do I need to file to register an LLC in Kansas?
You need to file Articles of Organization with the Kansas Secretary of State to register an LLC in Kansas.
How much does it cost to file Articles of Organization with the Kansas Secretary of State?
It costs $165 to file Articles of Organization with the Kansas Secretary of State.
Is there an expedited processing option for LLC applications in Kansas?
Yes, you can pay an additional fee to expedite the processing of your LLC application in Kansas.
How long does it take to register an LLC in Kansas?
The processing time for LLC applications in Kansas is typically two to three weeks.
Do I need to hire a registered agent in Kansas?
Yes, every LLC in Kansas is required to have a registered agent.
Can I be my own registered agent for my Kansas LLC?
Yes, you can be your own registered agent for your Kansas LLC.
What is the registered agent’s role for my Kansas LLC?
The registered agent’s role for your Kansas LLC is to receive legal notifications and government correspondence on behalf of your LLC.
Can a registered agent forward mail to me or my business?
Yes, a registered agent can forward mail to you or your business.
What is the annual report fee for a Kansas LLC?
The annual report fee for a Kansas LLC is $50.
When is the annual report due for my Kansas LLC?
The annual report for a Kansas LLC is due every year by April 15th.
What happens if I don’t file my Kansas LLC’s annual report by the due date?
If you don’t file your Kansas LLC’s annual report by the due date, you will be charged a penalty fee.
How do I dissolve my Kansas LLC?
You need to file Articles of Termination with the Kansas Secretary of State to dissolve your Kansas LLC.
What is the cost to file Articles of Termination for a Kansas LLC?
It costs $35 to file Articles of Termination for a Kansas LLC.
Are there any annual franchise taxes for an LLC in Kansas?
No, there are no annual franchise taxes for an LLC in Kansas.
Do I need a business license to operate my LLC in Kansas?
It depends on your LLC’s location and type of business. You should check with the appropriate local and state authorities for specific licensing requirements.
Does a Kansas LLC require workers’ compensation insurance?
If your LLC has employees, you are required to carry workers’ compensation insurance in Kansas.
Can I change the name of my Kansas LLC?
Yes, you can change the name of your Kansas LLC by filing Articles of Amendment with the Kansas Secretary of State.
What is the cost to file Articles of Amendment for a Kansas LLC?
It costs $35 to file Articles of Amendment for a Kansas LLC.
Are there any restrictions on the name I can choose for my Kansas LLC?
Yes, the name of your Kansas LLC must be distinguishable from the names of other registered businesses in Kansas.
Can I reserve a name for my Kansas LLC before registering it?
Yes, you can reserve a name for your Kansas LLC for a fee of $30.
How long can I reserve a name for my Kansas LLC?
You can reserve a name for your Kansas LLC for up to 120 days.
Can I file for an LLC and a Trademark at the same time in Kansas?
Yes, you can file for an LLC and a trademark at the same time in Kansas.
Are there self-employment taxes in Kansas?
Yes, there are self-employment taxes in Kansas.
How do I pay self-employment taxes for my Kansas LLC?
Self-employment taxes for your Kansas LLC are paid through your personal tax return.
Is an LLC or Sole Proprietorship better when it comes to taxes in Kansas?
It depends on your specific business and financial situation. You should consult with a tax professional to weigh the pros and cons of both types of business structures.
How long is an LLC license valid in Kansas?
There is no specific duration for an LLC license in Kansas.
What is the cost of starting an LLC in Kansas?
The cost to start an LLC in Kansas is $165.
Do I need to file any documents with the state of Kansas to start an LLC?
Yes, you need to file Articles of Organization with the state of Kansas to start an LLC.
How do I file Articles of Organization for my Kansas LLC?
You can file Articles of Organization for your Kansas LLC online through the Kansas Secretary of State’s office or by mail.
Is there a filing fee to submit my Kansas LLC’s Articles of Organization?
Yes, there is a filing fee of $165 to submit Articles of Organization for your Kansas LLC.
Can I submit my Kansas LLC’s Articles of Organization online?
Yes, you can submit your Kansas LLC’s Articles of Organization online through the Kansas Secretary of State’s office.
How long does it take for the state of Kansas to process my LLC’s Articles of Organization?
It typically takes the Kansas Secretary of State’s office 2-3 business days to process submitted LLC Articles of Organization.
Does Kansas require any specific business licenses or permits for LLCs?
It depends on the type of business you are starting; Kansas requires additional permits or licenses for specific industries and regulated professions.
How do I know if my Kansas LLC needs a specific business license or permit?
You can check with the Kansas Secretary of State’s website or with the corresponding state agency depending on your industry for any additional licensing and permit requirements.
What is a registered agent in Kansas, and do I need one for my LLC?
A registered agent is an individual or business entity appointed to accept service of legal papers on behalf of an LLC. All Kansas LLCs required by law to have a registered agent.
If my Kansas LLC’s registered agent changes, do I need to update legal documents with the state?
Yes, within 30 days of a registered agent change, you need to update the Kansas Secretary of State’s office to reflect the change.
Can I serve as my own registered agent for my Kansas LLC?
Yes, you can be your Kansas LLC’s registered agent as long as you maintain a Kansas street address.
If I’m not a Kansas resident, can I still start an LLC there?
Yes, if you hire a registered agent who is a Kansas resident to accept service of process on behalf of your LLC.
Are there any ongoing fees or taxes required to maintain a Kansas LLC?
Yes, Kansas requires an annual report fee of $55, which must be submitted each year by April 15.
Is my Kansas LLC required to have a state tax ID number?
Yes, you should file for a Kansas state tax ID number with the Kansas Department of Revenue if you have employees in Kansas or if you sell taxable goods or services.
What are annual report fees for a Kansas LLC?
The annual report fee for a Kansas LLC is $50.
What is the turnaround time for processing my Kansas LLC’s Annual Report filings?
The Kansas Secretary of State’s Office will typically process Annual Report filings for LLCs within three days after submitting it online.
Can I file my LLC PDF annual report through kansas.gov?
Yes, business entity annual reports can be submitted through the Kansas Business Center at ksboc.ks.gov
Will I need to refile for an assumed name in the state of Kansas when I form an LLC?
No, your LLC’s legal name will be reserved when you form your entity, and no further assumed or trade names is necessary.
Will Kansas authorize for a Series LLC?
Yes, the state of Kansas allows for the formation of Series LLCsKANS.
Do Kansas LLCs have to renew annually with the SOS?
No, Kansas LLCs need to file the annual report to update their information and registered agent details.
How do I dissolve or cancel my Kansas LLC?
To dissolve a Kansas LLC, fill with“Articles of Termination” and provide the filing fee of $30 to the Secretary of State.
What does an EIN number refer to and is it applicable of a Kansas LLC?
An EIN number is an Employer Identification Number and you’ll need one if you hire employees. If you run a single-member LLC that has no employees, a personal social security number is acceptable.
Are registered agents in Kansas for LLCs the same as incorporating agents?
The registered agent on file with the state is the entity‘s official point of contact to receive service of process documents and other state notices; incorporating agents build out the documents you need to file with the state in order to form your LLC (and charge fees for their services).
Do I need to have an operational agreement in order to form a Kansas LLC?
While state law doesn’t require you to file an operating agreement with the office, she still strongly suggest having one.
Can an LLC operate internationally, particularly in Kansas?
Yes, when the need of it arises.
Who’s authorized to join as a registered agent for a LLC operating in Kansas?
A commercial registered agent is someone else who may act as a local address to receive legal papers on behalf of a Kansas LLC, however, at least a single member has to qualify as an effective agent in order to close on a property purchase.
I’m curious if I live in Kansas, if I need two offices located in my official state of operation?
You are not required by law to maintain an office but you must have a local point for delivery of notice and licensed service of process in the state.
Is a “Certificate of Good Standing” a necessity for my Kansas business to legally function?
While additional document A “Certificate of Good Standing” isn’t essential to form an LLC, some government contracts demand one before competitive bid on (often is employed to request state-specific borrowing approval).
Am I able to complete a trade or assume name for my brand when I file non-profit documents?
Yes, however, a business name is devoid of conveying appropriate legal permissions to you if another company has claimed it.
How is a foreign (out-of-state) LLC noticed in comparison to a Kansas registered organization?
Out-of-state LLCs making sales in Kansas may need to qualify for authorization, among different logistical and skilled rules.

Also Read

How to Save Money While Starting Your Business LLC in Kansas

First and foremost, it’s essential to create a budget and stick to it. Determine how much money you have available to invest in your business and outline all potential expenses, from registration fees to marketing costs. By having a clear picture of your financial obligations, you can better prioritize your spending and avoid overspending on unnecessary items.

One way to save money when starting your business LLC in Kansas is by taking advantage of the resources available to entrepreneurs. There are numerous organizations and programs in Kansas that offer support and guidance to small business owners, including assistance with business planning, financing, and networking. By tapping into these resources, you can access valuable tools and services that can help you save money and accelerate your business growth.

Another cost-saving strategy is to consider alternative funding options for your business. While traditional bank loans may be an option for some, there are also alternative financing methods available, such as crowdfunding, peer-to-peer lending, and small business grants. These options can provide you with the capital you need to get your business off the ground without accumulating a large amount of debt.

Furthermore, when starting your business LLC in Kansas, it’s important to carefully consider your overhead costs. Renting office space and hiring employees can quickly add up, so it’s worth exploring alternative options, such as working from home or renting shared office space. Additionally, outsourcing certain tasks, like accounting or marketing, can be a cost-effective way to access specialized expertise without the overhead of full-time employees.

In addition to being mindful of your expenses, it’s crucial to prioritize efficiency and productivity in your business operations. By streamlining your processes, investing in the right technology, and outsourcing non-core tasks, you can save both time and money. Embracing digital tools and automation can help you reduce manual labor and increase your overall productivity, allowing you to focus on growing your business.

Lastly, don’t underestimate the power of networking and building strong relationships with other business owners in Kansas. By connecting with like-minded entrepreneurs, you can exchange valuable insights, share resources, and potentially collaborate on projects to save costs. Building a network of supporters can also open doors to new opportunities and help you navigate the challenges of starting and running a business more effectively.

In conclusion, starting your business LLC in Kansas doesn’t have to break the bank. By being strategic in your financial planning, leveraging resources and support available to entrepreneurs, exploring alternative funding options, managing overhead costs, prioritizing efficiency, and building a network of supporters, you can save money and set yourself up for success as a small business owner. With careful planning and a commitment to financial discipline, you can achieve your entrepreneurial goals and lay a solid foundation for your business to thrive in the years to come.

Conclusion

Forming and maintaining an LLC in Kansas comes with various costs, from initial filing fees to ongoing franchise taxes and Registered Agent fees. However, you can successfully establish and operate your Kansas LLC by understanding these expenses and finding ways to save on costs. We hope this guide has provided you with the information you need to decide to form an LLC in Kansas. Visit LLCBase for more information about starting an LLC in Kansas. We wish you the best of luck on your entrepreneurial journey.

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