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Costs & Fees to Form and Operate an LLC in Kansas

How much does an LLC cost in Kansas?

Written by Nikki Winston – CPA, updated on

Starting a new business in Kansas means easy compliance requirements, low operational costs, and plenty of untapped market opportunities.

At the same time, company formation also assumes a host of formalities.

You need to understand the cost of new entity formation, tax registrations, and business licenses.

If you want to start an LLC in Kansas, here are the state fees and admin costs to keep in mind.

Kansas LLC formation cost: $160/$165

Filing formation documents with the Secretary of State officially creates your Kansas LLC.

To register a domestic LLC in Kansas, you’ll need to submit Articles of Organization (Form DL) to the Kansas Secretary of State.

Kansas Articles of Organization to create a Limited Liability Company
Kansas Articles of Organization to create a Limited Liability Company. Source: Kansas Secretary of State.

Foreign LLCs must file Form FA to register a foreign business entity in the state.

Both forms ask to specify your company’s name and address, registered agent information, and tax closing month.

Filing fees are the same for domestic and foreign LLCs at $165 by mail. But domestic LLCs can be formed online for $160.

Kansas Secretary of State does not accept emailed or in-person LLC formation requests. If it’s easier to fax your LLC formation documents, you can do so for an extra $20. Other types of expedited services are not available.

Extra Kansas LLC costs to account for

LLC formation costs are not the only ones to consider. You also need to spend extra on state registrations such as business license applications or name reservations.

Plus, professional services usage such as legal consultations for creating an operating agreement, business bank account fees, and business tax planning.

Here are the details about other costs you may incur when forming an LLC in Kansas.

Registered agent costs: vary

Your Kansas LLC will need to appoint a registered agent.

It’s an individual or business you’ve authorized to receive legal documents, tax notices, and service of process on behalf of your LLC. Because of this, your registered agent has to be available every day during business hours.

You can appoint yourself, a friend, or a family member as long as they are of legal age and have a physical address in the state. P.O. boxes are not accepted.

Another option is to hire a commercial registered agent service. Kansas-based providers typically charge $100 per year. Some also upsell extra services like LLC formation, EIN registration, and annual report filings. But you can do these things yourself if you want to save money.

Kansas doesn’t charge a separate fee for appointing a registered agent.

However, Kansas charges $35 each time your registered agent’s information changes.

Trade name registration: N/A

Kansas, similar to New Mexico, doesn’t have state laws recognizing or requiring fictitious/assumed name registration.

Meaning you cannot apply for a DBA/trade name in Kansas.

You can, however, register an alternative brand name by filing a trademark application with the Kansas Secretary of State. Trademarks must be distinctive from other registered business names or trademarks. The filing fee is $40.

You must already be using the trademark to advertise or provide services. Otherwise, your application will be refused.

Form TSA to register your trademark in Kansas
Form TSA to register your trademark in Kansas. Source: Kansas Secretary of State.

Kansas LLC name reservation: $35

If you’re just starting the business formation process, you can temporarily reserve a business name until your LLC is formed.

Complete the name reservation form and pay the $35 state filing fee for online applications and $55 for faxed applications.

Name reservations are valid for 120 days and are not renewable.

Certified document copies: costs vary

As a new business owner, you may need copies of business documents on file with the Kansas Secretary of State. These copies are not free.

Most certified copies of business documents cost $15 plus $1 per page, except the certificate of good standing, which is $10.

Business permits and licenses: costs vary

On a state level, there isn’t a general business license. But if you operate in a regulated industry, you may need to get a professional license and operating permits on a city/county level.

Requirements and fees vary by locality, but here are some common industries that may need a Kansas business license:

  • Accounting
  • Adult care
  • Ambulance and emergency medical services
  • Animal breeding, dealership, care
  • Architecture
  • Bakery
  • Body piercing
  • Bottlers
  • Car dealership
  • Catering
  • Child care
  • Construction
  • Cosmetology
  • Dry cleaning
  • Financial services
  • Medical services
  • Real estate services

As for the business license costs, these vary.

For example, a real estate appraiser’s license starts at $153 and can be more than $200 if you pay by credit card. An athletic trainer pays $80 for a new license and $70 per year for renewals.

Late renewals, reinstatements, or document copies can add up to another $15. A beer or wine distributor’s license is over $2,000 initially, but renewals are only $10.

You can get more information on licensure from the Kansas business portal.

Does Kansas have an annual LLC fee?

Yes, domestic and foreign LLCs must file an annual report with the Kansas Secretary of State.

The annual fee is $55. If a Kansas business does not file the annual report within 90 days following the due date, the company will be forfeited.

You’ll have to go through the reinstatement process to return to good standing, including additional fees and penalties.

What taxes do LLCs pay in Kansas?

You should be aware of the LLC’s tax obligations at the federal, state, and local levels.

For federal tax purposes, LLCs are classified as a “disregarded entity.”

Your business entity isn’t subject to corporate income taxes. Instead, all the profits and losses pass through to LLC member(s), who report them on personal tax returns.

At the state level, if your Kansas LLC sells tangible products or taxable services, you’ll have to apply for a sales tax permit.

There’s no fee for the application, but you will have to file sales tax returns and pay amounts due (rates vary) by the 25th of the following month.

Permits are issued by the Kansas Department of Revenue, and online filing is mandatory for applications. A sales tax permit lets you collect and remit Kansas 6.5% state tax, plus local sales tax surcharges.

If your LLC will have employees, you’ll have to pay employer taxes and file quarterly payroll tax returns. Rates vary but range between 2%-6%. At this stage, hiring an accountant is valuable so they can handle your payroll and tax requirements and help you budget for business expenses.

You can also learn more about how LLCs pay taxes from our previous post.

Conclusion: How much does an LLC cost in Kansas?

In Kansas, you can start a limited liability company for just $160. If you don’t require other filings or business licenses, you’ll pay $55 each year for your LLC’s annual report. Your taxes will vary as they are mostly based on your business income and industry.

Budget to spend about $100 more if you want to hire a registered agent service, plus another $50 to reserve your business name and get a certified copy of your LLC’s Articles of Organization.

If applicable, you’ll also have variable costs with state taxes and business license fees.

Considering these costs plus a buffer for the unexpected, $500 should be enough to create your Kansas Limited Liability Company.

The taxes and licenses can add hundreds or thousands to your startup costs, so it’s important to know what to expect. Contacting your local taxing authority and working with a tax professional can help you stay on top of these costs.

Nikki Winston, CPA

Article by:

Nikki Winston

CPA

Nikki Winston is a CPA who enjoys writing about accounting, tax, personal finance, and career advice. Catch Nikki on Twitter @NikkWinstonCPA.

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