How to Set Up an LLC in Kansas

by Elizabeth Rayne
A limited liability company is formed by filing articles of organization.

A limited liability company is formed by filing articles of organization.

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When deciding what kind of business to form, many entrepreneurs select a limited liability company because it provides the liability protection of a corporation, but also allows for a great deal of flexibility in management, similar to a partnership. To form an LLC in Kansas, you have the option to fill out and file your own paperwork with the Kansas Secretary of State or you may use an online documentation service to draft and submit the paperwork for you.

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Selecting a Name

Before registering your business, you must select a name for the LLC. You may not select a name that is already in use by another registered business in the state, unless you have written permission from the business to use the name. You may complete a business name search on the Kansas Business Center's website. The name for the business must include the words, "limited liability company," "limited company," "LLC" or "LC." Although not legally required, you can reserve the name to prevent anyone else from registering the name before you. You can reserve the name online, and the reservation will be effective for 120 days.

Articles of Organization

To officially form your LLC, you must file articles of organization with the Kansas Secretary of State. On the form, you will indicate the name and address of the business and designate a registered agent who will be responsible for accepting legal documents on behalf of the LLC. You may also provide the end of the LLC's fiscal year for tax purposes and the effective date of the business, if you want the date to be later than when the state receives the form. The form must be submitted with the appropriate fee, and signed by one of the organizers. You can submit the articles online, or mail them to the Secretary of State.

Operating Agreement

While not legally required, many LLCs draft an operating agreement in order to avoid conflicts between the owners of the business. An operating agreement is a legal agreement and may provide rules regarding the management of the business, how profits will be distributed and how new people may be brought into the business as owners. The LLC may be kept at the place of business. All the owners have the right to view the operating agreement at any time, and it should be kept at a place where it is accessible to everyone, such as in a corporate book.

Tax Issues

Kansas requires all LLCs to obtain a Federal Employer Tax Identification Number, which will be used to identify the business on all tax documents filed with the IRS and the state. The IRS allows LLCs to file as corporations, if the LLC makes that election. Otherwise, the LLC will file its federal taxes as either a sole proprietorship, if owned by one person, or a partnership, if the business has more than one owner.

Licensing

Depending on the type of business, you may be required to obtain certain licenses or permits before you can open your doors to the public. For example, the state requires licenses for accountants, chiropractors, architects and doctors. Contact your local or county clerk to find out if you are responsible for any local business permits or zoning requirements.