Starting a new LLC in Kansas comes with a few fees and expenses, but it’s not expensive to start a new business in the state. In fact, Kansas is one of the more affordable states to have an LLC.
There are two common ways to complete and submit the paperwork required to start an LLC. You can complete all of the forms yourself, which is time-consuming but quite low-cost. You can alternatively use an LLC formation service, which normally is still quite affordable and saves a lot of time.
Business owners open LLCs both ways, and you’ll have to decide whether a DIY approach or LLC formation service is better for you. Knowing the steps and expenses involved will allow you to make an informed decision.
Creating a new LLC in Kansas requires multiple steps. Each is straightforward although perhaps time-consuming, and each has required or optional costs to consider.
You’re going to need a name before you can actually form your LLC. A good name will be memorable and informative, and it has to be available.
Kansas requires that an LLC’s name is distinct from all other business names being used in the state. The name also needs to end with a designator such as “limited liability company” or “LLC.” The full list of Kansas LLC naming regulations is contained in the Business Entity Standard Treatment Act.
You can conduct a Name Availability Search on the Kansas Secretary of State’s website, to see whether a preferred name is already being used.
Once you’ve found a name that’s both good and available, you can secure the name by simply using it on your LLC’s Articles of Organization. This is the most common way to secure a business name, and there’s no additional fee incurred.
If you have a good business name but aren’t ready to file Articles of Organization, you can request a business name reservation. A business name reservation lasts 120 days (not renewable), and costs either $30 – $35.
To request a name reservation, complete and submit the Temporary Reservation of Business Entity Name form. The fee is $35 if you use the paper form and mail it in. The fee is $30 if you complete the form online through the Kansas Secretary of State’s website.
A DBA or trade name allows your business to operate under a name other than its officially registered one.
Most states require businesses to register any DBAs that they use, but Kansas is an exception. You don’t need to register any DBA that your LLC uses, neither with the state nor with any local municipality. You’re welcome to simply start using a DBA without completing any form or paying any fee.
(Your DBA is legally required to be distinct from registered business names, which you can check by using the Name Availability Search. It’s recommended that you don’t use the same DBA as another business in the state, but this isn’t a legal requirement.)
Estimated Costs for Naming Your Kansas LLC: $0 – $35
Estimated Costs for Naming Your Hawaii LLC: $0 – $61
Your Kansas LLC is officially formed when its Articles of Organization are filed and processed. The articles are where you provide your LLC’s name, resident agent’s name, and resident agent’s contact address. The Articles of Organization get filed with the Kansas Secretary of State, which you can do either by mail or online.
This is when you pay the Kansas LLC filing fee. The fee is either $160 if filing online, or $165 if filing by mail. This is the one unavoidable state fee that you must pay.
Estimated Costs for Fling Articles of Organization: $160 – $165
A registered agent is someone who receives official communications on behalf of your LLC. In Kansas, this person is officially termed a “resident agent” and has a “registered office.” Your LLC’s resident agent and their registered office must be located within the state.
You can serve as your resident agent, and use your home or business address as the registered office. Alternatively, you can use an LLC registered agent service located within the state. There are advantages to each option:
There’s no state fee for initially appointing a resident agent, regardless of whether it’s you or a registered agent service. You simply list the agent on your Articles of Formation. (Changing your LLC’s resident agent in the future costs $30 – $35.)
Estimated Cost for a Resident Agent: $0 – $400
While not legally legally required in Kansas, an operating agreement is highly recommended. This document covers the ownership structure, management, and operational procedures of your LLC, among other matters like distributions and possible dissolution scenarios.
You can draft an operating agreement yourself, use an LLC formation service, or hire a business attorney. Writing it yourself is generally only advisable if you’re the sole member of your LLC. Using a formation service or attorney is usually wise if there are other members, as this becomes a legal document that you don’t want to make mistakes on.
Writing an operating agreement yourself costs nothing. Using an LLC formation service might cost $200 – $400, and an attorney could charge $1,000 or more. There’s no state fee since this doesn’t get filed with the state.
Estimated Cost for an Operating Agreement: $0 – $1,000
Most business filings made with the Kansas Secretary of State can be made by mail or online, and some can be faxed. There’s usually a $5 surcharge for mailed-in paper filings, and a $25 surcharge for faxing. You’ll save a little on each filing by using the Secretary of State’s online portal.
Beyond the common formation costs, there are a few other one-time and annual expenses to be aware of.
Depending on the nature of your business and its location, you might need licenses and/or permits. These include both state licenses or permits, and local ones.
Almost every business in Kansas that serves consumers needs a Sales Tax Permit (seller’s permit) from the Kansas Department of Revenue. This is obtained by submitting a Kansas Business Tax Application, either by mail or online. There is no fee.
Other state licenses might be needed if you operate in certain sectors, such as alcohol sales, auto sales or child care (among others). These can have fees from a few hundred dollars to $1,000 or more. They’re only applicable in select industries, however.
Local license and permit requirements are more common. Some examples include construction permits, food service licenses and fire inspection permits. Municipalities and counties can also have a general business permit requirement if you do business within their jurisdiction.
Local licenses and permits usually have nominal costs that are frequently less than $100, and some may be free. Check with your local city/town and county clerks, who’ll be familiar with requirements and fees.
Estimated Cost for Licenses and Permits: $0 – $1,000
Kansas requires all LLCs to file a Biennial Information Report (rather than an annual report). This is a simple filing that includes your LLC’s name, entity ID number and address, along with the name and address of each member who owns at least 5% of the company.
The Biennial Report gets filed with the Kansas Secretary of State. The fee for filing online is $100, and the fee for filing by mail is $110 ($10 surcharge for mail-in).
Estimated Annual Cost for Biennial Report: $50 – $55 (annual average)
(Kansas no longer charges a franchise tax in addition to the Biennial Report fee. The state did away with its franchise tax in 2011.)
Being your own registered agent comes with no fees. Budget $200 – $400 if you choose to use a registered agent service. Several are available within this price range.
Most costs associated with the formation and maintenance of an LLC are deductible for tax purposes. For instance, you can usually write off:
Before taking any specific expense as a business deduction, you might first want to confirm it with a qualified tax professional.
| |
Fee/Cost | Amount |
Articles of Organization (LLC filing fee) | $160 – $165 |
Business Name Reservation (optional) | $30 – $35 |
Trade Name (DBA, optional) | $0 |
Sales Tax Permit (seller’s permit) | $0 |
Other Licenses & Permits | $0 – $1,000 |
Operating Agreement Help (optional) | $100 – $1,000 |
Commercial Resident Agent Service (optional) | $200 – $400 |
Estimated Total Kansas LLC Formation Costs* | $160 – $700 |
*The range includes some allowances for licenses/permits and an LLC formation service. It’s only in select situations that licenses and legal help totaling $1,000 or more would be needed.
LLC Kansas Costs – Annual Fees | |
Fee/Cost | Amount |
Biennial Information Report | $50 – $55 (annual average) |
Licenses and Permits | $0 – $1,000 |
Commercial Resident Agent Service (optional) | $199 – $400 |
Estimated Total Kansas LLC Annual Costs* | $50 – $555 |
*The range includes some allowances for licenses/permits and registered agent service. Few businesses need licenses that total $1,000 or more.
Starting an LLC in Kansas is a process you can navigate, and the associated costs can be determined beforehand. Whether you choose to handle the formation process yourself or enlist the services of an LLC formation service, establishing an LLC in Kansas can offer your business legal protection and potential tax benefits.
When filing Articles of Organization for an LLC, Kansas charges a filing fee of $160 or $165. The additional $5 is if you choose to file by mail, rather than online.
Kansas requires LLCs to file a Biennial Report (every two years) rather than file one annually. The fee due when filing the Biennial Report is $100 – $110, again with the additional fee being if you file by mail.
Kansas no longer has a franchise tax that LLCs must pay. The state’s franchise tax was ended in 2011.
Kansas doesn’t require businesses to officially file DBAs that they use. Businesses simply need to avoid using another business’s officially registered name. For branding purposes, it’s wise to not select a DBA name that’s already in use.
Because DBAs aren’t filed with the state or any local municipality, there’s no fee for using a DBA in Kansas.
Kansas officially refers to registered agents as “resident agents,” and they maintain a “registered office.” The office must have a physical (not a P.O. box).
Resident agent services vary in cost, but most are around $200 – $400 per year. The first year may be included with other LLC formation services.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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