Kansas LLC Laws: How to form an LLC and why you should hire a lawyer

A limited liability company is a business entity that strikes a balance between the higher risk protection offered by a corporate form and the relative simplicity and flexibility of a partnership or sole proprietorship structure.

Forming a professional limited liability company in Kansas

If you form an LLC, that'd be a separate legal entity from you. Like corporate stockholders, limited liability company owners, also known as "members," are protected from personal liability for the company's business debts and losses to the extent of their investment, not beyond it. This is also an example of an LLC being a separate legal entity.

How are LLCs taxed in Kansas?

Members of a limited liability company automatically pay taxes as a portion of their personal income, just like the owners of a sole proprietorship or a general partnership. This kind of tax arrangement is frequently referred to as "pass-through." If a limited liability company satisfies specific criteria, it may decide to be taxed as a C corporation, C-corp, or S corporation. Due to their ease and flexibility, limited liability companies are popular among small business owners.

Before forming a professional corporation, it is advisable to familiarize yourself with all the Kansas LLC laws. Before submitting your limited liability company form, you should take care of the items listed below.

Kansas LLC formation process

Reserve a name for your LLC business.

You should check the business name's availability in advance because attempting to file your limited liability company forms under an unavailable name will result in rejection and wasted funds. Utilize the company name availability search tool provided by the Kansas Secretary of State's website to ensure that a proposed company name will be legally valid. Be sure to visit the Kansas Secretary of State's website for additional information in this regard, a quick google search can be of great assistance.

When you are certain that the name you want is available, you may submit an online application via the Secretary of State's website to hold it for up to 120 days. $30 is the price for reserving a name for your professional corporation, and it is non-refundable.

Although name reservations are not necessary, they are an excellent method to guarantee that the name will be yours to use if your application is accepted within the allotted four months.

Kansas LLC laws mandate getting a registered agent for LLCs

According to LLC laws in Kansas, you should have a resident agent who will accept critical legal documents on your company's behalf. Suppose a person is 18 years old and has a physical address in the state. In that case, they or another limited liability company member may be nominated for the position of a resident agent.

Alternatively, you can pay a business to serve as your LLC's resident agent; in exchange, they will manage your company's paperwork just like an individual resident agent. For these, you should generally be prepared to pay between $50 and $300. Do your homework to ensure you get the greatest possible deal for the price you agree to pay.

LLC documents filing

You can submit the documentation for your limited liability company's Articles of Organization once it is ready. It costs $165 to submit a paper application, and payment must be made by check or money order—cash is not accepted. A $25 service charge will be assessed for any checks that your financial institution returns.

A foreign LLC must also pay $165; however, a separate application must be submitted in this case according to the laws of forming an LLC in Kansas.

Furthermore, the procedure can be finished online for $160 for a domestic limited liability company, and there is no online option for foreign LLCs.

What do you need to do after forming your LLC in Kansas?

There are a few more steps you need to take to maintain your Kansas limited liability company after filing your paperwork and establishing your business.

Correct any mistakes in your paperwork

Everyone makes mistakes, but having any inconsistencies in your limited liability company papers fixed right away is preferable. You must submit a Certificate of Correction along with the required fee, which is either $20 for nonprofit organizations or $35 for for-profit businesses. A form noting the change must also be submitted if your resident agent changes or if your resident agent's registered office address changes.

Submit your LLC’s annual reports.

LLCs are required to file annual reports in Kansas; you can either submit physical forms or do online filing. When filing online, your limited liability company may be in good standing or in default. For paper submissions, the fee is $55, and for online submissions, it is $50.

Get your EIN or Employer Identification Number.

An EIN is required for the majority of businesses. These are also known as Federal Tax Identification Numbers (FTINs) or Federal Employer Identification Numbers (FEINs) (FTINs). A single member LLC without any workers will be permitted to utilize the owner's Social Security number in place of an EIN.

Nevertheless, EINs are a perfect SSN substitute since they may give a person a company identity while protecting their personal identity from fraud. You may easily obtain free EINs by visiting the IRS website.

Make an operating agreement for your LLC in Kansas.

According to Kansas law, Kansas LLCs are not required to create an operating agreement. However, limited liability company operating agreements are helpful to have because they spell out each member's managerial and financial responsibilities, avoiding uncertainty in the future.

Be sure to get your limited liability company organized with the help of an operating agreement. These documents will describe your LLC's daily operations, the division of earnings and losses, and voting rights. An agreement is worth establishing since it will give your limited liability company clarity and legality.

Why should you hire an attorney while forming a Kansas LLC?

When business owners start a new company, using the services of an attorney can save time and money. Many things need to be done right during LLC formation to save time, effort, and money. A single mistake while forming an LLC in Kansas can end up costing quite a lot.

Attorneys are capable of handling the following things that you might not have time to think about:

• A lawyer can help you draft a Kansas LLC operating agreement that details everything about your business. The limited liability company operating agreement, which is an internal document, allows you to specify firm policies, spell out members' rights and obligations, and more.

• Articles of organization that specify the registered agent, LLC management, and the formation date can be drafted with the aid of an attorney. Articles of organization are crucial records since they demonstrate legally that your business has been set up in your state. Mandatory clauses in the articles of organization give the state government certain fundamental facts about the corporation.

  They may also include optional clauses that let the corporation choose not to follow certain of the statute's default guidelines.

  Although the articles of organization rarely need a lot of details, every state allows the articles of organization to have additional clauses relating to the following:

  1. Managing the company's operations and overseeing corporate governance.
  2. Outlining, controlling, and limiting the authority of the corporation, its board of directors, and its stockholders.

  While these clauses in your articles of organization cannot conflict with state law, some statutory provisions—known as default rules—that would otherwise apply to the corporation may be changed by the articles of organization.

  The articles of organization can be viewed as a symbolic birth certificate of your LLC. Usually, only the most basic details are needed. Nevertheless, it's crucial to remember that legislative requirements, including which form to use, where to file, what fees to pay and to whom, etc., differ significantly from state to state. Furthermore, the parties frequently desire to alter the articles of organization to override statutory default clauses.

  Due to these factors, it's critical to deal with compliance professionals who are knowledgeable about the specifics of each state's laws and who can assist their clients with these requirements as well as assist you in drafting articles of organization for your LLC.

• The registered agent for your business may be an attorney. A registered agent is a person who accepts tax forms, legal documents, and service of process on behalf of your business. Service of process is when someone alerts your company that a lawsuit is currently being filed against it. Certain law firms will offer their professional services as your registered agent as part of their services for helping clients start businesses. They will receive your legal mail at their physical address in their capacity as your registered agent. This allows you to relocate or use a post office box without worrying about losing important documents.

• In the event of legal action or audits, a Kansas attorney can maintain thorough documents.

• A lawyer can assist with paying costs and registering with the appropriate parties.

• You can examine the availability of an LLC name and register your business's name with the assistance of an attorney.

• All legal and formation documents of Kansas LLCs can be completed and filed with the aid of a lawyer.

Some lawyers may provide their professional services online or have predetermined costs for assisting you in forming your business. To make sure you are on the right route, some lawyers could charge a small fee for business legal consulting services.

You can handle most of the process on your own if your Kansas LLC only has a few members or has simple assets. Consulting with your attorney initially will help you avoid many problems if your professional limited liability company contains multiple people or partners, bank funding, complicated assets, or other challenges.

Hiring the services of an attorney after forming your Kansas LLC

If you require assistance with your new company, you might want to think about the following:

• Hiring the services of an employment law attorney to create HR policies and employment contracts.
• Think about collaborating with intellectual property attorneys to ensure the protection of your goods and services.
• To ensure you are keeping all money from your taxes, you can also engage with a tax attorney to analyze your income tax and tax returns.
• If you need assistance with another business-related legal issue or need to convert your business structure to a single-member professional LLC, S-corporation, or another sort of organization, see a business lawyer. Having a lawyer analyze important company contracts before you sign them can also be beneficial.
• Consult a lawyer for general counsel to examine compliance with state laws, state agencies, state fees, or yearly payments.
• For inquiries about business leases or real estate transactions, contact real estate attorneys.

Many of these services can be performed independently for less upfront costs. But for many new business owners, the thought of finding out that they made a mistake, might have saved money, or could have stayed better protected in the long term, is a worry. Pick out what you require and can afford. If you can't afford it right away, think about having an attorney review the situation once the business is profitable.

Conclusion

If you are aware of the precise information needed, getting your limited liability company formed in the State of Kansas can be done cheaply and easily. Interested parties must submit the required paperwork, pay the required costs, and satisfy all naming and formation requirements in order to register with the Kansas Secretary of State. It is best that you seek assistance in completing the business creation procedure. Ideally, your best bet for legal advice is a qualified corporate attorney.