How to Start a Business in Kansas

Starting your own business in Kansas is one of the most exciting and profitable things you can experience. But where do you begin? There are numerous strategies to establish a business, each with important factors to consider. If you wish to start a business in Kansas, there are many things that you should consider. Doing business in Kansas, popularly known as The Sunflower State, will give you many opportunities because of the current estimated population, which consists of 2,963,308. Considering the large numbers, you will cater to a lot of customers.

Follow our in-depth guide on how to start a business in Kansas. We will help you remove the doubt from the process and explore your chances of success. It will start from defining your business idea to establishing, launching, and expanding your business. And we will guide you every step of the way.

How to Start a Business in Kansas?

To form a business in Kansas, you must follow a few steps that include creating a business plan, choosing a business entity type, determining your Kansas business costs, naming your business, registering a business, and lastly, marketing your Kansas business. Starting a business is not something you can do overnight. The processing, planning, and preparation take a lot of time. If you want to start a business in Kansas, you must have everything ready beforehand.

Continue reading to learn more about the procedure as a whole and what new small business owners should keep in mind as they carry out each phase.

Step 1: Create a Business Plan

The first thing you need to start your business is a solid plan. In creating a business plan, you should consider many things when you are in the decision-making phase. Your business plan in Kansas is a road map for your successful business.

A business plan should consider the detailed purpose of your business. You should know what product or service you will serve in Kansas. A purposeful business plan is important because that plays a key role in knowing how your business will make a profit. If the purpose of the business plan is vague and not aligned with what service you are giving, it will affect the business you are forming. Make sure to be SMART (specific, measurable, achievable, realistic, and in a certain timeframe) with your business goals. Also, researching your competitor’s service is a great deal to knowing what strategy you will form for your Kansas business. And lastly, you should include the funding of your business.

A business plan should be created before you start a business. Without it, you have nothing but a blank slate. This document will help you understand the key parts of your business and the plan for success. Regarding the potential funding for your business in Kansas, you can avail of business loans in bank and investor funding.

You can continue working on the legal structure of your business once you have the whole plan in your possession. You may create an LLC for your business legally. You can check other business guides shared by the LLCBuddy Editorial Team.

Step 2: Choose a Business Entity in Kansas

A business entity refers to a legal structure formed to conduct business activities. It is a separate and distinct organization recognized by the law, which possesses rights, responsibilities, and liabilities distinct from its owners or members. Choosing a business entity for your Kansas business is significant.

You must decide on a business entity structure while beginning your own business. The form of company entity you choose will significantly impact how well your personal assets are protected, how much tax you pay, and how much paperwork you have to deal with. You should consider forming a business entity in Kansas through having Sole Proprietorship, LLC, LLP, and Corporation.

Sole Proprietorships

A sole proprietorship is a simple and common type of business structure where an individual owns, operates, and manages the entire business. It is the easiest and least expensive form of business organization to establish and maintain. One of the most appealing aspects of a sole proprietorship is the owner’s direct control over all aspects of the business.

A key characteristic of a sole proprietorship is that the owner and the business are considered a single legal entity. This means that all profits, losses, assets, and liabilities are the owner’s personal responsibility. Although this can lead to increased risk exposure, it allows the owner to control their business operations completely.

Consider a sole proprietorship if you want to start a business in Kansas by yourself. For legal and tax reasons, the owner and the business are regarded as one and the same. The business owner takes on liability for the business. Therefore, the owner is liable for all business debts in the event that the company fails.

Limited Liability Company

A Limited Liability Company, also known as an LLC, is a business structure ideal for entrepreneurs and start-ups. It is perfect for start-ups and aspiring entrepreneurs since it has limited liability issues for a company. The Kansas LLC is mainly used for the legal structure of a business between two or more companies that share management and profits. It also protects its owners from liabilities, debts, and responsibilities that may cause them in the future.

LLCs offer pass-through taxation, meaning that the profits and losses flow through to the members’ personal tax returns, avoiding double taxation that corporations may experience. Additionally, LLCs have fewer formal requirements and administrative burdens compared to corporations. Read Kansas classification of LLC tax to get more information about tax.

Another advantage of an LLC is the flexibility in the management structure. Members can choose to manage the company themselves or appoint managers to oversee the business operations. This allows for customization based on the unique needs and preferences of the owners.

Limited Liability Partnership

Limited Liability Partnerships (LLPs) are a unique business structure combining partnerships and corporations’ elements. An LLP offers limited liability protection to its partners, meaning that each partner is only responsible for their actions and debts rather than jointly and severally liable for the entire partnership’s obligations.

This structure is particularly popular among professional service providers such as lawyers, accountants, and architects, as it allows them to maintain the collaborative nature of a partnership while enjoying the liability protection typically associated with corporations.

In an LLP, each partner’s income is subject to self-employment taxes, and the profits and losses are passed through to the partners’ personal income tax returns, similar to a general partnership. This pass-through taxation avoids the double taxation issue faced by some corporations.

Corporation

Forming a Kansas corporation reduces your personal liability for business debts as an LLC does. A corporation can be taxed as an S-corporation (S-Corp) or a C-corporation (C-Corp). If a small corporation satisfies certain Internal Revenue Service (IRS) standards, then S-corporation status is available, providing pass-through taxation. However, most larger businesses and startups seeking venture financing are taxed as C-corps.

Step 3: Determine your Kansas Business Costs

In Kansas, you should determine the business costs that you will form. You should consider paying the Articles of Organization fee for LLCs, Articles of Incorporation fees for corporations, business licenses fee, office supplies and equipment, payroll, office rent, utilities, transportation, and taxes.

Usually, filing an initial Kansas Articles of Organization fee costs $165 (by mail and $160 online) , while the annual fee costs $25 online and $27.5 by mail in Kansas. Read about the overall cost of LLC registration in Kansas cost to know more about Kansas LLC cost. If you wish to know more about how much it costs to form an LLC, you should look up and be guided by the LLC formation costs. For a corporation, you must pay the $90 for filing online and by mail. Besides, you need to pay taxes as a corporation.

Step 4: Name Your Business in Kansas

Naming your business doesn’t take a lot of time. With the help of Kansas LLC name search, you can acquire a name for your business. If you form an LLC in Kansas, you must follow the below rules while naming your business-

• The name should not be confused with a government entity.
• The name should be unique.
• The name should be available to use.
• Any other business does not use the name.
• The new name must include “LLC” if it is a limited liability company.

In Kansas, if you do not wish to file your business right away but want to hold the name that you have decided on, then you can reserve your business name for 120 days. You must file a name reservation application in the Kansas Secretary of State to keep the name. There is a complete guide on LLC name guidelines for you to have a proper LLC business name.

Step 5: Register Your Business in Kansas

In order to register a business in Kansas, you need to file it with the Kansas Secretary of State. Before that, you must have a Kansas Registered Agent for your business. The Registered Agent is a person who is responsible for receiving important legal documents on your behalf.

Get the Kansas Registered Agent

You must get your Kansas Registered Agent before you file your business. The person should be eligible to conduct business in Kansas. Also, they must be aged above 18 years. You can be your own registered agent. However, that will not be a wise decision. Appointing a professional will be much more beneficial for your business than doing it on your own.

Apply For Kansas Formation Document

After you have a Registered Agent, you need to file the Kansas formation document. If you are filing an LLC in Kansas, you must file the Articles of Organization and if you want to have a corporation structure, you need to file the Kansas Articles of Incorporation.

Request For an EIN

In addition to the paperwork, you should apply for an Employer Identification Number (EIN). An EIN will serve as the tax ID for your professional corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website. You can obtain the EIN for free from IRS.

The application of an EIN in Kansas can be through the following:

• Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
• Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that Form SS-4 contains all of the required information.
• Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is 4 weeks.
• Apply by Telephone (for International Applicants)– International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

After you have your EIN number, you can benefit in a number of ways. It will give your LLC the final advantage necessary to operate at full capacity without encountering legal or judicial issues.

Step 6: Apply for Business License and Permit

Obtaining a business license and operating permit is necessary to run any business in Kansas. Before launching your new business, you should request any required business license or permission. Most Kansas businesses need licenses or permits to operate. Federal, state, and local governments may all require businesses to have licenses and permits. The business license fee depends on the type of license you are applying for. You must contact Kansas Secretary of State for more details.

Step 7: Get a Bank Account

Your business dealings in Kansas might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Most banks demand an EIN to create a business bank account for firms other than sole proprietorships. Also, keeping separate finances helps you avoid combining personal and professional finances.

Step 8: Market your Business in Kansas

Now that your Kansas business is already registered, you can market it with an ideal marketing plan. An ideal marketing plan can help a start-up business to become known. Making a comprehensive social media network like META, Facebook, Instagram, Twitter, and YouTube falls within this category. While creating an SEO campaign for your company website, you may also look at specialized communities on Facebook and LinkedIn.

Important Information

Do you need to have Business Insurance?

Your company needs insurance even if it’s a home-based business or you don’t have employees. Depending on your business planning and the risks you face, you may require different types of insurance. As your business expands, you might require more than one type of insurance. If you have employees, you are typically legally required to carry workers’ compensation insurance. You must contact Kansas Insurance Department to ensure what type of insurance is required for your business.

What is the most profitable type of business?

The most profitable type of business will vary depending on a number of factors, including your industry, location, target market, and business strategy. However, some companies, such as those that provide expensive products and other services, tend to be more profitable than others. If you’re unsure about the kind of business to launch, think about your abilities and interests and the demands of your target market to guide your decision on an effective business.

FAQs

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• Start a Business in Iowa
• Start a Business in Kansas
• Start a Business in Kentucky
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Why Start Business Kansas is So Important

First and foremost, starting a business in Kansas is crucial for the state’s economic growth and development. By creating new jobs and fostering innovation, businesses play a pivotal role in driving economic prosperity. Small businesses, in particular, are often referred to as the backbone of the economy as they contribute significantly to job creation and stimulate local economic activity. By providing goods and services that meet the needs of the community, businesses also play a role in enhancing the overall quality of life for residents.

Moreover, starting a business in Kansas provides individuals with an opportunity to pursue their entrepreneurial dreams. For many, owning a business represents a chance to turn their passion into a viable enterprise. Whether it be a bakery, a tech startup, or a local boutique, starting a business allows individuals to take control of their destiny and build something they can be proud of. Additionally, entrepreneurship provides a platform for individuals to showcase their skills and creativity, making a positive impact on their community.

Furthermore, starting a business in Kansas fosters a spirit of innovation and growth. In a rapidly changing business landscape, startups and small businesses are often at the forefront of driving technological advancements and disrupting traditional industries. By encouraging entrepreneurship, Kansas can position itself as a hub for innovation, attracting talented individuals and fostering a culture of creativity and collaboration.

Additionally, starting a business in Kansas is essential for fostering a sense of community and social cohesion. Small businesses are often deeply connected to the communities in which they operate, supporting local events, charities, and initiatives. By starting a business in Kansas, individuals can contribute to the social fabric of their community, creating a sense of belonging and camaraderie.

In conclusion, starting a business in Kansas is a critical step towards driving economic growth, fostering innovation, and building a sense of community. By providing individuals with an opportunity to pursue their entrepreneurial dreams, businesses play a crucial role in shaping the future of the state. Through collaboration, creativity, and hard work, entrepreneurs in Kansas can build businesses that not only thrive but also make a lasting impact on their communities. So, if you have a business idea or passion project that you’ve been eager to pursue, now is the perfect time to take the leap and start your business in the ever-vibrant state of Kansas.

Conclusion

In conclusion, embarking on the entrepreneurial journey of starting a business in Kansas, also known as The Sunflower State, requires thorough research, planning, and dedication. Understanding the local business landscape, choosing the right structure, and complying with all regulatory requirements are essential steps to ensuring your venture’s success. This article has provided valuable insights and guidance for aspiring entrepreneurs looking to seize the opportunities present in Kansas’s dynamic economy. By leveraging available resources and approaching the process with diligence and determination, you can lay the foundation for a thriving and prosperous business in Kansas.