To dissolve a limited liability company one has to take up a set of required steps. In Kansas, if you and the members of the LLC want to discontinue business, then it is necessary to dissolve their business legally to avoid any administrative and legal consequences. To dissolve an LLC in Kansas, you are required to submit a complete Article of Dissolution to the Secretary of State. Before submitting the Article of Dissolution, one must follow the operating agreement.
If you have a Kansas LLC (domestic or foreign) you must have an operating agreement. The first step towards the dissolution of Kansas LLC is to follow the operating agreement. There are some points to be noted before proceeding with the official paperwork. At first, make sure all the members of the LLC are agreed to dissolve the business. Once all the members are ready, their consent should be recorded via voting. After casting their vote in favor of the dissolution, the legal process must be started. Here are the steps to address for dissolving Kansas LLC.
On this page, you’ll learn about the following:
- How to Dissolve an LLC in Kansas
- After Dissolving Your LLC
- Reasons Behind Dissolving Kansas LLC
- Kansas LLC Dissolution Review
How to Dissolve an LLC in Kansas
Dissolution of Kansas LLC requires three broad procedural steps. Having a Kansas LLC Operating agreement, close all the tax accounts, and finally submit the Articles of Dissolution form to the Kansas Secretary of State.
Step 1: Follow Your Kansas LLC Operating Agreement
When you have started an LLC as a business entity, then there is an operating agreement that is formed. There are complete details of how the company will function and grow in that operating agreement, which acts as a comprehensive guide. There is also a dissolution process, which is added to your agreement. The common dissolution steps that almost every LLC follows are:-
First of all, the dissolution vote will take place among the LLC members in the dissolution meeting. If the majority is with the YES, then the process goes into legal proceedings.
- All the dissolution votes will be noted down and recorded with the minutes of the meeting or a consent form.
- After that, a formal date for dissolving the LLC will be decided.
- The next step is counting the LLC assets and dividing them among the stakeholders and members accordingly.
- Finally, the creditors of the business are notified, and the debts of the business are settled.
This is a general process. However, it is strongly recommended to seek professional help to avoid any complications when it comes to terminating an LLC.
Get a Professional Agent Service
When it comes to a limited liability company dissolution, it is important to get professional help. The Kansas registered agent will guide you with everything you need to close your limited liability company. While choosing a registered agent make sure they have a physical street address in the state. A professional service provider helps you to file the Article of Dissolution and close your various tax accounts without any hassle. Below are the best LLC services we strongly recommend for you.
Step 2: Close All Tax Accounts
Every action that an official business takes is legally bound to some minimum business taxes. For that, various accounts, especially business entity tax account, are maintained by the state government with the help of various departments. You should consider all the taxes that you have paid for your LLC’s duration and make a list of them.
You must contact all government entities and clear the amount of outstanding taxes due until the date you have decided for dissolution. All the taxes must be paid in advance so that you don’t face any issues in the further process of shutting down your LLC.
Some of the common taxes that limited liability companies have to pay are:
- Unemployment insurance tax
- Employee withholding tax if your LLC has employees.
- If your LLC is engaged in selling taxable goods then they are liable to pay the sales and use tax.
Most of these taxes are normally filed, but some departments require official paperwork, without which it is impossible for the business to close their accounts. Apart from business taxes, federal taxes, personal income taxes, and franchise taxes are to be considered. For the franchise taxes, a franchise tax form is required.
That is why the LLC owner should go through the sales tax guide and hire an accounting service. If you want to do the accounting yourself or make accounting easy, try FreshBooks.
While dissolving the Kansas LLC, the owner does not require to obtain a tax clearance certificate. However, if you have filed federal taxes, then you must go through the final return option on your IRS form.
Step 3: File Articles of Dissolution
There is a list of dissolution documents that you, as an LLC owner, have to file. Once these articles are filed, the legal existence of the LLC will be over. Like a Kansas Articles of Organization, one has to file Kansas LLC Articles of Dissolution. The dissolution procedure and filing the articles of dissolution form is very easy and is discussed below.
- First of all, the LLC owner(s) has to file the Article of Dissolution. There are multiple methods of filing available, such as file by mail, in-person drop, or/and online filing. To get the application form you need to visit the Secretary of State Website of Kansas state.
- You can follow the filing instruction on the official portal so that the steps for dissolution will be easier to complete.
- In that particular SOS website, the LLC owner has to look for the Domestic LLC Articles of Dissolution page.
- If you want to dissolve Kansas Foreign LLC then look for the Foreign LLC Dissolution process.
- There is a form available on this page, which is the article of dissolution you are looking for. You have to download that pdf form and start filling it.
- You must fill in all the important and legal information in the form, so you should be extra careful.
- After filling in all the important information, you must choose the mode of payment you want to use to pay the LLC dissolution filing fees.
- After filling in every detail, one should submit the form through an official mail address and make a payment.
- It takes 3-5 business days after filing of articles of dissolution if you are filing it by mail or in-person.
Memorial Hall, 1st Floor
120 S.W. 10th Avenue
Topeka, KS 66612-159
Online FIling: Kansas Online LLC Dissolution
Filing Fee: $35 by Mail & $30 by Online
The LLC you owned is dissolved, and you are free from all the liabilities linked with the LLC and its taxes. A copy of both original articles and recorded articles should be submitted in front of the probate judge. Now it’s his call that he accepts your expedited dissolutions or not.
Points to Be Noted When Dissolving Kansas LLC
Apart from these three steps, no major dissolution rules are there in Kansas. However, there are some other tasks one has to keep in mind while dissolving an LLC legally.
There are some purposes of LLC that require some attention even after dissolution, known as winding up. The task of winding up includes.
- For a certain period, the property of a business requires preservation.
- If there is any civil case against the LLC, then the owner needs to finish them.
- Settle all the existing disputes of LLC.
- Transfer all the property of LLC to the names of partners.
- Release all the liabilities that the LLC owes to others.
- Rightful distribution of all the assets among members, according to their percentage of partnerships.
Cost of Dissolving LLC
LLC cost in Kansas includes the formation as well as dissolution fees. To dissolve an LLC in Kansas, LLCs have to file an Article of Dissolution. The filing fee is $5. The details are mentioned on the second page of the article dissolution filing form. Following are the ways to pay for the dissolution,
- You can select a payment pick-up option.
- There is an option of direct account transfer through your prepaid accounts.
- LLC owners can also use their Credit cards, providing their complete details and types. Along with that, an original signature is required to authorize the transaction state will make.
After Dissolving Your LLC
After you formally dissolve your LLC, your business name will not be reserved anymore. Any other business entity will be eligible to use your Kansas LLC name immediately after 120 days of dissolving your LLC. On the other hand, if you have a foreign LLC in other states, then you must comply with the SOS of the state after the dissolution of your LLC in Kansas. A registered agent can help you do the needful.
Reasons Behind Dissolving Kansas LLC
Why would someone like to get rid of the business that they started with so many hopes? It is something that needs a lot of reasons for sure. But can we just shut down the shutter of the company and be done with it? No, that is not something that we can do. If it is crucial to dissolve an LLC in Kansas, one might want to know its reasons. Here, check them in here,
- One of the main reasons this happens is the low cash inflow. Because if someone has made a lot of efforts to start the company, it is not profitable. It is better to dissolve it.
- Many times the business needs a lot of decisions. So if the decision-makers cannot agree on the same thing, they prefer to dissolve the company.
- Some reasons are involuntary, too, as it can be in the deed of the business to dissolve after a certain time. Or it can be because of a deceased partner.
Top Business in Kansas!
To be able to start an LLC in Kansas, people look for the best way out. And the best way out is information about the industries, with info, they can make a great company. But we all know that finding the facts is not an easy task. So here we are with all the facts of the top industries. Read on, and find out!
- Manufacturing: Can we ever let the manufacturing companies stop their work? No, we cannot, and that is what shows us the importance of that sector too. The industry is making a lot, and it is making a positive impact on the economy too. It presented $26.23 billion in the GDP too.
- Professional business services: There are industries regarding the goods too. But others are regarding the services related to the businesses. People need help in that, and that is why it is very crucial to have this sector too. It contributes $17.82 billion to the GDP, which is a significant amount for the economy.
- Retail trade: Some states do better in the wholesale business, and some are better for the wholesale trade. But Kansas is doing a lot better at retail trade by contributing $9.91 billion to the economy. It is more than $9.88 billion, which is presented by wholesale trade.
Kansas LLC Dissolution Review
Time needed: 5 minutes
Here’s a recap of the steps you must follow when dissolving your Kansas LLC. Click on the steps in this list if you want to read the full detail.
- Follow Your Kansas LLC Operating Agreement
Remember that when you started, you created an operating agreement. Use this agreement as a guide in proceeding with the dissolution of your LLC.
- Close All Tax Accounts
Make sure you close all your tax accounts to avoid incurring further costs.
- File Articles of Dissolution
File the article of dissolution to make it known to the state where your LLC operates is that you are indeed no longer in business.
Yes, in Kansas, there is a fee of $35 to be paid for filing the Articles of Dissolution. Articles of Dissolution must be submitted to the Kansas SOS.
No, there is no requirement of revenue department clearance till the time the SOS of Kansas accepts the dissolution form.
The name will also get deregistered with the dissolution of the LLC. But the name will not be allotted for the next 120 days. After that, if some business wants to name their LLC after the name chosen by you, then it is their choice.
If you have not dissolved your LLC, you are liable for business privilege tax, and if it is not paid on time, you are leveraged with 10% of the amount of tax or $50. After that, the additional penalties will increase by $1 per month. If it goes unpaid for a longer duration, then the chances of seizing your property can also recover the tax.
Yes, if you are dissolving your LLC, you have to pay some amount to the probate judge who was also present during your LLC formation in the probate office. The minimum fee of the judge is $50, which can vary.
What is the Cost to Dissolve an LLC in Kansas
To dissolve an LLC in Kansas you need to file the Certificate of Cancellation with the Kansas Secretary of State via mail for $35 or online for $30.
One of the primary costs associated with dissolving an LLC in Kansas is the filing fee. The exact amount of this fee may vary, so it is advisable to consult with the Kansas Secretary of State or an attorney for the current information. Typically, this fee covers the administrative costs of processing the necessary documents and officially terminating the LLC’s existence.
In addition to the filing fee, there may be various other expenses involved in the dissolution process. Engaging a lawyer to assist with the legal aspects can be beneficial, especially for LLCs with more complex structures or outstanding obligations. The cost of legal services will depend on factors such as the complexity of the dissolution, the attorney’s hourly rate, and the time required to navigate the process.
Furthermore, LLCs registered with the Kansas secretary of state are typically required to publish notice of dissolution in a newspaper. While the publication cost may not be significant, it adds an additional expense that must be considered.
Dissolving an LLC also involves addressing various financial obligations. Before the process begins, it is crucial to settle any outstanding debts or liabilities. This may include paying off business loans, accounts payable, outstanding bills, and resolving any pending litigation. Failure to properly resolve these financial matters could result in personal liability for the LLC’s members.
Depending on the LLC’s specific circumstances, there may be potential costs associated with notifying employees, customers, suppliers, and government agencies of the dissolution. Members should ensure that termination notices are sent to appropriate parties, such as former employees, landlords, and vendors, to avoid potential legal repercussions.
Another important aspect to remember is that dissolving an LLC does not automatically free business owners from their tax responsibilities. Kansas law requires that the LLC continues to file any required tax returns until the dissolution process is completed. Therefore, it is advisable to consult a tax professional familiar with state and federal tax laws to ensure compliance during the dissolution process.
While the financial costs of dissolving an LLC can vary based on individual circumstances, one should not overlook the importance of time and effort required throughout the process. Business owners must be prepared to invest significant time into completing the necessary paperwork and to navigate bureaucratic procedures, including collecting and organizing documentation and filings.
Despite the potential costs involved, dissolving an LLC in Kansas may be a necessary and practical step for various reasons. Whether due to changes in the business environment, shifts in personal circumstances, or the desire to pursue new ventures, understanding and accounting for the expenses involved in dissolution is crucial for making informed decisions.
In conclusion, those considering dissolving an LLC in Kansas should expect to bear costs related to filing fees, legal services, publication notices, tax implications, and the diligent resolution of any outstanding financial obligations. Furthermore, the process demands time and effort to navigate bureaucratic requirements. Thoroughly understanding the costs and procedures before initiating the dissolution process will help LLC owners make well-informed decisions and ensure a smoother transition.
Limited liability companies reduce owners’ personal liability. Having an LLC is quite cost-effective. However, if it is required to close down the business, then the dissolution process should be done legally. Get a professional service to get everything done. We hope this article helps you to close your LLC in Kansas. If you have any query do let us know in the comment box.