Perhaps you are hoping to form a Kansas LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Kansas.
On this page, you’ll learn about the following:
Kansas LLC Cost of Filing
Here are the costs involved in forming an LLC in Kansas.
Cost of Filing Formation Certificates
The Kansas Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Kansas Secretary of State.
Kansas Domestic LLC
- Online filing fee costs $160
- Annual Report filing costs $55 (by mail) and $50 (online)
- Name reservation costs $35 (by mail) and $30 (online)
- By mail: Fill out the Application form PDF, submit it to the following address: Kansas Office of the Secretary of State, Memorial Hall, 1st Floor, 120 S.W. 10th Avenue, Topeka, KS 66612, costs $165
Kansas Foreign LLC
- Online Filing: Not available
- Annual Report filing costs $55
- By mail: Fill out the Application form PDF, submit it to the following address: Kansas Office of the Secretary of State, Memorial Hall, 1st Floor, 120 S.W. 10th Avenue, Topeka, KS 66612-1594, costs $165
Visit the Official Kansas Business Filing Center to learn more about the fee and costs of establishing an LLC in Kansas.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Kansas LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Kansas, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Kansas Department of Revenue for regulatory boards or agencies requiring licensing.
Kansas LLC Taxes to be Paid
Apart from the filing of the Annual Report, the Kansas LLCs are also subject to state tax filing obligations. Though the taxes vary from county to county.
Kansas State Income Tax
The Kansas State Income Tax varies between 3.10% to 5.70% depending on the total amount of salary earned.
Kansas State Sales Tax
Currently, the rate of sales tax is 6.5% in the state However, additional local tax may be imposed depending on county to county.
The current rate of self-employment tax in Kansas is 15.3%.
If you employ Kansas local employees, then you must withhold a share of their income to repay the state income tax of the employees. The withholding tax varies between 3.1% to 5.70% of the total income
Cost Comparison among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to get a better understanding of the costs of opening an LLC in a different state in comparison to Kansas, read the table below:
|Annual Fee/Biennial Fee
|$160 (online)$165 (Mail)
|$50 (online)$105 (mail)
Kansas main industries include manufacturing, bioscience, energy and fuel, professional services. The State was historically an agricultural state, nevertheless, manufacturing and services have undertaken the greater role in contributing to the Kansas economy.
- Kansas Name Reservation: $30 for online filings or $35 by mail
- Certified Document Copies: $15 plus $1 for each page
- Certified of Good Standing: $10 online or $15 by mail
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Kansas LLC: $35
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in Kansas
To maintain an LLC in Kansas you will need to pay an annual fee of $50-$55 along with sales tax at 6.5%, income tax at 3.10% to 5.70% and federal taxes.
Firstly, one should take into account the formation and registration costs. To establish an LLC in Kansas, one needs to file official paperwork with the Secretary of State’s Office. This typically involves submitting Articles of Organization and paying the required filing fee. Although the exact cost may vary, it is necessary to budget for this initial outlay as it serves as the foundation for legally establishing the business.
Beyond the formation costs, ongoing expenses come into play as well. An annual report must be filed each year, which necessitates paying a filing fee. Additionally, LLCs in Kansas are subject to a minimum annual filing fee, even if the company has no business activities taking place. Owners should also set aside funds for these fees as part of their ongoing financial planning.
On top of administrative expenses, LLC owners should be aware of taxation obligations. Unlike other business entities, LLCs themselves do not pay taxes to the federal government. Instead, the income or losses of the LLC ‘pass through’ to the owners’ personal tax returns. This ‘pass-through’ structure helps LLC owners avoid double taxation, but it means that any tax liability is personal responsibility. It is advisable to consult with a tax professional or an accountant to understand the taxation requirements for your specific LLC.
Furthermore, business licenses or permits may also come with associated costs. Depending on the nature of the business, particular licenses may be necessary to operate legally within Kansas. These licenses usually involve an application fee, and periodic renewal fees may occur as well. LLC owners need to research and determine which licenses are relevant to their operations, ensuring compliance and avoiding potential penalties.
Amidst all these expenses, it is important to bear in mind that legal and professional assistance might be necessary throughout the life of an LLC. A lawyer or CPA can provide guidance in areas including compliance, contract drafting, intellectual property matters, and other legalities. While this additional support incurs extra costs, it can offer peace of mind and reassurance in navigating intricate legal waters.
In conclusion, understanding the cost of maintaining an LLC in Kansas is crucial for savvy business owners. From the initial filing fees and administrative costs to ongoing obligations like annual reports and tax compliance, staying informed can help individuals make informed financial decisions for their enterprises. Remember, while this editorial provides a general analysis, it is essential to consult with professionals to receive personalized advice and accurate information to ensure the long-term success of your business venture.
The cost of Kansas is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.