Creating a Limited Liability Company (LLC) in Kansas is a process that involves several steps in compliance with the state’s regulations. Here’s a detailed step-by-step guide to assist you in setting up an LLC in Kansas:
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STEP 1: Choose a Name for Your LLC
Compliance: The name of your LLC must contain the phrase “Limited Liability Company” or its abbreviations (LLC or L.L.C.).
Uniqueness: Your chosen name must be distinguishable from the names of other business entities already on file with the Kansas Secretary of State.
Restricted Words: Some words might require additional paperwork or a licensed individual to be part of your LLC, such as “Bank” or “Attorney.”
Name Reservation (Optional): Kansas does not require name reservations, but if you wish to reserve a name for your LLC, you can do so for 120 days by filing a Name Reservation application with the Secretary of State and paying the required fee.
Name Search: Conduct a name search on the Kansas Secretary of State’s website to ensure your desired business name isn’t already in use: https://www.kansas.gov/bess/flow/main;jsessionid=17DB6F6F4D5E4D5F5ED9F1B7C26A3A68
Time it Takes to name an LLC
Researching and deciding on a name: 1-2 hours
If opting for a name reservation: The act of filing can take about 10-15 minutes.
If opting for a name reservation: Filing can take minutes, but approval might take a few days to a week.
STEP 2: Appoint a Registered Agent
Agent Role: Your Resident Agent can be an individual resident of the state or a company that is authorized to do business in Kansas. They will receive official papers and legal documents on behalf of your LLC.
Requirements: The agent must have a physical street address in Kansas (P.O. boxes are not acceptable).
Time it Takes to be a Registered Agent
Registered Agents MUST BE at the Business Address everyday during business hours. This is why Home Addresses Are Not Accepted.
If you already have someone in mind (like an attorney or a service), this can be quick. If you need to find and appoint a registered agent: 1-3 hours.
Why use Inc Authority vs Being your own Registered Agent?
Benefits of having Inc Authority serve as your Registered Agent include:
· Privacy: Keep your home address private
· Efficiency: Easily receive and promptly process state and legal documents
· Hassle-free: Reduction of junk and solicitation mail
· Legal Compliance: Avoid fines, penalties, and possible dissolution
· Convenience: Serves as your public & legal business address
Inc Authority offer you a FREE year of Registered Agent Service with the purchase of your LLC.
STEP 3: File Articles of Organization
Prepare the Articles: You must prepare Articles of Organization, which is the document officially creating your LLC in Kansas. It includes information such as your LLC’s name, address, registered agent’s information, duration, and whether it will be run by members or managers.
Submit and Pay Fees: Submit the Articles to the Kansas Secretary of State. This can be done by mail or online, along with the required filing fee.
Processing Time: Expect a processing time, which varies depending on the method of submission (online or mail).
Time it takes to write the Articles of Organization
Preparing the document: 1-2 hours
Filing online: 30 minutes to 1 hour.
Waiting for confirmation/approval: This can range widely, but typically, online filings can be processed in a few days to a couple of weeks.
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STEP 4: Create an Operating Agreement
Internal Rules: Although not legally required in Kansas, it’s highly advisable to have an Operating Agreement. This document outlines your LLC’s internal operating rules like ownership percentages, members’ rights and responsibilities, voting powers, management, profit distribution, and rules for holding meetings and taking votes.
Conflict Prevention: It helps prevent misunderstandings by establishing clear guidelines and expectations.
Time it takes to write an Operating Agreement
If using a template and making minimal changes: 1-3 hours
If drafting from scratch or having extensive negotiations among members: Several days to weeks.
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STEP 5: Obtain an Employer Identification Number (EIN)
Apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes.
You can apply for an EIN online at no cost through the IRS website: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
The EIN will be used for tax filings, opening bank accounts, and hiring employees.
Time it takes to get an EIN / Tax ID
Filling out the online form and receiving the EIN: Approximately 0.5 to 1 hour (the online process is relatively quick if there are no complications).
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SO HOW MUCH TIME WILL IT TAKE TO FORM AN LLC MYSELF? DO IT MYSELF (DIY) an LLC?
Total Time Investment (Minimum): 5 hours (if you exclude the higher range estimates and name reservation)
Total Time Investment (Maximum): 11.5 hours (if you include the higher range estimates and name reservation)
This gives a ballpark range of 5 to 11.5 working hours for an individual, excluding all waiting times. It’s worth noting that these times can vary based on the person’s familiarity with the processes and any specific details or challenges related to the business being set up.