How to Start a Kansas Corporation (original) (raw)

Start a Kansas Corporation

When you plan to start a business in Kansas, you must decide on the appropriate structure. Starting a corporation may be more complicated than creating an LLC in Kansas or a sole proprietorship. However, it is not that difficult as well. There are a few guidelines that you should be aware of when it comes to creating Kansas corporation. Starting a corporation involves a legal process, that is, the process of incorporation.

In this article, I will share a step-by-step guide to start a corporation in Kansas. I will also enlighten you on the advantages and disadvantages of having a corporation. Some people consider starting a corporation in Kansas more than other business structures since it has many advantages over other forms.

What is a Corporation in Kansas

In definition, a corporation is a formal organization established by stockholders, shareholders, or other people to make a profit. Like individuals, corporations can undertake contracts, own assets, sue and be sued, pay taxes, limit state and federal taxes, and loan funds from banking institutions.

Common Types of Corporations

Before you start with the process of forming a corporation, you should know what type of corporation you will form. There are several different forms of corporations you can take into consideration, depending on your corporation’s objectives and ownership structure.

C-Corporation: C-Corporation is the most known type of incorporation. They have almost all corporate distinguishing characteristics. Profits are distributed to corporate owners who are taxed at an individual level. The corporation is taxed similarly to a business unit.
S-Corporation: An S-Corporation is set up similarly to a C-corporation but has different tax implications and owner limits. S-corps have no more than 100 stockholders and are not taxed separately. These business units must also file paperwork with the Internal Revenue Service (IRS) to obtain their status.
Non-profit Corporation: Nonprofit businesses are frequently used by religious, educational, and charity institutions to run their operations without making a profit. Thus, a nonprofit corporation is exempt from paying taxes. The nonprofit organization’s gifts, contributions, or cash are reinvested in the company to fund its growth, future endeavors, or operations. Read how to start a nonprofit corp in Kansas to learn about nonprofit corporations.

If you have a small business, it is recommended that you form an LLC instead of a corporation in Kansas. LLCs have more tax benefits than other structures. Besides, LLCs protect your personal assets. However, it is wise to consult a legal expert before you start setting up your business in Kansas.

– LLCBuddy Editorial Team

How to Start a Corporation in Kansas

To start a corporation in Kansas, you must follow the below steps that, include forming a corporation name, appointing a board of directors, filing for Articles of Incorporation, drafting corporate bylaws, meeting with the board of directors, issuing stocks, creating a shareholders agreement, requesting for an EIN, and getting a license and permit. All these steps are basic ones. It can be changed depending on the type of corporation you form and the nature of your business.

Step 1: Choose a Corporation Name in Kansas

Naming your business is one of the most crucial activities during the startup phase. Your corporation name serves as the foundation for your brand. Legal procedures should be taken into account when choosing your corporation name. Choose a corporation name that will enable you to develop a strong brand identity without being hampered by irrelevant factors.

If you are forming an LLC, there is a complete guide on Kansas LLC name guidelines for a proper LLC name. Here are some guidelines you must follow while naming your corporation in Kansas-

Your business name must contain entity identifiers, such as “Incorporated,” “Limited,” “Corporation,” or “Company,” or an abbreviation, such as “Inc.,” “Co.,” or “Ltd.”
Exclude any words in your business name, such as “Trust,” “Bank,” “Credit Union,” or “Trustee,” or words related to a government agency, such as “FBI,” “State Department,” or “Treasury.”

Step 2: Board of Directors Initial Appointment

To form a corporation in Kansas, you must appoint an initial board of directors before making them permanent once the corporation is formed. In Kansas, you may appoint at least One board of directors. The initial board of directors is in charge of guiding the overall strategy of your business. The structure, responsibilities, and powers given to a board of directors are determined by the bylaws of a company or organization. So, appointing your corporation’s initial board of directors in Kansas is a big step in forming a corporation.

Step 3: Filing the Articles of Incorporation in Kansas

After you appoint the initial board of directors in your Kansas corporation, the next step is to write and file a Articles of Incorporation. In writing, the Kansas Articles of Incorporation, the corporation name, principal place of business, the purpose of business, Kansas Registered Agent contact information, and the names and addresses of incorporators and/or initial board members, should be written.

Filing a Articles of Incorporation in Kansas may be done with two ways, online and by mail. The Articles of Incorporation fee may vary from different states. However, in Kansas, it costs $90 for filing online and by mail.

Online Filing: Create an account/Log in to the SOS site, get the online form, fill it, and submit online
Offline filing: Send the form by mail to Kansas Office of the Secretary of State, Memorial Hall, 1st Floor, 120 S.W. 10th Avenue, Topeka, KS 66612

Step 4: Draft Corporate Bylaws

Now you are done filing a Articles of Incorporation in Kansas, the next step is to draft corporate bylaws. Corporate bylaws are the basic rules that control a corporation. It includes the organization’s structure, processes, laws, and rules. As a result, all personnel, managers, and corporation members must obey the firm’s rules.

In creating corporate bylaws, you should include the following on how the decisions will be made-

The responsibilities are given to each officer.
How will judgments in business be made?
Where and when are the annual shareholder meetings?
The minimum number of shareholders required for decision-making.
Location and timing of dividend payments.

Step 5: Hold the First Board of Directors’ Meeting

After drafting the corporate bylaws, gather all the board of directors for the first meeting. This meeting will be finalized by appointing directors to manage the company’s daily operations, approve the bylaws, choose the corporation’s accounting year, and approve the stock issue. All board meetings should have minutes taken and stored with the company’s records.

Step 6: Issuing Stock in a Corporation

After starting your Kansas corporation, one of the first official corporate actions is issuing stock to the shareholders. Keep track of the number of shares issued to each shareholder and the purchase price. A corporation in Kansas is managed by its shareholders, who contribute to the business in exchange for ownership shares.

Step 7: Draft and Finalize a Shareholders Agreement

Even though drafting and finalizing a shareholders agreement is unnecessary, I suggest you still comply since it will benefit your corporation and its shareholders. A small business’s shareholders enter into a shareholder agreement contract. It establishes how ownership will be handled in unexpected situations, like a shareholder passes away, retires, becomes disabled, or quits the corporation. Early on in the life of your Kansas corporation, signing a shareholders’ agreement can help maintain corporate continuity and prevent future disputes.

Step 8: Request an EIN in Kansas

After everything is in place, you should get or request an Employer Identification Number (EIN). An EIN will serve as the tax ID for your Kansas 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.

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

Apply Online- The EIN online 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 For m SS-4 can be filed via mail. The processing time frame to receive the mail is 4 weeks.
Apply by Telephone-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 corporation the final advantage necessary to operate at full capacity without encountering legal or judicial issues.

Step 9: Get Licenses and Permits for your Corporation in Kansas

Before your corporation operates in Kansas, you must have a business license. A business license is a document issued by a government agency that permits you to operate your business in the geographic region that that agency governs. To legally operate your corporation, you’ll need a business license. Numerous corporate licenses need to be filed and renewed regularly. Check out how to get business licenses and permits in Kansas to know more.

You must also register a DBA name if you intend to conduct business using a name other than your corporation’s legal name. The DBA name is sometimes known as “doing business as” or a “fictitious business name.” Depending on your location, you may need to register the DBA with your state, city, and county. You can skip this step if your business solely uses your legal company name.

Important Information

Paying your Taxes in Kansas

Even if you have established your corporation in Kansas, pay your taxes and keep everything up to date so you won’t pay any penalty. Unlike an LLC, there is a corporate tax that every corporation in Kansas has to pay. On the other hand, they must pay income taxes based on their business income. Some other types of taxes in Kansas are sales tax, franchise tax (not applicable to all the states), and other state taxes.

Cost of Forming a Corporation in Kansas

A filing and annual fee must be paid to form a corporation in Kansas. Without it, your corporation won’t operate. The initial filing fee for a corporation may vary depending on the state. However, in Kansas, it costs 90forfilingonlineandbymail.ThecorporationinKansasalsohastofileanannualreport(thoughitmightnotbemandatory,itisrecommendedtofileone).Ensureyoucomplywithallthenecessaryfeesandcostssoyourcorporationwillrunsuccessfullyandsmoothly.If,inthefuture,youmakeanychangestoyourcorporation,youmustfiletheKansasAmendment.Itcosts90 for filing online and by mail. The corporation in Kansas also has to file an annual report (though it might not be mandatory, it is recommended to file one). Ensure you comply with all the necessary fees and costs so your corporation will run successfully and smoothly. If, in the future, you make any changes to your corporation, you must file the Kansas Amendment. It costs 90forfilingonlineandbymail.ThecorporationinKansasalsohastofileanannualreport(thoughitmightnotbemandatory,itisrecommendedtofileone).Ensureyoucomplywithallthenecessaryfeesandcostssoyourcorporationwillrunsuccessfullyandsmoothly.If,inthefuture,youmakeanychangestoyourcorporation,youmustfiletheKansasAmendment.Itcosts35.00 to file an amendment in Kansas.

Advantages of Starting a Corporation in Kansas

Limited Liability: The biggest advantage of setting up a Kansas corporation is that the shareholders are not personally responsible for the debts of the company. As a result, when you incorporate as a corporation, personal assets like homes, vehicles, and other possessions are prohibited. One of the main benefits of setting up a corporation over a general partnership or sole proprietorship business structure is that neither the business nor the owners are held legally responsible for the obligations of the business, even if it means giving up their personal assets.
Limitless Corporation: The fact that a corporation’s existence is independent of its owners is another significant benefit of incorporation. In other words, a corporation has an endless life and will continue operating normally even if the owner dies or decides to sell their ownership.
Advantages in Tax: The deduction of health insurance premium payments made on behalf of an owner-employee is one of the many financial benefits to which corporations are entitled. Corporations also save on self-employment taxes since their revenue is not subject to workers’ compensation, Social Security, or medical taxes. Tax rates on corporate profits are lower than those on individual income.

FAQs

What is required to start a corporation in Kansas?

You will need to register your business with the Kansas Secretary of State, submit Articles of Incorporation, and appoint directors.

What are the filing fees to incorporate in Kansas?

The filing fee to incorporate in Kansas is $45.

How long does it take to form a corporation in Kansas?

It typically takes 1-2 weeks to form a corporation in Kansas.

Is there a minimum number of directors required to incorporate in Kansas?

Yes, the minimum number of directors for a Kansas corporation is three.

Does Kansas require a registered agent?

Yes, a registered agent is required to incorporate in Kansas.

Is it possible to form an S-Corp in Kansas?

Yes, it is possible to form an S-Corp in Kansas.

Do I need to pay taxes in Kansas if I incorporate there?

Yes, corporations are required to pay taxes in the state of Kansas.

Does Kansas have any special requirements for corporations?

Yes, Kansas has several requirements for corporations, including the appointment of directors and filing articles of incorporation.

What type of taxes will I need to pay in Kansas if I form a corporation?

Corporations in Kansas are required to pay state income tax, local property taxes, and sales taxes.

Is there any special paperwork that needs to be filed in Kansas if I form a corporation?

Yes, corporations in Kansas must file annual reports and other paperwork with the Kansas Secretary of State.

Is there a minimum amount of capital that must be contributed to form a corporation in Kansas?

No, there is no minimum amount of capital required to form a corporation in Kansas.

Are there any requirements for shareholders of a corporation in Kansas?

Yes, Kansas requires that shareholders of a corporation must be at least 18 years of age and must be able to enter into a legally binding contract.

Is there a fee to renew a corporation in Kansas?

Yes, there is a $35 annual renewal fee for corporations in Kansas.

Are there any restrictions on where a corporation can do business in Kansas?

Yes, in order to do business in Kansas, a corporation must have a registered office and agent in the state.

Do I need to register my corporation with the IRS if I form it in Kansas?

Yes, all corporations must register with the IRS regardless of where they are formed.

Can I form a corporation online in Kansas?

Yes, it is possible to form a corporation in Kansas online.

Can I form a corporation as a foreign entity in Kansas?

Yes, it is possible to form a corporation as a foreign entity in Kansas.

How do I change the name of my corporation in Kansas?

You will need to submit an amendment to the Articles of Incorporation to the Kansas Secretary of State to change the name of your corporation.

Do I need to file annual reports with the Kansas Secretary of State?

Yes, corporations in Kansas must file annual reports with the Kansas Secretary of State.

Is it possible to form a non-profit corporation in Kansas?

Yes, it is possible to form a non-profit corporation in Kansas.

Are there any special requirements for forming a non-profit corporation in Kansas?

Yes, non-profit corporations in Kansas must file Articles of Incorporation and obtain a Certificate of Authority from the Kansas Secretary of State.

How do I dissolve my corporation in Kansas?

You will need to submit a Certificate of Dissolution to the Kansas Secretary of State to dissolve your corporation.

Is there a fee to dissolve a corporation in Kansas?

Yes, there is a $35 fee to dissolve a corporation in Kansas.

Are there any tax implications when dissolving a corporation in Kansas?

Yes, corporations in Kansas must file a final tax return upon dissolution.

Is it possible to reinstate a dissolved corporation in Kansas?

Yes, it is possible to reinstate a dissolved corporation in Kansas.

How do I change the registered agent of my corporation in Kansas?

You will need to submit an amendment to the Articles of Incorporation to the Kansas Secretary of State to change the registered agent of your corporation.

Can I form a corporation in Kansas if I am not a resident?

Yes, it is possible to form a corporation in Kansas even if you are not a resident.

What does it cost to start a corporation in Kansas?

The cost to start a corporation in Kansas depends on the type of business you plan to operate. The filing fee for a Kansas limited liability company (LLC) is 165,whilethefilingfeeforaKansascorporationis165, while the filing fee for a Kansas corporation is 165,whilethefilingfeeforaKansascorporationis90.

What is the process for forming a corporation in Kansas?

The process for forming a corporation in Kansas involves filing the appropriate legal documents with the Kansas Secretary of State’s office. This includes Articles of Incorporation and other required documents.

Is a registered agent required to form a corporation in Kansas?

Yes, a registered agent is required to form a corporation in Kansas. The registered agent must be a resident of Kansas or a business entity authorized to conduct business in Kansas.

What are the tax requirements for a corporation in Kansas?

Corporations in Kansas are subject to both federal taxes and state taxes. The federal tax rate for corporations is currently a flat 21%, and Kansas has a current corporate income tax rate of 4.5%.

What are the reporting requirements for a corporation in Kansas?

Each corporation in Kansas is required to file an annual report that includes financial statements and other relevant information. The annual report must be filed with the Kansas Secretary of State’s office.

What are the liability protections offered by a corporation in Kansas?

A corporation in Kansas provides limited liability protection for its owners, meaning that their personal assets are not at risk if the business is sued.

What are the ongoing obligations of a corporation in Kansas?

Corporations in Kansas must adhere to certain ongoing obligations, such as filing annual reports, paying taxes, and maintaining a registered agent.

Why Kansas Corporation is So Important

One of the key reasons why Kansas Corporation is so important is its role in the creation of job opportunities. As a major employer in the state, Kansas Corporation provides livelihoods to a significant number of individuals and their families. This not only contributes to the economic well-being of these individuals but also helps in reducing unemployment rates and stimulating economic growth in the region.

Furthermore, Kansas Corporation is also instrumental in driving innovation and technology advancements. By investing in research and development, Kansas Corporation is able to come up with new products and services that not only cater to the needs of consumers but also help in pushing the boundaries of technology and science. This, in turn, boosts the competitiveness of the state and helps in attracting further investments from around the country and the world.

Additionally, Kansas Corporation is often at the forefront of community development initiatives. Whether through corporate social responsibility programs or strategic partnerships with local organizations, Kansas Corporation plays a crucial role in uplifting the communities where they operate. This could include initiatives focused on education, healthcare, environmental conservation, and other social causes that have a lasting impact on society.

Moreover, the presence of strong and successful corporations in Kansas also helps in attracting talent to the state. Skilled professionals, entrepreneurs, and investors are often drawn to locations where there are ample opportunities for growth and advancement. Therefore, the presence of Kansas Corporation not only benefits the economy but also facilitates the overall development of the state by bringing in fresh ideas and talent.

It is also worth noting that Kansas Corporation contributes significantly to the state’s tax revenues. These taxes help in funding essential public services such as infrastructure development, healthcare, education, and public safety. Without the steady stream of revenues generated by these corporations, the state would struggle to provide these critical services to its residents.

In conclusion, the importance of Kansas Corporation cannot be understated. From job creation to community development, innovation, and economic growth, corporations in Kansas play a pivotal role in shaping the future of the state. It is imperative that we recognize and support the contributions of these corporations to ensure a thriving and prosperous future for Kansas.

Conclusion

When determining which corporate form is best for you, be selective. You must know which business structure is bet-fitted for your product/service in Kansas. Consult a legal professional before you take the first step while setting up your business. Finding the ideal ratio of corporate advantages and legal protection that meets your unique needs is very important. In forming a corporation in Kansas, you need to ensure that every detail is well-formed so that your corporation will be successful. And if you have any questions, share them in the comment section below.