How to Start an LLC in Kansas

Important Next Steps to Protect Your Kansas LLC

After you’ve formed your LLC, you’ll need to complete key steps in order to:

• Separate your personal and business assets
• Stay compliant with state and federal laws

Get a Business Bank Account & Credit Card

Using a dedicated business banking account and business credit card is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your LLC is sued. In business law, this is referred to as piercing your corporate veil.

You can protect your business with these two steps:

1. Opening a business bank account:

• Separates your personal assets from your company’s assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

2. Getting a business credit card:

• Helps you separate personal and business expenses.
• Builds your company’s credit history, which can be useful to raise capital later on.

Get Insurance

Even though an LLC offers limited liability, you’ll still likely need to purchase some form of business insurance to protect your LLC’s assets. The most common types are:

• General Liability Insurance: A broad insurance policy that protects your business from lawsuits. Most small businesses get general liability insurance.
• Professional Liability Insurance: A business insurance for professional service providers (consultants, accountants, etc.) that covers against claims of malpractice and other business errors.
• Workers’ Compensation Insurance: A type of insurance that provides coverage for employees’ job-related illnesses, injuries, or deaths. In Kansas, businesses with one or more employees, including LLC members and corporate officers, are required by law to have workers’ compensation insurance.

What This Means:

Without insurance: If someone sues your bakery for $40,000, they could take your commercial mixer and empty your business account ($25,000 total), but won’t be able to touch your house or personal savings.

With insurance: Your business liability policy could cover the $40,000 claim, meaning that both your personal and business assets would remain untouched.

That’s why many small business owners turn to providers like Ergo Next Insurance for affordable, tailored coverage. Get a free quote today.

Want to learn exactly what coverage your Kansas business may need? Read our full Kansas Business Insurance Guide.

Obtain Business Licenses If Needed

While Kansas doesn’t require a general state business license, your LLC may need specific licenses or permits based on its industry, location, and activities.

• State-Level Licenses: Use the state’s list of licenses and permits to determine if your business is required to obtain any by the state. 
• Local Licenses: Check with your city or county clerk’s office to identify any local licensing requirements, such as zoning permits or health department approvals.
• Federal Licenses: If your business activities are regulated by a federal agency (e.g., selling alcohol or firearms or operating in the transportation industry), consult the U.S. Small Business Administration’s website to determine necessary federal licenses or permits.

For a comprehensive overview and step-by-step instructions, refer to our Kansas Business License Guide.

If you’d rather have a service handle this step for you, we recommend checking out LegalZoom’s Business License service. 

Pay Kansas LLC Taxes 

Your Kansas LLC will have several key tax obligations at the state and federal levels. 

Federal LLC Tax Requirements

As a pass-through entity, profits typically flow to your personal tax return. LLC members pay self-employment tax (15.3%) on their earnings.

Income Taxes

The state of Kansas imposes two types of income taxes relevant to LLC owners, depending on how they elect to be taxed. You can submit these tax returns online or by mail using the forms linked below. 

• Individual Income Tax: Income tax rates for LLC owners with pass-through taxation status is 3.1% to 5.7%, depending on the size of their distribution. Each member will need to submit an individual tax return using Form K-40.
• Corporate Income Tax: Corporate income tax for LLCs taxed as C corps is imposed on total taxable income at a rate of 4% on everything below $50,000 and 7% on everything above it. You can submit a return for this tax using Form K-120.

Sales and Use Taxes

If you sell physical products, you will need to obtain a seller’s permit through the Kansas Department of Revenue (KDOR) Customer Service Center. 

This permit allows you to collect sales tax on taxable sales. You’ll pay this tax through the KDOR Tax Payment Portal at your LLC’s assigned due date.

Sales tax, also called “Sales and Use Tax,” is a tax levied by states, counties, and municipalities on business transactions that involve the exchange of certain taxable goods or services.

Read our sales tax guide to find out more. 

Employer Taxes

If you have employees in Kansas, you’ll need to register for Unemployment Insurance Tax through the Kansas Department of Labor. You’ll also need to sign up for Withholding Tax through the KDOR.

Local Taxes 

Some Kansas localities have their own income tax requirements that may affect your LLC, such as: 

• Property taxes 
• Sales and use taxes 
• Transient guest taxes 

Often imposed by city or county, you can determine relevant tax requirements by contacting your county assessor. 

Most Kansas LLCs must file their state tax returns by April 15. For help understanding your full tax obligations — and making sure nothing gets missed — check out our full Kansas LLC Tax Guide.

Need personalized help? Schedule a free consultation with 1-800Accountant to get expert guidance from CPAs who specialize in small business taxes.

Submit a Biennial Information Report

Kansas requires all LLCs to file a biennial information report with the Secretary of State. This keeps their records updated with current information about your business entity, such as its current officers and directors, registered agent information, and tax closing date. 

You’ll need to file this report every two years, which can be done either online ($100) or by mail ($110), by one of the following deadlines:

• LLCs with a calendar year tax period: Can file this report at any time after the end of their tax period by the April 15th deadline.
• LLCs with a tax period other than a calendar year: Must file an information report no later than the 15th day of the fourth month after your LLC’s tax period ends.

Note: Failure to file this report may result in your LLC losing its legal status.

To stay on top of this deadline and other important compliance tasks, we recommend hiring a professional registered agent service — they can help ensure you never miss a filing.