In this Article, we will give you a snapshot of the legal compliance requirement and associated fees required to register Limited Liability Company (LLC) in Kansas and most importantly, maintain the status of an LLC, especially as a small business e-commerce start up.
In the United States, LLCs are registered on the state level, therefore you can register an LLC in any of the 50 States in the United States, including Washington DC.
You can check out our the best states in the US to register your LLC as a small business e-commerce start-up, if you want to pay less State fees, less State imposed taxes and do less periodic paperwork in order to maintain your LLC.
In this Article, our focus is on Kansas LLC. What cost should you expect to pay when you register a Kansas LLC? What periodic filings requirements are imposed on Kansas LLCs? What State taxes are levied on e-commerce small business start ups in Kansas and what are the tax rates? What business permits are required to be obtained by e-commerce businesses in Kansas, what’s the cost of these permits and are there any renewal requirements?
This Article presents you a snapshot, so you know what fees and legal compliance requirements to expect if you want to register an LLC for your e-commerce small business start up in Kansas, operate with the required licences and maintain your LLC status.
Business registration and compliance on Kansas
LLC Registration cost; the state fee for registering an LLC in Kansas is $116. You can register your Connecticut LLC with Bizee for a service charge of $0 + the State fee for a service charge of $0 + the State fee.
LLC registration Publishing requirement; No, LLCs in Kansas are not required to publish their registration in a local newspaper.
Has the Option to register as an Anonymous LLC; No, LLCs in Kansas do not have the option to register as an anonymous LLC. Meaning that the business details of the LLC Owners are published on the Kansas public records. The LLC can still maintain some privacy by using a virtual office address and not the Owners real addresses.
DBA requirement; DBA is not required if your LLC is operating under a different name than your LLC registered name. In Kansas DBA is referred to as a “DBAs or fictitious names” or outsource the registration of your Kansas DBA (if needed) to Bizee.
Annual report filing requirement; yes. the cost of filing annual reports for LLCs in Kansas is $50 for online filling and $55 for paper filling.
You can file the Kansas annual returns yourself, you’ll need to visit the Kansas Secretary of State or you can outsource the filling of your annual returns to Bizee for a $99 service charge + the state fee.
Annual Franchise tax filing and compliance in Kansas
State Franchise tax requirement; No, LLCs are not required to pay Franchise tax in Kansas.
Annual State income tax filing and compliance in Kansas
- State income tax requirement; Kansas has a graduated individual income tax structure, encompassing rates between 3.10 percent and 5.70 percent. Certain jurisdictions within the state also collect local income taxes. In terms of corporate income tax, Kansas applies a rate ranging from 4.00 percent to 7.00 percent.
- Who files State income tax; LLCs by default are passed through entities meaning that tax obligation passes through to the individuals who own the LLC. Therefore an LLC with a default tax status pays the individual state income tax. Interestingly, if the individuals behind the LLC are not resident in the state and do not have state source income (a dependent agent in the state), then they are not required to pay “individual State income tax”.
If the LLC owners are resident in the State or have State source income (a dependent agent in the state), then the LLC Owners are required to pay “individual State income tax”.
If the LLC has elected to be taxed as a corporation (C-corp), then the LLC is required to pay “Corporate State income tax”.
- How to file state income tax; You can file your Kansas State income tax by yourself. You will need to visit the State website. Alternatively, we recommend using the Service of a Certified Public Accountant (CPA), through H&R Block to file your state income tax.
Periodic Sales tax filing and compliance in Kansas
- Sales tax requirement; In Kansas, the state sales tax rate is 6.50 percent, with a maximum local sales tax rate of 4.25 percent. The average combined state and local sales tax rate in Kansas is 8.66 percent.
- Sales tax permit; It costs $0 to register for a Kansas sales and use tax permit Kansas sales tax permit does not expire.
- Reseller/Resale Certificate; Businesses can present any of the below listed Resale certificates to suppliers if they want to make sales tax free purchases for product delivery to an Kansas address.
- Resale exemption certificate | Form ST-28A
- MTC Uniform Sales & Use Tax Resale Certificate (The MTC form serves as a uniform resale certificate for various states, streamlining the process by replacing the need for multiple state-specific resale forms when dealing with your supplier.)
- SST Certificate of Exemption (The SST form serves as a uniform resale certificate for various states, streamlining the process by replacing the need for multiple state-specific resale forms when dealing with your supplier.)
Note; Kansas accepts the use of out-of-State Seller ID.
This means that Resale Businesses seeking sales-tax-free purchases in Kansas can use an out-of-state seller ID (i.e a seller ID issued by another US state or their home state) to fill-out the MTC uniform resale certificate or SST Certificate of Exemption. They can indicate an out-of-state seller ID as their Kansas Seller ID on the MTC form or SST Form.
In Kansas, A blanket Resale certificate (This means that the resale certificate is kept on file by the Supplier to cover multiple purchase transactions between a specific Supplier and Reseller) do not expire as long as a “recurring business relationship” exists. A “recurring business relationship” exists when no more than twelve months pass between sales.
Conclusion
This Article shows you a snapshot of the legal fillings and compliance requirements for LLCs that are registered in Kansas, specifically for LLCs that want to carry on the business of selling and especially for small e-commerce start up LLCs that are registered in Kansas.
If you are wondering what might be the best State in the United States to register your small business (especially if you are a reseller or an e-commerce business), we have written this Article, where we go over our most recommended states for registering a business in the United States, if you want to pay less LLC filing and legal compliance fees, if you want less state imposed taxes and if you want to do less periodic legal paperwork required to maintain your LLC status.
