The incorporation process determines how your business is treated by the state, your bank, and the Internal Revenue Service (IRS). The rules aren’t complicated, but they do matter; the entity you pick also informs how you raise money, pay taxes, and insulate your personal assets from the risks of running a company. Below, we’ll explore what it takes to incorporate in Kansas, what it costs, and how the process works step by step.
What’s in this article?
- How do you incorporate a business in Kansas?
- What are the benefits of incorporating in Kansas?
- What are the legal requirements to incorporate in Kansas?
- How much does it cost to incorporate in Kansas?
- What are the steps to register an LLC or corporation in Kansas?
- How Stripe Atlas can help
How do you incorporate a business in Kansas?
To form a business in Kansas, the first decision you need to make is whether to form a limited liability company (LLC) or a corporation. Incorporation refers to forming a corporation, but many smaller businesses choose to form LLCs instead. An LLC gives you flexibility and simpler tax treatment, while a corporation offers the more formal structure that investors and shareholders typically expect.
After you choose your business structure, you’ll need to check name availability with the Kansas secretary of state, designate a registered agent with a physical Kansas address, and file your formation documents (articles of organization for LLCs or articles of incorporation for corporations). After that, you’ll create an operating agreement or bylaws and apply for any state or local licenses.
These steps make your business official in Kansas and allow you to open a business bank account, hire employees, and build credibility with partners and customers.
What are the benefits of incorporating in Kansas?
When you form a business in Kansas, you’re changing the status of your company.
A Kansas LLC or corporation offers you the following:
Legal distance from your business: Your company’s debts and obligations stay with the company, not your personal assets.
Credibility: Banks, vendors, and investors tend to take you more seriously when you show up as a registered entity.
Tax options: An LLC can keep things simple with pass-through taxation. A corporation can opt for C corporation (C corp) or S corporation (S corp) status depending on growth plans.
Easier fundraising: Only a corporation can issue shares, which are often the currency of outside investment.
Stability: Unlike a sole proprietorship, a Kansas corporation or LLC doesn’t legally end when the founder walks away.
Incorporation is a turning point. It’s when your business stops looking like a personal project and starts operating like a company.
What are the legal requirements to incorporate in Kansas?
To incorporate in Kansas, you need a compliant name, a registered agent, and formation documents. To stay in good standing, you need to pay taxes and file biennial reports with the state. Missing any of these can lead to penalties or even dissolution. Here’s a closer look at the legal requirements.
A compliant business name
Your business name has to be distinguishable from entities already registered with the Kansas secretary of state. Including certain words (e.g., “bank,” “insurance”) requires special approval. LLCs must include some form of “LLC” in their registered names, and corporations must include a designation such as “Inc.” or “Corp.” You can run a name search online before you file.
A Kansas registered agent
Every Kansas LLC and corporation must list a registered agent with a physical address in the state (no PO Boxes). The agent is responsible for receiving official mail, service of process, and compliance notices.
Filed formation documents
LLCs submit articles of organization; corporations submit articles of incorporation. These filings can be completed online or by mail.
Ongoing compliance
Biennial reports: Kansas LLCs and corporations must file Information Reports with the secretary of state every two years. Businesses formed in even years file reports in each succeeding even year; businesses formed in odd years file reports in odd years.
Taxes: Depending on your structure, you might be subject to Kansas corporate income tax, sales tax, or withholding tax.
Licensing: Certain industries (e.g., healthcare, construction, food service) require state or local permits to operate.
How much does it cost to incorporate in Kansas?
Filing fees in Kansas are predictable, but they vary by structure. LLC formation costs $160 if you file online and $165 by mail; for-profit corporation formation costs $85 if you file online and $90 by mail.
Every business also pays a biennial report fee of $100 if it files online or $110 if it files by mail. If you use a registered agent service, that typically costs $100–$300 per year.
Those are the state-mandated costs to incorporate a business in Kansas. Beyond them, expect some startup overhead, such as getting a corporate seal (which is optional but common) or paying an accountant to set up your tax structure.
What are the steps to register an LLC or corporation in Kansas?
In practice, Kansas businesses can move from decision to filing in a day or two. Here’s what the process entails.
Decide on your business structure
LLCs are most suitable for single-owner setups, offering flexibility and pass-through taxation. Corporations are better if you’re planning to issue stock, attract investors, or set up a more formal ownership structure. Kansas law supports both, but how you organize your business determines what documents you file and how you’ll be taxed.
Pick and clear your business name
Your company’s name must be distinguishable from other registered entities. Run a search through the Kansas secretary of state’s business name database to check. If you’re not ready to file immediately, you can reserve a name.
Appoint a Kansas registered agent
Every business entity must list a registered agent with a physical address in Kansas (no PO Boxes). This person or service is responsible for receiving legal filings, compliance notices, and other official documents. You can act as your own agent, but many businesses pay for a professional service.
File your formation documents
Whether you’re filing articles of organization (for an LLC) or articles of incorporation (for a corporation), you need a business name, registered agent, principal address, and organizer or incorporator details.
Create internal governing documents
It’s best practice for LLCs to create operating agreements that outline ownership percentages, decision-making processes, and how profits and losses are split. Corporations need to write bylaws that define how directors are elected, how meetings are held, and how stock is issued. Kansas doesn’t require you to file these with the state, but banks, investors, and future partners usually expect them.
Register for taxes and licenses
If you plan to collect sales tax or hire employees, you’ll need to register with the Kansas Department of Revenue. Cities and counties might also require separate business licenses, depending on your industry.
File your biennial report
Both Kansas LLCs and corporations must file biennial reports with the secretary of state. Missing these deadlines can lead to late fees or administrative dissolution.
How Stripe Atlas can help
Stripe Atlas sets up your company’s legal foundations so you can fundraise, open a bank account, and accept payments within two business days from anywhere in the world.
Join 75K+ companies incorporated using Atlas, including startups backed by top investors like Y Combinator, a16z, and General Catalyst.
Applying to Atlas
Applying to form a company with Atlas takes less than 10 minutes. You’ll choose your company structure, instantly confirm whether your company name is available, and add up to four cofounders. You’ll also decide how to split equity, reserve a pool of equity for future investors and employees, appoint officers, and then e-sign all your documents. Any cofounders will receive emails inviting them to e-sign their documents, too.
Accepting payments and banking before your EIN arrives
After forming your company, Atlas files for your Employer Identification Number (EIN). Founders with a US Social Security number, address, and cell phone number are eligible for IRS expedited processing, while others will receive standard processing, which can take a little longer. Additionally, Atlas enables pre-EIN payments and banking, so you can start accepting payments and making transactions before your EIN arrives.
Cashless founder stock purchase
Founders can purchase initial shares using their intellectual property (e.g., copyrights or patents) instead of cash, with proof of purchase stored in your Atlas Dashboard. Your IP must be valued at $100 or less to use this feature; if you own IP above that value, consult a lawyer before proceeding.
Automatic 83(b) tax election filing
Founders can file an 83(b) tax election to reduce personal income taxes. Atlas will file it for you—whether you are a US or non-US founder—with USPS Certified Mail and tracking. You’ll receive a signed 83(b) election and proof of filing directly in your Stripe Dashboard.
World-class company legal documents
Atlas provides all the legal documents you need to start running your company. Atlas C corp documents are built in collaboration with Cooley, one of the world’s leading venture capital law firms. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.
A free year of Stripe Payments, plus $50K in partner credits and discounts
Atlas collaborates with top-tier partners to give founders exclusive discounts and credits. These include discounts on essential tools for engineering, tax, finance, compliance, and operations from industry leaders like AWS, Carta, and Perplexity. We also provide you with your required Delaware registered agent for free in your first year. Plus, as an Atlas user, you’ll access additional Stripe benefits, including up to a year of free payment processing for up to $100K in payment volume.
Learn more about how Atlas can help you set up your new business quickly and easily, or get started today.
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.