Why Start a KS Corporation?
The state offers various business incentives and services, giving businesses in Kansas a competitive edge. Your corporation may be able to take advantage of these incentives, provided it meets qualifying criteria.
For example, the Promoting Employment Across Kansas (PEAK) is a business incentive where companies may retain or be refunded 95% of the payroll withholding tax of qualified employees for new jobs created in Kansas.
For many entrepreneurs looking to start a larger business, a KS incorporation may be the best choice. As a corporation, your business is able to buy and trade stock, and when it comes to excess profits, corporations offer more flexibility than a limited liability company (LLC). A corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.
Is an LLC Better Than a Corporation?
It all depends on your business goals. For smaller businesses, a limited liability company is usually a better option. An LLC is easier to set up and receives many of the same benefits as corporations, but with less regulation.
Learn more about forming a Kansas LLC so you can decide which business entity is right for you.
Benefits of Forming a Kansas C Corporation
It offers you numerous advantages, including but not limited to:
- The strongest form of liability protection possible by insulating your personal assets and finances from business debts, obligations, damages, bankruptcy or other liabilities
- Several options to create, buy, sell or transfer stock, including publicly
- The ability to issue more than one type of stock
- The ability to raise more funds by issuing more stock
- The ability to sell stock to investors inside and outside the U.S.
Benefits of Forming a Kansas S Corporation
It offers several advantages similar to those provided by a C Corp including, but not limited to:
- Options for creating, transferring and selling stock, though not as many as a C Corp
- The capacity for up to 100 shareholders
- Simpler rules than those that apply to C Corporations
- Easy transfer of ownership simply by selling your stock
- The possibility of saving money by allowing you to pay less self-employment tax
In this guide, you’ll find information on naming your corporation, getting a Resident Agent, the fees you’ll need to pay, business taxes and much more. We also cover what you'll need to register your corporation and how you'll interact with the Secretary of State in Kansas.
Start a Business in Kansas Checklist
To help you along the way, use our Starting a Business checklist to keep track of everything you need to do to get your business up and running.
How to Form a KS Corporation Yourself in 6 Steps
Step 1 - Choose a Unique Business Name and Complete a State Business Search
Step 2 - Provide an Official Business Address for Your Corporation
Step 3 - Assign a Resident Agent
Step 4 - File Your Articles of Incorporation with the Kansas Secretary of State
Step 5 - Get an Employer Identification Number (EIN) from the Internal Revenue Service
Step 6 - Write Your Bylaws
1
Choose a Unique Business Name and Complete a State Business Search
Every Kansas business must have a distinctive name that hasn't already been claimed by another business in the state. If you’re having difficulty coming up with a name, try using our Business Name Generator to gather ideas. You'll need to follow a few naming rules, which you can read about in detail on the Kansas Corporation Names page.
Once you’ve picked a name, you’ll need to make sure it’s available in Kansas. To see whether another company in the state is using your desired business name, use our tool to do a Kansas entity search.
You can also carry out a name search on the state's website.
2
Provide an Official Business Address for Your Corporation
All KS corporations must have a designated address. It could be your home address (if you’re running the company from your place of residence), a building where your office is located or any physical address of your choice. The address can be outside the state of Kansas and can be a P.O. Box.
You may also be able to use a virtual mailbox for your business address. Incfile can provide you with a Kansas virtual mailbox where we'll receive your mail and scan it for your online review. This can be especially helpful if you run a home-based business and don't want your home address published as part of your business public record.
3
Assign a Resident Agent
Sometimes referred to as a 'Registered Agent', a Resident Agent is someone who receives official documentation and correspondence and is responsible for filing reports with the Kansas Secretary of State. Every Kansas corporation is required to have a Resident Agent.
You may choose to fill this position yourself, assign another manager in your business or use a Resident Agent service. If your Resident Agent in Kansas is a person, they must have a physical street address in Kansas and must be available during business hours to receive important documents on behalf of your company. You'll appoint your Resident Agent when you file your Articles of Incorporation with the Secretary of State and formally create your corporation.
All of Incfile’s business formation packages include Resident Agent service. It’s free for the first year and just $119 per year after that. You can also access a digital dashboard to view any document we've received on your behalf.
4
File Your Articles of Incorporation with the Kansas Secretary of State
Once you've gathered all the information for your corporation, you’ll need to file your Articles of Incorporation with the Secretary of State to officially create your business.
Here’s what is typically included within the articles:
- Your corporation name
- Resident Agent's name and Registered Office address
- Your corporation's mailing address
- Tax closing month (December by default)
- Corporation's effective date
- Your corporation's purpose
- The corporation’s capital structure (number of shares to be issued)
- Name and mailing address of each incorporator
- Name and mailing address of each member of board of directors
- Duration of corporation
- Signature of each incorporator
Your Articles of Incorporation may be filed online via the state's digital portal. You can also mail the form to the Office of the Secretary of State, or Incfile can file it on your behalf. The KS Corporation filing fee is $90 if you choose to file a paper form or $85 if you file online.
File by Mail
Memorial Hall, 1st Floor
120 S.W. 10th Avenue
Topeka, KS 66612-1594
File by Fax
Business Services (785) 296-4570
Note:Documents filed by fax require a $20 fee in addition to the normal filing fee.
You only need to file your Articles of Incorporation in Kansas once, but once a year thereafter, you'll also need to file an annual report with the Secretary of State in KS. Incfile can remind you about this every year, or we can do it for you if you have us handle the paperwork.
What are the fees and requirements to incorporate in Kansas?
State Fee | State Filing Time | Expedited Filing Time |
$89* | 3 Weeks | 1 Business Day |
State Fee | $89* | |
State Filing Time | 3 Weeks | |
Expedited Filing Time | 1 Business Day |
*includes $5 paper copy fee
Annual Report
Frequency
Annually
Due Date
Calendar Year: April 15,
Fiscal Year: 15th day of 4th month after close of tax year.
Filling Fee
$53**includes $5 paper copy fee
5
Get an Employer Identification Number (EIN) from the Internal Revenue Service
You'll need an EIN to identify your business to the IRS. You use an EIN for filing and paying taxes, submitting payroll information and payments for your employees and opening a business bank account. You can obtain one directly from the IRS, or Incfile can get one for you as part of the KS corporation creation process.
6
Write Bylaws
A set of rules that govern how a corporation will be run, bylaws detail how many directors the corporation will have, whether the board of directors will have annual meetings and what the voting requirements will be, among other things.
Some states legally require companies to create bylaws, however this is not a requirement in the state of Kansas. Regardless of legalities, it's always a good idea to write and follow bylaws to protect your business from any future changes and events.
Types of KS Corporations
C Corporation
When you file to start a corporation, by default, it's a C Corp. This is the choice for large businesses that will trade shares in the stock market.
A Kansas C Corporation will offer you several liability protections, but it will also be required to adhere to numerous strict rules and regulations. It will also likely have a substantial amount of administrative overhead, and won't enjoy as many tax advantages as other corporation types.
Learn more about C Corporations.
S Corporation
Technically, an S Corporation isn't a business entity the way LLCs and C Corporations are. It's a tax filing status. An LLC or a C Corporation can be an S Corporation. It's just a matter of filing a form with the IRS.
The main reason to file as an S Corp is to save money on self-employment taxes. To get an idea of how much money you might save, use our S Corp Tax Calculator.
If you want your Kansas C Corporation to be treated as a Kansas S Corporation, file the IRS Election by a Small Business Corporation form, also known as Form 2553 or an S Corp Election form.
Consult with your professional tax advisor or accountant to determine whether this is your best option. Learn more about S Corporations.
Compare S Corp vs. C Corp to learn the benefits and drawbacks of both, and decide which one will best suit your needs.
Professional Corporation
Some states, including Kansas, allow certain occupations to form Professional Corporations. Kansas Statutes, Professional Corporations Act Chapter 17, Article 27, § 17-2707 defines a Professional Corporation in Kansas as "a corporation organized under this act", and a professional service as a "type of personal service rendered by a person duly licensed, registered or certified by this state as a member of any of the following professions:
- a certified public accountant
- an architect
- an attorney-at-law
- a chiropractor
- a dentist
- an engineer
- an optometrist
- an osteopathic physician or surgeon
- a physician, surgeon or doctor of medicine
- a veterinarian
- a podiatrist
- a pharmacist
- a land surveyor
- a licensed psychologist
- a specialist in clinical social work
- a licensed physical therapist
- a landscape architect
- a registered professional nurse
- a real estate broker or salesperson
- a clinical professional counselor
- a geologist
- a clinical psychotherapist
- a clinical marriage and family therapist
- a licensed physician assistant
- a licensed occupational therapist
- a licensed audiologist
- a licensed speech-pathologist
- a licensed naturopathic doctor."
Show all
Check with the Secretary of State to confirm whether your business should and can be a Professional Corporation.
Close Corporation
Put simply, a Close Corporation is one that has a limited number of shareholders, and isn't publicly traded.
Usually, Close Corporations are exempt from corporate requirements, such as having a board of directors and holding annual meetings. Per Kansas Statutes Chapter 17, Article 72, § 17-7211, a Kansas Close Corporation can be managed by stockholders rather than by a board of directors.
A Close Corporation is often founded by family-owned businesses to prevent non-family members from establishing or claiming any ownership of the company.
Foreign Corporation
If your business operates in another state and you want to expand into Kansas — or vice versa — you’ll need to form a Foreign Corporation.
Learn more about Kansas Foreign Corporation registration.
Nonprofit Corporation
Charitable organizations can incorporate as nonprofit corporations. This means all the profits they generate are donated to the organization supported by the charity, minus administrative costs.
A nonprofit corporation is also exempt from federal and state taxes, allowing more of the profit to benefit the charity.
Note: Everything in this guide applies to for-profit corporations, and mostly to C Corps and S Corps. Items listed as requirements for forming a corporation may or may not also apply to nonprofits.
Limited Liability Company
Depending on the type of business you want to form, or your personal circumstances and goals, an LLC may be a better option for you. For example, you may only want to build a small business that you yourself will run with just a few employees and you may not need the options to buy and sell stock.
A Kansas LLC is easier to set up but still offers certain advantages you'd get from a corporation, making it a better option for smaller businesses. You can even have your LLC treated as an S Corporation for tax purposes to save you money.
Regardless of which way you to go, we can help you with your Kansas business registration.
Learn more about limited liability companies.
Sole Proprietorship or Partnership
These are the simplest types of businesses to set up. That's because there's no real setup to do. If you don't choose to form a separate business entity, by default, you'll have either a sole proprietorship (just you) or a partnership (you and one or more other people).
Neither of these options provide you with any special benefits or liability protections and can leave your personal assets vulnerable. For these reasons, we don't recommend them.
Compare business entity types to decide which one is best for you.
Helpful Resources from the State of Kansas
More Information in This Guide
You’ll find plenty more insight and guidance on the other pages of this guide, including:
How to search the state business registry and find the right name. Includes information on naming rules, fictitious names, reserving names for KS corporations and more.
How to appoint, change and search for Resident Agents. Also includes the duties they fulfill and the rules they’re required to follow.
Details the various fees you’ll need to pay and the state and federal requirements you’ll need to meet. Includes details about Employer Identification Numbers (EINs), state and federal business licenses, annual reports and more.
Covers the various taxes you’ll have to pay to the state and federal governments. Includes details about state taxes such as income and sales, and federal taxes such as income and self-employment.
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