Kansas corporations: How to form and maintain your Kansas corporation

Should you form your corporation in Kansas? We've collected the relevant information that will help you make this decision.

Pros

• Low cost of living

• Low cost of doing business

Cons

• Franchise tax rate 0.03125% of the net capital

• Tax rate of 4-7%

Cost of doing business

• $85 filing fee / $55 annual statement

Privacy

• Owner disclosure in original filing

Forming your corporation in Kansas

The name In order to communicate to the public that your new business is incorporated, its official name will need to end with one of the following signifiers (or a relevant abbreviation): “Incorporated”, “Company”, “Corporation”, ”Club”, “Union”, “Church”, Fund”, Institute”, “Foundation”, “Limited”, or “Society.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. Do a FREE name search now.

Board of directors requirements You will need to form an official board of directors when incorporating in Kansas. Here are the states explicit regulations regarding these directors:

• Required number of directors

  Kansas corporations must have at least one director listed in their incorporation documents.

• Age restrictions

  Directors of corporations located in Kansas must be at least 18 years of age.

• Residence restrictions

  There are no residence restrictions imposed on the directors of C corporations in Kansas. However, S corporations are only allowed to have directors located in the United States.

• What information needs to be included in the Articles of Incorporation?

  Kansas does require the names or addresses of directors to be disclosed in incorporation documents.

Requirements for the Articles of Incorporation

The Articles of Incorporation is a document that must be filed during the incorporation process in every state. Here is the information that must be included in this document when filing in Kansas:

Stock information Kansas requires the number of initial shares outstanding, and their par value, to be disclosed during the incorporation process. The number of outstanding shares does not affect initial state filing fees.

Officer information The state of Kansas does not require officer information to be disclosed during the filing process.

Registered agent information All Kansas corporations must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.

If your business is a professional practice Professional service corporations are permitted to form under the professional corporation (PC) structure.

Corporate record keeping requirements

Corporations in Kansas are required to keep formal documentation of all major company decisions, financial documents, and shareholder information.

Kansas corporate taxation and fee requirements

There are several tax and fee requirements that must be addressed by corporations in Kansas. They are as follows:

Taxation All states have complex taxation requirements. For more information regarding taxes in Kansas it is advised that you visit the state’s official business related website. 

Annual report requirements Corporations in Kansas are required to file an annual report every year, which is due on the 15th of the company’s 4th month of the fiscal year. The cost of this filing is currently $55. Kansas also imposes a franchise tax on all corporations, which can be determined to be valued at more than $1 million. The amount taxed is dependent on the size of the organization, and is due on the same day as the annual report. Learn more about annual reports.

Tax identification numbers Kansas requires an EIN (employee identification number) for all corporations that will have employees, and most banks will require one to open accounts. Kansas does not require corporations to obtain state tax ID numbers. Learn more about EINs.

Business license requirements

The business licenses and permits required in Kansas vary wildly depending on the county or municipality in which your new corporation is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.

S corporation election Kansas does not require a state-level S corp election, as they recognize any elections held at the federal level.

Need a Kansas LLC instead? File online with us today.