How to Start a Business in Kansas
Everything you need to form your Kansas LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
Forming a Kansas LLC costs $85 when filed online with the Secretary of State. As a pass-through entity, a Kansas LLC is taxed at your individual income tax rate of 5.2 percent on income up to $23,000 for single filers or $46,000 for married filing jointly, and 5.58 percent above those thresholds.
This guide covers every step from choosing a business structure through formation and obtaining the necessary licenses.
Choosing Your Kansas Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most Kansas small businesses.
| Entity Type | Liability Protection | Taxation | Kansas Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $85 | $90 Information Report (biennial, Form ILC... | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $85 | $90 Information Report (biennial, Form IFP... | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your Kansas Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the Kansas Secretary of State database. Reserve for $35 (120 days).
- 3
Appoint a registered agent
Must have a physical Kansas street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Articles of Organization, Domestic (Kansas) Limited Liability Company (Form DL) ($85) or Articles of Incorporation, Domestic (Kansas) Corporation (Form AI) ($85) with the Kansas Secretary of State.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the Kansas Department of Revenue. State sales tax rate: 6.5%.
- 7
Get required licenses and permits
Kansas issues no general statewide business license.
- 8
Register for Kansas taxes
Personal income tax: 5.2% on Kansas taxable income up to $23,000 for single, head of household and married filing separate filers, or up to $46,000 for married...
How Much Does It Cost to Start a Business in Kansas?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (Kansas Secretary of State) Required | $85 | Online filings process within minutes and the certified copy can be printed immediately; |
| Corporation filing fee Required | $85 | If forming a corporation instead |
| Information Report (biennial, Form ILC... Required | $90 | Every two years by April 15. Businesses formed in an even year report in each succeeding even year; |
| Name reservation | $35 | 120 days |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | Kansas issues no general statewide business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $85 to $475 |
Start a Specific Business in Kansas
Kansas Business Guides
- How to Start an LLC in Kansas
- How to Start a Corporation in Kansas
- Sole Proprietorship in Kansas: How to Start One
- Kansas Business License: What You Need and How to Get It
- Kansas Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in Kansas
- Kansas Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in Kansas
- Kansas Registered Agent: Requirements and How to Choose One
- Best LLC Services in Kansas
- Kansas Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in Kansas
Why Start a Business in Kansas?
- Forming a Kansas LLC costs $85 filed online, or $90 on paper, per the Secretary of State Articles of Organization instructions revised 2/27/26.
- A Kansas corporation files the same $85 online Articles of Incorporation fee, versus $90 by mail.
- Kansas switched from annual to biennial reporting on 1/1/2024, so an LLC or corporation files an Information Report only every two years at $90 online, due April 15.
- Kansas has no general statewide business license, so most licensing is city, county or occupation specific.
- Corporate income tax is 3.5 percent, with a 3 percent surtax only on Kansas taxable income above $50,000, and the individual rate is 5.2 percent or 5.58 percent in just two brackets.
- The state sales tax rate is 6.5 percent, and Kansas has about 2,970,606 residents with roughly $230.5 billion of 2024 GDP, 33rd among the 50 states.
Kansas Business Resources
Frequently Asked Questions
- How long does it take to form an LLC in Kansas?
- Online filings process within minutes with the Kansas Secretary of State, and your certified copy can be printed immediately.
- What does it cost to start an LLC in your first year?
- Formation costs $85 when filed online. Your first biennial Information Report at $90 is not due until two years after formation.
- Can a non-resident form a Kansas LLC?
- The Kansas Secretary of State accepts LLC formation filings online from anywhere without stated residency restrictions.
- What's the cheapest way to start a business in Kansas?
- Both an LLC and a corporation cost $85 to form online with the Secretary of State. Kansas has no general statewide business license, so $85 is the minimum state cost.
- Is an operating agreement required for a Kansas LLC?
- The Secretary of State requires Articles of Organization for LLC formation, but does not specify operating agreement requirements in its formation rules.