Is it a good business decision to set up a company in Kansas? Yes, definitely! Although Kansas economy thrives mostly on the agriculture industry, it is ranked 8th in the country where natural gas production is concerned. The economy of the state is also influenced by other industries including the growing aerospace industry. In fact, some of the biggest names in aircraft corporations based out of Kansas are Boeing, Learjet, Cessna, and Spirit AeroSystems. The Forbes’ annual ranking has listed Kansas #15 for regulatory environment.
Why Choose Kansas for Incorporation?
Kansas is one of the few states where the industry and business has been growing prior to statehood. The agriculture industry has existed for a long time and post statehood, large numbers of company incorporation in Kansas led to increase in businesses in several fields including Railroads, milling, petroleum and natural gas, transportation, and aviation. In fact, Mars Chocolate North America started a $270 million facility in Topeka, Kansas in 2014 thus confirming the fact that Kansas is truly “America’s heartland”.
Now let’s take a look at some of the salient benefits that are responsible for fueling growth of small businesses:
- Rural Opportunity Zones (ROZ): One of the programs that businesses can benefit from post incorporation in Kansas is the “Rural Opportunity Zone Program”. If your business qualifies for this program then you can benefit from state income tax exemption for a period of five years. There are 77 counties in the rural opportunity zones and you can check them here.
- Sales Tax Exemptions: There are several tax and business incentives that you can benefit from post company incorporation in Kansas. The most popular is sales tax exemptions. You can benefit from sales tax exemptions in the following areas:
– Labor services required during original construction
– New equipment and machinery required for manufacturing as well as distribution.
– Remodeling costs, furniture, furnishings, and machinery for qualified projects.
– Personal and real property that has been financed using Industrial Revenue Bond.
How do you incorporate in Kansas?
What is the process of incorporation in Kansas? What type of documentation is required? These are some of the common questions that you will be confronted with if you are planning to start a new business in the state. The following steps will enable your understanding of the entire process:
The first step towards incorporation in Kansas is choosing the type of business you want to form. You can choose to form an LLC or a Corporation. The type of business entity you want to form can be either a domestic or a foreign entity. The forms and fee will be different for each type of entity.
Business Entity Name
One of the most important steps towards incorporation in Kansas is naming your business entity. You have to start by identifying, searching, reserving, or registering the business entity name. There are 3 steps towards business name formation and they are:
- Naming Requirements: An LLC or corporate name pursuant to KS Stat § 17-7665 (2012) should contain the words “limited liability company”, “corporation”, “incorporated” or abbreviation like “LLC. “, “corp.”, and “inc.” The names should be distinguishable from existing names.
- Business name search: You need to search for a business name that is not in use currently.
- Name Reservation: Once you have identified a business entity name, it is advisable to reserve the name by submitting form NR 52-01 for Temporary Reservation of Business Entity Name. The form for reservation of name has to be submitted with the Kansas Office of the Secretary of State and it will be effective for a period of 120 days.
Choose a Registered Agent
Whether you form a corporation or an LLC business entity, in order to transact business in the state of Kansas, you will have to maintain a registered agent pursuant to KS Stat § 17-7666 (2012) and KS Stat § 17-4401 through to § 17-4407. We are one of the respected registered agents in Kansas and will be responsible for initiating incorporation in Kansas through processing of your “Articles of Organization”, and “Articles of Incorporation” for domestic entities and “Application for Registration” for foreign business entities.
Articles of Incorporation and Application for Registration
You will be required to submit “Articles of Incorporation” if your business is a domestic corporation and an “Application for Registration” if it is a foreign business entity. In order to streamline the process of incorporation in Kansas, we can file documents on your behalf through the online process or through an expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Kansas, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Kansas Incorporation
What would it cost to set up a company in Kansas? Check Fees here!