There has been a steady rise in the number of startup companies in Kansas since Mars Chocolate North America started a chocolate factory in Topeka, Kansas. Today, some of the largest companies based in the state include Koch Industries, Payless Shoe Source, Spirit Aero Systems, Synergy Group, Sprint, Ace Aircraft Manufacturing Company, Air Midwest Inc, Coleman Company, and Cessna Aircraft Company among others. The Agriculture industry is right at the top and accounts for almost 45 percent of the Kansas economy. This is followed by Manufacturing, Oil, Gas, and Mining, and Education.

Business Growth Incentives for New Businesses

What makes Kansas such a good destination for starting a new business? Today, Kansas has a diverse industry base as it offers a strong transportation network and marketing advantages. Let’s look at some of the basic advantages that a startup company in Kansas can leverage:

Advantage#1: The benefits of Incorporation or LLC formation

Corporation

• Federal taxation: If you register a new company in Kansas as an S corporation then the corporation or firm will not pay any income tax. Instead, each shareholder or owners in the company will be liable to pay tax on their personal tax returns.
• Independent life: When you register a new business in Kansas as an S Corporation, it will enjoy an independent life. This means that the incapacitation or death of a stockholder will not have a negative impact on the business operations.
• Transfer of ownership: The interests in an S corporation can easily be transferred without any adverse tax consequences unlike in a partnership or an LLC.

LLC

• Limited Liability: As an owner of a Kansas LLC, you will be able to enjoy limited liability protection quite similar to what a corporation enjoys.
• Flexible Profit Distribution: A startup LLC company in Kansas has the opportunity to select different ways of distribution of profits unlike a partnership where the distribution is 50-50.
• No Minutes of meetings: An LLC startup company in Kansas will not be required to maintain any minutes of the meetings or resolutions.

Advantage#2: Kansas Business Incentives

Once you register a new company in Kansas, there are several business incentives and programs that your company can benefit from. Let’s take a look at some of the most popular programs:

• Foreign Trade Zones (FTZ): The Foreign Trade Zones in Kansas are designated as Alternative Site Framework (ASF) and the primary objective is to provide a quota and duty-free entry point for an unlimited period under customs supervision. If you register a new company in Kansas FTZ, your business would be eligible for FTZ benefits.
• Economic Development Grants: These grants are available to eligible businesses. The objective of the grant is to provide gap financing to private businesses that retain or create permanent jobs in the state. The grant amount can vary from $35,000 to $750,000.
• State Small Business Credit Initiative: If you register a new business in Kansas, you will be able to benefit from this program where funding is provided through the United States Treasury and the State Small Business Credit Initiative (SSBCI). The fund amount can vary from $25,000 to $500,000 depending on the type of program opted for.

Are there any Disadvantages of Incorporating in Kansas?

The state of Kansas has a friendly business climate that provides small and medium sized businesses with good transportation infrastructure, skilled workforce, several types of grants and loans, tax credits, competitive electricity rates, Historically Underutilized Business Zones (HUBZone) programs, and much more. The only disadvantages that a startup company Kansas may face is related to the processing time and effort, which can be quite high depending on the type of business you are planning to form. In the long run, the advantages of forming a company in the state are far more than the disadvantages.

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If you are wondering why you should form a business in Kansas then the answer lies in the overall business climate of the state. The state offers small and medium sized enterprises (SME’s) an extremely proactive regulatory and legislative environment. Apart from this, you can also take advantage of a variety of tax incentives, grants and loans, business incentive programs, strong transportation infrastructure, and a skilled workforce. These are some of the factors that make the “Sunflower State” a perfect destination for investment and business innovation.

We are one of the top Kansas registered agents and are familiar with all processes pertaining to the Kansas State and can provide information and assistance for successful set up of your business!

Let’s take a look at how you can form a Kansas business LLC or Corporation.

Kansas LLC Registration and Formation

LLC company formation in Kansas is governed by the 2012 Kansas Statutes, Article 76 Limited Liability Companies. The procedure for registration and formation of LLC is as follows:

Step#1: Maintain a registered agent

According to KS Stat § 17-7666 (2012), an LLC will be required to maintain a registered agent if you are planning to form a Kansas business. A registered agent is required for both domestic business entities and foreign entities authorized to transact business in the state of Kansas. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Kansas.

We are in compliance with all regulations in the State of Kansas.

Step#2: LLC Name Reservation

One of the key requirements of company formation in Kansas is reservation or registration of a business entity name. A domestic or foreign LLC is required to identify a name, which can be reserved pursuant to KS Stat § 17-7665 (2012) by submitting an application to the office of the Secretary of State. An LLC can reserve its name for a period of 120 days.

Step#3: Articles of Organization and Application for Registration

If you are planning to form a Kansas business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. You will be required to file Articles of Organization pursuant to KS Stat § 17-7673 (2012) for a domestic LLC. If your business entity is a foreign LLC then you will be required to file an “Application for Registration” pursuant to KS Stat § 17-76-122 (2012). The application or documentation for registration of LLC can be filed with the Secretary of State in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

In case, you have any questions regarding how to form a Kansas business, feel free to reach us on 702-871-8678.

Kansas Corporation Registration and Formation

If you are planning to form a Corporation in Kansas then the procedure for registration and formation is as follows:

Step#1: Maintain a Registered Agent

According to 2012 Statute, KS Stat § 17-6201 through to § 17-6206, you will be required to maintain a registered agent if you are planning to form a Kansas business. A registered agent is required for both domestic business entities and foreign corporations authorized to transact business in the state of Kansas. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Kansas.

We are in compliance with all regulations in the State of Kansas.

Step#2: Corporate Name Reservation

Whether you form a domestic profit corporation or a foreign corporation, you need to identify a name and reserve it pursuant to KS Stat § 17-7923 (2012). A key component of company formation in Kansas, reservation of name will provide the business entity exclusive rights to using the domestic or foreign corporate name for business purposes. It can be reserved for a period of 120 days.

Step#3: Articles of Incorporation and Application for Registration

If you are planning to form a Corporation in Kansas then the type of registration form you will require is dependent on whether your business is based in Kansas or it is a foreign entity. You will need to file Articles of Incorporation for a domestic Corporation pursuant to KS Stat § 17-6602. If it is a foreign business entity then you will have to file an Application for Registration pursuant to KS Stat § 17-7931. The application or documentation for registration of a business corporation can be filed with the office of the Secretary of State, in person or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation documents.

If you have any questions regarding Kansas incorporation or LLC formation, you can simply visit the Kansas Business formation page.

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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:

Business Type

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!

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Once your company is set up, you will need:

1. Tax ID (EIN) – free over the Internet or phone.
2. Yearly Requirements and Fees for Kentucky companies – Statement of Information is an initial statement of officers or member/managers that must be filed with the Kentucky Secretary of State within 90 days after filing original articles, and every year thereafter in the applicable filing period. For LLCs there is an addition Franchise Tax that is $800 per year. The first payment must be made within 3 months of your LLC.
3. Company Minutes & Stock Certificates – are included in incorporation. You will have access to documents generated on your client account.

Kentucky additional services

• Registered Agent
• Annual Report
• EIN (Tax ID)
• More Additional Services

• Why Kentucky?
• Kentucky Registered Agent
• Kentucky Annual Requirements
• Kentucky Corporation Statutes: Kentucky Revised Statutes, Chapter 271B 1-18 (Corporations) and Chapter 275 (LLC)

• Why Kentucky?
• Kentucky Registered Agent
• Kentucky Annual Requirements
• Kentucky LLC Statutes: Kentucky Revised Statutes, Chapter 275