How do I form a corporation in Kansas?

Forming a Kansas corporation can be an exciting endeavor. This is one of the first steps in presenting your brand to the public and becoming a functioning business entity with the state of Kansas. Starting your new business can come with many decisions, so to give your company its best start, you’ll want to learn as much as you can about starting your corporation in Kansas.

How do I form a corporation in Kansas?

To start a corporation in Kansas, you must file the Articles of Incorporation with the Secretary of State and pay a filing fee. However, before this, you’ll need to name your corporation, appoint a few key members within the business, and determine what structure is best for your company in Kansas.

The most common choice is a standard corporation, but some entrepreneurs might decide to form a professional corporation (PC) instead. A professional corporation is much like a standard corporation, but it’s organized by professionals in specific licensed industries, such as law, accountancy, nursing, and more. 

Typically, all the professionals who own and work for a PC are licensed in the same profession or in related disciplines; Kansas law dictates which professions can operate together or separately in a PC. For a full list of the industries that can form a PC, check out the “Professional Corporations” article of the Kansas Statutes.

To simplify the process of forming a corporation or professional corporation in the state of Kansas, we’ve put together 10 easy steps to form your business:

Step 1: Name your Kansas corporation

It’s time to choose a name for your Kansas corporation. Brainstorm a few names and consider what you want your name to convey. There are also a few guidelines you’ll need to follow to meet state requirements for naming your Kansas corporation. 

Include a designator

According to Kansas law, unless your business is a bank or savings and loan association, it must contain one of the following within the name: “Association,” “Church,” “College,” “Company,” “Corporation,” “Club,” “Foundation,” “Fund,” “Incorporated,” “Institute,” “Society,” “Union,” “University,” “Syndicate,” “Limited,” “Co.,” “Corp.,” “Inc.,” or “Ltd.” (or words and abbreviations in another language with the same meaning).

Meanwhile, a professional corporation needs to use the designator “chartered” or “professional association.” You could also use the abbreviation “PA” or “P.A.”

Make it distinguishable from other companies

In addition, the name must be unique — it has to make you identifiable and cannot be confused with another corporation in the state. The name must exclude words that would make it seem like a government entity, such as “State Department” or “Treasury.” Please note that professional corporations also have to ensure their name complies with the ethics standards for their profession.

See if the name is available

Once you’ve picked a name, it’s time to check for its availability. You can do this on the Kansas Secretary of State website. Once you find a name free for the taking, you should think about reserving it for up to 120 days. If the business has not been filed within 120 days, the name is forfeited and can be snagged by another business. You can reserve it online for $30 or mail it with a $35 fee to:

Kansas Office of the Secretary of State
Memorial Hall, 1st Floor 
120 S.W. 10th Avenue 
Topeka, KS 66612-1594

Trademarking the Business Name

You should also check for trademark status. Even if a business has not been registered as a corporation, it could still have a trademark in the state of Kansas or at the federal level

It’s important to ensure your new business name is free of trademarks so that you won’t be infringing on any copyrights. Even if you can legally use a business name, you could be sued or legally asked to stop using it. Trademarks protect things like company names, slogans, and logos.

How to File for a Trademark in Kansas

If you wish, you can file your state trademark with Kansas with a $40 fee. The form can be filled out online or printed and mailed to the address listed above.

Usually, it’s easier and faster to register a trademark at the state level, but a federal trademark offers more protection for your business. This can add more peace of mind, and it keeps you covered if you do business outside of the state of Kansas. 

DBAs in Kansas

As a corporation owner, you can also think about using a “doing business as” (DBA) name. This step allows you to use a different business name without refiling with the state. Because Kansas doesn’t require you to register your DBA name, consider registering a trademark so that another party cannot file your DBA name. 

Step 2: Appoint directors

Next, you’ll need to appoint directors for your Kansas corporation. A board of directors will oversee the corporation, get it started, and make key business decisions. Usually, the business’s initial incorporators choose board members to oversee the corporation. 

What does a corporate board of directors do?

In Kansas, you are required to have one or more board members to oversee your corporation.

While a person can have more than one role within a corporation, they are distinct roles. The incorporator(s) start the business and file its paperwork. Shareholders provide funds to start the business and own portions of the brand. (A person can be both an incorporator and a shareholder, or they can be one or the other.) The board of directors oversees the company. 

When starting the business, it’s a good idea to hold a meeting among incorporators to discuss potential board members, draft bylaws, and determine the company share structure.

Appointing Directors for a Professional Corporation

Professional corporations have stricter requirements for who can serve on the board of directors. For starters, each director has to be a shareholder for the corporation. But to take it a step further, Kansas requires every shareholder to be licensed in the profession that the corporation provides services for. Please make sure that your directors fulfill these requirements.

Step 3: Choose a Kansas resident agent

Now, it’s time to choose a resident agent, referred to as a “registered agent” in most states, for your Kansas corporation. A registered agent is a person or business that acts as your business’s contact person for legal notices and state correspondence. They will receive important documents and deadlines for filing. 

Who can serve as a resident agent?

A resident agent can be an incorporator, another person involved in the business, or a business entity. Your registered agent needs to be at least 18 years of age and a Kansas resident; if the agent is a business, it must be legal for them to conduct business in the state. They must have a “registered office” with a street address within Kansas; a P.O. box is not acceptable. The agent must be available during all normal business hours.

Using a Registered Agent Service

Another option that’s often preferred is using a registered agent service. One reason is that if your company is ever served legal paperwork like a summons or subpoena, these documents are delivered to your registered agent. If your agent is in-house, you run the risk of this event occurring in front of colleagues, potential clients, or investors, which could harm your business relationships.

Another reason is that registered agents are required to be available at the registered office during all regular business hours, meaning they’ll be tied to the office all day. Hiring an agency means you are free to focus on growing your business rather than worrying about stationing someone at the designated address every day.

Step 4: File the Kansas Articles of Incorporation

It’s time to file your Articles of Incorporation. The Articles of Incorporation include important company information, such as the industry and type of business, mailing address, registered agent, and those who are allowed to conduct business on the corporation’s behalf. You’ll also need to list the tax closing month or when your corporation chooses to start its fiscal year. (This can be decided during your initial meeting with other incorporators.) Finally, you’ll list shares of stock that the company is authorized to issue. 

You’ll need to provide the following information:

Your corporation name. Remember to include a designator (for example, “Inc.”)

Resident agent and registered office. The resident agent can be an individual or a company but must reside in Kansas and be available during regular business hours.

Your mailing address. This is where you receive regular mail, including that from the government.

Effective date. When do you want your corporation to start? You can have the corporation officially come into existence as soon as your Articles of Incorporation are accepted, or you can choose a starting date up to 90 days from when you file your articles.

Purpose of your business. You can describe your business in generic terms (such as “to engage in lawful acts for which corporations may be organized”) or be more specific (plumbing, law firm, mechanic, etc.)

Stock. You must list how many shares you’re creating and the par value (face value) of each share. If the shares have special rights or limitations, you need to list those, as well. If your corporation won’t have stock, you either need to indicate if the conditions of membership are fixed or detail those conditions.

Incorporator. This is the person who will sign and submit your Articles of Incorporation. This person doesn’t need to have an official role in your business beyond signing the Articles of Incorporation. You need at least one incorporator who is a person, not a company.

Board of Directors. You only need to provide the names and mailing addresses of your board of directors if your incorporator’s role ends after filing your Articles of Incorporation. Directors can use a business address or a P.O. box rather than their home addresses, if desired.

How to Issue Corporate Stocks in Kansas

Shares or stock are portions of the corporation, and these are owned by the shareholders. You’ll need to list a par value or the minimum that must be invested to receive stock and what it can be purchased or traded for. 

Types of Stock

The two main types of stock are common and preferred. Common stock comes with business ownership and voting rights, while preferred stock does not usually allow the owner to vote on business decisions. It’s wise to look at your industry when determining these stock types for a successful path forward with board members and shareholders. 

How to File Articles of Incorporation

The Articles of Incorporation form can be printed and mailed to: 

Memorial Hall, 1st Floor 
S.W. 10th Avenue 
Topeka, KS 66612-1594

Filing your Articles of Incorporation is $90 online or $90 by mail. Nonprofits are charged a $20 filing fee. When mailing your form, include a check or money order. Returned checks are subject to a $25 fee.  With our business formation plans, we can take care of this for you faster and easier than doing it yourself.

Filing the Articles of Incorporation for a Professional Corporation

If you’re registering a PC, then you’ll actually file a separate version of the Articles of Incorporation: the Domestic Professional Association version. This form is actually very similar to the regular articles. The primary difference is in the purpose statement section; there, you’ll need to explain your professional purpose. 

The filing fee is $90 for mailed filings and $90 for online ones. You can find the form and further instructions on the Kansas Secretary of State website.

Step 5: Create corporate bylaws

Corporate bylaws put it all in writing: What’s expected of the business and those involved will be listed in your corporate bylaws.

Are corporate bylaws required In Kansas?

Kansas does not require bylaws to be written or filed with the state. However, it’s good practice, regardless of the state requirement. Bylaws help protect all involved. Without them, there can be much left to interpretation. Ensure everyone is on the same page with a document that can be referenced. 

What to Include In Kansas Corporate Bylaws

Corporate bylaws should include meeting procedures, the number and classes of stock, rules for removing board members, terms of service, how many meetings per year are to be held, how to call an emergency meeting, and other important events. Nonprofits should also include text outlining payment structure to employees and donation funding.

Step 6: Draft a shareholder agreement

Your corporation’s shareholder agreement is a document that lists shareholders, their contact information, and how to move forward with changes in the business. Create your document with items like:

  • Contact information of all shareholders
  • Requirements of shareholders (how they are appointed and their responsibilities within the business)
  • Voting rights and how voting decisions are made 
  • How changes to the original document can be made
  • How users can trade or sell stock
  • Required financial input by stockholders
  • A detailed outline of fund distribution, including schedules
  • What takes place should the business close

Create this document to keep all shareholders on the same page with what’s taking place in your Kansas corporation.

Step 7: Issue shares of stock

Now, it’s time to issue shares of stock. This is a necessary step for forming your Kansas corporation. Issuing shares of stock means that your investors own a portion of the company and are eligible for the rights listed in the shareholder agreement. 

Legally, your company has to track who owns what portion of the business. This will be listed and shared in your annual report, where you’ll list who was issued shares and if any were sold or transferred in the previous fiscal year. The number of shares issued should always be equal to or less than the number your company is allotted (the number you provided when filling out the Articles of Incorporation).

Your Kansas corporation can be public or private. Usually, a private company is owned by its founders, whereas public companies have shares that can be purchased by the public. Public companies’ stock can be traded or sold on the stock market, whereas private companies’ stock is only for sale privately. Remember that, for PCs, all shareholders must be licensed in the corporation’s profession.

Per the U.S. Securities and Exchange Commission (SEC), public companies must display current information regarding income and inventory. Private companies do not have to offer this same data.

Step 8: Apply for necessary business permits and/or licenses

It’s time to file for necessary permits and/or licenses to get your corporation in good standing with the state of Kansas. This is not a one-size-fits-all, however. The licenses required will vary based on your industry and even your county or city in Kansas. There is no statewide general business license, although some cities require one. 

Learn more about the various state permits on the Kansas Secretary of State website. You can also look to the help of ZenBusiness to research the permits or licenses you’ll need to get your Kansas corporation running. 

Step 9: File for an EIN and review tax requirements

Obtaining your Employer Identification Number (EIN) is another important step in starting your Kansas corporation. This is a unique identifier that identifies your company with the IRS and allows you to open financial accounts, such as a business bank account, and pay taxes. 

Apply for one on the IRS website. Getting an EIN is free and can be done online, via fax, or by mail. Online applicants can start using their EIN within a few minutes of filling out the form. 

Filing by fax takes approximately four business days. Applications can be printed, filled out, and faxed to 855-641-6935.

Mailed applications take approximately four weeks to process. Applications can be mailed to:

Internal Revenue Service
Attn: EIN International Operation
Cincinnati, OH 45999

Step 10: Submit your corporation’s first report

Now that your business is ready to move forward, it’s time to file your first report with the state of Kansas. This is annual documentation that will be filed with your taxes each year. The annual report is due by April 15, covering the previous calendar year.

Each year, the report will be filed with a $50 fee online or $55 when submitting by mail. Nonprofit reports come with a $40 filing fee. Note that filing fees are subject to change. There is no fee for submitting late; however, after 90 days, the business can be forfeited in the state of Kansas.

When submitting via mail, send to:

Kansas Office of the Secretary of State
Memorial Hall, 1st Floor 
120 S.W. 10th Avenue 
Topeka, KS 66612-1594

How much does it cost to start a corporation in Kansas?

In Kansas, it costs $90 to start a corporation or $90 when filing by mail. Nonprofit organizations can get started with a $20 fee. Annual fees come with filing your yearly report, which costs $50 for online, $55 by mail, or $40 for nonprofits. Fees are subject to change, so check the Secretary of State website for the latest fee schedule.

Additional licenses and associated fees may be required for your Kansas corporation, depending on your industry.

Streamline the filing process for your Kansas corporation with the help of ZenBusiness. Our team of trained professionals is ready to help make your corporation a reality — and keep it in good standing in the state of Kansas for years to come. 

What are the benefits of a corporation in Kansas?

Having your corporation in the state of Kansas can come with many benefits. There are minimal fees and requirements for a Kansas corporation compared to many other states. In addition, a corporation can help you:

  • Protect personal assets (or assets associated with a different corporation)
  • Establish an official business and put you in good standing with the state of Kansas
  • Be recognized in and outside of the United States
  • Issue stock

Potential disadvantages include red tape or seemingly long steps associated with starting and running a corporation. There can also be double taxation, depending on the type of corporation you file as and your distribution schedule. 

How is a Kansas corporation taxed?

In the state of Kansas, there are a few tax structures associated with corporations: 

  • C corporation: With a C corporation, the business files its own tax return. This leads to “double taxation,” as the business pays on its income, and then its shareholders are also taxed on their share of the corporate profits on their individual tax returns.
  • S corporation: With an S corporation, the business itself does not pay federal income taxes. Profits are distributed to owners and/or shareholders, who claim that income on their personal taxes.
  • Nonprofit corporation: Nonprofit corporations can apply to be exempt from federal taxes when following strict guidelines. Their workers still pay taxes on their salaries from the company. 

We can help!

Starting a business can feel like an exciting but stressful time, and ZenBusiness is here to help. We specialize in the red tape side of business; while we can’t help you form a Kansas professional corporation, we can help you form a standard corporation. We’ve got other services to help you stay successful, too, from registered agent services, compliance assistance, and more. Let us help you with your business paperwork so you can focus on what you love: building your new business.

Kansas Corporation FAQs

  • Yes. Although some of the steps in forming a corporation seem similar to the paperwork involved with starting an LLC in Kansas, there is additional paperwork, like corporate bylaws and shareholder agreements.

  • In general, a corporation requires more information, such as shareholders and stock data, and has a more rigid management structure than an LLC. LLCs are also usually pass-through entities, meaning the owners only pay taxes on the business’s profits on their individual taxes instead of paying at both the business and personal levels.

  • You can change the name of your corporation in Kansas by filing a Business Entity Certificate of Amendment and paying a filing fee.

  • You need at least one person to file a corporation in the state of Kansas. However, more might be recommended, depending on the size of the business or industry.

  • Yes. File your Kansas corporation paperwork online via the Secretary of State’s website.

  • File a form with your intent to dissolve your Kansas corporation with the Secretary of State.

  • You don’t need a lawyer to form a PC in Kansas. However, it’s a good idea to consult one before filing official documents, especially if you have questions.

  • Aside from PCs, Kansas allows qualified individuals to create professional limited liability companies (PLLCs). This structure offers greater flexibility, especially when it comes to income tax, but its liability protections aren’t quite as strong as those of a PC.

  • Professional corporations may offer one or more professional services in a related discipline. The professional corporation law of Kansas states which practitioners may form a PC that offers two or more services.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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Written by Team ZenBusiness

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