How to form an S Corporation in Kansas
The process of forming a corporation in Kansas is pretty simple. In fact, you can get your business up and running in as little as two weeks. This article will walk you through all the steps to start your own corporation in Kansas.
Determine Your Corporate Name
First, determine your corporate name. Following are the requirements for a business name:
- You can use any name you want, but it must be distinguishable from other names on file.
- The corporation’s name may not contain any words prohibited by law, such as “bank,” “insurance,” or “trust.”
- If you choose to include a word in your business’ name that might normally require approval by another government agency (such as banking), then you should contact that agency prior to filing your certificate of incorporation.
Prepare and File your Articles of Incorporation
- What is an S corporation?
An S corporation is a type of business that provides the limited liability and pass-through taxation associated with a partnership or sole proprietorship, but it offers key advantages over those entities:
- No double taxation. As in other corporations, profits are taxed only once—at the corporate level. Then the money passes through to shareholders who report their share of it on their personal tax returns (and pay taxes on that amount). This allows you to avoid paying twice for your business’s profits.
- What do you need to form an S corporation?
To form an S corporation in Kansas and receive these benefits, you must obtain articles of incorporation from Trademark Avenue and file them with your local county clerk’s office (or city clerk).
Provide Your New Corporation with a Registered Agent
- Provide your new corporation with a registered agent. A registered agent is the person or business that serves as the corporation’s legal representative for service of process, notices and other legal documents. In Kansas, it must be a resident of Kansas and have a physical address in Kansas; you can’t form an S corporation without one.
- Ensure the registered agent is available during regular business hours and provides 24/7 access to their office (such as via email).
Complete the Formation of your Business
The next step is to complete the formation of your business. For an S corporation, you will need to file Articles of Incorporation with Trademark Avenue. The document must include:
- The name of your business
- A registered agent’s name, address and signature (this is typically a person who works for the company)
- A statement describing what type of organization you are forming (i.e., domestic or foreign)
Open a Bank Account
You’ll need a bank account to deposit your business income and pay your business expenses. Here are the steps you should take:
- Choose a bank with branches in Kansas—or that allows you to open an account online. It’s also helpful if they offer free checking accounts and savings accounts, as well as good rates on loans.
- Open a new business checking account and get a business credit card at the same time (if you can). You don’t need both right away but it might be easier than opening them separately later on. Banks usually require proof of identity so bring your driver’s license or other photo ID when applying for either of these services at an actual branch location rather than online through their website only (although this option does exist too). You may also want to consider setting up direct deposit for your payroll check here if possible so that funds are automatically deposited into this account after every payday!
Obtain Necessary Licenses and Permits
Before you can begin registering your new business as an S corporation, you need to obtain the necessary licenses and permits. Trademark Avenue will help determine what licenses are required by reviewing your business plan. Most states require that you pay a fee for each license or permit, but it varies by state. For example, some states charge between $10 and $250 per year while others will charge as much as several thousand dollars. Meticulously review all documentation before applying so that there are no surprises later on down the road!
You can Form an S Corporation in Kansas using the Following Process
- Follow this process.
- Register with the Kansas Secretary of State through Trademark Avenue and obtain a Certificate of Authority, which allows you to operate as an S corporation in the state.
- Obtain a bank account for your business and open a corporate seal. Keep these documents safe so that you can refer back to them if necessary.
- Create bylaws for your company and make sure they are kept up-to-date with any changes in ownership or management structure that occur over time, according to Kansas guidelines on forming an S corporation in the state.
If you’re ready to form an S corporation in Kansas, the above-mentioned steps will assist you in doing so.