Kansas is the sunflower state in USA and has a population of about 3 million people. This is the 34th recognized state of the United States and an extremely representative destination from an economic point of view, where the agriculture plays a major role. We have prepared a general guide to company incorporation in Kansas for investors deciding to set up a business in USA. Also, our specialists in company formation in USA can assist investors throughout the registration process of the business in each American state.

How can I open an LLC in Kansas?

Just like in most other states, the limited liability company is a suitable business entity which is recommended for a wide range of activities in the USA. The same thing is available for Kansas and the filing requirements are simple. The registration procedure starts with drafting the Articles of Association and submitting them with the Business Division of the Secretary of State of Kansas. This represents an important document which comprises details about the ownership, the board of directors, the name of the business, the activities and information about the registered agent for a company in Kansas.

Why is a registered agent for a Kansas company mandatory?

Among the significant requirements linked to company formation in USA, we mention the importance of the registered agent. This can be an individual or another company which will act on behalf of your business, considering that the business address must be in Kansas where you perform the economic operations. A registered agent in Kansas will represent your business from a legal point of view. We remind entrepreneurs that our USA company formation agents are at your disposal if you need a registered agent for your business in Kansas.

Register for tax purposes

The Federal Employer Identification Number or the Federal EIN is a mandatory request at incorporation. According to the type of activities you want to perform in Kansas, the taxes imposed will be in accordance. We remind that the IRS (Internal Revenue Service) issues the EIN in USA, including for companies in Kansas through the Kansas Department Revenue. For this state, the sales tax is set at 6% and the income tax ranges between 2.7% and 4.6%. If you need help in taxation matters for your company, we recommend you hire an accounting firm in Kansas. You can solicit such services from our team of advisors if you decide to start a company in USA. Entrepreneurs in Kansas should know that, if a surplus of $50,000 is registered in the firm, a surtax of 3% is then applicable to such sum, apart from the established corporate income tax. The cigarette and the alcohol taxes need to be observed by business persons owning such companies in Kansas.

Employment in Kansas

Companies interested in hiring staff can do so with the help of recruitment agencies in Kansas. As for the conditions imposed on employers in this state, we mention that it is mandatory to apply for social security taxes, federal unemployment tax and income withholding tax. The Federal Contributions Act imposes a certain set of rules in the employment field which needs to be respected by all entrepreneurs in Kansas at the time of company registration.

How can I establish a sole proprietorship in Kansas?

Sole proprietorships in Kansas can be easily established, respecting the general rules and the regulations of Kansas Secretary of State. First of all, you will have to choose and verify the business name. The next thing to do is to register your trademark, apply for special licenses and permits and register for tax purposes. Just like in the case of other business forms, a sole proprietorship in Kansas will activate on the market only if it has the Employer Identification Number that shows the business is registered for taxes. The following steps need to be considered as soon as the sole trader is registered in Kansas:

• A business bank account needs to be opened, in order to serve for the future financial operations of the sole trader;
• The general liability insurance is recommended for sole proprietorships in Kansas, in order to work under risk-free conditions;
• The registration with the Kansas Department of Revenue Business Center is mandatory because the sole trader will have to report and pay the taxes in Kansas;
• The employment taxes need to be considered if you decide on hiring staff.

The registration process of a sole proprietorship in Kansas is not that complicated as long as you respect the basic formalities. However, for in-depth advice and support, you can get in touch with our team of company formation agents in USA who is at your service at any time.

Do I need insurance for my business in Kansas?

Yes, it is recommended to have from the start a general liability insurance and be protected from any kind of risks. For instance, such insurance is highly recommended for home-based businesses or for small companies activating in Kansas. And that because it covers the medical payments generated from accidents that might occur during the company premises, it protects your business from copyright infringements, false arrest, property invasion or illegal eviction, for instance. A general liability insurance proves that your business is not only established, but also secured. More than this, you should put your clients first and think that a company insurance will weigh much in front of them when it comes to trustworthiness. In USA, the average cost of a general liability insurance is approximately $1,000 per year, depending on the business activity and the risks you want to cover, including in Kansas.

Businesses like art galleries, baby stores, beauty salons, family farms, cake companies, candy stores, coffee shops, dental clinics, fast food restaurants, financial planning firms, yoga studios, law firms, mobile vets, moving companies, pet hotels, pharmacies, print shops, souvenir shops, or truck companies should understand the importance of company insurance and act accordingly.

It is recommended to talk to an insurance agent to see what’s the proper option for your company in Kansas, or better yet, you can immediately get in touch with our team of company formation representatives in USA and ask for support in this direction.

Partnerships in Kansas

Another solicited and respected business form in USA is the partnership. This might be a suitable option for small entrepreneurs in Kansas who need to consider a partnership agreement in this sense. This document provides information about the capital involved, the name of the partnership, the rights for decision, the management obligations, the liabilities related to profits and losses and the overall business rules and activities.

Economy in Kansas

Kansas is a flourishing state in USA which relies on solid economic fields like agriculture, manufacturing, engineering, technology and financial sectors. Topeka is the capital of Kansas state and a major business hub open to foreign investments. Kansas City, Wichita, Manhattan, Overland Park, Salina and Lawrence are among major cities of Kansas and representative business destinations in the state. Kansas is known for its largest railway network, solid infrastructure and biggest production of beef in the USA.

Kansas is ready for business in most of the sectors of interest, and the support of the authorities is of high importance, especially for small entrepreneurs. Foreign investors rely on the local workforce and creating new jobs means taking advantage of numerous business incentives. Here are some facts and figures about businesses in Kansas:

• there are more than 251,000 small businesses registered in 2018 in Kansas;
• 51% is the percent of local employees for companies in Kansas, registered in 2018;
• there are around 2,700 of companies activating in the retail sector in Kansas, as revealed by the statistics for 2018;
• 3.5% is the unemployment rate in Kansas for 2018;
• the private sector employment amplified by 0.2% in 2018.

There are numerous investors who successfully establish subsidiaries and branches in Kansas, most of them being large companies from abroad. It is good to know that, if the business expands and you generate profits outside Kansas, you might be subject to nexus, meaning that you have to pay the taxes in other American states where your business presence is established. We remind that all the terms and conditions for opening a company in USA can be entirely explained by our advisors.

Entrepreneurs from abroad can enjoy the relaxed tax structure in Kansas because there is no privilege or a franchise tax since 2010. However, if your business in Kansas failed to pay the taxes prior to 2010, you should know that the franchise tax will apply. We invite you to read a few details about the tax system in Kansas and understand what you need to pay in this state. Our company formation agents in USA are at your disposal with assistance if you would like to start a business in USA as a foreigner.

What is the corporate tax in Kansas?

The corporate income tax is applicable to the federal taxable income and it is set at 4% rate. If a surplus of $50,000 is registered in your company, a surtax of 3% is also applicable for your business.

How are S corporations taxed in Kansas?

Known as pass-through entities, S corporations are subject to a specific type of taxation, meaning that the federal income tax is applicable to each member of the company and their income in the firm. Please address your inquiries to our team of advisors for information about how S corporations are levied in Kansas.

What is the sales tax in Kansas?

The sales tax in Kansas is set at 6.2% and it is applicable for several goods and services for sale purposes. It is good to know that municipalities in Kansas can apply their own sales tax not exceeding 3%. We invite you to read the general guide to company incorporation in Kansas and find out information about how to open a company in this American state.

The income tax for individuals in Kansas

The income tax for individuals in Kansas varies on the personal incomes registered, as seen in the table below:

Taxable Income Tax Rate
Between 0$ and $ 15,000: 3.1%
Between $15,000 and $30,000: 5.25%
Over $30,000: 5.70%

How are the capital gains taxed in Kansas?

The capital gains for companies in Kansas are levied in the same manner as for the regular incomes, meaning that the same income tax is applicable. Foreigners with businesses dealing with cigarettes and alcohol need to observe the taxes involved, among which the sales tax.