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- [Narrator] How to form an LLC in Kansas. Kansas is an excellent place to form a new LLC. Rated by Forbes as having the lowest regulatory burden, Kansas ranks highly in ease of doing business and business survival rate. Every state has slightly different requirements for forming an LLC. Follow along closely to learn the required steps for creating your own limited liability company in the state of Kansas. (pleasant music) There are two ways to form an LLC in Kansas. You can form one yourself or you can hire a service to do it for you. Let's start by looking at the five basic requirements to form an LLC in Kansas on your own. You can also find these steps in more detail on our website linked in the description below. One, name your LLC. Every state has its own rules about what kind of names are allowed for LLCs. In general you will need to observe these naming guidelines. Your name must include the phrase limited liability company or one of its abbreviation, LLC, or L.L.C. with a period following each letter. Restricted words such as bank, attorney, law office, etc., may require additional paperwork and may also need a licensed professional to be part of the LLC. Your name cannot include words that could confuse your LLC with a government agency such as FBI, Treasury, State Department, etc. You cannot use a name that has already been registered. To see if your name is available in your state, you'll need to do a name search. This free service is available on your state Secretary of State website. Check out our free guide for finding the direct link to your state. We also recommend that you check to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL in order to prevent others from acquiring it. Two, choose a resident agent. Kansas requires that you nominate a resident agent, more commonly known as a registered agent, for your LLC who is your business's point of contact with the state. The registered agent can be an individual within the company, including yourself, or you can hire a professional service authorized to do business in Kansas. They will send and receive legal papers on your behalf. These documents include official correspondence like legal summons and document filings which your registered agent will receive and forward to you. Your registered agent will help remind you to file the necessary reports. Failure to properly maintain your LLC can result in fines and dissolution so this assistance is valuable. Three, file the Articles of Organization. To register your Kansas LLC, you will need to file the Articles of Organization with the Kansas Secretary of State. This can be done online or by mail. You should also decide whether your LLC will be member-managed or manager-managed. Member-managed means all members of the LLC manage the company. This is good for small organizations where everyone is involved in the day-to-day operations. The second option is manager-managed where individuals are appointed to manage the LLC. This is appropriate for larger organizations where not everyone is involved in the day-to-day affairs of the business. Four, create an operating agreement. Although not every state requires it, you should always create an operating agreement to establish ownership terms and member roles for your LLC. This foundational document is the core of your LLC and will help you maintain your organization as well as further establish your LLC as a separate legal entity. There are six main sections of an operating agreement. Organization outlines when and where the company was created, who the members are, and how the ownership is structured. Management and voting addresses how the company is managed as well as how the members vote. Capital contributions covers which member's financially support the LLC and how more funds will be raised in the future. Distributions outlines how the company's profits and losses are shared among members. Membership changes describes the process for adding or removing members as well as if and when members can transfer their ownership shares. And dissolution, which explains the circumstances in which the LLC may be dissolved. An operating agreement is an internal document. It does not need to be filed with the state. However, it should be updated every time there is a change in membership or management at the company. You can download a free sample operating agreement or create a custom one using our free operating agreement tool at howtostartanllc.com. Five, obtain an EIN. Lastly you'll need to get an employer identification number or EIN from the IRS. Also known as a federal tax identification number, your EIN is like a social security number for your LLC and is how the IRS tracks your business for tax purposes. An EIN is also necessary to open a business banking account and legally hire employees. EINs are free of charge and can be obtained from the IRS online or through the mail. And with that, you have formed a Kansas LLC on your own. Option two, hire a professional service. The second way to create a Kansas LLC is to hire a professional service to create your LLC for you. Hiring a professional service to file your forms and act as your registered agent for the LLC will cost you an additional $50 to $150. However, there are several benefits to working with a pro. A hired registered agent helps with getting your reports filed on time, helps you stay organized by keeping your business mail separate, and is available at all regular business hours to accept official mail and legal papers on your LLC's behalf. A final and important additional benefit of using a service is privacy. A professional service will provide a level of privacy by withholding your personal name and home address from the LLC's contact information. There are many reasons why you might not want your personal information easily accessible and associated with your business. Hiring a professional LLC formation service is an easy way to accomplish this. Now that you have seen the different requirements and ways you can form an LLC in Kansas, visit our site and take some time to research your options and establish a solid foundation for your business activities. Click on the links in the description below to research the top five professional formation services or get more information on how to form a Kansas LLC on your own. Now you know all the steps to form an LLC in your state. For a more detailed guide, go to howtostartanllc.com. You can also create an operating agreement and use our business plan tool free of charge. Give the video a like if you found it useful and subscribe if you'd like to see more. If you have questions or encounter any roadblocks, leave a comment below. Good luck in starting your small business. (pleasant music)