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Kansas · 2026 · 36 steps · official links

How to start a business in Kansas

Every step to open an LLC in Kansas and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Secretary of State · Department of Revenue · Department of Labor (UI, workers' comp, new hire) · Health Care Stabilization Fund.

LLC filing fee
$85 online, $90 paper
State sales tax
6.5%
Seller's permit
See state site
Out-of-state sales threshold
$100,000
Last verified
October 27, 2026

This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.

Customize this checklist

Popular Kansas business types:

Step 1

Set up the business with the state

Do this first. The state tax and payroll accounts ask for your registration details.

Get a federal EIN

Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.

FederalFreeIRS: Get an EIN

Sign an operating agreement

This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.

Every state

Open a business bank account

Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.

Every state

Check industry licenses and permits

Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.

  • Trades and construction: general contractors, electricians, plumbers, HVAC and roofers usually need a state or local license, and often a bond
  • Personal services: salons, barbers, nail and esthetics shops need a shop license plus licensed staff; massage and tattoo studios are licensed too
  • Professional services: accounting, engineering, architecture, law, real estate and insurance require state licenses for the people and sometimes the firm
  • Child care, elder care and home care need a state facility or agency license and background checks
  • Retail with restricted products: alcohol, tobacco and vape, cannabis, firearms (federal FFL), pawn and secondhand dealers
  • Auto, transport and logistics: auto dealers and repair shops, towing, movers, and trucks that need a USDOT number
  • Money and finance: lenders, mortgage brokers, debt collectors and money transmitters are licensed by the state, often through NMLS
  • Local permits for almost everyone: city business license or tax registration, zoning or home occupation permit, sign permit and fire inspection

Decide on S corp tax treatment (optional)

If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.

Form your LLC with the state

File Articles of Organization (or the state's equivalent) online through Kansas Secretary of State online business filing.

KS$85 online, $90 paperKansas: Forming an LLC

Name a Kansas resident agent

You need a resident agent with a street address in Kansas to receive legal papers and state notices. Use a registered agent service if you have no one local.

KS

Register a trade name (DBA) if you use a different name

Kansas does not register DBA or assumed names at the state level.

KSIf it applies

Know Kansas's formation rules

Kansas revised its filing forms and fees in early 2026. The paper Articles of Organization fee is now $90 (form revised February 27, 2026).

KS
Step 2

Register for state taxes

Register with Department of Revenue

Register for withholding and sales tax online through the KDOR Customer Service Center, or file the paper Business Tax Application (Form CR-16). There is no registration fee and IDs take 2-3 business days.

  • Employees complete Form K-4 for state withholding
  • Kansas has a state sales tax plus local sales taxes; register with KDOR.

Check local taxes and business licenses

Cities and counties levy local sales taxes. State law blocks cities and counties from setting a higher minimum wage for private employers.

KS
Step 5

Collect sales tax

Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.

Register to collect sales tax

Kansas calls it a Certificate of Registration (Kansas Retailers' Sales Tax). Register with the Kansas Department of Revenue through KDOR Customer Service Center (Business Tax Application, Form CR-16) before you make your first taxable sale in Kansas. You'll collect tax from customers and send it to the state.

  • State rate: 6.5%
  • Local taxes: Cities can add up to 3% and counties generally up to 1%, with voter approval. Local tax is reported on the state return; use the Address Tax Rate Locator for exact rates.
  • Most professional services (accounting, consulting, legal, cleaning) are not taxed, but services to install, repair, or maintain goods are taxed, such as car repair, painting, and dry cleaning.

Buy items you resell tax-free with a resale certificate

Give your supplier Form ST-28A, Resale Exemption Certificate so you don't pay tax on inventory you'll resell. The buyer must have a Kansas sales tax account number (except drop shipments); a blanket ST-28A needs no renewal if no more than 12 months pass between sales. Keep certificates your own customers give you, too.

  • Accepts the Streamlined Sales Tax multistate certificate

Selling into Kansas from another state? Watch the threshold

Out-of-state sellers must register once sales into Kansas pass $100,000 (current or preceding calendar year), even with no office here.

  • Set by SB 50, effective July 1, 2021. Remote sellers count gross receipts from all sales to Kansas customers, including marketplace sales; register within 30 days of crossing the threshold.
  • Marketplace facilitators (Amazon, Etsy) with more than $100,000 in Kansas sales must collect for third-party sellers; for facilitators, only taxable sales count toward the threshold.

Note this Kansas sales tax rule

Kansas accepts the Streamlined certificate (Form PR-78SSTA) in place of most Kansas exemption forms, and has its own multi-state form (ST-28M) for unregistered out-of-state buyers.

KS
Step 6

Before your first payroll

Applies once you pay W-2 employees who work in this state.

Complete Form I-9 and W-4 for each hire

Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.

  • The employee completes Section 1 by their first day of work
  • You review their original documents and complete Section 2 within 3 business days of the start date
  • Keep it for 3 years after the hire date or 1 year after employment ends, whichever is later
  • Store I-9s together, separate from personnel files, so an inspection doesn't expose other records
  • Remote hire? Have an authorized representative check documents in person, or, if you use E-Verify, use the DHS remote video inspection option
  • Also collect a federal W-4 for withholding

Post federal workplace notices

Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.

Register for unemployment insurance with Kansas Department of Labor

Register once you pay wages to employees working in Kansas. Reports and payments are usually quarterly.

  • 2026 new employer rate: 1.75% (5.55% for construction)
  • Taxable wage base: $15,100
  • 2026 experienced rates range from 0% to 6.95%. Register through the KDOL Employer Self Service Portal. Employees do not pay UI tax.

Buy workers' compensation insurance

Required at More than $20,000 in gross annual payroll (non-agricultural employers). Sole proprietors, partners and LLC members are not counted as covered workers. Cover through an insurer, a group-funded pool, or self-insurance. Penalty for no coverage is the greater of twice the annual premium or $25,000.

Report each new hire

Report new hires and rehires (back after 60 or more days) to the Kansas New Hire Directory.

Follow Kansas pay timing rules

Kansas's wage payment rules:

  • Pay frequency: At least once a month on paydays set in advance; the pay period must end no more than 15 days before payday (K.S.A. 44-314).
  • Final pay: Due by the next regular payday, whether fired or quit (K.S.A. 44-315).
  • Overtime: 1.5x after 40 hours per week under federal law. The Kansas law (1.5x after 46 hours) applies only to employers not covered by the FLSA.
  • The state minimum wage law covers only employers not covered by the federal FLSA; most businesses follow federal rules.

Pay at least Kansas minimum wage

$7.25 an hour.

  • Tipped employees: $2.13 cash wage (tips must bring total to $7.25)
  • Coming up: No increase announced for 2027.

Paid sick leave: no general state requirement

Kansas does not require private employers to provide paid sick leave.

KSIf it applies

Retirement plan: no state mandate

Kansas has no state retirement savings mandate for private employers.

KSIf it applies

Adopt a harassment policy (training recommended)

Kansas doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.

KSIf it applies

Post Kansas workplace notices

Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.

KSFree

Buy workers' comp once payroll passes $20,000

Kansas does not use a head count. Coverage is required once gross annual payroll goes over $20,000, counting all wages paid in Kansas or elsewhere.

Step 7

Paying 1099 contractors

Collect a W-9 before the first payment

The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.

Send Form 1099-NEC to contractors

File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).

FederalDue Jan 31
Step 8

Stay in good standing

Recurring deadlines. Put these on your calendar now.

Skip the FinCEN BOI report (U.S. companies are exempt)

FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.

Pay the Health Care Stabilization Fund surcharge

Every covered Kansas health care provider, including business entities, must keep basic malpractice coverage and pay the HCSF surcharge each compliance period. Business entities pay a 14.0% surcharge rate for 2026.

  • Basic coverage: $500,000 per claim / $1,500,000 aggregate
  • HCSF coverage: $500,000 per claim / $1,500,000 aggregate
  • Kansas residents who also hold an active Missouri license pay an extra 30%

File the information report every other year

Kansas moved from annual to biennial reports on January 1, 2024. Your filing year (odd or even) matches the year you first filed with the state; the month and day stay the same.

File the Business Entity Information Report (filed every 2 years)

Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.

KSEvery 2 years by the 15th day of the 4th month after the tax year ends (April 15 for calendar-year filers). Entities formed in an even year file in even years; odd year in odd years.$90 online, $110 paperKansas: Annual report

Know your state business taxes

No franchise tax. An entity that does not file within 90 days after the due date can be forfeited.

KS

File quarterly unemployment reports and withholding returns

File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.

KSQuarterly

File sales tax returns on time

Annual if tax due is $1,000 or less a year (due January 25), quarterly up to $5,000, monthly above $5,000; quarterly and monthly returns are due the 25th of the following month. File a zero return if you had no sales; skipping it can bring penalties.

KS

Deadline calendar

Recurring dates for Kansas and federal filings. A payroll service handles most payroll lines, but you should know they're happening.

WhenWhatFiled with
Apr 15 (every 2 years)Business Entity Information Report for calendar-year filersKansas
Jan 1New UI tax rates take effect (2026 wage base $15,100)Kansas
Within 20 days of hireReport new hires and rehires to the Kansas New Hire DirectoryKansas
Policy renewalPay Health Care Stabilization Fund surcharge with malpractice coverageKansas
Assigned scheduleSales tax return (file a zero return if no sales)Kansas
Jan 31W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941IRS / SSA
Jan 311099-NEC to contractors and IRSIRS
15th monthlyFederal payroll tax deposit (monthly depositors)IRS
Apr 30 · Jul 31 · Oct 31Form 941 for the quarterIRS
Jul 31Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension)DOL (EFAST2)

Last verified: October 27, 2026

Common questions

How much does it cost to form an LLC in Kansas?

The Kansas state filing fee for an LLC is $85 online, $90 paper. That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.

Do I need a seller's permit in Kansas?

You need to register to collect sales tax in Kansas if you sell taxable products or services there. The state rate is 6.5%, and local taxes may add to it. Registration cost: See state site.

When does an out-of-state business have to collect Kansas sales tax?

Out-of-state sellers must register once their sales into Kansas pass $100,000 a year. Having an employee or office in Kansas also creates nexus right away.

What does a Kansas business have to file after it opens?

Recurring filings include: pay the Health Care Stabilization Fund surcharge; file the information report every other year; file the Business Entity Information Report (filed every 2 years); file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.

Checklists for every state

This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.