You did it. Your Kansas LLC is officially up and running, ready to take on challenges, roll in the profits, and change the world.
There’s no doubt that this is an exciting time in your business journey. After starting your LLC, it’s easy to get carried away in all the excitement and expectations. After all, as a new business owner, you’ve got a lot on your plate.
But the state does too. They need to keep updated records on thousands of businesses so that they can effectively reach out with any important tax or legal communications down the road. How do they do it? With your cooperation, of course.
In Kansas, an LLC’s annual report consists of two parts: a Franchise Tax and a Public Information Report. Each LLC must submit these filings to the Kansas Comptroller every year to keep their information current. Unsure how to go about it? Never even heard of it? No worries at all. That’s why we’re here. Keep reading for everything you need to know.
For brevity’s sake, we’ll refer to these two combined filings as the “Annual Report” in this guide.
What is a Kansas Annual Report? Why is it Important?
Consider an Annual Report the state’s yearly checkup on your LLC. It’s similar to a census in that its purpose is to collect the necessary contact and structural information about each Kansas business.
Each state has its own annual reporting requirements, and some don’t even require them. But in most states, you’re required to submit one per year that includes your LLC name, principal office address, resident agent information, and member/manager names and addresses. Whether you run a domestic or foreign LLC, you should plan on submitting an annual report.
Don’t be intimidated, but it’s not something you want to take lightly. This is how the state updates your LLC’s record with the most recent information. They need to know how to reach you with important information about your business status, upcoming filings, taxes, and service of process.
For example, if you change your resident agent, or your current agent resigns, you’ll need to keep the state informed so they can update their contact information. Miss one of their communications and your LLC in Kansas might end up falling out of good standing or, even worse, administratively dissolved.
Moreover, keeping your information current will help other businesses and potential customers find you. Your LLC’s information is part of the public record, so anyone can find it via a name search, including future partners and customers.
How Much Does the Kansas LLC Annual Report Fee Cost?
If you’re putting together a budget for all your LLC’s costs – like formation costs, name reservation fees, and initial operating expenses – it’s important to include annual filings like this one, just so that there are no surprises.
Costs vary from state to state. Some are free while others can be several hundred dollars. Your Kansas Annual Reports won’t break the bank though. It’s just $50 to file online and $55 by mail. This is a recurring cost, so you’ll want to include it in your yearly budget.
Due Date and Frequency for an Annual Report in Kansas
As the name suggests, you’ll need to file an Annual Report once per year. The due date is the 15th day of the 4th month following your tax closing month. This makes the due date for most businesses April 15th, the same as tax day.
Your first Annual Report will be due the year after you file your Articles of Organization to start your LLC, you will need to file an Annual Report every year for the life of the business.
What Happens if You Don’t File?
You might be thinking, “that sounds like a pain. How bad could it be if I just fly under the radar?” The short answer: don’t try it. Failing to file your Annual Report can yield some serious consequences.
There’s no late fee for Kansas Annual Reports, but if you still haven’t filed 90 days past your due date, your business will be forfeited. In this case you would need to file for reinstatement, which includes a $35 filing fee, an $85 penalty, and payment for all outstanding Annual Reports.
Whether your Annual Report due date is tomorrow or you’re just planning for next year, it’s good to know what you’ll need to include. Here’s the information required:
- Business entity ID number
- LLC name
- Tax closing date
- State of organization
- Name and address for each member who owns 5% or more of capital
- Federal Employer Identification Number (optional)
Most of this is standard LLC information, and you might even know it by heart. If not, you should be able to find it fairly easily on your formation documents or by accessing your records through the Secretary of State’s business entity search.
You’ve gathered all your information, and now it’s time to file. The Secretary of State accepts either online or hard copy submissions.
Online: This is the faster and easier way to file. Go to the state’s Annual Report online filing portal, then enter your business name and ID number in the appropriate boxes. Click “File Annual Report” and the site will take you through the process. At the end, you’ll have a chance to make your $50 payment with a credit or debit card. Your filing will be processed within 24 hours.
Hard Copy: First, you’ll need to get your hands on a paper form. Download, complete, and print the form, include your $55 payment, and mail it to:
Kansas Office of the Secretary of State
Memorial Hall, 1st Floor
120 S.W. 10th Avenue
Topeka, KS 66612-15941
You’re also welcome to hand-deliver your form and payment if you live in Topeka. Reports filed by mail or in-person will be processed in 3-5 business days.
Does the State Send Reminders?
Reminders are always nice. They help you stay on top of your business requirements and ensure that you won’t fall out of good standing.
However, the Kansas Secretary of State expects that you’ll keep track of your LLC due dates, so they don’t send reminders before your Annual Report due date. So, you’ll need to stay on top of it yourself. Circle the date on your calendar, set a reminder on your phone, put a Post-It note on your bathroom mirror, whatever it takes to avoid delinquent Annual reports.
Can I Hire a Service to Handle it?
You probably have a full plate as it is, and the thought of adding one more responsibility to your to-do list might make you shudder. You’re not alone.
Plenty of other LLC owners have outsourced their reporting duties to LLC services. These companies will take the entire process off your hands, handling your Annual Report each year. If that piques your interest, we recommend ZenBusiness, which is an experienced and trustworthy LLC company.
But their services aren’t restricted to forming an LLC or managing Annual Reports. They can also help you form your business, draft an operating agreement, handle resident agent responsibilities, and much more, all for a reasonably low price.
If thinking about your LLC responsibilities ties your stomach in knots, let ZenBusiness take some of those worries off your plate.
There you have it, everything you need to know about Kansas’s reporting requirements. Follow this guide to a T and your LLC will be prepared to operate smoothly and in good standing long into the future.
And remember, if at any point it seems overwhelming, you’re not alone. A good LLC service like ZenBusiness (or LegalZoom) can be a valuable resource, taking care of all the little details, so you can focus on growing your business.