Think of all the people you communicate with regularly to run your LLC. Business partners, employees, banks, lawyers, and financial advisors all probably come to mind. But what about the state? It may not be at the top of your list, but running a successful LLC in Kansas requires consistent interaction with the state.
Formation documents, business information changes, lawsuits, professional licenses, and Annual Reports – all of these (and more) require you to work with state agencies. The good news is that you don’t need to do it yourself.
Introducing the resident agent. A Kansas resident agent is an intermediary for your LLC, a person or company that handles your communication with the state. They’re a vital part of any LLC’s success. Before you file your Articles of Organization, you’ll need to have a designated resident agent. How? Why? Who? Read on to find out.
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What is a Kansas Resident Agent & is it Necessary?
An LLC cannot be formed or do business in Kansas without first having a resident agent on file with the Secretary of State. This is required by law and the penalties can be serious. Maintaining a resident agent doesn’t just keep you in good standing. It also provides an important service.
Think of your resident agent as your ambassador to the state, handling all your LLC’s important legal, tax, and compliance information. This can either be an individual, company or resident agent service, as long as they agree to the appointment and meet the state’s requirements (see below).
As soon as they’re appointed, your resident agent must be consistently available in Kansas to receive and act on mailed documents and service of process. Here’s what the Secretary of State website specifically says:
And the Articles of Organization provides some additional detail:
And make sure you maintain a resident agent continuously because if your LLC has more than a 60-day gap in agent coverage, it will be dissolved by the state.
What are the Requirements of a Resident Agent?
The state doesn’t have a long list of strict requirements for who can be a resident agent, but it does have a few, and you must abide by them, meaning your agent must:
- Be an individual Kansas resident or a business entity authorized to do business in the state.
- Have a physical address in Kansas (P.O. boxes are not allowed)
- Have a mailing address in Kansas.
You can even appoint yourself as long as you’re prepared to take on the additional responsibilities.
Your Articles of Organization must include your resident agent’s name and address, so have someone lined up before you sit down to file. Here’s what you’ll find on the form:
When you’ve got potential options for your resident agent, review each one to make sure that they meet these requirements. If they do, you’re good to go! If not, you’ll need to keep looking.
Who can be a Resident Agent in Kansas?
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Kansas’ resident agent requirements are pretty broad, so you’ll have no shortage of options. On top of that, your agent can be either an individual or a professional service. But think carefully before choosing, because each option has its own pros and cons. Let’s take a closer look.
You may choose to appoint a single person as your resident agent. Some LLC owners take on resident agent duties themselves. Others appoint one of their partners or managers. Some will even appoint a family member. As long as the proposed agent fulfills the state’s requirements, they’re a valid option.
In addition to being a Kansas resident, your agent must not currently be establishing residency or receiving benefits in another state, even if that residency is still forthcoming.
Some smart resident agent choices include attorneys, accountants, or other LLC partners, people who understand the ins and outs of business operations.
- Convenience – Having familiarity and mutual trust with your resident agent is extremely beneficial, and appointing an acquaintance can provide both. Plus, you’ll always know how to contact them.
- Cost – Hiring someone you know often won’t cost a dime. It’s certainly cheaper than a professional service.
- Scheduling – Part of a resident agent’s duty is being consistently available to receive mailed documents and service of process. If your agent goes on vacation or moves out of state, it will throw a wrench in your plans.
- Punctuality Risks – Some state communications and filings are very time-sensitive. If your agent is unavailable when documents are delivered, it could slow down the entire process and put you at risk for late fees and penalties. Even worse, a friend or family member could lose or misplace a document. So if you’d rather not interrogate Aunt Louise about the location of a particular tax form, you might consider using a resident agent service instead.
Resident Agent Service
If safety and reliability is your goal, hire a resident agent service. A business acting as your resident agent must be either a domestic entity in Kansas or a foreign entity that has foreign qualified in Kansas.
- Privacy – Some documents delivered to your resident agent will contain sensitive information. Do you want details about your lawsuit or taxes lost out there in the world? Definitely not. A friend or family member might misplace these documents, but a professional service will not. Plus, in Kansas, all resident agent names and addresses are available to the public. This might make an individual uncomfortable, but hiring a company will keep this personal information off the record.
- Reliability – Handling and processing time-sensitive documents is a resident agent service’s specialty, its area of expertise, its main game. Hire a professional service and you can be sure that your filings will be submitted properly and punctually, so you’ll never have to deal with late fees or other penalties.
- Location – Many resident agent companies offer service in most or all 50 states, so if business is booming and you decide to expand outside Kansas, you won’t need to find a new agent for each state.
- Cost – There’s no getting around it – hiring a service costs more than appointing an individual who’s willing to do it for free. However, for a reasonable price (roughly $100/year), you’ll receive premium services. Taking your car to a mechanic costs more than letting your neighbor try to fix it, but the mechanic gives you peace of mind that the job will get done right, and that may very well be worth the cost.
All of the other steps in the LLC formation process will keep you busy, but take some time to ensure you find a resident agent that fits with your business model, goals, and values. Do this, and your LLC will reap the benefits for years to come.
Resident Agent Changes and Resignation
You may have a wonderful resident agent, someone who takes care of everything efficiently and who you trust completely. But you know what they say: all good things must come to an end. At some point in the life of your LLC, you may need to change your Kansas resident agent.
Like most Kansas business filings, you can file for a change of resident agent online through the Kansas Business Center or by mailing or hand-delivering a Change of Registered Office/Resident Agent form to:
Kansas Office of the Secretary of State
Memorial Hall, 1st Floor
120 S.W. 10th Ave
Topeka, Kansas 66612-1594
Keep in mind that the paper form is slightly more expensive – $35 compared to the $30 fee online.
The most likely reason you will need to file for this change is if your current resident agent resigns.
Losing your resident agent isn’t something you look forward to, but at least you’ll never be blindsided by an agent’s departure. This is because Kansas requires resident agents to notify their companies at least 30 days before officially resigning. Once an agent submits a resignation form to the Secretary of State, it won’t go into effect for 30 days, so you’ll have ample time to line up a replacement.
Still, you should appoint a successor as soon as possible because any LLC that goes more than 60 days without a resident agent on file will be dissolved by the state.
Have Questions or Concerns?
This guide contains almost everything there is to know about Kansas resident agents. However, you might have a unique situation that requires additional information. Reaching out to the Kansas Secretary of State is easy, and they’ll have the answers you need. Here’s how to go about it:
Visit Their Website
Give Them a Call
If you’d rather speak with a person, you can reach out to their Topeka office at (783) 296-4564.