To launch a company in Kansas, you must first organize yourself as a corporation. You may form a corporation in Kansas by following the steps outlined in this article, which will also tell you what paperwork is required and how much the procedure will cost. It is essential to keep in mind that Kansas imposes some limitations on who may create a company; before moving further, you should verify these limitations with the appropriate authorities in your area. Forming a company in Kansas may seem difficult initially, but it may be relatively simple if you have the right advice. The following are five suggestions that will assist you in getting started and will make the process go as smoothly as possible.
Decide on Your Business Structure and Type of Corporation
Creating a company in Kansas requires a lot of thought and planning. The corporate structure you choose should be based on your company’s objectives. Choosing between an S Corporation and a C Corporation is a good idea if you want your firm to become vast and sophisticated eventually. These companies have more tax advantages and liability security than their non-incorporated counterparts.
Subchapter S corporations are the most frequent kind of corporation because they protect from personal responsibility business owners while permitting the distribution of corporate earnings to shareholders. You must register your company with the Kansas Department of Revenue to file taxes as a single proprietor, partnership, LLC, or S corporation in Kansas (DOR). If you want your Kansas Company to be legally recognized, you must file Articles of Incorporation with the Department of Revenue.
Choose Your Registered Agent and File the Articles of Incorporation
Selecting a registered agent is crucial when you form a corporation in Kansas. The corporation’s registered agent is a person or organization that accepts legal, tax, and financial paperwork on its behalf. Picking a reliable registered agent is crucial. You need to make sure your registered agent can rapidly submit paperwork on behalf of your company, that you can quickly contact them, and that you can receive communications from them.
Make sure your chosen friend or family member realizes the significance of the position before appointing them as your registered agent. Make sure you have clear lines of communication with one another. Problems may arise if you cannot reach your registered agent in the future. Choosing a registered agent is a serious business decision, so research their credentials. Doing so helps you stay ahead of any issues with the management of your company’s paperwork.
Draft Corporate Bylaws and Issue Stock Certificates From a Corporation in Kansas
You need to ensure that you are in accordance with Kansas’s administrative processes and standards before establishing a company there. This is necessary before you can even begin forming a corporation. To begin, you will want to write up some corporate bylaws that detail the management structure of the firm as well as the roles and duties of the board of directors.
Details on any special voting rights or shareholder elections, such as decisions regarding mergers and acquisitions, should be included in the company’s bylaws. In addition, you will need to provide stock certificates to anybody with shares in your business. Because the values and rights associated with these shares might differ depending on your company’s form, it is imperative that you get the advice of legal counsel before moving forward with this procedure.
Hold an Organizational Meeting and Elect Directors
Proper organization is essential. Having an organizational meeting and electing directors is necessary before filing articles of incorporation. The board of directors is responsible for running the firm and, in most cases, selecting the executive team. Three directors are required at a minimum, although it’s not unusual for there to be five or seven.
It’s best to have many individuals in charge of day-to-day company operations instead of relying on just one person to make all the critical decisions if you’re part of a team that intends to operate the firm together. Corporate bylaws should detail how the company will be run and include a regular meeting schedule. In the event of a director’s departure, the company must act swiftly to find a suitable replacement.
The Corporation Center is an independent, private corporation that provides information about corporations. They provide a service that is helpful for people who want to form a corporation in Kansas and those looking for information about corporations in general. They can be reached at 1-800-580-4870.