Did you know that during the formation of corporations in Kansas, you must follow a series of predetermined steps? If you are considering launching a company in Kansas (also known as the “Sunflower State”), you must get acquainted with the required steps and check to see that you comply with all applicable legislation. In this article, we will discuss the fundamentals of forming a corporation in Kansas and provide some advice on getting things rolling. Please keep checking our blog for further insightful and actionable business tips! The following is information that is necessary for you to know about the procedure:
You Don’t Have to Have a Lawyer Help You with Formation
Formation of corporations in Kansas is a simple process that only requires filing a few documents. Pay a lawyer or any other expert to do this for you. Articles of Incorporation must be filed with the Secretary of State to create a company. This document includes standard legal language and some basic information about your company and its executives to protect your company from legal action. Following their acceptance and filing, your company’s Articles of Incorporation will become part of a public registry of Kansas businesses.
Enterprises such as banks and credit card firms having a genuine interest in researching businesses in the state have access to this information, which is not available to the general public. Do not include any sensitive company information you would not want to be made public here. You may do anything from submitting yearly reports to filing tax returns electronically utilizing the Business Online Services site after you’ve created your firm online. By using this method, you may avoid spending a ton of money on attorneys and yet seem professional.
You Can Do the Formation of Corporations in Kansas Online or by Mail
Many customers choose the online alternative due to its convenience and speed. Your submission may be expedited if necessary. When forming a company, you can choose either the online filing system or sending in your paperwork. Your company may be operational as soon as you’d like. Kansas allows both C-corporations and S-corporations to form. A C-corporation is required if your company has a single owner and no partners.
This applies to sole proprietorships as well. An S-corporation is the best business structure for a company owned by numerous people. Both types of corporations are suitable for company owners who are hesitant to incorporate their companies at present but may change their minds later. Because getting the state of Kansas to accept the chosen name for the corporation might take several days, it’s important to settle on a name before submitting the necessary paperwork for the formation of corporations in Kansas formally.
You’ll need to Create Corporate Bylaws and Appoint Directors And Officers.
Corporate formation, like the formation of any other corporate entity, involves several choices. Corporate bylaws and executive positions will need to be established. Be careful to include the persons you want to serve as company officers. More eyes on the problem, more brains on the solution; more people in the room means less chance of a tyrant gaining control. After settling on a name for your company and a method for electing directors, you’ll need to establish the parameters under which corporate elections will be held.
A voting trust agreement describes how your board of directors is selected. Your corporate bylaws should include a voting trust agreement since this document will govern the election of directors and, by extension, corporate decisions. Both majority voting and cumulative voting fall within this category. Each share in a cumulative voting system has the same number of votes as the number of shares it represents. There is only one vote cast for the victorious candidate for each share in majority voting.
Your Corporation Will Have a Separate Legal Existence from Its Owners
Many different kinds of companies are legal in the state of Kansas. Legally speaking, a corporation exists independently from its shareholders. In a company, the owners and shareholders are protected from financial loss. By law, shareholders of a corporation have no more than a 100% financial stake in the company and are thus solely liable for the loss of their initial investment. A corporation’s ability to hold property and engage in transactions in its name results from its independent legal existence.
It also implies that the corporation is legally separate from its owners and may sue and be sued in its own right. Establishing a company in the Sunflower State is a straightforward procedure. A person or group may establish a “domestic” or “foreign” nonprofit company by submitting articles of incorporation with the Corporation Center or the Kansas Secretary of State’s office.
If you’re thinking about the formation of corporations in Kansas, it’s important to know the laws that govern your business. You’ll need to understand how to incorporate and maintain your status as an LLC or corporation. Contact our experts today at (800) 580-4870 to learn more about the formation of corporations in Kansas.