How to Start a Business in Kansas

Starting a business in Kansas involves several key steps, including selecting a business structure, registering with the state, and obtaining necessary licenses and permits. Entrepreneurs should also consider market research and business planning to ensure a successful launch.

Kansas Economy Trends

Small Business Statistics: Kansas is home to approximately 267,000 small businesses, which employ about 49.1% of the state's workforce. Notable industries include agriculture, manufacturing, and aerospace. For more detailed statistics, visit the U.S. Small Business Administration.

New Business Application Statistics: In Kansas, there were 32,926 new business applications. For more information, see the Census Bureau's visualization.

Exports and GDP: Kansas's economy is bolstered by significant exports, particularly in agriculture and manufacturing, contributing to a robust GDP. For recent data, refer to the U.S. Census Bureau.

Economic Highlights: Major employers in Kansas include Spirit AeroSystems and Koch Industries, with Wichita serving as a key aerospace hub. The state offers a favorable tax climate for businesses, as detailed by the Kansas Department of Commerce.

• Step 1: Perform Market Research
• Step 2: Write a Business Plan
• Step 3: Get Licenses and Permits
• Step 4: Acquire Funding
• Step 5: Choose a Business Entity
• Step 6: Select a Business Location
• Step 7: Register the Company

Step 1: What Kind of Business Should I Start in Kansas

Selecting a business type in Kansas depends on factors such as personal interests, market demand, and regional economic strengths. Kansas is known for its strong agricultural sector, aerospace industry, and growing tech scene. Entrepreneurs might consider opportunities in:

• Agriculture and food production
• Aerospace and aviation
• Information technology and software development

For more information on industry trends, visit the Kansas Department of Commerce.

How to Do Market Research in Kansas

Market research in Kansas involves gathering data to understand consumer demographics, buying behavior, and market gaps. Primary research methods include surveys and interviews, while secondary research involves analyzing existing data. Competitive analysis is crucial for understanding other businesses in the area. This research helps entrepreneurs make data-driven decisions when launching a new business in Kansas.

Step 2: How to Write a Business Plan in Kansas

A business plan is essential for clarifying goals, attracting investors, securing funding, organizing operations, and evaluating progress. It is valuable for both new and scaling businesses and can evolve over time.

Executive Summary: This section provides a snapshot of the business, including its mission statement and key objectives.

Company Description: Detail the business's purpose, target market, and competitive advantages.

Market Analysis: Analyze industry trends, target market demographics, and competitor strategies.

Organization and Management: Outline the business's organizational structure and management team.

Product/Service Line: Describe the products or services offered, including their benefits and lifecycle.

Marketing Plan: Explain the marketing and sales strategies to attract and retain customers.

Financial Plan: Include financial projections, funding requirements, and revenue models.

Appendix: Provide supporting documents or additional information relevant to the business plan.

Step 3: Do I Need a Business License in Kansas?

Yes, in most cases, businesses in Kansas need to obtain specific licenses or permits. There is no universal business license issued at the state level. Licensing depends on factors such as the type of business, its physical location, and whether it is regulated. Common licenses include sales and use tax permits, local city or county business licenses, and regulatory or professional licenses. Business owners can determine applicable licenses by using the Kansas Business Center and consulting local city or county offices.

How Much Does a Business License Cost in Kansas?

Business license costs in Kansas vary based on business type, jurisdiction, and the specific license or permit required. Some registrations, like sales tax permits, may be free, while others can range from $15 to $100 for a general business license. Certain groups, such as veterans or nonprofits, may qualify for exemptions or fee waivers. Business owners should check with the appropriate issuing agency for exact fee amounts and payment policies.

How to Register for a Seller’s Permit in Kansas

In Kansas, a seller’s permit is referred to as a sales tax permit. It authorizes the sale of taxable goods or services. The Kansas Department of Revenue issues these permits, and applications can be submitted online through the Kansas Business Center. Required information includes the business's EIN, start date, address, ownership details, and expected sales. There is no cost for the permit, but annual renewals may be required. For further assistance, contact the Kansas Department of Revenue.

Step 4: How Much Does it Cost to Start a Business in Kansas?

The cost of starting a business in Kansas varies based on factors such as business type, industry, location, and scale of operation. The U.S. Small Business Administration estimates that startup costs can range from a few thousand dollars for home-based businesses to significantly more for larger operations. Common expenses include registration and incorporation fees, licensing and permits, equipment, insurance, professional services, and marketing. Filing fees for LLC formation or corporation registration typically range from $50 to $165.

How to Get Business Funding in Kansas

Startups in Kansas have access to multiple funding options. Business owners should estimate their capital needs and choose suitable funding options based on their goals and eligibility. Common sources include self-funding, loans, grants, investors, and crowdfunding. Kansas also offers state-specific investment or financing programs, which can be explored through the Kansas Department of Commerce.

How to Self-Fund a Business in Kansas

Self-funding, or bootstrapping, involves using personal financial resources to start or run a business. Common methods include using savings, selling personal assets, earning supplemental income, pre-ordering, or borrowing from friends or family. Advantages include full ownership and control, while risks involve limited capital and personal financial exposure. Entrepreneurs should budget carefully and optimize resources. The Kansas Chamber of Commerce and Small Business Administration tools can provide additional support.

How to Find Investors in Kansas

An investor provides capital and may offer mentorship, networking, or strategic guidance. Compensation often involves equity or dividends. Business owners in Kansas can connect with investors by attending industry events, using local investment networks, or contacting state-level organizations like the Kansas Commerce Authority. Preparing a compelling pitch is crucial, outlining the company’s value proposition, market, and growth strategy. Types of investors include angel investors, venture capitalists, and local private investors.

How to Get a Loan to Start a Business in Kansas

Business loans are a common funding method for new businesses in Kansas. Options include traditional bank loans, SBA-backed loans, and non-traditional options like peer-to-peer lending and microloans. To obtain a loan, applicants should choose the right loan type, meet eligibility criteria, provide collateral, and prepare key documentation such as financial statements and a business plan. Required documents usually include:

• Financial statements
• Business plan
• Proof of income
• Tax returns

Prospective business owners should consult financial professionals and compare loan offers to find the best terms.

How to Find Kansas Business Grants

Business grants are funding sources from government, private, or nonprofit organizations that do not require repayment. Each grant program has different eligibility requirements and application processes. In Kansas, business owners can find grants through the Kansas Commerce Authority, local economic development offices, state agency websites, and dedicated grant portals. Entrepreneurs should use grant search tools and consult local business support centers for assistance.

Can I Start a Business with No Money in Kansas?

Starting a business with absolutely no money in Kansas is not possible, as some capital is required for essentials like registration fees, licenses, equipment, and marketing. However, it is possible to launch a low-cost business by starting from home, choosing a service-based model, using free resources, applying for grants, or networking locally. Kansas offers free or low-cost business tools, such as online registration portals, to help reduce expenses.

Step 5: Choosing a Business Structure in Kansas

Choosing a business structure in Kansas is important for determining taxation, liability, management, and registration requirements. Available structures include sole proprietorships, partnerships, LLCs, and corporations. Each type has implications for taxation, liability, operations, and ownership. Consulting a tax accountant, attorney, or business consultant is recommended. For more information, visit the Kansas Secretary of State.

How to Start a Sole Proprietorship in Kansas

A sole proprietorship is a business owned and operated by one individual, offering full control and simple tax treatment but with personal liability for debts.

Starting a Sole Proprietorship in Kansas

• Step 1: Choose a business name. You can use your legal name or a trade name.
• Step 2: File a DBA (“Doing Business As”) with the local county clerk's office if using a trade name.
• Step 3: Obtain necessary licenses and permits, which vary by business type and location. An EIN is required if you have employees.

Sole proprietorships do not need to be formally registered with the Kansas Secretary of State.

How to Start a Corporation in Kansas

A corporation is a legal entity separate from its owners, providing limited liability to shareholders. Different types include C-Corps and S-Corps, with varying tax treatments.

Core Features:

• Legal separation of owners and business
• Limited liability for shareholders
• Centralized management
• Transferable ownership through stock
• Taxation of profits (double or pass-through)

Steps to Form a Corporation in Kansas:

• Step 1: Choose a Corporation Name. Ensure it includes words like “Corporation” or “Inc.” and is unique.
• Step 2: Appoint a Registered Agent and Registered Office. This can be an individual or company with a physical address in Kansas.
• Step 3: File the Articles of Incorporation with the Kansas Secretary of State. Include the corporation's name, shares, incorporators, address, and agent. Filing can be done online or by mail, with fees applicable.
• Step 4 (Optional): Foreign Corporations must file a Certificate of Good Standing and a Statement of Foreign Corporation.
• Step 5 (Optional): For S-Corp election, file IRS Form 2553 after formation.

How to Start an LLC in Kansas

An LLC (Limited Liability Company) combines elements of corporations and partnerships, offering limited liability, pass-through taxation, and flexible management.

Steps to Form an LLC in Kansas:

• Step 1: Name Search/Selection. Use the Kansas Secretary of State's portal to search for or reserve a business name. Fees may apply, and reservation is optional.
• Step 2: File Articles of Organization with the Kansas Secretary of State. Filing can be done online or by mail, with applicable fees. Further steps may include obtaining an EIN and appointing a registered agent.

How to Start a Business Partnership in Kansas

A business partnership is owned by two or more individuals. Types include general partnerships, limited partnerships, and limited liability partnerships.

How to Start a Limited Partnership in Kansas

A Limited Partnership (LP) includes at least one general partner with full liability and management control, and one or more limited partners with limited liability. Filing requires a Certificate of Limited Partnership with the Kansas Secretary of State, available online or by mail.

How to Start a General Partnership in Kansas

A general partnership (GP) is jointly owned and managed by partners who share profits, losses, and liability. Registration is optional, but a Statement of Partnership Authority can be filed with the county recorder’s office.

How to Start a Nonprofit in Kansas

A nonprofit is a corporation formed for purposes other than profit, such as charity or education. Nonprofits must comply with state-specific incorporation procedures and file with the Kansas Secretary of State. To obtain tax-exempt status, file IRS Form 1023 or 1023-EZ for 501(c)(3) status. Filing fees and processing options are available, and additional steps may include appointing directors, drafting bylaws, and obtaining an EIN.

Step 6: Choosing a Business Location in Kansas

Choosing a business location is critical, especially for customer-facing businesses. Location impacts success, visibility, operations, and compliance. Common setups in Kansas include brick-and-mortar, online, home-based, and mobile businesses. Key factors to consider are proximity to the target market, accessibility, local competition, costs, zoning laws, and safety standards. Entrepreneurs should consult local zoning boards and safety inspection offices for compliance.

What Kind of Business Can I Run From Home in Kansas?

Running a home-based business in Kansas is influenced by local regulations such as zoning ordinances and homeowner association rules. Some businesses are typically allowed if they do not affect the neighborhood’s residential character, while others may be prohibited due to noise or safety concerns. Individuals should check with local zoning departments, review HOA rules, and examine lease agreements.

How Do I Start a Small Business From Home in Kansas

Home-based businesses in Kansas must comply with legal requirements, including business formation, registration, licensing, and zoning compliance. Local governments enforce zoning laws, and a Home Occupation Permit may be required to assess business suitability in a residential setting. Contacting local governing agencies ensures compliance.

Starting a Business Online in Kansas

An online business is conducted over the internet, with the same legal requirements as other businesses in Kansas. Steps include choosing a business name, selecting a legal structure, filing formation documents, obtaining an EIN, and acquiring relevant licenses. Additional regulations may apply, such as consumer protection laws or internet-specific sales restrictions.

Step 7: Legal Requirements for Starting a Business in Kansas

Kansas does not limit who can start a business, but all new businesses must follow state laws and local ordinances. Legal requirements depend on business structure, industry, location, and products or services offered. Businesses must file formation documents, obtain licenses, comply with tax obligations, and designate a registered agent. For more information, visit the Kansas Secretary of State.

How to Get an EIN Number in Kansas

An EIN (Employer Identification Number) is a unique nine-digit number issued by the IRS for tax identification. It is required for hiring employees, opening business bank accounts, and filing taxes. Businesses can apply for an EIN online through the IRS EIN Assistant, by mail or fax using Form SS-4, or by phone for international applicants. The responsible party must have a valid Taxpayer Identification Number.

How to Get a Kansas Registered Agent

A registered agent is designated to receive legal documents on behalf of a business. In Kansas, LLCs, corporations, and limited partnerships must appoint a registered agent. The agent can be an individual over 18 with a physical address in Kansas or a business entity authorized to operate in the state. Appointment is made in the formation paperwork, and fees may apply. For more information, visit the Kansas Secretary of State.

Patents, Trademarks, and Copyrights in Kansas

Patents, trademarks, and copyrights are forms of intellectual property protection.

Patents: Provide exclusive rights to inventors, governed by the U.S. Patent and Trademark Office under Title 35 of the U.S. Code, lasting 20 years from the filing date.

Trademarks: Distinguish the source of goods or services, managed federally by the USPTO and at the state level by the Kansas Secretary of State. They last 10 years and are renewable.

Copyrights: Protect original creative works, overseen by the U.S. Copyright Office under Title 17 of the U.S. Code, lasting the life of the author plus 70 years.

Kansas Business Tax

The Kansas Department of Revenue oversees business taxation. Tax obligations vary by business structure, industry, and activity. Common taxes include:

• Income or Corporate/Franchise Tax: Levied on business profits.
• Sales and Use Tax: Applied to sales of goods and services.
• Employment or Payroll Taxes: Withheld from employee wages.
• Property Tax: Based on the value of business property.
• Specialty/Excise Taxes: Industry-specific taxes, such as liquor tax.

For more information, visit the Kansas Department of Revenue.

Are Business Records Public in Kansas?

Yes, business records in Kansas are generally public under the Kansas Open Records Act. They can be inspected or copied by request unless exempted by law. Agencies maintaining such records include the Secretary of State, Department of Revenue, and County Recorder. Some information, like Social Security Numbers and trade secrets, is exempt from public access. For record searches, visit the Kansas Secretary of State's Entity Search.