Annual Filing Requirements for Kansas LLC

Learn about the annual report and tax filing obligations for Kansas limited liability companies.

To establish and operate a Kansas limited liability corporation (LLC), you must prepare and submit many paperwork with the state. This article discusses the most significant Kansas LLC continuing reporting and state tax filing obligations.

Report Annual

The state of Kansas requires you to produce an annual report for your limited liability company. Your annual report may be filed electronically at the Kansas Business Center or on paper using Form LC-50. The yearly report is required on the 15th of the fourth month after the month of your tax closure. For example, if your fiscal year coincides with the calendar year, your annual report is due by April 15. The report may be filed as early as January 1. The current filing costs for internet submissions are $50 and $55 for print filings.

State Corporation Tax

Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. Some states charge LLCs a separate tax or fee for the privilege of conducting business in their jurisdiction. Kansas, on the other hand, is not one of those states. (There was a franchise tax that might apply to LLCs years ago, but it has since been abolished.)

However, in certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Kansas, like practically every other state, taxes corporate income. The corporate tax rate in Kansas is a flat 4% of federal taxable income (with state-specific modifications) plus a 3% surtax on taxable income beyond $50,000. The tax is due to the Department of Revenue in the state (DOR). To pay the tax, use the state’s company income tax return (Form K-120).

Employer Taxes in the State

Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) However, Kansas employers must additionally pay state taxes.

To begin, you must withhold and pay employee income taxes to the DOR. Begin by registering your company with the DOR, either online (through the Business Center website) or in paper form (Form CR-16, Kansas Business Tax Application). After you’ve enrolled, you must submit withholding taxes on a regular basis (such as semi-weekly, monthly, or quarterly) using Form KW-5. Each year, you’ll also need to utilize Form KW-3 to reconcile your LLC’s tax withholding.

You’ll also need to register to pay state unemployment insurance (UI) taxes. The Kansas Department of Labor is in charge of these taxes (DOL). These taxes may be registered for online or on paper (Form K-CNS 010, Employer Status Report). Then, each quarter, utilize Forms K-CNS 100 and K-CNS 101 to record your salary and pay your unemployment insurance taxes.

Sales and Use Taxes

If your LLC sells items to clients in Kansas, you must collect and remit sales tax. This implies you’ll have to register with the Department of Revenue for this reason and then make periodic sales tax payments for products sold. You may register either online or by mailing Form CR-16. After you register, you will get a seller’s permit. Then, on a regular basis (say, monthly), you must file sales tax reports with the DOR. This may be done on paper (Form ST-16 or ST-36) or online

Other States Registration

If you want to do business in states other than Kansas, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.