Kansas cut its LLC filing fee substantially in early 2026, and a couple of years before that it switched from an annual report to a biennial one. Between the two changes, it's become a noticeably cheaper state to form and maintain a business in than older guides suggest. Here's what it takes to start a business in Kansas in 2026.
1. Which business structure fits you?
Before you file anything, it helps to know what you're actually choosing between.
- Sole proprietorship. No filing required to start, and you and the business are legally the same entity. Simple, but you're personally liable for whatever the business owes.
- Partnership. Two or more people running a business together, with the same liability exposure as a sole proprietorship, just split across partners.
- LLC. The most common structure for small businesses in Kansas. It separates your personal assets from the business's debts and lawsuits.
- Corporation, either S-corp or C-corp. More paperwork and more formality, usually worth it once you're bringing on investors or multiple shareholders.
For a deeper comparison, see our guide on choosing a business structure.
LLCs and corporations register with the Kansas Secretary of State, Business Services Division, the agency that handles business filings statewide. Sole proprietorships and general partnerships don't register there.
2. Register your business
Forming an LLC
You form an LLC in Kansas by filing Articles of Organization with the Secretary of State. As of early 2026, the filing fee dropped to $85 online or $90 by mail, down from the older $160/$165 that a lot of guides still quote. Online filings are approved immediately.
Every LLC needs a resident agent, Kansas's term for a registered agent, with a physical in-state street address, available during business hours. You can act as your own agent, or hire a commercial service.
Kansas doesn't require an operating agreement by law, but it's still worth writing one, particularly for multi-member LLCs, to spell out how decisions and profits get split.
Sole proprietorships and DBAs
Sole proprietorships don't file Articles of Organization. Trade name registration requirements for sole proprietors vary depending on where in Kansas you're operating.
3. Get an EIN
An Employer Identification Number is free straight from the IRS and takes about 15 minutes online. You'll need one to open a business bank account, hire anyone, or file most business tax forms, even if you're a single-member LLC with no employees.
4. Check licenses and permits
Kansas doesn't issue a single general statewide business license either. What you need depends on your industry and city: professional licensing for regulated fields, local permits in some cities, and a Kansas sales tax permit from the Department of Revenue if you sell taxable goods or services, which is free to obtain. Our guides on professional licensing by industry and zoning laws for home businesses cover more of this.
5. Understand Kansas taxes
Kansas uses a two-bracket personal income tax: 5.2% on the first roughly $23,000 of taxable income for single filers ($46,000 married filing jointly), and 5.58% above that. Pass-through LLCs owe no separate entity-level tax at most sizes, though LLCs with taxable equity or capital over $1 million can owe a small remaining franchise-style tax. If you elect corporate treatment, the corporate income tax is 3.5%, plus a 3% surtax on income over $50,000.
Sales tax starts at a 6.5% state base, with local additions pushing combined rates as high as 11.5% in some areas. Groceries, notably, dropped to a 0% state rate as of 2025, though local sales tax on groceries may still apply.
6. Stay compliant
Kansas switched from an annual report to a biennial Information Report a couple of years ago. Whether you file in even or odd years depends on when your LLC was formed: LLCs formed in even years file in subsequent even years, and LLCs formed in odd years file in odd years. The report is due April 15, and the fee is around $50 online or $55 by mail. Miss the deadline by more than three months and the LLC forfeits its good standing.
Kansas business costs at a glance
| Item | Cost |
|---|---|
| Articles of Organization (LLC) | $85 online / $90 mail |
| Biennial Information Report (matching even/odd year cycle, due April 15) | ~$50 online / $55 mail |
| Resident agent service (optional) | $100 to $200/year |
| EIN | Free (IRS) |
| State income tax | 5.2% to 5.58% (two brackets) |
| State sales tax | 6.5% + local, up to ~11.5% |
Frequently asked questions
Did Kansas recently lower its LLC filing fee?
Yes, as of early 2026 it dropped to $85 online (or $90 by mail), down from the older $160/$165 that many guides still quote.
How often do Kansas LLCs file compliance reports?
Biennially, called the Information Report, with the even/odd year cycle matching the year your LLC was formed.
What's the personal income tax rate in Kansas?
A two-bracket system: 5.2% up to roughly $23,000 for single filers, 5.58% above that.
Did Kansas change its grocery sales tax?
Yes, groceries dropped to a 0% state rate as of 2025, though local sales tax on groceries may still apply.
When is Kansas's Biennial Information Report due?
April 15, for around $50 online or $55 by mail.
Fees and rates above come from the Kansas Secretary of State and Department of Revenue as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a Kansas-licensed attorney or CPA about your specific situation.