LLC Biennial Report and Tax Filing Requirements in Kansas

Besides the day-to-day operations related to running your limited liability company (LLC), you'll need to keep up with your state's reporting and tax filing requirements. If you have a Kansas LLC, you must submit a biennial report to the state and pay applicable business and employer taxes.

Here, we take a look at the most common ongoing reporting and state tax filing requirements for LLCs in Kansas. (If you'd like information about other states' LLC requirements, you can review our article on LLC tax and filing requirements.)

Kansas LLC Biennial Information Report

The State of Kansas requires you to file a biennial report for your LLC with the Kansas Secretary of State (SOS). You can file your report either online or by mailing in a completed paper copy to the SOS. (Before 2024, businesses were required to file a report every year.)

If you formed your LLC in an even-numbered year (for example, 2020), then your report will be due every even-numbered year starting in 2024. Likewise, if you formed your LLC in an odd-numbered year (for example, 2023), then your report will be due every odd-numbered year (for instance, 2025, 2027, and so on).

The biennial report is due on the 15th day of the fourth month after your tax closing month. For example, if your tax year is the same as the calendar year, the annual report is due by April 15. You can file the report as early as January 1.

As of 2024, the fee to file your Kansas LLC annual report is $100 for online filings and $110 for paper filings.

State Business Taxes in Kansas

For income tax purposes, most LLCs are considered "pass-through tax entities." By default, multi-member LLCs are taxed as partnerships and single-member LLCs are taxed as disregarded entities. As a pass-through entity, an LLC passes on the responsibility for paying income taxes to its members. In other words, the LLC doesn't pay taxes on its income, only its members do.

As an LLC member, you'll report and pay your share of the LLC's income on your personal tax return. You'll file your individual and business tax returns with the Kansas Department of Revenue (KDOR). You can register your business with the KDOR to file returns and pay taxes for you and your LLC through the KDOR Customer Service Center.

Electing corporate tax status. While LLCs are typically taxed as partnerships by default, you can choose to have your LLC taxed as a corporation for federal tax purposes. You make this corporate tax election by filing IRS Form 2553 with the IRS. If you elect to have your LLC taxed as a corporation a the federal level, your LLC will also be taxed as a corporation in Kansas and you'll need to pay the state's corporate income tax. As of 2024, the Kansas corporate income tax is a flat 4% for the first $50,000 of a business's net income with a 3% surtax for any net income of more than $50,000. If you have business income inside and outside of Kansas, then you'll need to use either Kansas's three-factor or two-factor formula to determine your LLC's tax obligation. Kansas's Department of Commerce has a breakdown of the corporate income tax on its website.

Electing entity-level taxation. Under Kansas's SALT Parity Act, Kansas partnerships and S corporations (including LLCs taxed as either) can elect to be taxed at the entity level. If your LLC makes this election, then its owners can apply for a refundable tax credit on their individual returns. The owner's credit would be equal to their direct share of the tax paid by the LLC. You can make this election on your LLC's partnership tax return (Form K-120S) for every year you wish to participate. See the KDOR's Salt Parity Act FAQ publication for more on this election.

Kansas Employer Taxes

If your LLC has or plans to have employees, you must pay employer taxes to the federal and state governments. If you haven't done so already, make sure you get an employer identification number (EIN) from the IRS so you can report and pay these taxes as an employer.

Withholding employee wages. As a Kansas employer, you must withhold and pay employee income taxes to the KDOR. Register your business for withholding tax through the KDOR Customer Service Center. You must file withholding returns either annually, quarterly, monthly, semimonthly, or quad-monthly. Your filing frequency depends on the annual amount your LLC withholds. You must also file an annual withholding tax return (Form KW-3) to reconcile your LLC's withholdings for the year. You can file and pay withholding tax using the KDOR Customer Service Center. For more information, visit the withholding section of the KDOR website. The KDOR also provides a Kansas Withholding Tax Guide for employers on its website.

Unemployment insurance (UI) tax. In addition to withholding taxes, your LLC will probably need to pay state UI taxes to the Kansas Department of Labor (KDOL). Your business can register for a UI tax account on the KDOL website. Every quarter, you must file a Quarterly Wage Report and Unemployment Tax Return (Form K-CNS 100). You can submit these reports and make payments through the KDOL website.

Kansas Sales and Use Tax

If your LLC will sell taxable goods or services to customers in Kansas, you must collect and pay sales tax to the KDOR. Register your LLC for a sales tax account through the KDOR Customer Service Center. (You can register your business for multiple tax types through one application process.) Once your LLC is registered, you'll receive a sales tax certificate from the KDOR.

Depending on your annual tax liability, your LLC must file sales tax returns either monthly, quarterly, or annually. You can file your returns and make payments through the KDOR Customer Service Center.

For more, visit the sales (retailers) section of the KDOR website.

LLC Registration in Other States

Sometimes, owners will form a business in one state but do business in another state. For example, you might organize your LLC in Kansas but have business activities in Missouri. In this case, you might need to register your LLC as an out-of-state (foreign) business in Missouri or any other state where you have business activities.

Each state has rules and requirements for when an out-of-state business must register. But usually, you'll need to qualify as a foreign business if your LLC:

• has a physical presence in the state (such as an office, warehouse, or store)
• hires employees in the state, or
• solicits business in the state (such as by telephone, print ads, mail, or the internet).

Check each relevant state's laws around qualifying as a foreign business. If you need more guidance on when to register, see our state guide to qualifying to do business outside your state.

More Information About Kansas LLCs

You can find many free resources for small business owners through Kansas's state website. The Kansas Business One Stop website has guidance on starting and managing your business. You can find information on:

• registering a business
• determining business tax requirements
• hiring employees, and
• obtaining licenses and permits.

The website also includes a link to business starter kits that are customized to different industries. If you still have questions or have particularly complicated business considerations, talk to a Kansas business attorney. If you're looking for more general guidance about running your LLC, take a look at the articles in the LLC section of our website.