Set Up Your Business

What is a business legal structure?

Businesses in the United States are legal entities defined by city, state, and federal laws. The legal structure of a business can vary. Some businesses are structured as corporations, some as limited liability companies, some as sole proprietorships, and so on.

In order to start your business, you’ll need to work with a lawyer and/or attorney to decide on an appropriate legal structure and prepare the necessary documentation.

Why is it important to choose the correct legal structure for my business?

There are many legal and financial issues to consider when choosing a legal structure for your business. The right legal structure can help limit your liability and protect your personal assets from bankruptcy. Your legal structure can also influence the way your business is taxed and the way it carries out day-to-day operations.

How do I decide which legal structure is right for my business?

There are many factors to consider when determining an appropriate legal structure for your business, and it’s best to consult with a business counselor, attorney, or accountant before making a decision.

The Small Business Administration is a great resource for learning more about possible legal structures for your business.

What is the Kansas Secretary of State Registration? 

Kansas Secretary of State Registration is when businesses and groups sign up to be officially recognized in Kansas. The Kansas Secretary of State's office takes care of this process. By registering, these businesses follow state rules, can work in Kansas, and pay any necessary taxes and fees.

How do I register my business?

1. Before registering your new venture, you must verify that your business name is available with the Kansas Secretary of State Business Services. You can also use the Business Services site to obtain a certificate of good standing.
2. To register your business with the Kansas Secretary of State, you must file your business formation documents with the Business Services Division.
3. The specific documents you need to file depend on the type of business you want to form. For example, if you're forming a limited liability company (LLC), you must file Articles of Organization. If you're creating a corporation, you must file Articles of Incorporation.
4. You can file your documents online or by mail. To file online, create an account at the Kansas Business Center website. From there, you can submit your formation documents and pay the filing fee with a credit card or electronic check.
5. To file by mail, download the appropriate form from the Business Services Division website and complete it according to the instructions. You must include a check or money order for the filing fee and mail the documents to the Business Services Division.
6. Once your documents are filed and your fee is paid, the Business Services Division will review your filing and let you know if you need additional information or corrections. If everything is in order, they will approve your filing, and your business will be registered with the Kansas Secretary of State.

What is an Employer Identification Number?

An Employer Identification Number, or EIN, is like a Social Security Number, but for your business. You might also see an EIN referred to as a Federal Tax Identification Number, FTIN or TIN. It helps both you and those you do business with identify your business as a unique entity.

Why does my business need an EIN?

US businesses require an EIN for a variety of reasons. An EIN helps the Internal Revenue Service, or IRS, identify your business quickly and easily. If you want to do business with the City or any other governmental agency, you will need an EIN to complete various forms and applications.

How do I obtain an EIN?

EINs are easy to obtain and entirely free. They are issued by the IRS. The application to obtain an EIN can be completed online. Simply visit the IRS Website - Employer ID Numbers and click “Apply for an EIN Online."

You can also apply for an EIN via fax, mail or phone, but the process will generally take a little longer. The directions for each of these methods can be found on this page.

Be sure to download, save, and print the EIN letter (include sample photo) right away. If you lose or misplace this document, you will have to contact the IRS to re-issue the letter by mail.

How long does it take to obtain an EIN?

The online application to obtain an EIN takes a matter of minutes. After you have completed the application successfully, an EIN will be issued to you right away. However, please note that the online EIN service is only available on weekdays between 6 AM and 9 PM Central Time.

Applying for an EIN via fax takes about a week, while applying by mail takes between four to five weeks.

What are my obligations as an employer?

• If your business has employees, you must meet several requirements in order to remain compliant with federal, state and local rules. You must submit an Occupation Tax application (see step 6a) and you are required to report new hires or rehires pursuant to K.S.A. 75-5743 by providing the following information:
  • The Social Security number, name, address and hire date of the new hire
  • The employer’s Federal ID number (nine digits) with the employer’s corporate name and address
• Non-agricultural businesses with estimated payrolls over $20,000 are required to provide workers compensation benefits to their employees. Private employers pay all benefits owed to their injured workers, either directly from the employer’s own resources or indirectly through another party. While most covered employers obtain insurance from private carriers or group pools, provisions in the law establish criteria for certain employers to become self-insured.

Why do these requirements exist?

Employer requirements help protect workers, allow the state to enforce child support orders, and help track employee earnings for taxation purposes.

How can I make sure I am meeting these employer requirements?

Requirements can vary based on the classification of your business, it is important to determine your classification before fulfilling requirements. Making sure you are registered as a Local, Minority or Woman-Owned Business Enterprise is an important step to determine what requirements you need to meet.

There are various ways to report new hire information. Some employers mail or fax a W-4 with items 1, 2, 8 and 10 completed. Some alternative reports designed by the employer are acceptable. The UG and the Kansas Department of Labor recommends electronic reporting of this information through KansasEmployer.gov. 

Workers compensation insurance can be obtained through various private insurance providers.

For more questions on reporting new hires and other information, please visit the Kansas Department of Labor (Employer Services) website.