How to Start a Kansas LLC: Step-by-Step Guide

Need help financing your launch?

Kansas government offers many resources designed to help small business owners fund their operations. You’ll want to explore as many of these funding opportunities as apply to your business model, because getting enough funding to launch a successful business is no easy undertaking. In addition to funding the launch itself, you’ll need to have enough funds in reserve to last until your business is self-sustaining.

Once your business starts generating profits, you may need to start paying off your debts immediately. Be sure to factor these difficult realities into your planning as you prepare to fund the start-up period of your new Kansas LLC.

When researching your options, look for opportunities available to all small business owners, as well as those only available to certain owners and business models. For example, you can find funding options specifically tailored to your new business by searching for “rural small business start-up funding” or “grants for black-owned bookstores.” Be creative when evaluating:

  • Crowdfunding
  • Traditional bank loans
  • Federal Small Business Loans
  • Investment programs
  • Microcredit
  • Subsidies
  • Matched loans
  • Rural Opportunity Zone Funding

expect the unexpected

Your business will encounter difficult times at one time or another. It is important to be prepared to successfully weather these stormy periods. By anticipating challenges and seeking the guidance and protections available to you, you will better position your business to thrive in the future.

Insurance

Chances are that one of the main reasons you decided to structure your business as a Kansas LLC is that, unlike sole proprietorships and most partnerships, LLCs provide members with liability protection. In the event that your business finances take a dive, your LLC is sued, or your business is fined, your personal assets cannot be seized to pay your business debts under the LLC business structure.

Be aware that the LLC legal formation structure only protects your personal assets. It won’t protect your business finances from a severe blow if your business goes through a rough patch. If your facility is flooded or hit by a tornado, a vengeful former employee sues your business, or your inventory is set on fire by an arsonist, only insurance can protect your bottom line.

There are different types of professional insurance available, so speak with a small business insurance provider before committing to a specific type of coverage.

Legal Concerns

Small business owners face all kinds of liability risks that cannot be covered by insurance. A competitor could claim that you infringed their intellectual property rights or a supplier could sue you for breach of contract. The need to protect your business from the risk of lawsuits, compliance violations and other liability issues is one of the two main reasons why it is important to develop a working relationship with a small business attorney. businesses. The other is that your business may need to hold an individual or competitor responsible for infringing your business rights.

Proactively contacting an attorney will help mitigate liability risks, protect your company’s legal interests, and prevent the government from accusing you of wrongdoing. Too often, business owners only consult a lawyer when they are in trouble. Working with a Kansas LLC attorney early on can stop potential causes of concern in their tracks.

Accounting needs

How will you keep track of your business finances? You can potentially use reputable accounting software, as long as you’re willing to invest the time to meticulously track each transaction. You will also need to discuss tax strategy and financial planning with your lawyer, as accounting software cannot provide this type of personalized advice.

Alternatively, you can work with a small business accountant. Accounting services can be tailored to the unique needs of your business. You can also discuss financial goal setting with an accountant and receive detailed feedback. If you’re going to be running a complex business, investing in switching from accounting software to an accounting service can benefit your business in a myriad of potentially profitable ways.

Start hiring workers

If you are not starting a single-member Kansas LLC, you will likely need to hire skilled employees to help you run your business. You will need to complete the following steps before any promising candidate can start working:

Unlike many other states, Kansas does not not offer a state service workers compensation program. Private employers are generally required to obtain private workers’ compensation coverage unless they are eligible to operate as self-insured entities. You may want to speak with your small business attorney about this requirement and any other employment-related mandates you will be required to follow in the future.

Implement a winning marketing strategy

You’ve worked hard to register your business, protect your business interests and fund your start-up period. Now is the time to attract customers so you can start earning their loyalty and making a profit. You may have developed a marketing strategy as part of your larger business plan. You will need to flesh out these ideas and start implementing them once your business is legally allowed to start operations.

Kansas has a rich history and a unique culture. Learn all you can about market demographics and what interests people in your local community. This information can help inspire ways in which you can target potential customers and connect with them in the most organic and effective way.

Remember to dedicate time and resources to cultivating a strong online presence when engaging in marketing efforts:

  • Register a memorable domain name
  • Create a professional looking website
  • Open company-related profiles and develop a presence on major social media sites

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