Kansas LLC Taxes

The low cost of living and housing in Kansas — as well as its temperate climate — make the state a popular place to start a business. But, like all states, Kansas has its own business taxes and regulations that can make the process of starting a new venture feel overwhelming.

Regardless of the size of your business, if you operate a limited liability company (LLC) in Kansas, you’ll need to stay up to date on your finances and pay federal, state, and local taxes. Our guide will help you understand the taxes you must pay for your Kansas LLC.

Recommended: Schedule a free consultation with an accountant to stay on top of your taxes.

Kansas LLC Taxes Owed

LLCs benefit from pass-through taxation, which means the business’s profits pass through to its members’ individual tax returns. As a result, your LLC itself doesn’t pay taxes to the federal government or the state of Kansas. Instead, LLC owners must pay taxes on their portion of the income generated by the LLC. 

If you operate an LLC in Kansas, you can expect to pay the following taxes:

Federal Taxes

Regardless of where your business is located, if you have an LLC within the United States, you will have to pay federal income taxes and federal self-employment taxes. These taxes are reported on your Form 1040.

Federal Self-Employment Taxes

It doesn’t matter if your LLC is a single-member LLC or a multi-member LLC; all LLC members must pay self-employment taxes on their share of the LLC’s profits. The self-employment tax rate is 15.3%. 

Federal Income Taxes

Your federal income taxes will depend on your tax bracket, and the cutoffs for individual tax brackets, as well as the percent owed, will change each year.

Kansas State Taxes

Every state has its own laws that dictate how it taxes individuals and businesses. While not every one may apply to your LLC, here are the most important taxes your business likely will need to pay.

Kansas Income Taxes

Kansas has a state income tax of 5.7%, which puts it near the middle of the pack when compared to other states. For comparison, some states impose rates of 8% and above.

Kansas Sales and Use Tax

In Kansas, the state sales tax rate is 6.5%. You may, however, end up paying more in sales tax based on your location. Certain counties and cities in Kansas impose their own sales taxes in addition to the state rate. These local sales taxes average 2.2%, which makes the average combined state and local sales tax rate in Kansas 8.7%.

Register for a Sales Tax License in Kansas

If your business sells taxable goods or services, you must register for a sales tax license with the Kansas Department of Revenue. For more information, visit the Kansas Department of Revenue website.

Additional State Taxes

The Kansas Department of Revenue oversees the collection of various state-specific taxes that businesses may have to pay, depending on their location, industry, and number of employees. Some examples of these additional taxes include:

  • Clean Drinking Water Fee
  • Drug Tax Stamps
  • Dry Cleaning Environmental Surcharge/Solvent Fee
  • Liquor Drink Tax
  • Tire Excise Tax

To determine which additional taxes will apply to your LLC, review the list of business tax types on the Kansas Department of Revenue website.

Kansas Local Taxes

The local laws and ordinances in Wichita may differ greatly from those in Topeka. Regardless of where you live in Kansas, check with your local jurisdiction to ensure your business obtains the proper local permits and follows any local regulations that may impact its operations.

Kansas LLC Compliance

You must obey Kansas state and local laws in order to maintain your business in good standing. While LLCs technically don’t file taxes with the state, Kansas businesses must still file an annual report each year.

Kansas LLC Annual Report

Every year, Kansas LLCs must file an annual report with the Kansas Secretary of State. You can do this online or by mail. The online filing fee is $50, while filing by mail costs $55. Failure to file this report can lead to the forced shutdown of your business.

Your annual report is due on the 15th day of the fourth month following your business’s tax closing month. Most businesses have their tax closing month in December, so the majority of Kansas LLCs need to file their annual report by April 15. Failure to submit this report within 90 days of the due date will result in the state becoming involved, likely to dissolve your business.

For more information, check out our Kansas LLC Annual Report guide.

LLC taxes are complex. While our guide can provide you with important information, we recommend you schedule a free consultation with an accountant to ensure you handle your business taxes correctly.