Do-it-yourself Kansas S Corporation Kit
Operating as an S corporation can save your business thousands of dollars each year. But the good news doesn't stop there.
While you might guess, given the large savings, that you need expert outside help, that's often not true. You often don't need to spend hundreds of dollars on a lawyer, CPA or online incorporation service to set up a Kansas S corporation for you. You can do the work yourself.
I'm going to briefly describe the steps you do to set up an S corporation in Kansas yourself, but after I provide that information, I'll also explain how you can purchase and download a "kit" that steps you through the process with example forms and sample governing documents.
Step 1: Form an Eligible Entity
You will use the eligible entity as the foundation for your S corporation. Limited liability companies and traditional corporations are the most common eligible entities, and are what I talk about here. To form an LLC, complete an Articles of Organization form. Submit the form and $165 for the filing fee to the Kansas Secretary of State office in Topeka. To form a regular corporation, complete an Articles of Incorporation form and send it, along with $90 for the filing fee, to the Secretary of State office as well.
Step 2: Get an Employer Identification Number
Once you establish your eligible entity, you need to apply for an Employer Identification Number, or EIN. Fill out an SS-4 form, available on the IRS website for download. The IRS will process your application and you should receive your EIN in a few weeks.
Step 3: Make the S Corp Election
After receiving your EIN, you can make the S corporation election. To clarify any confusion about what an S corporation actually is, you will make an election with the IRS to be treated using the laws in Subchapter S of the Tax Code. This is what "becoming an S corporation" actually means. To make the election, fill out a 2553 form and submit it to the Internal Revenue Service Center in Ogden, Utah. The IRS will check that you followed correct procedure, and that you are eligible to make the election before you receive S corporation status.
If you would like a set of more detailed instructions to guide you through the set-up process, my do-it-yourself S corporation kits can help you. I created two kit versions, one for businesses using an LLC as the eligible entity and one for businesses using corporations.
Kansas Kit Version 1: Limited Liability Company
Because an LLC is easier to manage and operate, small businesses often prefer to use an LLC as the base, or platform, for an S corporation. In fact, it's for this reason that I generally recommend using an LLC for your S corporation.
If you're interested in an LLC style S corporation, you may want to acquire the LLC version of my Kansas kit. This do-it-yourself downloadable kit includes a comprehensive analysis of the benefits and drawbacks of LLC formation in Kansas. The kit provides detailed instructions and completed examples of all the forms you will need to fill out. And for some extra business-startup help, I include two sample operating agreements. One set is for single member (also called single owner) LLCs and the other is for multiple member (or multiple owner) LLCs.Purchase and Download
Kansas Kit Version 2: Traditional Corporation
In the rare event that a traditional corporation makes more sense as the platform for an S corporation, I've created a corporation style S corporation kit, too. This kit explains how to balance the pros and cons of incorporating in Kansas. It also provides a set of clear, easy-to-follow instructions, and a set of sample corporate bylaws for you or your attorney to use when creating your own set of bylaws.Purchase and Download
Additional Information You May Find Useful
If you want additional information about how to maximize the tax savings related to running a business or investment venture, you may also be interested in one of our downloadable e-books (see descriptions below). Each book covers a category of tax planning topics that easily save a business owner significant amounts of income or self-employment taxes (potentially thousands of dollars a year) and is instantly downloadable.
Often the best tax saving tool private companies have? The Section 199A deduction which allows them to avoid taxes on the last 20 percent of their income.Read More
Using an S corporation for your business? To maximize savings, you need to minimize the salary paid to shareholders. But this decision is tricky.Read More
Nearly secret, the federal government's employee retention credits provide tremendous payroll tax savings for most small businesses... A new book from our firm explains.Info here