How To Register Foreign Llc In Kansas

Do you ain a limited liability company (LLC) created in a state other than Kansas, but you want to aggrandize your business to the Sunflower Country? If so, yous'll need to qualify your foreign LLC in order to transact business concern in Kansas.

What is a foreign qualification and how do strange LLCs function within the state of Kansas? In this guide, nosotros'll answer these questions and more.

Guru Tip: If you lot'd rather hire an online service to handle this process for you, many of the best LLC services can handle it for yous.

What Is a Foreign Qualification?

A foreign qualification enables your express liability visitor to practise business in the state of Kansas. It doesn't matter which land you lot originally formed your business concern in ― or in other words, the state your domestic LLC is located in ― as the qualification process to annals a foreign LLC in Kansas is the same regardless of where your domestic LLC is based.

The defoliation surrounding foreign qualification usually centers on what information technology ways to "practice business" in a state outside of your primary state. This gets especially problematic considering some states don't strictly define what it ways to transact business organisation in that land. However, Kansas land law does not define exactly what qualifies equally "doing business in the land."

What Qualifies as 'Doing Business' in Kansas

There is no set up definition of doing business concern in Kansas, then each business is evaluated on a case-by-example basis. In full general (just with certain exceptions), you'll need to form a strange LLC in Kansas if your business concern pursues one or more of the following activities in this state:

Having a commercial dwelling in the land
Having ane or more individuals performing services in the state
Directing activities at Kansas customers for the purpose of selling them appurtenances or services
Deriving income from, or owing to, sources within this land

What Does NOT Qualify as 'Doing Business' in Kansas

Kansas Statute 17-7932 lists the following activities that do non qualify as "doing concern" in the state:

"Maintaining, defending or settling an action or proceeding;
Holding meetings or carrying on any other activity concerning its internal affairs;
Maintaining bank accounts;
Maintaining offices or agencies for the transfer, exchange or registration of the covered entity's own securities or maintaining trustees or depositories with respect to those securities;
Selling through contained contractors;
Soliciting or obtaining orders, whether by mail or through employees or agents or otherwise, if the orders require credence outside this land before they become contracts;
Selling, past contract consummated outside the state of Kansas, and agreeing, by the contract, to deliver into the land of Kansas machinery, plants or equipment, the structure, erection or installation of which within the country requires the supervision of technical engineers or skilled employees performing services not more often than not available, and as part of the contract of sale agreeing to replenish such services, and such services merely, to the vendee at the time of construction, erection or installation;
Creating, as borrower or lender, or acquiring indebtedness with or without a mortgage or other security interest in holding;
Securing or collecting debts or foreclosing mortgages or other security interests in belongings securing the debts, and holding, protecting and maintaining property so acquired;
Conducting an isolated transaction that is completed inside 30 days and is non 1 in the form of similar transactions of like nature; and
Transacting concern in interstate commerce.
- A person shall not be deemed to be doing business in the state of Kansas solely by reason of beingness a fellow member, stockholder, limited partner or governor of a domestic covered entity or a foreign covered entity.
- This section does not apply in determining whether a foreign covered entity is subject to service of process, taxation or regulation under whatever other law of this country."

How to Get Strange Qualification in Kansas

If you desire to foreign qualify your LLC in Kansas, yous'll need to file an Application for Registration of Foreign Covered Entity with the Secretary of State. This application will allow you to obtain a Document of Authority to conduct concern in Kansas. The form will require the following information:

Blazon of business organisation
Company name
State of formation
Appointment of germination
Certificate of Good Standing (must be obtained from the government in your state of germination)
The appointment that business was starting time transacted in Kansas
Name and address of your Kansas registered agent
Nature of your business
Signature

Filing Fee: $115 (Corporation), $165 (LLC/Limited Partnership), or $250 (Serial LLC), with checks fabricated payable to the "Secretary of Land."

What Is the Penalty for Not Getting Strange Qualification in Kansas?

In that location are three major penalties for failing to authorize a foreign LLC in Kansas. Starting time, you cannot bring a lawsuit against a third party in Kansas. 2nd, the state attorney general tin bring a case to prevent you from doing whatever further business organisation in the state. And third, y'all volition exist liable for whatsoever fees and penalties for the full period of time that your business concern operated in the country without a Certificate of Say-so.

Should I Hire a Business Service Provider to File My Kansas Foreign Qualification?

If y'all don't desire to handle your foreign qualification on your own, yous have options. Some entrepreneurs choose to hire a lawyer to fix and file their Certificate of Potency, which tin be a good option if you're concerned most getting the chore done right. However, attorney'south fees can be quite expensive.

The other option is to hire a business service provider like Incfile or ZenBusiness to register your foreign LLC with the state of Kansas.

These companies tin typically get your foreign qualification done for a fraction of the price of an attorney. This is our preferred route if you lot don't desire to go with the DIY option.

Conclusion

The process for getting a foreign qualification in the state of Kansas isn't particularly complicated compared to some other states. It just involves a two-page form and a processing fee. All the same, you will need to contact the proper authorities in your state of formation to obtain a Certificate of Good Continuing.

Kansas's rules and regulations regarding which LLCs demand to strange authorize are considerably looser than many states. Notwithstanding, this is not a process that can be overlooked, because the penalties for not qualifying a foreign LLC in Kansas tin can be severe ― specially if your business is forbidden from operating in Kansas.

Nosotros hope this article managed to reply your questions about obtaining a Kansas foreign qualification, and we wish you a prosperous business future!