LLC vs S-Corp in Kansas

Kansas has a state personal income tax and a state corporate income tax, which affects the LLC vs S-corp math. The Kansas Secretary of State handles entity formation under Kansas Statutes Chapter 17, Article 76 (Kansas Revised Limited Liability Company Act). The IRS handles tax classification via Form 8832 and Form 2553. A federal S corp election is recognized for Kansas income-tax purposes. Kansas LLC basics. - Articles of Organization filed with the Kansas Secretary of State under Kansas Statutes 17-7673. - Filing fee: $85 online or $90 by mail (effective 2026). Source: Kansas Secretary of State — Register a Business (https://sos.ks.gov/businesses/register-a-business.html). - Annual Report. Kansas LLCs must file an Annual Report with the Secretary of State on a schedule set by statute. Confirm current fee and deadline with the Secretary of State. - Single-member LLCs default to disregarded entity for federal and Kansas tax. Multi-member LLCs default to partnership tax. Either can elect S corp treatment with Form 2553. Kansas S corp basics. - A federal S corp election is recognized by Kansas. The S corp files Kansas Form K-120S, and shareholders report their share of income on their Kansas individual returns. - Kansas personal income tax is tiered (individual rates of approximately 3.1%, 5.25%, and 5.7% across brackets under current schedules; confirm current brackets with the Kansas Department of Revenue). - Kansas corporate income tax applies to C corporations at 4.0% of the first $50,000 of Kansas taxable income and 7.0% above that (confirm current schedule with the Kansas Department of Revenue). S corp income generally passes through to shareholders rather than paying the corporate tax. - Payroll. An S corp must pay its owner-employee a reasonable W-2 salary. Kansas has unemployment insurance through the Department of Labor and withholding through the Department of Revenue. Why a Kansas trades shop might still elect S corp. The primary reason is federal self-employment tax savings. A disregarded-entity LLC owner pays self-employment tax on the full net profit. An S corp owner-employee pays payroll tax on wages only; the distribution portion avoids self-employment tax. Kansas's state-side impact is modest, so the election is mostly a federal decision. Rule of thumb. Start as a Kansas LLC. When annual profit after a reasonable owner wage is high enough that payroll-tax savings clear the payroll, retirement-plan, and accounting costs, elect S corp. A CPA with Kansas construction clients can run the breakeven for your numbers and confirm the current state rates and Annual Report fee.