Learn the steps to create a General Partnership in Kansas or get started with us below.
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Business partners in a Kansas general partnership typically have equal shares in the profits and losses from their business. This is only one reason for forming a general partnership in Kansas. You’ll want to confirm that the other aspects of this business model fit your needs before choosing it, but there are other great reasons a general partnership might be right for you.
In this article, we’ll go over the basics of how to form a general partnership in Kansas. We’ll also discuss the pros and cons of the Kansas general partnership structure.
A Kansas general partnership can be a fast, flexible business structure for many types of businesses. However, forming a general partnership in Kansas isn’t a one-size-fits-all solution. We’ve put together some pros and cons of forming a partnership in Kansas. While this list can’t directly answer the question of what business structure is right for you and your partner, it may help you weigh the factors in deciding if you should run your business as a Kansas general partnership.
A general partnership can be a great business option because:
A general partnership can be a great structure for short-term business ventures, like building a single housing development or making a few acquisitions. However, general partnerships don’t have the legal durability of entities like LLCs or corporations. If you want to create an intergenerational business and pass your partnership interest down to your kids, a general partnership may not be for you.
Kansas general partnerships are often designed to dissolve when one partner leaves the business or passes away. In other words, if your goal is to eventually transfer your interest to someone else, there may be better business entity options to help you achieve that goal.
Some of the pitfalls of running a Kansas general partnership include:
A trusted lawyer or accountant can give you additional insight on whether forming a partnership in Kansas is right for your specific goals.
Selecting a name is one of the most important parts of creating your business. It identifies you to others and allows you to market your Kansas general partnership. Most partnerships use a combination of the partners’ names in their company names. Be sure to check Kansas’s most up-to-date naming rules to ensure that you’re in compliance with any business naming specifics.
You normally don’t need to complete any Kansas general partnership registration with the Secretary of State. However, you may need to reserve or register your business’s fictitious, trade, or “doing business as” (DBA) name with the county or city where your partnership operates. Typically this only applies if your partnership name consists of something other than your name or your partner’s name.
Kansas is unique in that most other states require DBA names to be reserved and on file with the Secretary of State, but in Kansas they aren’t. Be sure to check with your county clerk or registrar to see if there are any requirements in your area for DBA names for your Kansas general partnership.
Drafting your own Kansas general partnership agreement allows you to set the rules for your business entity. A partnership agreement is a document that governs how your business is run. The types of rules your Kansas general partnership agreement might cover include:
A partnership agreement is a very important document for your Kansas general partnership. In the absence of such an agreement, your business would have to rely on the Kansas General Partnership Act for resolving disputes. However, relying exclusively on state codes and rules may not be a good fit for your business as they were not written with your particular goals in mind. Therefore, creating a comprehensive governing document for your Kansas general partnership can help protect you and your partner from heartache down the road.
In Kansas, you might have to obtain certain licenses, permits, and clearances before you can legally run your business. The number and nature of licenses needed depend upon the nature of the services your Kansas general partnership provides, and to a certain extent, upon the location of your business.
Working with our partners at Avalara, we can help by compiling a Business License Report. This report quickly identifies all your licensing and permitting needs at the local, state, and federal levels of government.
An Employer Identification Number (EIN) is like a social security number for your business. You can obtain this from the Internal Revenue Service (IRS) so your Kansas general partnership can properly pay its federal taxes. We can help get that task off your plate and communicate with the IRS for you with our Employer ID Number Service.
You may also need to register for a state tax ID. This is a number issued by the Kansas Department of Revenue, and it’s sometimes simply called a “business tax ID” number. You can register for a Kansas business tax ID number by contacting the Kansas Department of Revenue. Be sure to confirm with your accountant or other tax professional whether obtaining a Kansas business tax ID number is required for your enterprise.
After you’ve formed your business, received permits and licenses, and set up your tax ID numbers, setting up a business bank account is your next logical step. There are many business banking options, so be sure to check online banks and credit unions. You may also want to look into different types of business insurance, as well as potential office spaces.
Typically, a Kansas general partnership is easy to form. However, the small steps of legal compliance along the way can pose a big challenge, especially for first-time business owners. Our suite of business development and maintenance services, including our Worry-Free Compliance Service, can help you throughout the entire life cycle of your business.
Once you’re ready to form a new business, whether it’s a partnership or a different type of entity, we can help with our Kansas LLC and Illinois Corporate Formation Services. Our fast, easy formation services take the paperwork burden off your plate so you can get to the more interesting parts of making your company a success.
Disclaimer: The content on this page is for information purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
You don’t have to register a general partnership with the Kansas Secretary of State to start one. However, you’ll still register for a federal EIN, a state tax ID, and appropriate business permits so you can legally operate your business.
General partnerships don’t have to pay income taxes at the entity level and enjoy pass-through taxation.
In general, a partner has a right to run the business and owns an interest in the company. An owner owns an interest in the business but doesn’t necessarily have the right to run it.
You can form a general partnership by simply going into a for-profit business with one or more individuals.
In general, each partner is jointly and severally liable for any company debts.
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