How to start a business in Kansas in 14 steps (2025 guide)

Starting a business in Kansas is an exciting journey, whether you’re a lifelong Kansan or a transplant ready to begin your new venture. The Sunflower State offers plenty of opportunities to grow your company, so you’ll find the support and resources needed to turn your ideas into reality. This guide covers every essential step to get your Kansas business off to a strong start, from selecting the right industry to setting up your business bank account.

Why start a business in Kansas in 2025?

Kansas offers fertile ground for budding entrepreneurs, thanks to several factors. The state boasts a central location in the U.S., making it a prime distribution hub for reaching both coasts via a strong network of highways and railways. Geographically diverse, Kansas also features a variety of landscapes—from the rolling Flint Hills in the east to the vast Great Plains in the west. Wichita is a center for aviation and manufacturing, with Overland Park serving as a hub for finance and technology. The state’s pro-business climate has corporate income tax rates lower than the national average, along with a lower cost of living. 

Kansas is also making waves in 2025 with a strong focus on helping businesses expand through exports. Thanks to a recent $450,000 State Trade Expansion Program (STEP) grant from the U.S. Small Business Administration, Kansas businesses are better positioned than ever to enter and thrive in international markets. With a record-breaking $14.08 billion in exports in 2023, the state’s export sector is set to grow even further.

Here are the topics we’ll cover in this step-by-step guide: 

• 14 steps to starting a business in Kansas
• Step 1: Decide what type of industry is best for your business
• Step 2: Conduct industry research
• Step 3: Create a business plan
• Step 4: Choose your business entity: Types of business entities in Kansas
• Step 5: Secure funds: Kansas small business funding, loans, and grants
• Step 6: Choose your Kansas business name and Kansas DBA
• Step 7: Pick a business location in Kansas
• Step 8: Find a Kansas registered agent 
• Step 9: Get a Kansas EIN and file your tax and employer identification documents 
• Step 10: Register as a small business in Kansas
• Step 11: Register for your business license and permits in Kansas 
• Step 12: Secure insurance for your Kansas small business 
• Step 13: Prepare to pay taxes on your business in Kansas
• Step 14: Set up your business bank account
• Additional resources to get your business started
• Frequently asked questions 

14 steps to starting a business in Kansas

Launching a business is an adventure filled with opportunities to learn, grow, and make an impact on Kansas’s thriving economy. Below, we walk through the steps to get your business up and running in Kansas and provide small business resources and insights tailored to the Sunflower State.

Step 1: Decide what type of industry is best for your business 

Select an industry that aligns with your skills, interests, and local market demand. Kansas is known for strong industries like agriculture, manufacturing, health care, finance, and real estate. Identify the niche that best fits your strengths and fills a need in your area.

Don’t know where to start? Get inspired by exploring small business ideas.

Step 2: Conduct industry research

Research local trends and potential gaps in available services or products to narrow down your concept. Let’s say you’re looking to open an agribusiness in the Flint Hills. You’ll want to take a look at existing businesses to see where your concept fits, conduct a competitive analysis, determine what licensing and permitting you’ll need, and find where your target market exists.

Step 3: Create a business plan

Create a strong foundation for your Kansas business with a clear, detailed business plan.

Your business plan is your GPS for success, where you outline your business concept, target market, marketing strategies, financial projections, and funding needs. A well-crafted business plan also can help you secure funding and potentially attract investors. 

Include the following details in your business plan:

• Executive summary: Summarize your business’s mission, goals, and key highlights.
• Company description: Define your mission, background, and unique objectives.
• Market research and potential: Detail your target market, customer demographics, and industry trends.
• Competitive analysis: Identify competitors and outline your business's advantages.
• Products and services: Describe what you offer and the value it provides.
• Marketing and sales strategy: Include plans on how to reach and retain customers.
• Financial projections: Create income statements, cash flow forecasts, and financial goals.
• Management and leadership: Showcase the expertise of your team.
• Funding request: Outline funding needs and intended uses.
• Appendix: Include supporting documents, such as market research or legal information.

Put in the time to craft a detailed business plan that will provide clarity on your business objectives, attract potential investors, and guide your decision-making process. To get started, use a free business plan template and check out the Kansas Small Business Development Center, which offers free guidance and resources for building your business plan.

Step 4: Choose your business entity: Types of business entities in Kansas

Select a business entity structure that aligns with your goals and sets up your Kansas business for success. Your business entity impacts ownership, taxes, and liability, so choose one of these structures to support your venture’s growth. 

Sole proprietorship

A business owned and operated by one person, with no legal distinction between the owner and the business.  

General partnership

A business owned by two or more people who share profits, losses, and management responsibilities.

Corporation 

A legal entity separate from its owners, with shareholders who have limited liability for the company's debts and obligations.

Limited Liability Company (LLC)

A hybrid business structure combining the limited liability of a corporation with the tax flexibility of a partnership. Learn more about LLCs.

Step 5: Secure funds: Kansas small business funding, loans, and grants

Figure out how you’ll fund your Kansas business. Whether you’re starting a non-GMO seed business outside of Garden City, or your dream is to have a wedding planning venture in a trendy downtown Topeka location, your startup will require capital for essential expenses like permits, equipment, and marketing. Startup costs vary widely depending on your industry, location, and specific goals, but they can easily reach tens of thousands of dollars. Refer to the U.S. Small Business Administration (SBA), which offers resources to help you calculate your potential costs.

Explore these common funding options for Kansas entrepreneurs:

Be sure to also explore Kansas-specific funding options, including: 

Kansas Department of Commerce grants

The Kansas Department of Commerce supports economic growth across the state with a variety of grants, ranging from rural opportunity funding to community development grants. Keep an eye on their grant calendar for the latest opportunities, as funding amounts and deadlines can change each year.

NetWork Kansas

NetWork Kansas supports entrepreneurs and small businesses across the state by connecting them to essential resources like funding, expertise, and education.

Tax credits and incentives

Kansas offers a range of tax credits and business incentives to support business growth and encourage investment. Some of the key programs include the High Performance Incentive Program (HPIP), the research and development credit, and property tax abatements.

Step 6: Choose your Kansas business name and Kansas DBA

Select a Kansas business name that’s professional, memorable, and reflects the products or services you plan to offer. To check the availability of your desired business name, conduct a search on the Kansas Secretary of State’s website.  

Reserve your business name

Once you’ve picked a unique name, reserve it for 120 days by completing a form called the Temporary Reservation of Business Entity Name. The filing fee is $35 by mail and $30 online.

Filing a DBA (Doing Business As)

Also known as a trade name, assumed name, or fictitious name, a DBA—or "Doing Business As"—is when your business operates under a name that's not your legal business name. If, for example, you started a boutique in Topeka but wanted to sell candles on the side, a DBA would allow you to operate your candle company under a name more reflective of that particular offering. 

However, unlike most states, Kansas doesn’t have a statewide, formal DBA registration process. You may need to register on a county or local level, so if you plan to use an assumed name, contact your county or municipality to determine whether you need one. 

Entity name designators

When naming an LLC or a corporation, you’re required by the state to have an entity name designator. Simply put, part of the name has to identify your business structure. That means you’d include the “LLC” or “Limited Company” designation in your formal name reservation. Learn more about business registration requirements.

Step 7: Pick a business location in Kansas

Choose the ideal spot for your Kansas business. Every location will vary when it comes to local licenses and permits. In one place, you may have to pay police jurisdiction taxes. In another, you may have to obtain an agricultural permit for a rural area. Whatever the case, choose your location based on factors including local taxes, permitting, and customer accessibility. If you're looking to save on overhead, consider running your business from home. This option can reduce startup costs and offer more flexibility.

Here are a few considerations if you want to open a small business in one of the state’s larger cities.

Wichita 

The state’s largest city has strong manufacturing and aviation industries that provide opportunities for B2B businesses. Logistics, education, and health care are three other big industries that make up Wichita’s business environment. Commercial rent varies depending on location, but it’s generally lower than national averages. As a bigger city, there’s a wider customer base and a more diverse talent pool. 

Overland Park 

This affluent suburb of Kansas City is a great place to cater to those luxury clientele with more disposable income. Because of this, Overland Park has a higher cost of living and higher commercial rents than Kansas' other cities. While there’s more competition business-wise, it’s a strong location for professional services and tech. Check out the Overland Park Chamber of Commerce website for more information.

Kansas City 

Kansas City is a thriving hub for industries like health care, logistics, biosciences, and manufacturing. As a major transportation center, the city offers easy access to highways and rail lines, making it ideal for businesses that rely on shipping and distribution. Kansas City is also known for its diverse population and labor force, providing business owners with access to a broad customer base and a wide range of talent.

Step 8: Find a Kansas registered agent 

Every business registered in Kansas must have a registered agent, also called a “resident agent” in Kansas. This professional service or individual is your point of contact hired to accept legal documents and government notices on your behalf. Registered agents must have a physical address in Kansas and must be available during regular business hours. You can also appoint yourself as the registered agent for your Kansas small business. In fact, Kansas is one of the few states that allows your LLC to act as its own registered agent. Requirements for any registered agent include: 

• Must be over the age of 18
• Must have a physical, non-P.O. Box address in Kansas 
• Must be authorized to do business in Kansas if you’re hiring a professional service

Find an authorized Kansas registered agent by conducting a search on the Secretary of State’s website, ask other business owners who they’d recommend, or do an online search to find a service or qualified individual. 

Step 9: Get a Kansas EIN and file your tax and employer identification documents

An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify your business for tax purposes. Although Kansas doesn't require a state EIN, you'll need one to file payroll taxes and federal tax returns, open a business bank account, and apply for loans. You can apply for a free EIN through the IRS website.

Step 10: Register as a small business in Kansas

Register your small business through the Kansas Secretary of State website so you can operate as a legal entity. Here are the requirements for registering your partnerships, corporations, or trusts.

Step 11: Register for your business license and permits in Kansas

Depending on your industry and where you’re located, you may need business licenses and permits for your Kansas small business. If, for example, you’re opening an Abilene hair salon, you’ll need a professional license to operate. Planning to serve alcohol at your Dodge City eatery? You’ll need a liquor license. And if you’re selling tourist gifts in Kansas City, you’ll need a retailer’s sales tax permit to collect and remit the state’s 6.5% sales tax. 

Do you need a business license in Kansas?

Kansas doesn’t require a general business license statewide. You’ll most likely have to register with the Kansas Department of Revenue for business taxes, and you may also have to register with your county or city. Keep in mind that if you’re in a specific profession—whether a daycare worker, accountant, distiller, caterer, or other professional service—you will most likely need a business license to legally operate. Here’s a list of common business licenses required. 

If you’re starting a business and have questions about your industry and whether you have the right permits and licenses from the state and city, refer to the Kansas Business One Stop.

Step 12: Secure insurance for your Kansas small business

Safeguard your Kansas business with the right insurance coverage to stay protected against fire, theft, bodily injury, and other unexpected events. Even well-prepared businesses face risks, so connect with your insurance agent to choose the coverage that fits your needs. You should also regularly review your policy to ensure it continues to meet your business needs.

Types of small business insurance in Kansas 

Here are some common types of Kansas small business insurance:

Step 13: Prepare to pay taxes on your business in Kansas 

Anytime you start a business, you’ll want to take tax obligations into account. In addition to state-wide taxes, such as sales tax, you’ll need to consider the variations in local tax rates. Adding factors like employee withholdings can add more complexity to your finances come tax time. Make sure you have the right accounting software to help you navigate any challenges and more easily calculate deductions and withholdings. 

Here are the frequent types of Kansas business taxes: 

State income tax

The state has a graduated corporate income tax ranging from 3.5 to 6.5%. If you’re a pass-through entity, like an LLC, general partnership, or sole proprietorship, you’ll report your share of business income on your personal tax returns. Passed in December 2022, the Kansas SALT Parity Act allows certain partnerships and S corporations to opt to pay state income tax at the entity level rather than on the individual owners' returns. This helps business owners avoid the federal cap on deducting state and local taxes (SALT) from their income taxes.

Employer tax

If you have any employees, you must withhold a portion of their paycheck for federal and state income taxes, as well as Social Security and Medicare. QuickBooks Payroll can help you calculate withholdings. 

Sales taxes

Sales tax applies to the retail sales of any tangible property, certain services, and rentals within the state. The base rate for state sales tax is currently 6.5%, but many municipalities may also require you to collect local taxes on the sale of goods and services, so check with your local chamber. 

Tax credits and incentives for Kansas employers

There are a number of tax credits and incentives that Kansas offers for its business owners. You can find an inclusive list on the Kansas Department of Commerce website. These include an alternative fuel credit, machinery and equipment expense deductions, work opportunity credits, and daycare assistance credits. 

Federal taxes

In addition to state and local taxes, all businesses must pay applicable federal taxes, including:

• Federal income tax
• Self-employment tax (for sole proprietors and partners)
• Employment taxes (if you have employees), including the Federal Unemployment Tax Act (FUTA tax)
• Excise taxes (for certain industries)

To ensure you understand your federal tax obligations, check out these IRS resources: Publication 334, Tax Guide for Small Business and Publication 583, Taxpayers Starting a Business and Keeping Records.

Step 14: Set up your business bank account

Whether you’re a Kansas sole proprietorship or a small LLC, you’ll need to keep your personal and business finances separate. Follow these steps to open a business bank account. 

1. Gather necessary documentation, such as your federal EIN (if you have employees), business registration, and any professional licenses.
2. Look for an online or brick-and-mortar bank or a local credit union that offers business banking services in Kansas. Find checking and savings accounts that fulfill your business needs, whether it’s a certain minimum balance, low to no transaction fees, or electronic bill-pay services. 
3. Begin establishing credit by obtaining a business credit card and using it for related expenses. 
4. Gain a clear picture of your finances, vendor payments, and incoming invoices with accounting software.
5. Hire a professional accountant who can help you navigate taxes based on your business structure.

Additional resources to get your business started 

There are several state and federal resources that can support your business with guidance, training, potential funding and more. 

State resources

The Kansas Department of Commerce. This department offers a range of programs to help businesses grow, including incentives for startups, workforce development programs, and assistance with finding commercial real estate.

NetWork Kansas. This organization offers resources and programs to help entrepreneurs and small business owners across the state. NetWork Kansas provides access to funding, business consulting, and technical assistance, as well as a network of more than 500 partner organizations that can offer additional support.

Kansas Small Business Development Center (KSBDC). With multiple locations across the state, the KSBDC provides free consulting services, low-cost training, and access to resources to help businesses at every stage. 

The Kansas Chamber. This organization advocates for pro-business policies and offers networking opportunities, educational events, and leadership programs to help your business thrive.

Federal resources 

Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.

Grants.gov: This centralized platform simplifies the process of searching for and applying for federal grants across various sectors. It also provides grant writing tips and has a Grants Learning Center featuring the basics of grants, eligibility, and more. 

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR): SBIR and STTR programs provide research and development funding to innovative tech companies. 

SCORE: SCORE is a national nonprofit organization that partners with the U.S. Small Business Administration (SBA) to provide free mentoring and educational resources to entrepreneurs and small business owners. While not a direct federal agency, SCORE is an independent organization with a network of volunteer business mentors across the United States.   

U.S. Department of Agriculture (USDA): The USDA website lists grants, loans, and other programs and resources for farmers and other businesses serving rural America.

Frequently asked questions

How long does it take to start a small business in Kansas?

The time to launch a Kansas business depends on licensing and permitting needs, but it can range from a few weeks to a few months.

How much is an LLC in Kansas?

The Kansas LLC filing fee is typically around $165, with optional expedited processing for an extra fee.

Do I need a local business license if I only operate online in Kansas?

Kansas doesn’t have a statewide business license, but many cities and counties have their own requirements. Check with your city or county to see what’s needed for your online business.

Disclaimer: 

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