There are many business entities in Kansas. However, not all of them will be able to sustain their existence. Whether it is because the company has already served its purpose or it has not been successful in achieving it, the best way to deal with the situation is to close the business properly.
What Is Kansas Dissolution?
If a company has registered its activities in Kansas, it has to go through the process of dissolution to formally cease its business operations. It involves various tasks that will help the business owners to end the company’s existence officially and deal with its responsibilities.
Why Does A Company Dissolve?
Why do companies need to dissolve? – Kansas requires business entities that operate within the state to file formal paperwork when they start. Likewise, your company will also have to go through a process so that the state will know that the business ceases all its activities and has no more obligations to file reports and pay taxes.
Who makes the decision to dissolve? – The first thing an LLC has to do is to conduct a meeting with all its members. During this meeting, the members will have to vote on the decision to dissolve. Meanwhile, a corporation has to have an approved resolution from the board of directors. The resolution will be subject to shareholders’ vote.
How long does it take to dissolve a business? – The whole process may take weeks to complete. It will depend on how long the company takes to accomplish all tasks. As for the processing of the documents, the Secretary of State normally takes 2-3 business days.
What Happens If Your Company Does Not Formally Dissolve?
Failure to dissolve your business means it will still be state-registered and has to file reports. If your company does not file its annual report, it will have to pay for the penalty the state has set. Then, the Secretary of State will send your company a notice stating that its authority to do business in the state will be forfeited unless you file the report and pay the fee by the deadline that they give you. The state will not process dissolution documents until the company submits the proper report and fees. Additionally, the company will also have to reinstate first before dissolution.
Steps To Dissolve Your Business
To dissolve a business in Kansas, your company will have to go through the process that the state has set.
1. File Articles of Dissolution with the state – If you choose to file online, you only have to go to the website of the Secretary of State and click on the Business Filing Center. There, you can file the cancellation or dissolution of your business. You will need basic information about the company, such as its name and the ID number it got from the Secretary of State. Companies that choose this will have to pay by credit card or checking account.
LLCs that choose to file by mail, fax, or in person will need to fill out the Limited Liability Company Certificate of Cancellation. Meanwhile, corporations can choose from three forms – Certificate of Dissolution Prior To Commencing Business, For-Profit Corporation Dissolution by Stockholders’ Meeting, and For-Profit Corporation Dissolution by Written Consent. Use the form that suits your company’s circumstances. You can download the form through the Secretary of State website.
2. Remove all liabilities and obligations – Your company has to proceed with the winding up tasks. These include the prosecution and defense against lawsuits, settling of business, disposal of properties, removing liabilities or creating provisions to pay for them, and distribution of all remaining assets.
3. Give notice to any claimants – Inform all known claimants about the company’s dissolution. Give them information as to where and until when they can submit their claims. You may also choose to publish in a newspaper to inform other unknown claimants. Furthermore, this publication may serve as evidence in case someone raises some concerns.
4. Tax clearance – Kansas does not require business entities to obtain tax clearance. However, it will not process the dissolution documents if your company has any delinquent reports. You have to submit the necessary annual reports and pay for the corresponding fees or penalties before the Secretary of State starts processing your dissolution.
5. Close all bank accounts, credit lines, permits, and licenses – After settling all liabilities, close all business bank accounts. Leaving these open makes you vulnerable to liabilities and obligations that may lead to legal issues. Additionally, you also have to cancel all business permits and licenses to avoid fiscal obligations.
How DoMyLLC can assist with streamlining the process
The multi-step process may cause confusion. Thus, it will be best to seek the guidance of a professional. Our team of experts offers live support. Additionally, we also provide personalized solutions. Contact us now for the smooth processing of your company’s dissolution in Kansas.
Kansas Dissolution FAQs
The online filing fee is $30, while paper filing costs $35.
Do You Need The Department Of Revenue Clearance Before The Secretary Of State Will Accept Your Dissolution?
No, it is not a requirement in Kansas.
Normal processing takes 2-3 business days. But if you choose to file online, you can expect immediate processing.
The name of your company will immediately be available for other business entities after the dissolution.
Kansas Business Resources
Kansas Office of Secretary of State
Kansas Secretary of State
Memorial Hall, First Floor 120 S. W. 10th Ave.
Topeka, KS 66612-1594