What laws govern the formation of a company?

In Kansas, the laws governing the formation of a company are divided into two main categories: corporate law and limited liability company (LLC) law. Under corporate law, businesses are organized either as a C-corporation or an S-corporation. A C-corporation is a business structure that offers limited liability protection and allows multiple shareholders. An S-corporation is an entity that is structured like a C-corporation but is limited to 75 shareholders or fewer. Both types of corporations are required to file separate documents with the Kansas Secretary of State to become legally established. LLC laws are the main alternative to incorporating a business. An LLC combines the corporate advantage of limited liability protection with the flexibility and tax benefits of a partnership. To form an LLC, all the members of the LLC must file articles of organization with the Kansas Secretary of State. The articles of organization must include the desired name of the LLC, the address of the LLC, and the names and addresses of the LLC’s members. In addition to forming either a corporation or an LLC, businesses in Kansas must obtain the proper business licenses or permits required by the state and local governments. Depending on the type of business, certain federal laws and regulations may also apply.

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What laws govern the formation of a company?

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