Business Law in Kansas

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Every state has unique laws that control the starting and maintaining of any business. Business law in Kansas governs a number of different organization styles for businesses, all with varying degrees of complexity and regulation. For those interested in starting a business in Kansas, it's vital to understand which type of business organization is optimal for the type of business they want to run.

Details on Corporations

The most advanced type of business is the corporation. A corporation is composed of three different types of people: shareholders, directors and officers. The shareholders are people who own a stake in the company from purchasing stock. These shareholders are responsible for electing a board of directors, who in turn elect the corporation's officers, who are responsible for running the business.

A corporation is a separate, unique entity that is not directly linked to the people who created it. Thus it is the corporation itself, rather than the shareholders, that is held liable for a corporation's debts or any litigation directed at it. To form a corporation under business law in Kansas, a $90 fee is assessed and a document called the Articles of Incorporation must be filed with the secretary of state.

Details on General Partnerships

For business owners looking for a less complicated option, business law in Kansas provides for some other options. For businesses owned by multiple people, forming a general partnership is an option. All partners in a general partnership share equal liability for the business, and have an equal say in how the company should be run. Partnerships aren't their own entity, so all taxes and profits are factored into the owners' individual tax reports. Filing a partnership with the Secretary of State's office costs $35, though it is not necessary to file at all. Certain types of partnerships exist that can limit the liability of certain partners, if they so choose.

Details on Sole Proprietorships

If a business has just one owner, they may form a sole proprietorship. This uncomplicated option is free to register, and the owner has complete control over the business. However, business law in Kansas holds the owner completely liable for any debts the business incurs. Like in a partnership, income and expenses are considered a part of the owner's own finances, and must be filed as such. This option has the smallest amount of government interference and regulation, making it much easier to run for the average person.

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You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

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