Kansas LLC Operating Agreement Template [PDF]

The Kansas limited liability company (LLC) operating agreement is a legal document that provides rules that regulate the relationship between the members of an LLC.

The LLC operating agreement, or business operating agreement, includes provisions about the contribution of each member to the LLC as well as their percentage of ownership over the LLC and their percentage of the LLC’s profit.

Besides that, the document also determines the rights and duties of each member of the company and how the company will be operated in general.

Is an Operating Agreement Required in Kansas?

No, an operating agreement is not a required document when establishing an LLC in Kansas.

Although the Kansas state law doesn’t require it, many parties establishing an LLC still choose to create an operating agreement since it provides them with a framework for organizing their company and its operations.

4 Main Types of Operating Agreements

Before drafting the operating agreement, parties need to choose the type of document that suits their needs best:

Types of Operating Agreements

Single-member LLC operating agreement: This type of agreement is used for LLCs with only one member. It includes only the provisions about operating the company without regulating the relationships between the members.
Multi-member LLC operating agreement: Used for companies with two or more members. It provides company operation rules and defines the rights and duties of each member within the company.
Member-managed LLC operating agreement: Here, the members choose to personally manage the company. Therefore, the operating agreement outlines the managerial rights and responsibilities of each member of the company.
Manager-managed LLC operating agreement: Outlines the rights and duties of a professional manager in situations where the members don’t want to personally manage the LLC.

Laws and Legal Requirements for LLC Operating Agreements in Kansas

Chapter 17, Article 76 of the Kansas statutes, also called the Limited Liability Company Act, regulates the status of a limited liability company in Kansas.

Moreover, the Limited Liability Company Act regulates the status of an operating agreement in Kansas:

Laws and Legal Requirements

§ 17-7672: Regulates interpretation and enforcement of the operating agreement.
§ 17-7687: Regulates amendments to the operating agreement.
§ 17-7691: Regulates remedies for breaches by members.
§ 17-7696: Regulates remedies for breaches by managers.
§ 17-76,134: Regulates construction and application of the operating agreement.

How to Form a Limited Liability Company (LLC) in Kansas

To form a limited liability company in Kansas, you should follow the steps below:

How to Form a LLC in Kansas

#1. Choose a Business Name For Your LLC

The first step in this process is to choose a business name for your LLC. This must be a name distinguishable from other business names used by other companies registered in Kansas.

Otherwise, your business registration application might be denied. The best way to make sure your business name is distinguishable is to conduct a business entity search.

#2. Choose the Type of LLC

Here, you can choose between two types of LLCs, depending on the place of company establishment:

Domestic LLCs: You can use this type of LLC if you plan to establish a company in Kansas.
Foreign LLCs: You can use this type of LLC if you have established a company outside Kansas. It covers situations where you want to expand your business to Kansas and register a company there.

#3. Nominate an Agent

After determining the business name and the type of company you want to establish, you should name the registered agent for your LLC. This is the person who will receive official notices and documents on behalf of the LLC.

You can name yourself as a registered agent or appoint a third natural or legal person. However, the agent must have a registered address in Kansas or be authorized to conduct business in Kansas.

#4. File the Registration Documents

For domestic LLCs, you must submit the Articles of Organization. You can do it online or submit Form DL5109.

For foreign LLCs, you must submit the Application for Registration of Foreign Covered Entity. This action can also be completed online or by filling out the form.

#5. Pay the Required Fee

The filing fee for registering the LLC in Kansas is $165. If you are submitting an online application, the fee is $160.

#6. Create your LLC Operating Agreement

Even though this document is not mandatory by state law, it is always recommended to draft the operating agreement since it provides security for all the members within the company.

#7. Apply For an Employer Identification Number (EIN)

This number enables you to open a bank account and complete transactions. You can obtain it online or by filling out the SS-4 form.