Kansas lesson 5 of 6
Kansas LLC taxes, licenses and permits
Kansas has no LLC franchise tax. Members of a pass-through LLC pay Kansas's graduated individual income tax on their share of profit, a change from the exemption Kansas briefly offered before 2017.
How members are taxed
A Kansas LLC taxed as a partnership or sole proprietorship for federal purposes passes income through to its members, who report their share on Kansas's individual income tax return under the state's graduated bracket structure. Kansas had exempted pass-through business income from state tax for several years, but the legislature repealed that exemption in 2017, and pass-through income has been fully taxable at the member's individual rate since then. Confirm the current year's brackets on the Department of Revenue's site before filing.
An LLC that elects C corporation tax treatment instead owes Kansas's corporate income tax, which applies at a normal rate plus a surtax on income above a statutory threshold.
Sales tax, withholding and licensing
If you sell taxable goods, register with the Department of Revenue for a retailers' sales tax registration before you start selling. If you have employees, register for withholding tax at the same time.
Kansas has no general statewide business license. Licensing requirements depend on your industry and, in some cases, your city or county.
Key takeaways
- Kansas repealed its pass-through income tax exemption in 2017; LLC members now pay the graduated individual rate on their share of profit.
- There is no LLC franchise tax; a C-Corp election instead pays Kansas's corporate income tax.
- There is no statewide business license, so check city, county and industry-specific requirements.
Frequently asked questions
Does Kansas have a franchise tax on LLCs?
No. Kansas does not levy a franchise tax on LLCs. Only an LLC that elects C corporation tax treatment pays the state's corporate income tax.
Does Kansas tax LLC pass-through income?
Yes. Kansas repealed its pass-through income tax exemption in 2017, so members of a pass-through LLC now pay Kansas's graduated individual income tax on their share of profit.
Official sources
Or let us file your Kansas LLC for you
Everything above is yours to use for free. If you would rather hand it over, we prepare and file the Articles of Organization, act as your registered agent, and track your ongoing deadlines.
Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team