Thu 21 Jan 2016 | By:

Kansas Business Taxes: What You Need to Know

Small Business Taxes

Kansas business taxes come in many forms and types. As with any business operating within the state, you are explicitly required to comply with every Kansas business tax that your business is qualified for when you’re incorporating a business in Kansas.

Know that business taxes depend on the type, structure, and nature of your business. Also, taxes are implemented at the federal, state, and even local government levels so make sure to keep tabs on each requirement. This means that there is a corresponding penalty and fine should you fail to accomplish the requirements.

When you’re ready to comply with business tax requirements, use this guide as a starting point. This will help you determine the common taxes you need to complete, along with valuable links to accomplish them.

Also, a few small business tools are provided in this guide to help you monitor tax obligations and comply with each and every requisite. At the end of the day, strict compliance of Kansas business taxes will ensure that you are legally compliant and free from any legal complications.


1) Kansas Business Income Tax

A Corporate Income Tax is imposed in Kansas. However, this is only applicable to Corporations. Unless your business is one, you do not have to comply with this state tax. Nonetheless, if the income of your business, no matter its structure, goes through you personally, it will be subjected to a personal income tax. A flat rate of 4% is imposed for Corporate Income Tax with a 3% surtax additional for taxable income that’s more than $50,000.


2) Kansas Federal Tax Forms and Publications

As mentioned earlier, sheer magnitude of requirements for Kansas business taxes is one that can cause headache. For all official tax forms as well as publications, always refer to the list at the Kansas Department of Revenue to ensure that you are using the official forms. Changes and updates on federal and state taxes are also announced on the said department.


3) Unemployment Insurance Tax

Unemployment Insurance Tax should be paid by businesses to the state. If your business qualifies for the criteria of the Unemployment Insurance Tax, you are obligated to comply with this requirement. For details about this requirement, visit the Kansas Department of Labor.


4) Kansas Sales and Use Tax

Both sales tax and use tax are imposed within the state of Kansas. Furthermore, local sales tax can also be imposed at the discretion of the city or county’ governing body. For an in-depth discussion Kansas sales and use tax, use this guide.


Powerful Tools to Help Make your Kansas Business Tax Life Easier

Startup Tools and ResourcesBeing a savvy entrepreneur can go a long way in effectively managing and growing your business. And being practical when it comes to managing your Kansas business tax obligations is not an option, but a must.

With the magnitude of requirements that need to be accomplished, tools such as small business accounting software are a must-have. If you’re all about making your business tax life significantly more convenient and stress free, you should use these resources now.

Small Business Accounting Software

Small business accounting software like FreshBooksQuickBooks, and Xero are some beneficial resources to help get your tax life in order. Each of these application tools is equipped with a plethora of features and modules that automate what used to be manual tasks in accounting, bookkeeping, expense tracking and generating financial reports.

Each also has its own strong suits and points that may be used for your specific business type. Although you have to pay for the tool initially after the free trial period, it becomes very cost effective in the long run. This is because you not only save on startup costs, but you also maximize time and effort.

Check out the reviews on the links above, and get started on a free trial to get a feel of how powerful each tool is.

This article on Kansas business taxes is simply for informational purposes only. It should not be in any way taken as a legal document/advice. A lawyer’s expert advice is still the best source of information on Kansas business taxes or specifics on starting a new business in Kansas, so make sure to talk to one.  

About Ryan James

Half hardworking hermit, half avid adventurer, Ryan founded Startup Savant to simplify entrepreneurship and pay it forward by donating a portion of all revenue to support children's education via