Starting a Non-Profit Organization in Kansas
Hildebrand Farms Dairy | Junction City, KS
File formation documents with the Secretary of State
One of the first steps to take to form a non-profit organization is to file formation documents with the Kansas Secretary of State. Non-profits may use Form AI to file articles of incorporation with the Secretary of State or may draft articles and file those with the Secretary of State. The filing fee for formation documents is $20.
If the organization plans to seek tax-exempt status with the IRS (see below) the articles must state the organization’s public purpose and include a statement that no distributions will go to the members or organizer of the organization. Submitting the Addendum to Form AI with the organization’s formation documents satisfies this requirement. Click here for Form AI.
Notes on filing Form AI
· Form AI is used by both for-profit and non-profit entities. Not all questions on Form AI will apply to a non-profit organization.
· A non-profit organization is required to list a resident agent. The resident agent is an individual or entity (including the non-profit organization itself) that is designated to accept service of process if the entity is summoned to court for any reason. The resident agent must be either an individual located in Kansas or a business entity registered with the Kansas Secretary of State.
Internal Revenue Service (IRS)
A non-profit organization may be eligible for tax-exempt status under the Internal Revenue Code. Organizations that seek tax exempt status must apply to the IRS. Information, including the various types of tax exempt entities recognized by the IRS and how to apply for tax exempt status, is at: www.irs.gov/charities-and-nonprofits/
Information is also available in IRS Publication 557 – Tax Exempt Status for Your Organization: https://www.irs.gov/charities-non-profits/publications-for-exempt-organizations.
Note: Non-profit entities are required to have bylaws and board members.
Obtain an Employer Identification Number (EIN or FEIN) from the IRS. An EIN is required for non-profit organizations even if the organization does not have employees. There are several ways to apply for an EIN, including online. More information and directions to obtain an EIN are available at: https://www.irs.gov/charities-non-profits/employer-identification-number.
Kansas Department of Revenue
A non-profit is not exempt from state taxes solely because the entity forms as a non-profit, or because the entity has received tax-exempt status from the IRS.
Non-profits that have employees and buy and sell goods or services are responsible for employee income tax withholding and sales/use taxes.
· Information about withholding is available in booklet KW-100.
· Sales tax information is available in publication KS-1510.
Non-profits may be required to file state income taxes. More information is available from the Kansas Department of Revenue at: https://ksrevenue.org/.
Non-profits may also be responsible for property taxes and other local taxes. Contact the city and county where the non-profit will operate.
Kansas Department of Labor
If the non-profit will hire employees, create an account with the Kansas Department of Labor.
For information regarding your responsibilities as an employer, including unemployment security and workers compensation, please download the Kansas Department of Labor’s Handbook for Employers.
A non-profit that meets the definition of a charitable organization in state law may be required to register with the Secretary of State prior to soliciting donations. A charitable organization is defined here.
In addition, fundraisers and solicitors working for the charitable organization may also be required to register. State law establishes registration requirements here.
State law exempts some charitable organizations from the registration requirement. A list of entities exempt from registration is available here.
Obtain Licenses and Permits
Depending on the activities of the non-profit, the organization or its employees may need to obtain federal, state and/or local licenses or permits. Click here to see the list of common businesses or occupations that require registration or licensing/permits with specific agencies/commissions. Organizations should also check with the city and county clerk to determine if any additional licenses or permits are required.