Business Formation Information and Flat Fee Amounts

By | business formation, corporate law, entity selection, startup lawyer | No Comments

Starting your own business?  Let the Kane Law Office help!

In addition to coming up with an idea for a new business, preparing a business plan, obtaining financing, and dealing with variety of other issues, a new business owner must also decide how the business should be legally formed and structured. Forming a business entity, if done properly, can provide: personal asset protection, additional credibility, name protection of your corporate name, and a variety of tax advantages.

Because the Kane Law Office has helped numerous start-up companies with the business entity selection and formation process, and we are able to offer our services on a flat-fee basis. This pamphlet describes the basic entity types, some of the issues that must be considered when selecting an entity type, and an overview of the filing process and our fees.

Types of Business Entities

The most common types of business entities are a sole-proprietorship (“DBA”), a limited liability company (“LLC”), a traditional C Corporation, a Subchapter S Corporation (“S-Corp”), a nonprofit corporation, a professional corporation, and various types of partnerships such as a general partnership, a limited liability partnership (“LLP”), and a limited partnership (“LP”).

Each of these corporate structures has various advantages and disadvantages that must be considered, and the choice of entity should be tailored to each owner’s needs and wishes.

The owner of business entity must consider various legal implications of their choice of entity, such as: the legal protection provided for the company’s name, limitations on the duration of business, limitations on the number of owners or the citizenship of owners, the ability of the entity to issue shares and raise capital, and the transferability of ownership. There are also a multitude of complex tax issues that need to be considered, including profit and loss allocation, the tax year that may be utilized, whether the owner must pay self-employment and payroll taxes, deductibility of charitable contributions, salaries paid to family members, accounting methods, fringe benefits, capital losses, and the allowable use of retirement plans.

The Kansas Secretary of State[1] and Missouri Secretary of State[2] each provide a great reference regarding the basic advantages and disadvantages of the various entity types.

Our Services

Because we understand that new companies are extremely sensitive about the amount of fees, expenses, and costs that they incur as they start up and continue to run their own business, we offer our business selection and formation services on a flat fee basis to ensure against the potential “sticker shock” of a huge legal bill.

In an attempt to minimize entity formation costs, many businesses use cheap or standardized legal documents or online services such as LegalZoom. While this may very work out fine for many businesses, one must be cognizant of the potential risks and future problems and expense that using this cookie-cutter form/ “do it yourself” method may create. While these forms and sites can initially save some money on legal fees, the danger with this approach is that if the entity chosen isn’t appropriate for the current and future operations and ownership structure of the business, if certain business or owner disputes arise that are not contemplated in these cookie-cutter agreements, or if the documents and formalities are not properly handled, the formation process could be ineffective or require cleanup later on at a much greater cost than any perceived savings achieved.

With our flat fee services, you get the best of both worlds: you get expert and personalized advice and assistance to walk you through the entire process of forming your Kansas or Missouri Corporation, LLC, or partnership at a reasonable, affordable, transparent, and predictable cost.

 

Business Formation Flat Fee Amounts 
DescriptionServices IncludedFlat Fee AmountTypical Additional Costs/Filing Fees
Creation of a Limited Liability Company (“LLC”), Limited Liability Partnership (“LLP), or other types of partnerships
  • Initial consultation (30 minutes)
  • Obtaining EIN Number
  • Corporate name/records check
  • Filing with Secretary of State
  • Articles of Organization
  • Simple Operating Agreement/Partnership Agreement
  • Documents providing overview of corporate governance issues
  • Department of Revenue registration
$500$165 (Kansas)$50-105 (Missouri)
Creation of a Corporation (Inc.) or a Subchapter S Corporation (“S-Corp”)
  • Initial consultation (30 minutes)
  • Corporate name/records check
  • Obtaining EIN Number
  • Filing with Secretary of State
  • Corporate Bylaws
  • Articles of Incorporation
  • S-Corporation election with IRS
  • Organizational minutes/meeting
  • Department of Revenue registration
$750$90 -115 (Kansas)$58+ (Missouri)
Conversion from S-Corporation to LLC
  • Initial consultation (30 minutes)
  • Secretary of state filing
  • Notice filing with IRS
$250$75 (Kansas)
Corporate/LLC Annual Reports
  • Initial consultation (30 minutes)
  • Secretary of state filing
$200$55 (Kansas)$45-55 (Missouri)
Corporate Dissolution
  • Initial consultation (30 minutes)
  • Secretary of state filing
$200$35 (Kansas)$25-35 (Missouri)
Foreign Corporation Registration
  • Initial consultation (30 minutes)
  • Secretary of state filing
$200$115.00 (Kansas)$155.00 (Missouri)
Trademark or Servicemark application
  • Initial consultation (30 minutes)
  • Secretary of State filing
$200$40.00 (Kansas)
Add-on Services
  • More complex Operating Agreement or Corporate Governance Documents
  • Business Entity Type Advice
  • S-Corporation Election
$250$200$100

Please note that the above flat fee amounts do not include additional work, such as significant revisions to the formation documents, or additional agreements such as shareholder agreements, employment agreements, complex buy-sell agreements, complex ownership agreements, or other contracts. Any additional work beyond initially creating the corporation, partnership, or LLC will be billed at our standard hourly rates of $250 per hour. If additional work will be needed, we will provide clients with a budget in advance.

Please contact the Kane Law Office at (816) 229-2708 or email us at Brandon@bkanelaw.com to discuss your business formation needs.

 

[1] https://www.accesskansas.org/kbc/busTypes.html

[2] http://www.sos.mo.gov/business/corporations/startBusiness.asp