Kansas · LLC tax election
Kansas LLC: S corp or C corp?
Kansas puts a surtax on C corporation profit above $50,000, which changes the math fast.
See Kansas at a glanceShort answer
If you elect at all, S usually fits a Kansas LLC better. Kansas generally exempts S corporations from tax, so profit flows to your own return at 5.2% or 5.58% (2025 rates). A C corporation pays 3.5% plus a 3% surtax on income above $50,000, and dividends you take out are taxed again.
Last checked .Kansas at a glance
| Question | Kansas |
|---|---|
| S election recognized? | Yes, Kansas follows the federal election1 |
| Separate state form and deadline | No separate state form2 |
| Tax the S corp itself pays | None at the entity level3 |
| C corp rate and minimum | 3.5%, plus a 3% surtax on income over $50,0004 |
| Personal income tax | Yes, on wages and pass-through income5 |
What is different about Kansas?
The Kansas corporate rate is not one number. A C corporation pays a 3.5% normal tax on all Kansas taxable income, then a 3% surtax on every dollar over $50,000. Those are the 2025 figures from the Department of Revenue, the latest published. A company with a large profit pays 3.5% on all of it and the 3% surtax on every dollar above $50,000. Individuals pay 5.2% on the first $23,000 and 5.58% above that for single filers, so the S corporation owner faces a flatter rate. The surtax threshold is the number to watch when deciding.
Does Kansas recognize a federal S corp election?
Kansas lets an S corporation file Form K-120S as a pass-through rather than the corporate return, so the company's profit is taxed on shareholders' returns at 5.2% and 5.58% (2025). An S corporation can also elect an entity-level pass-through tax at 5.58%. We did not verify a separate Kansas S election form, so plan on following your federal election.
Does my LLC need a separate Kansas election or form?
Kansas has no separate S election form; a corporation that elects S status federally files the Kansas Small Business Corporation return, Form K-120S.2
What does Kansas tax an S corp or LLC at the entity level?
- Kansas S corporations are generally exempt from tax; each shareholder includes the S corporation's income or loss on their own return.3
Is a Kansas LLC taxed as a C corp ever better?
A Kansas C corporation pays 3.5% normal tax on Kansas taxable income plus a 3% surtax on the amount above $50,000, per the 2025 instructions. Only one $50,000 surtax exemption applies per corporate taxpayer. These are 2025 rates because no 2026 booklet was published when we checked. Dividends are taxed again on your return.
Run your Kansas numbers
The S election starts to pay in Kansas when profit climbs past the $50,000 surtax line, since the C corporation pays the 3% surtax on top of the 3.5% there and the personal rate tops out at 5.58%. Below that line the gap is thin and the extra S corporation filing can eat the benefit.
Result
How much would a Kansas LLC owner save as an S corp?
| Taxed as | At $80,000 profit | At $150,000 profit |
|---|---|---|
| Default LLC | $11,304self-employment tax $11,304 | $21,194self-employment tax $21,194 |
| S corp | $9,344payroll tax $7,344 + Kansas S corp tax $0 + $2,000 payroll and prep | $15,770payroll tax $13,770 + Kansas S corp tax $0 + $2,000 payroll and prep |
| C corp | $16,949payroll tax $7,344 + Kansas tax $1,120 + federal $6,485 + $2,000 payroll and prep | $30,266payroll tax $13,770 + Kansas tax $2,400 + federal $12,096 + $2,000 payroll and prep |
Assumes a 60% salary7 and a single filer. Income tax is left out. C corp dividends are taxed again. We could not confirm on an official Kansas source whether a default LLC pays an entity-level tax, so none is shown.
When is the Form 2553 deadline for a Kansas LLC, and what if I miss it?
Late relief: federal steps, deadline guide.
What to do next
How to start one, or have us form it from $123.75.
Registered agent $74.25/yr, annual report.
LLC vs S corp guide, election deadline, Form 2553 filed for $165.
More on Kansas: How to start a Kansas LLC · How to start a Kansas corporation · Kansas LLC cost · Kansas annual report · Annual report late fees by state
File the S-Corp Election for your Kansas LLC
We file Form 2553 for a flat $165.
Get the S-Corp ElectionCommon questions
What is the Kansas corporate income tax rate?
3.5% normal tax plus a 3% surtax on Kansas taxable income above $50,000, per the 2025 corporate instructions.
What form does a Kansas S corporation file?
Form K-120S, the Partnership or S Corporation Income Return. It is used by corporations that elect S status under federal law.
What is the Kansas pass-through entity tax?
An optional entity-level tax on the K-120S, shown at 5.58% in the 2025 form. It only applies if the S corporation elects it.
What are Kansas individual income tax rates?
For 2025, 5.2% on the first $23,000 of taxable income and 5.58% above it for single filers.
Sources 8 links, checked Nov 6, 2026
- Kansas lets a corporation that elects S status file Form K-120S instead of the corporate return. ksrevenue.gov, checked Nov 6, 2026
- Kansas has no separate S election form; a corporation that elects S status federally files the Kansas Small Business Corporation return, Form K-120S. ksrevenue.gov, checked Nov 6, 2026
- Kansas S corporations are generally exempt from tax; each shareholder includes the S corporation's income or loss on their own return. ksrevenue.gov, checked Nov 6, 2026
- A Kansas C corporation pays a 3.5% normal tax on Kansas taxable income plus a 3% surtax on the amount above $50,000 (2025 instructions; no 2026 booklet published). ksrevenue.gov, checked Nov 6, 2026
- Kansas taxes individuals at 5.2% and 5.58% for 2025. ksrevenue.gov, checked Nov 6, 2026
- IRS: Form 1120 instructions, C corp rate irs.gov, checked Nov 6, 2026
- IRS: S corp reasonable compensation irs.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 6, 2026.
This page explains the rules; it is not tax advice. Run your numbers with a CPA or enrolled agent before you elect.
Last verified Nov 6, 2026.