Kansas taxes personal income (Two brackets: 3.10% and 5.70%), and imposes no separate entity-level income tax on LLCs. A Wyoming holding company does not erase Kansas's own entity-level obligations on a Kansas subsidiary, but it can still add liability separation and keep the parent's ownership off Kansas's public LLC filings.
Kansas has no franchise tax (repealed in 2011) and no minimum LLC tax. Standard LLCs owe nothing at the entity level beyond the biennial report fee. It's important to be clear about Kansas's tax history here: from 2013 to 2017, Kansas's so-called 'LLC loophole' under Governor Brownback's HB 2117 fully exempted pass-through business income from state income tax. The Kansas Legislature overrode Brownback's veto and repealed that exemption in June 2017 after it created a multi-billion-dollar hole in the state budget. Pass-through income has been fully taxed at ordinary Kansas rates ever since — any claim that Kansas LLCs don't pay state income tax on business profit is describing a policy that has been dead for nearly a decade. Kansas recognizes the federal S-corp election with no separate entity-level tax.
The general federal tax treatment of holding companies (consolidated filings, dividends-received deductions, and the like) is set at the federal level and does not change state to state — what changes is the entity-level tax Kansas itself charges an LLC or corporation formed or registered there.
Kansas does not tax LLCs at the entity level and imposes no franchise tax. Profits earned inside operating subsidiaries pass up through the holding company and are reported on members' individual Kansas returns, where they are taxed at the state's two graduated rates of 3.1% and 5.7%. Because Kansas follows federal pass-through treatment, the holding company itself is not a separate taxpayer — there is no second layer of Kansas tax on distributions moving from a subsidiary to the parent to the members. The only recurring state charge tied to each entity is the $90 biennial Information Report.
Kansas imposes a corporate income tax of 4% on net income plus a 3% surtax on income above $50,000, for a top marginal rate of 7% (K.S.A. § 79-32,110). There is no separate franchise tax or net-worth tax on Kansas corporations. The only recurring Secretary of State filing is the $55 biennial report due April 15 every other year. C-Corps file Form K-120; the 2025 single-sales-factor apportionment change affects multistate corporations.
Kansas LLCs must file Biennial Report (Information Report) with Kansas Secretary of State, due 15th day of the 4th month after the tax year ends (April 15 for calendar-year filers), with a fee of $53 online.
Kansas moved from annual to biennial filing in January 2024. Entities formed in even years file in succeeding even years; odd-year formations file in odd years. Notably, the due date is tied to your tax year end, not your formation anniversary — a detail that trips up a lot of owners who assume it matches the LLC's formation date. If unfiled within 90 days of the due date, the Secretary of State may administratively dissolve the LLC.
A common structure pairs a Wyoming LLC as the parent with a Kansas entity handling operations, holding property, or running a Kansas-facing business.
The Kansas entity still owes whatever Kansas itself charges — no separate entity-level tax if it stays taxed as a pass-through LLC — regardless of where its parent is formed; pairing it with a Wyoming LLC does not change the Kansas subsidiary's own filing or tax obligations. What the Wyoming parent adds is liability separation, and the Wyoming company's own ownership stays out of Kansas's public LLC filings.
For more on the general structure, see the Wyoming holding company guide and how to set one up.
Tax agency reference: Kansas Department of Revenue (ksrevenue.gov).
Note: Tax rates, fees, and thresholds shown here reflect state tax research last verified July 2026; reconfirm current figures directly at ksrevenue.gov before relying on them for a specific filing.
Kansas's tax treatment of a holding structure comes down to its personal income tax (Two brackets: 3.10% and 5.70%) and the absence of a separate entity-level LLC tax. If you have questions about structuring a Wyoming-Kansas holding arrangement, reach out through our contact form.
If you have questions about structuring a Wyoming-Kansas holding arrangement, reach out through our contact form or call +1 (307) 683-0983 to speak with one of our experienced Business Success Advisors. Visit our homepage and blog for more.