- Kansas
What Do Therapists Need to Know About Taxes in Kansas?
Kansas might seem tax-friendly at first glance, but between self-employment tax, state income tax, and licensing rules, it’s easy for therapists to fall behind. This guide helps you set up your business correctly, track what matters, and avoid costly mistakes — whether you’re just starting or growing fast.
Who this guide is for
This guide is for:
- Licensed Kansas therapists (LCPCs, LMSWs, LCMFTs, psychologists, etc.)
- Solo practice owners or group practice leaders
- Providers offering in-person, telehealth, or hybrid services
- Anyone who wants to reduce their tax burden and stay compliant
Step 1: Pick the right structure for your practice
Your business entity determines how you’re taxed and how much admin work you’ll need to handle.
Sole Proprietorship
- Automatically applies if you don’t form a separate entity
- All income is taxed on your personal return
- No liability protection
- Must register a DBA (fictitious name) if using a name other than your own
PLLC (Professional LLC)
- Kansas allows licensed professionals to form PLLCs
- Provides liability protection
- Default tax status: pass-through (same as sole prop)
- Can elect S Corp status when income grows
- Must register with the Kansas Secretary of State
S Corporation
- Helps reduce self-employment tax by splitting income
- Requires payroll, corporate filings, and bookkeeping
- Becomes worth it when net income exceeds ~$75K/year
- Still subject to Kansas income tax
Professional Corporation (PC)
- Allowed in Kansas
- More paperwork than PLLC
- May elect S Corp status
- Typically used for larger practices or partnerships
Step 2: Know your state tax obligations
State income tax
- Kansas uses graduated personal income tax rates
- For 2025, rates are:
- 3.1% on income up to $15,000
- 5.25% on income $15,001 to $30,000
- 5.7% on income above $30,000
- Applies to all pass-through business income
- File with Form K-40
Annual report
- Required for PLLCs and PCs
- $55 filing fee (online)
- Due by April 15 every year
Local licenses
- No statewide business license required
- Local zoning or licensing may apply based on your city or county
Step 3: Pay taxes throughout the year — not just in April
Estimated taxes
- Required if you’ll owe $1,000+ in Kansas or federal taxes
- Due quarterly: April 15, June 15, Sept 15, Jan 15
- Use Form K-40ES or pay via the Kansas WebTax portal
Self-employment tax
- 15.3% applies to sole props and default PLLCs
- Covers Social Security and Medicare
- Avoidable on part of income by electing S Corp
Filing requirements
- Sole prop: Schedule C + Kansas K-40
- PLLC: Annual report + personal income tax return
- S Corp: 1120-S + Kansas K-120S + payroll filings + annual report
Step 4: Track and claim your deductions
Good recordkeeping saves you money — plain and simple.
Deductible expenses for therapists
- Therapy platforms (EHR, billing, scheduling)
- Malpractice and liability insurance
- Rent or home office
- CEUs, licensing, supervision
- Marketing and directory listings
- Internet, phone, software
- Health insurance (if self-employed)
- Retirement contributions
Step 5: When it’s time to consider an S Corp
If you’re netting more than $75K a year, the S Corp route may cut your tax bill.
- Pay yourself a reasonable W-2 salary
- Take additional profits as distributions
- Reduces self-employment tax
- Still pay state income tax on full income
- Must run payroll and file separate returns
Step 6: Common mistakes therapists make
- Missing the April 15 annual report deadline
- Skipping estimated tax payments
- Forgetting to register a trade name (DBA)
- Not separating business and personal finances
- Waiting too long to elect S Corp
- Underreporting deductions like CEUs and home office
Step 7: Our recommendations by income level
Net Income Range Suggested Action
Under $50K Sole prop or PLLC; file estimated taxes; annual report on time
$50K–$100K Consider S Corp; hire a payroll provider; review finances quarterly
Over $100K Full S Corp setup; retirement planning; regular CPA check-ins
Disclaimer: This guide is for informational purposes only and does not constitute legal, tax, or financial advice. While we make every effort to keep the content accurate and up to date, state laws and regulations can change without notice. You should consult a licensed professional in your state before making any decisions based on this information. Leichter Accounting Services is not liable for any errors or omissions, or for any actions taken based on the contents of this guide.
Need help figuring this out?
We help Kansas therapists get their structure right, manage taxes proactively, and avoid late fees or overpayments.
Book a consult or email us at david@leichtercpa.com