How to Start a Mortgage Brokerage in Kansas: OSBC and NMLS Licensing, Bonds and Fees

If you want to broker residential loans in Kansas, you need a Kansas mortgage broker license. The Office of the State Bank Commissioner (OSBC) licenses mortgage companies and registers loan originators under the Kansas Mortgage Business Act (K.S.A. 9-2201 et seq.), and the work runs through the Nationwide Multistate Licensing System (NMLS). Before any of that, the company has to exist as a legal entity, and the Kansas Secretary of State handles that step. This guide covers the order that works, the costs you should expect, and the renewal dates that catch new owners off guard.

Informational content only. This article is not legal, tax, or lending advice. Mortgage licensing involves federal rules as well as Kansas law, and every brokerage has its own ownership and financing structure. Talk with a Kansas attorney and a CPA before you file. Confirm every fee and deadline with the agency named before you spend money.

What You Need Before You Start

Gather these items before you open the NMLS application. A missing item usually stalls an application rather than sinking it, but a stall can cost weeks.

• A Kansas legal entity, either a limited liability company (Articles of Organization, Domestic (Kansas) Limited Liability Company, Form DL) or a corporation (Articles of Incorporation, Domestic (Kansas) Corporation, Form AI).
• A Kansas resident agent with a Kansas street address. Kansas calls this role the resident agent, and a PO box will not qualify.
• A surety bond of at least $100,000 payable to the Commissioner.
• Financial statements, including a balance sheet, showing that the company is solvent and has positive net worth.
• Background information on each owner and officer, and on each person who will take loan applications.
• A business address that you can use on the license and that fits local zoning rules.
• A payment method for the state and NMLS fees. Pull the current fee schedule from OSBC before you budget.

Step 1: Check and Reserve Your Company Name

An LLC name in Kansas must contain L.L.C., L.C., LLC, LC, LIMITED LIABILITY COMPANY or LIMITED COMPANY, in English or in another language written in Roman characters (K.S.A. 17-7920). Search the Secretary of State database at https://www.sos.ks.gov/eforms/BusinessEntity/Search.aspx before you commit. If a similar name is already registered, you may need a Consent to Use of Similar Business Name (Form CN) under K.S.A. 17-7918, filed with your formation document.

If you need time to finish your paperwork, you can reserve the name for 120 days for a $35 fee using the name reservation form. Keep the company name identical across the Secretary of State filing, the bond, the financial statements and the NMLS application. Mismatched names create extra correspondence.

Step 2: File Your Articles With the Secretary of State

Form your entity through the Secretary of State's Business Services online filing system (Customer Login). The filing fee is $85 for an LLC and $85 for a corporation. Online filings process within minutes, and the certified copy can be printed immediately. Paper filings are processed by mail from the Topeka office, which takes longer, so file online unless you have a reason not to.

Understand what this filing is and is not. It creates the company. It is not a mortgage license. Kansas issues no general statewide business license, so the OSBC license is the approval that lets you broker loans.

Step 3: Appoint a Kansas Resident Agent

The resident agent must be an individual, a business registered in Kansas, or the entity itself. The registered office must be a Kansas street address, including building number, street, city and ZIP code, where the resident agent can be regularly present. A PO box is not allowed. If the name or address changes later, update the resident agent or registered office right away. Many new owners forget this, and the mismatch can cause problems when they update NMLS or the bond.

Step 4: Register for Kansas Business Taxes

Register your business tax accounts with the Kansas Department of Revenue (KDOR) through its business page. Registration is free. How your company is taxed determines what you file:

• LLC taxed as a pass-through: Kansas has no LLC franchise tax. Members report Kansas income on individual returns at 5.2% on Kansas taxable income up to $23,000 for single filers or $46,000 for married filing jointly, and 5.58% above those thresholds.
• Corporation or LLC taxed as a corporation: The corporate normal tax is 3.5% plus a 3% surtax on Kansas taxable income over $50,000.

Whether you need any other tax registration depends on what you sell and how you bill. Confirm that with KDOR and your CPA. Kansas also has no state-level DBA filing. If you plan to operate under a trade name, you still need to check city and county requirements, and you can protect a name through the Secretary of State trademark or service mark registration.

Step 5: Apply Through NMLS and Pay the OSBC Fees

Kansas mortgage company and loan originator applications run through NMLS, the same system most state regulators use for mortgage licensing. Consumers can check a license at NMLS Consumer Access, which is also where a lender's public record appears once it is licensed. Your company application will ask for the entity filing, ownership details, your office location and the people who control the company.

Fees have two layers. The statute sets a nonrefundable application fee of not less than $50. The actual company, branch and loan originator fees are set by OSBC rule, so check the current fee schedule with OSBC and NMLS before you budget. Do not assume the statutory minimum is your total cost.

Step 6: Post a Surety Bond of at Least $100,000

Under K.S.A. 9-2211, you must post a surety bond of not less than $100,000 payable to the Commissioner. Buy the bond from a surety company, and make sure the bond names your exact legal entity. Premiums depend on your credit and financial profile, so ask for quotes early. Treat the bond as a continuing obligation: a lapse in coverage is a compliance problem that can affect your license, so set a reminder before each renewal date.

Step 7: Prove Solvency and Positive Net Worth

The OSBC expects the company to be solvent with positive net worth at all times. Prepare a balance sheet that reflects your actual position, and keep it current. Your net worth is not a one-time figure you show at filing. If your liabilities grow faster than your assets, you need to fix that before the next reporting cycle, not after an examiner notices. Talk with your CPA about how to show this clearly.

Step 8: Register Loan Originators and Complete Continuing Education

Every individual who takes applications or offers loans for the company must be registered as a loan originator with OSBC through NMLS. Loan originators must also meet continuing education requirements. The pre-licensing education, testing and continuing education hours are set by the rules that apply to NMLS and OSBC, so confirm the current hours and approved course providers with OSBC before you schedule anything.

Step 9: Check Whether a Different License Applies

A mortgage brokerage and a supervised lender are not the same license. The OSBC licenses supervised lenders and credit services organizations separately, with their own fee structures. If your model involves lending your own money or offering credit services, ask OSBC which license applies, and check those fees directly with OSBC before you file.

Step 10: Confirm Local Permits and Zoning

Kansas has no general statewide business license, and cities and counties add their own rules. Kansas has 105 counties and 624 cities, and every incorporated place is legally a city. Before you sign a lease or set up a home office, check the zoning and permit rules for your address with the city or county. A state license does not replace a local permit, and a local permit does not replace the OSBC license.

Key Figures at a Glance

Item	Amount or deadline	Where it applies
Articles of Organization or Incorporation	$85	Secretary of State
Name reservation	$35 for 120 days	Secretary of State
Information Report (biennial, LLC or corporation)	$90, due every two years by April 15	Secretary of State
Statutory minimum application fee	Not less than $50, nonrefundable	OSBC (K.S.A. 9-2201 et seq.)
Company, branch and loan originator fees	Set by OSBC rule; confirm current schedule	OSBC and NMLS
Surety bond	Not less than $100,000, payable to the Commissioner	OSBC (K.S.A. 9-2211)
License and registration expiration	December 31	OSBC
Renewal due	December 1	OSBC
Late renewal reinstatement window	Through the last day of February	OSBC
Kansas LLC franchise tax	None	Kansas Department of Revenue

Tips Before You Apply

• Start the bond quote early. It is one of the few items you cannot finish in an afternoon, and it ties to the entity name you file.
• Use one company name everywhere. The Secretary of State filing, the bond, your financials and NMLS should match exactly.
• Know your Kansas City. Kansas City, Kansas and Kansas City, Missouri are different cities in different states. Only Kansas City, Missouri has a city earnings tax, so an office in Kansas City, Kansas does not bring that tax with it. Confirm your address with the proper city.
• Calendar your renewals in October. Give yourself time to collect financials, confirm the bond and pay fees before the December 1 renewal date.

Common Mistakes to Avoid

1. Treating the Secretary of State filing as the license. The entity filing creates the company. The OSBC license authorizes the brokerage.
2. Listing a PO box as the registered office. Kansas requires a street address where the resident agent can be regularly present.
3. Filing a name without the required ending. An LLC name must include one of the approved designations.
4. Assuming a state DBA filing exists. Kansas does not register assumed or trade names at the state level.
5. Missing the Information Report. The biennial report is due every two years by April 15, in the years that match your formation year. Missing it creates an avoidable compliance record.
6. Budgeting only the $50 minimum. The actual OSBC and NMLS fees come from the current OSBC rule.
7. Letting the bond or net worth slip. Both are ongoing requirements, not one-time filing items.
8. Assuming a state approval covers city or county rules. Local zoning and permits are separate.

What Results to Expect

Many applicants find the Secretary of State filing is the quickest step, because online filings can process within minutes. The OSBC and NMLS review usually takes longer, and the time depends on how complete the application is and how quickly the bond and financial documents are accepted. This guide does not state a review period, so ask OSBC for current timing before you set a launch date.

A complete and accurate application can help you avoid avoidable delays and follow-up questions. It does not guarantee approval, and the OSBC makes the licensing decision based on its own review. Plan for the process to take the time it takes, and keep your lease, hiring and marketing commitments flexible until your license is issued.

Official Resources and Next Steps

• Kansas Secretary of State business services: https://sos.ks.gov/business/business.html
• Secretary of State online filing (Customer Login): https://www.sos.ks.gov/eforms/user_login.aspx?frm=BS
• Kansas Department of Revenue business registration: https://www.ksrevenue.gov/business.html
• Office of the State Bank Commissioner: https://osbc.ks.gov, where you should confirm the current fee schedule, forms and continuing education rules
• NMLS Consumer Access: https://www.nmlsconsumeraccess.org
• Kansas Small Business Development Center: https://www.kansassbdc.net/, for help with planning and business questions

Start with the entity filing and the name check this week, then request your bond quote and pull the OSBC fee schedule. Those three tasks set the pace for everything else. For the license structure, the bond terms and any supervised lending question, put the decision in front of a Kansas attorney before you commit.

This article is informational only and is not legal, tax, or lending advice. Fees, deadlines and rules change. Verify each figure with the agency named before you file, and consult a qualified Kansas attorney and CPA about your situation.