In order to obtain a business license with the City of Kansas City, you will need to meet the initial requirements and collect one or more of the following documents:
Once you have acquired the required documents for your business, you can apply for a business license and set up your taxes with the City of Kansas City.
Get a customized list of steps to start your business in KCMO.
How do you know if your idea is a good business opportunity? If people are willing to buy it. Before you bet the ranch on your idea, take the time to research who will buy your product or service and what competition you will face.
You'll need to choose a business structure before you register your business with the state.
The business structure you choose influences everything from day-to-day operations, to taxes, to how much of your personal assets are at risk. While you may change to a different business structure in the future, there may be restrictions based on your location. This could also result in tax consequences and unintended dissolution, among other complications.
These firms are owned by one person, usually the individual who has day-to-day responsibility for running the business. If you’re a Sole-Proprietor and you don’t want to operate under your legal name- you will need to register a Fictitious Name with the Missouri Secretary of State. Missouri law requires any person or business entity which transacts business in the state under a name other than their own "true name" to register that business name with the Secretary of State’s Office as a Fictitious Name Registration.
Many business owners choose to incorporate with the intention of limiting personal risk as the owner. In addition to filing the application with the Missouri Secretary of State’s Office, several minimum requirements must be met:
Business Structure | Ownership | Liability | Taxes |
---|---|---|---|
Sole proprietorship | One person | Unlimited personal liability | Personal tax only |
Partnerships | Two or more people | Unlimited personal liability unless structured as a limited partnership |
Self-employment tax (except for limited partners) Personal tax |
Limited liability company (LLC) | One or more people | Owners are not personally liable |
Self-employment tax Personal tax or corporate tax |
Corporation - C corp | One or more people | Owners are not personally liable | Corporate tax |
Corporation - S corp | Larry | Owners are not personally liable | Personal tax |
Corporation - B corp | One or more people | Owners are not personally liable | Corporate tax |
Corporation - Nonprofit | One or more people | Owners are not personally liable | Tax-exempt, but corporate profits can't be distributed |
Apply for a Federal Identification Number (aka FEIN, EIN, TIN, FID) if you aren’t planning to use your social security number. A federal tax ID or taxpayer ID is a number used to identify individuals, businesses, and other legal entities for tax purposes pursuant to the Internal Revenue Code (IRC) and specific tax laws that affect different types of legal entities.
The most common type of tax ID is a Social Security Number (SSN), followed by what’s called an Employer Identification Number or EIN. If you’re planning to start a business, the latter of these two types of federal tax IDs will be relevant to you and your business.
Required of all retail, food and businesses with employees in Missouri. A business must obtain a sales tax license by registering with the Department of Revenue if it’s making sales of tangible personal property and taxable services (such as telephone service and fees paid into places of amusement including but not limited to yoga and fitness centers).
Required for all new and existing businesses, weather home base or commercial location, and is a requirement prior to the issuance of a business license. If your Kansas City Missouri business address has changed, you will need to request a zoning clearance for the new location and update your business license. Zoning Clearance request are FREE.
A Zoning Clearance is the procedure used by the City to verify that a proposed land use or structure is allowed in the applicable zoning district, and that the project complies with the development standards of this Zoning Code that apply to the use, consistent with the General Plan.
Check the zoning of any building you plan before you lease or purchase to ensure it is properly zoned for your business.
Additional paperwork and/or requirements may be required depending on the type of business activity.
Required for all businesses operating in Kansas City, Missouri. All persons (sole proprietors, partnerships, and corporations) who conduct business in Kansas City, Mo., must obtain a business license for that activity. A license is valid for the calendar year in which it is issued. Business licenses expire on December 31 of each year.
Businesses operating in Kansas City, Mo., are subject to a number of tax obligations and other requirements at the city, county, state and federal levels. By knowing beforehand which tax obligations and other governmental requirements are necessary for your business to operate, you can plan in advance to assure that your business meets these obligations.
The KCMO Department of Revenue has developed Tax Guides for specific industries.
The Revenue Division administers several taxes and licenses, including:
Taxpayers should file returns in accordance with the schedule for each tax type.
When you hire employees, you are responsible for complying with city, county, state and federal requirements. You will also need to register with the Missouri Division of Employment Security or for unemployment tax purposes. For a deep dive on what to do if you are employing people, read the State of Missouri Employer’s Tax Guide.
If you are building an addition, constructing a new building, renovating or remodeling an existing building or tenant space, a building permit will be required for your project. In some cases, rezoning may be required depending on whether the use intended is allowed in the zoning district in which your project is located.
The City Planning and Development Department’s Development Services Division also issues permits for public improvements including sidewalks, driveways, storm and sanitary sewer construction and connections and site disturbance.
Get a customized list of steps to start your business in KCMO.