How Much Does a Business License Cost in Kansas?

You have worked hard to start a business in Kansas that you call your own, and now it is time to get licensed.  A business license in the state of Kansas is not difficult to get, but there are a few fees you should be aware of to guarantee success.

Knowing the cost of a Kansas business license is one thing that will help you reach your goal of having a successful business. Knowing the business license requirements and fees in Kansas are part of that.

If you’re still comparing what fees might look like in general, reviewing the average business license cost nationwide can give you helpful context before exploring Kansas-specific requirements.

There is no single fee for a business license in Kansas. It depends greatly on local government and the specific type of business you want to open. Each city or county in Kansas sets its own fees. The best way to get a specific cost for a business license in Kansas is to:

1. Identify what kind of business you want and decide the location for that business in Kansas.
2. Contact the local government entities, whether city, county, or both. You can do that by calling city hall and the county clerk’s office.
3. Ask about the fees required to open a new business and any necessary permits you might need.

Kansas does not offer a general business license at the state level, so there are no state fees at that level for opening a business. But, depending on the type of business you plan to open, there could be a specialized license the state requires. You must:

• Contact the Secretary of State in Kansas to determine whether you will need a state license or if there will be additional fees on the state level to operate your business.

Do you need a business license in Kansas?

You might wonder if you really need to get a business license or register your business in Kansas. The answer is yes. In most cases, depending on the type of business you want to start, a business license and registration could be required.

Kansas offers great business types, whether you are wanting to open a small personal business or something much larger. The state offers a strong agricultural landscape, technology opportunities, aerospace, or aviation.

How much does a business license cost in Kansas?

If you are required by local city and county governments to obtain a business license in Kansas, the fees will range from $50 for a local license in certain cities to $160 for specialized business licenses. Some types of licenses and fees include:

• State fees, such as filing an LLC with the Kansas Secretary of State will cost $160.
• Local licenses that most counties and cities issue to new businesses have annual fees of about $50.
• If the business is an industry, or trade-specific, there will likely be additional fees and permits that will vary from city to county to state.

Determining the fees involved with opening your business depends on the structure of that business. Do you want a sole proprietorship, an LLC, or will you be forming a corporation?

Sole proprietor

A sole proprietor is the only operating agent in a business. There is no other person that helps make business decisions. You will want to name your business and file a DBA (doing business as) with your new business name at the county clerk’s office.

Limited liability company

Referred to as an LLC, this requires legal documentation stating that your business is limited in liability. Simply put, if a lawsuit is filed against your LLC business, it will only be against the business and not the assets of the owner of the business. This documentation should be filed with the state.

Forming a corporation

Forming a corporation also requires legal documentation. There will be other people to help you, such as a board of directors or specific people who have decision-making power. A new corporation business license in Kansas will likely incur additional fees depending on location and type of business.

The most common types of licenses required by local city or county governments include regulatory or professional licenses, sales and use tax permits, and any other permits required depending on the specific location of your business.

A seller’s permit

A seller’s permit in Kansas is usually referred to as a sales tax permit. Once you have obtained this permit, you will be able to sell taxable goods and services associated with your business, both in a physical location and online. Kansas requires a 6.5 percent tax on any goods sold. You will be responsible for reporting and paying those taxes to the state. The Kansas Department of Revenue will issue you the permit. The application will require the business EIN number, opening date of the business, and ownership details.

Registering with the Secretary of State

Registering your new business with the Secretary of State is a necessary step in forming your business, and it ensures that operating in Kansas you will receive the benefits and protections under Kansas law.

The fee for registering a business in Kansas is between $85 and $165, depending on the type of business.

When you contact the Secretary of State, you will be asked for the business name, structure of the business, and the resident agent/owner and address. Once you have filed, the business filing is effective. You can print a copy of the registration or if you file in person or by mail, you will receive a copy of your registration at that time.

Advantages of registering a business

You want your business to be protected and legal. Registering with the Secretary of State in Kansas provides that and establishes the very existence of your business.

• It creates a public record once your business is registered and creates transparency.
• Registering with the state keeps the business in legal compliance with state regulations that govern businesses.
• Registering your new business also provides regulatory oversight for certain types of businesses. This oversight is important in operating industries, banking, insurance companies and other professional types of businesses.
• Your business name will also be protected through registering with the Secretary of State. This will prevent anyone else from forming a business with the same name.

Registering your new business in Kansas only requires two things:

1. Update your information annually.
2. At pre-determined intervals, keep your filings and fees updated.

Filing information reports

You could be required to file an annual report with the Secretary of State every two years. There is a three-month cushion to file after your due date, but if you are delinquent in filing the business could lose its status as a business. You don’t want that to happen, so you will want to stay on top of the reports to stay in good standing with the state.

Filing for a DBA

If you have decided to open a business under the sole proprietorship structure, there is no need in Kansas to file or register that designation with the Secretary of State. But there still could be local city or county fee requirements. Opening a business with a simple Kansas DBA requires:

1. Choose your business name.
2. File a DBA with the local county clerk’s office. Fees will vary depending on the county.
3. Check to determine any licenses or permits that might be required. If you have employees, you will need an EIN number.

Obtain an Employer Identification Number (EIN)

An EIN is obtainable through the Internal Revenue Service and is easy to get online. You should have this number for tax purposes if you plan to hire employees, and you will likely be asked for it when you register for a business license in the state of Kansas.

Conclusion

There is no one-size-fits-all business license in Kansas, and you might not be required to obtain a license from the state depending on the structure and type of business you are starting. If you’re still in the early stages and figuring out how to start an LLC in Kansas, keep in mind that licensing is just one part of the setup process. Fees will vary by city and county depending on your business type.

There will be a few phone calls to make, but this is a simple process. Once you obtain your license, pay any fees due, and obtain any necessary permits to operate, you will want to stay in compliance and renew your licenses or permits on time and report your income to the state.

Following these necessary steps  to operate a business in Kansas will only help ensure the growing success of your new venture.

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