Starting a new business in the state of Kansas is a lot simpler and more straightforward than most people think. However, one essential part of the process that sometimes gets overlooked by new business owners is acquiring the appropriate licenses and permits for your business.
Part of what makes this step a little more challenging than the rest of the business formation process is that the exact licenses and permits needed will vary from one business to another. Likewise, the application process for each license and permit tends to vary as well.
To help you get started, we’ve put together a guide on how to get small business licenses and permits in Kansas. Here, you’ll find everything you need to know about determining which licenses/permits you need and how to apply for them.
The purpose of business licenses and permits
Many business owners wonder what the point of business licenses and permits is. While they serve a few different functions, the primary purpose of these licenses and permits is to ensure that Kansas businesses remain compliant with local, state, and federal regulations. Proving compliance is typically part of the process for obtaining business licenses and permits, and Kansas businesses will also need to continue demonstrating compliance in order to renew them.
As for the difference between licenses and permits, licenses tend to grant businesses the authority to operate in a specific area while permits are used to regulate specific business activities. For example, the city or county where your business is located may require you to obtain a license to operate within its jurisdiction. Specialized permits, meanwhile, are often required for businesses engaged in activities like serving food and beverages, selling alcohol, and engaging in air transportation.
Many businesses in Kansas require both business licenses and specialized permits, so it’s important to do your research and determine which ones are applicable to your business.
Business licenses vs. permits
Just to reiterate the important differences between business licenses and permits, here’s what you should know about each one:
- Business licenses: Legal authorizations that allow a company to operate within a city, state, or county.
- Permits: Regulate specific business activities, ensuring compliance with safety, health, or environmental standards.
For example, a food truck in Kansas will need a general business license from the state to operate legally, and it will also require a health permit before it is able to serve food to customers.
Types of business licenses and permits you might need for your Kansas business
The licenses and permits required for a business in Kansas depend on two main factors: location and business activities. Both state and local authorities may have their own requirements, so be sure to check with each.
Here’s a breakdown of the types of licenses you may need for your Kansas business:
- State-Level Licenses: Most businesses in Kansas must register with the Kansas Department of Revenue (KDOR) to obtain a general business license. This license allows you to legally operate within the state. You can go to the KDOR website to learn more and apply for a general business license.
- Local-Level Licenses: Depending on where your business is located (city or county), you may also need a local business license or permit. Contact your local city or county office to learn about specific licensing requirements in your area.
For certain business activities, specialized permits will be required as well. This includes permits like:
- Zoning permits: These ensure your business location complies with local zoning laws.
- Health permits: These are required for businesses involved in food service or healthcare.
- Environmental permits: These are needed for businesses affecting air, water, or land and are issued by the Kansas Department of Health and Environment (KDHE).
- Building permits: These are required for any construction or renovation work.
Lastly, federal permits may be required if your business engages in any federally regulated activities such as:
- Alcoholic Beverages: Businesses selling alcohol need a license from the Alcohol and Tobacco Tax and Trade Bureau (TTB).
- Agriculture: Selling or importing agricultural products requires a permit from the U.S. Department of Agriculture (USDA).
- Aviation: If your business involves air transportation or aircraft operations, you’ll need a permit from the Federal Aviation Administration (FAA).
- Broadcasting: If your business involves broadcasting over airwaves (e.g., radio or television), you’ll need a license from the Federal Communications Commission (FCC).
- Fishing and Wildlife: Businesses dealing with wildlife or fisheries may need permits from the U.S. Fish and Wildlife Service (FWS).
To learn more about federal licensing requirements, check out the Small Business Administration (SBA) federal licenses and permits page.
How to obtain business licenses and permits in Kansas
Before you dive into this section, it’s important to keep in mind that the exact process for obtaining business licenses and permits in Kansas will ultimately depend on which one your business needs, as each agency issuing the licenses/permits has its own fees and application processes. That said, here is the general process you can expect when acquiring business licenses and permits in Kansas:
Step 1: Determine which permits and licenses you need
Start by figuring out the exact licenses and permits your business will need. Many businesses in Kansas require licenses from agencies at the local, state, and federal levels:
- State Licenses: A general business license from the KDOR is the main state-level license in Kansas. Other permits from the state may be required depending on your industry (for example, health permits for restaurants).
- Federal Licenses: If your business operates in a federally regulated industry, visit the relevant agency’s website to review licensing guidelines. For example, alcohol sales require a permit from the TTB.
- Local Licenses: City and county governments in Kansas often have their own licenses and permits required of businesses operating within their jurisdiction. Check with your city or county office to see which ones apply to your business.
There are many other types of permits you may have to obtain. Again, you can check the DORA website for all of Colorado’s state requirements and the Small Business Administration website for federal requirements.
Step 2: Submit all required documents and application fees
Once you’ve determined which licenses and permits your business needs, the next step is to submit any documents that are required for application and pay the application fees. Here’s what this process looks like for a general business license from the KDOR:
- Completing the application form on the KDOR website.
- Providing details about your business structure (LLC, sole proprietorship, etc.).
- Submitting proof of business location and identification.
Application fees vary depending on the license, but a Kansas general business license typically costs around $100. Federal licenses have their own application processes and fees, depending on the agency that issues the license.
Step 3: Track your application status and await approval
After you submit your application, you can track its status through the KDOR website (or, for federal licenses, through the agency’s website). Approval times will vary, but Kansas state licenses are generally processed within 10-15 business days, while federal licenses can take several weeks.
Step 4: Renew as needed
Most business licenses and permits will need to be periodically renewed, including your general business license which (in most cases) must be renewed annually. Missing renewal deadlines can result in fines or suspension of business operations, so be sure to keep track of expiration dates and renew all of your licenses on time.
Conclusion
Once you’ve registered your business with the state, applying for all the licenses and permits it requires is a key next step in the business formation process. If you’re learning how to start an LLC in Kansas, make sure to research the specific licenses and permits your business will need. Different Kansas businesses have different requirements depending on their location and activities, so taking the time to verify these details will help you stay compliant from the start.
FAQ
You never want to begin operating your Kansas business until you are sure that you’ve obtained all required licenses and permits. Operating without the necessary licenses and permits can lead to some stiff consequences, including things like fines, penalties, and business closure.
Yes, sole proprietors in Kansas are treated the same as any other business when it comes to licensing requirements. In other words, you will still need to obtain a general business license along with any other required licenses and permits even if you haven’t formed a company and are operating as a sole proprietor.
Yes, a general business license from the KDOR must be renewed periodically. Renewal is typically required every year, but there are a few exceptions to this.