There is no one standard business license cost in Missouri. Rather, most cities and counties do require a local business license, which can vary significantly. Kansas City and St. Louis City, for example, charge $25-$100 and $200 and up, respectively. Smaller municipalities generally charge a flat fee.
There are also costs, such as registering with the Secretary of State if you are a corporation or LLC, and the free but necessary sales tax license if you will be selling taxable goods.
Failing to obtain a required Missouri business license can have serious consequences. Some municipalities will impose fines and penalties. These can be flat fees or based on your revenues.
You may also be required to pay all of your past-due license fees, from the unlicensed period, plus late charges and/or interest.
Finally, unhappy clients or your competitors can either complain to the relevant municipality or sue, arguing the lack of a license as potentially fraudulent conduct. Even more troublesome, you may face criminal or regulatory actions in certain regulated industries.
Do you need a business license in Missouri?
Generally, you must obtain a business license in Missouri if:
- The city or county where you will do business requires it
- You’re selling taxable goods or services (actually a sales tax license)
- Your business is in one of the regulated professions or industries that require state licensing (for example, an insurance agency, broker-dealer, or law firm)
Again, Missouri is one of the states that does not require a state business license. Instead, licensing is handled by cities and counties. Your need to obtain a license will be based on the requirements of your business location. Kansas City, for example, requires a license for any business operating in the city. St. Louis, in contrast, requires a Graduated Business License for virtually all businesses, with the fee based on the number of employees. Most other Missouri towns and counties require a local license for businesses with a physical presence in the municipality, employees there, or regularly conducting business in the city or county.
Your business may also require a state-issued license based on the nature of your business. Professions like lawyers, contractors, health care providers, and certain financial services professionals and firms will require these licenses.
Businesses engaged in handling food or alcohol, providing childcare, or having environmental impact must also obtain specialized permits from state agencies. These environmental impact licenses for businesses can include:
- Solid Waste Management Permits
- Hazardous Waste Permits
- Air & Water Pollution Control Permits
- Underground Storage Tank Permits
Other business types that may require environmental impact licenses include asphalt companies, salvage yards, mines, and agriculture.
Because licensing requirements are handled locally, business license cost can vary widely depending on where and how you operate, something that becomes especially clear when looking at Missouri’s city-by-city fee structure.
How much does a business license cost in Missouri?
As mentioned in the introduction, there is no one single cost for a business license in Missouri. The total cost will be based on one or more of the following factors:
- Your business location
- Your annual revenues and/or headcount
- Whether you are in a regulated business.
In terms of cost, the most expensive business licenses are in Kansas City and St. Louis City. Kansas City has a graduated fee ranging from $25 to $100.
St. Louis City, on the other hand, begins at $200 and then calculates the fee based on the number of employees the business had in the city in the prior calendar year. The minimum fee of $200 covers only up to two St. Louis City employees. This timing-based fee rapidly escalates from there to a maximum of $37,500 for a firm with more than 500 employees in the city. An employee is anyone who works more than 1,920 hours or more per year in the city. Part-timers are to be combined to create a full-time equivalent. Penalties for late filing are 5% per month, up to a maximum of 25%. In addition, if you have filed but not paid, you will incur a 20% penalty on the amount due after the 60th unpaid day.
| Permit/License | Issuer | Fee Range | Comments |
|---|---|---|---|
| Articles of Organization for LLC; Articles of Incorporation for Corporation | Secretary of State | $50 LLC; varies for corp. | Required to form an LLC or corporation; the latter starts at $58, depending on the number of shares |
| Sales Tax License | Department of Revenue | No cost | Required for any business selling taxable goods or services |
| St. Louis City Graduated Business Licenses | St. Louis License Collector | $200 to $37,500 annually | Based on the number of employees in the prior calendar year, the initial year will be $100 to $200 |
| Kansas City Business License | KC Regulated Industries Division | $25 to $100 or more annually | Fee increases with gross receipts; some industries may pay higher fees |
| Professional License | Division of Professional Registration | $50 to $300 or more annually, depending on profession; some businesses may also have federal fees (e.g., broker-dealer) | Renewal every 1 to 2 years, depending on industry board requirements |
| Food Establishments | Local Health Department | $25 to $300 or more annually | Food businesses must submit to health inspections |
| Liquor License | Division of Alcohol & Tobacco Control | $45 to $300 or more annually | Depends on the nature of sales |
| Environmental Permits | Department of Natural Resources | $100 to $500 or more, depending on the impact of the activity | Required for forms with emissions, discharges, or hazardous waste |
| Fictitious Name Registration (DBA) | Secretary of State | $7 | Required when operating under a name other than the name formally registered to the business |
Renewing your business license in Missouri
Since typical business licenses in Missouri are handled at the local level, renewals are likewise handled locally. Virtually all of these local licenses require annual renewal. St. Louis licenses renew on June 1 each year, while Kansas City bases renewal on the business’s filing anniversary date or fiscal year. Most other locations rely on the original license date.
In addition to the fees, the business will most likely have to file a renewal form, updating all requested information. Some locations also require a certificate of good standing from the state, tax clearances, or proof of any mandatory insurance. Payment must be submitted at the time of filing.
Renewal costs are usually at least as high as the initial fee, with some renewals, like St. Louis’s Graduated Business License, based on the number of employees, being considerably higher.
State registration
Corporations and LLCs have to file annual reports with the Secretary of State. For the LLC, the online filing fee is $20. If you’re still in the formation phase, understanding how to start an LLC in Missouri can help clarify what needs to be filed with the state before you focus on ongoing licensing requirements.
Industry/professional licenses
Renewal fees are usually the same as the initial filing fee. Federal or other fees will depend upon the profession; e.g., broker-dealers pay based on the number of registered employees, branch offices, and revenues.
Conclusion
As you can see, figuring out where, when and how to license your business in Missouri can be complex and confusing. And, getting it wrong can carry significant consequences. You may want to consider professional help when you’re ready to get started.
FAQ
If your business sells taxable goods or services to Missouri customers, you will have to obtain a Missouri Retail Sales License (basically a sales tax permit). The mandate is not based on location but applies to any business having more than $100,000 in annual sales in the state. If your business is physically located in Missouri, then it is subject to all the potential requirements above no matter what your sales are. If not, you will only need the retail sales permit if you meet the sales threshold.
Generally, depending on the location, your license will be issued as quickly as immediately. It may take two to three weeks in some locations. Finally, industry-specific licenses can take a much longer period of weeks or months due to various other requirements like background checks, inspections, etc.
Operating without a required business license in Missouri can lead to fines, forced business closure, lawsuits, loss of legal standing, and possible regulatory or criminal charges. It can also damage your reputation and prevent you from working with clients, vendors, or regulators until you become compliant.