There is no one standard business license cost in Missouri. Rather, many cities and counties require a local business license, and the cost can vary significantly. Kansas City’s license fee starts at $25 and rises with your gross receipts, and St. Louis City’s starts at $200 and rises with your number of employees. Other cities and counties set their own fees.
There are also costs, such as registering your LLC or corporation with the Secretary of State, and the free but necessary sales tax license if you will be selling taxable goods or services.
Failing to obtain a required Missouri business license can have serious consequences. Some municipalities will impose fines and penalties.
You may also be required to pay your past-due license fees from the unlicensed period, plus late charges or interest.
Operating without a required license can also lead to complaints or legal disputes, and in certain regulated industries, you may face regulatory or criminal action.
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. Many 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 (see the full breakdown of Missouri LLC costs for formation fees). 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.
Two of the biggest cities, Kansas City and St. Louis City, have the most detailed fee schedules. Kansas City’s fee is based on your gross receipts (new businesses use estimated receipts). Retail, wholesale, and service businesses pay $25 on receipts up to $28,000, with the fee rising in steps from there ($50 starting at $55,001, $99 starting at $110,001, and so on) with no cap. New businesses must apply within 60 days of opening.
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 employee-based fee rises to $37,500 for firms with more than 500 St. Louis employees. An employee is anyone who works 1,920 hours or more a year in the city, and owners count too. 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 | LLC: $50 online ($105 by mail); varies for corp. | Required to form an LLC or corporation; the latter starts at $58, depending on the number of shares |
| Card processing fee (LLC online filing) | Secretary of State payment vendor | $1.25 | Added when you pay the $50 online fee by card ($51.25 total); paying by e-check costs $0.50 instead |
| 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 | Kansas City Revenue Division | From $25, based on gross receipts | Fee increases with gross receipts; some industries may pay higher fees |
| Professional License | Division of Professional Registration | Varies by board; some businesses may also have federal fees (e.g., broker-dealer) | Renewal cycles are set by each licensing board |
| Food Establishments | Local Health Department | Varies by city or county | Food businesses must submit to health inspections |
| Liquor License | Division of Alcohol & Tobacco Control | About $50 to $300 a year for state retail licenses, plus local fees | Depends on the nature of sales |
| Environmental Permits | Department of Natural Resources | Varies by permit type | Required for firms 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. Most local licenses require annual renewal. St. Louis licenses renew on June 1 each year. Kansas City licenses are renewed each year with Form RD-105, filed before March 1. Other cities set their own renewal dates.
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 fees often match the original fee, but fees based on revenue or employees, like St. Louis’s Graduated Business License, can rise as your business grows.
State registration
Missouri LLCs don’t have to file annual reports with the Secretary of State. Corporations do (the online fee is $20). Just keep your registered agent and address information up to date. 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 and cycles are set by each licensing board. 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 has a location in Missouri and sells taxable goods or services, you need a Missouri retail sales license before making sales. Out-of-state sellers without a Missouri location must register and collect vendor’s use tax once their taxable sales into Missouri exceed $100,000 in a year.
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, trouble enforcing contracts in some cases, 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.