Missouri business license requirements

What is a Missouri business license?

A business license is an official document or registration that grants legal permission to operate within a jurisdiction. Most businesses require some type of general license or tax registration before they can legally begin operating.

In Missouri, while there is no state-issued general business license requirement, a business may still need to obtain general business licenses at the local level. For example, a business with one location in Kansas City (KCMO) and another in St. Louis would need to obtain business licenses from both Kansas City and the City of St. Louis.

Do I need a business license in Missouri?

Most Missouri businesses will need various licenses, permits, and registrations depending on their location and industry. For example, retail businesses and businesses with employees in Missouri must register with the Missouri Department of Revenue and obtain a Sales Tax License. Most cities and counties require businesses operating within their limits to obtain a local general business license. Additionally, if your business activities are regulated by a federal agency (such as drug manufacturing or transportation), you'll need the appropriate federal license or permit.

Keep in mind that certain changes to your business (such as opening a new location or adding a new product line) may trigger additional license requirements or updates to existing ones.

Below is a sample of common licensing and registration requirements for Missouri businesses.

• Secretary of State registration. LLCs and corporations must file formation documents with the Missouri Secretary of State to legally establish their business entity in the state.
• Federal tax ID: Also called an EIN, a federal tax ID is issued by the IRS and is included on federal tax returns filed for your business. It is also required for filing payroll taxes.
• Fictitious name registration: If you plan to operate your business under a name other than its legal name, you will need to register that fictitious name with the Missouri Secretary of State’s office.
• Missouri Sales Tax License: Businesses must obtain a sales tax license from the Missouri Department of Revenue if they sell tangible goods or taxable services, have employees requiring withholding tax, or are corporations filing corporate tax.
• Missouri professional or occupational licenses: Certain professions and occupations require state-level licensing. For example, real estate brokers must obtain a license through the Missouri Real Estate Commission by meeting eligibility requirements and passing an exam.
• Local general business license: Local municipalities in Missouri may require a general business license for the privilege of doing business in that jurisdiction.
• Other local licenses and permits: Cities and counties may impose additional licensing and registration requirements on businesses, such as a certificate of occupancy, zoning permits, sign permits, and health department permits.
• Federal licenses and registrations: Federal licenses are typically required for businesses regulated by a federal agency, such as the Securities and Exchange Commission, the U.S. Department of Agriculture (USDA), and the Bureau of Alcohol, Tobacco, and Firearms. For example, food businesses that purchase or sell more than 2,000 pounds of fresh or frozen fruits and vegetables are required to obtain a USDA-issued PACA license.

How to obtain a business license in Missouri

Business license requirements and the processes for obtaining a license can vary based on your business activities and location. Here are the general steps for obtaining a business license:

Step 1: Research licensing requirements

Research all licensing requirements early in your business planning process for every location where you'll be operating. Many state and local government websites offer resources to help you identify your specific requirements. Also check zoning requirements, as these may restrict where you can do business.

For more information, see Research: The first step in business license compliance

Step 2: Register your business entity

If you are forming a legal entity, such as a corporation or LLC, you must register your business with the Missouri Secretary of State. Out-of-state businesses operating in Missouri must register with the Secretary of State as a foreign entity. All LLCs and corporations (both domestic and foreign) must designate a registered agent as part of the registration process.

Step 3: Obtain an EIN

A federal employer identification number (EIN) is issued by the IRS and is required for many businesses. An EIN used for filing and reporting federal taxes, banking, and payments.

Step 4: Register a fictious name (optional)

Missouri law requires any person or business entity operating under a name other than their legal name to register that name with the Secretary of State as a Fictitious Name Registration. This requirement applies to all business structures, including corporations, LLCs, general partnerships, and sole proprietorships.

Step 5: Obtain state-level licenses, registrations, and permits

Examples of licenses, registrations, and permits handled at the state level include sales tax license, new employee registration, and industry- or occupation-related licenses and permits.

Step 6: Apply for local business licenses and permits

Most Missouri cities and counties require businesses to obtain a general business license to operate within their jurisdiction. You may also need local permits or certification for zoning, building occupancy, signage, alarm systems, food preparation or sales, and home-based businesses.

Step 7: Renew/update your business license

Licenses and permits are not valid indefinitely. You should have a system for keeping track of renewal dates. You will also need to update your business licenses for certain business events, such as a change in business name, address, officer/directors, and so on.

For more information, see How to get a business license.

Missouri business license FAQs

How long does it take to get a business license?

The timeline for obtaining a business license varies depending on the type of license, the issuing authority (federal, state, county, or city), and the application requirements. Local general business licenses are typically issued within a few days to two weeks. Permits requiring inspections, such as health permits or certificates of occupancy, may take several weeks or longer.

What are the penalties for failure to obtain a business license in Missouri?

Operating without required licenses can result in serious consequences, including fines, orders to cease operations, negative publicity, and potential criminal penalties. Violations may also delay important business activities such as mergers, acquisitions, or opening new locations.

How much does a business license in Missouri cost?

Business license costs vary by location and industry. Local business licenses typically cost between $10 and $200, though the cost may be higher in some jurisdictions. State licenses and permits have separate fees that vary by type. Certain industries, such as alcohol sales, have higher licensing fees due to additional regulatory requirements.

How do you get a contracting or handyman license in Missouri?

Unlike other states, Missouri does not handle general contractor licensing at the state level. Instead, licensing is handled by individual cities and counties. Each jurisdiction has its own requirements, and these requirements can vary significantly. In addition to general contracting licenses, local governments may require specialty licenses for trades such as electrical contracting, HVAC/mechanical work, and others.

Before applying for a local contracting license, businesses typically need to register with the Missouri Secretary of State, obtain a state sales tax number, obtain an EIN, secure workers' compensation insurance if they have employees, and obtain general liability insurance.

Handymen must also comply with local registration requirements, which vary by jurisdiction. These may include obtaining a local general business license and providing proof of general liability insurance. Additionally, each jurisdiction may impose limitations on the types of work handymen can perform, so it's advisable to check with your local governing agency for specific requirements and restrictions.

Key points to remember:

Most Missouri businesses must obtain local licenses and registrations, as the state does not require a general business license. The process involves registering your entity, securing an EIN, and applying for state and local permits. Staying compliant requires tracking renewal dates and updating licenses when your business information changes.

Ready to simplify your business licensing process? Contact a Business License Specialist today and let us handle the paperwork for you.