Businesses operating in Kansas City, Mo., are subject to a number of
tax obligations, permit and license requirements, zoning restrictions and other requirements at the City level.
Other obligations at the county, state and federal level must also be met. By knowing beforehand which tax obligations
and other governmental requirements are necessary for your business to operate, you can plan in advance to assure
that your business meets these obligations.
Following is specific information about the City requirements your business may need, as well as general
information about your obligations from other governmental jurisdictions. Every business might not be subject to
all of the requirements listed. The type, size and location of the business, number of employees and other
factors will determine which requirements you need to meet.
Addresses and phone numbers of agencies are listed. You should contact them directly or the Business Assistance Center for
more specific information.
City of Kansas City, Mo.
Business or Occupation License - Issued by the Finance Department, Revenue Division. Prior to the issuance of the license, a zoning clearance
must be obtained from the Codes Administration Department if the business has a base of operation within the Kansas City, Missouri city limits. This clearance assures that the location from which
the business operates has the proper zoning. A Missouri Tax Identification Number is also required for businesses
selling retail.
Earnings and Profits Tax - 1 percent withholding on gross wages, salaries, commissions and all other earned compensation paid to employees living
and/or working in Kansas City, Mo. For businesses, the tax is 1 percent of net profits. Amount withheld from employees’
paychecks must be remitted to the City either monthly or quarterly, depending upon the business. Business returns
must be filed each year on or before April 15. The Finance Department has more information about City Earnings Tax Forms. Contact:
Finance Department, Revenue Division
Business License Section
3rd Floor, City Hall
Room 301 West
Phone: (816) 513-1135
Fax: (816) 513-1221
Other City taxes your business might be subject to include a business personal property tax, real property tax (for property
owners) and the utility tax, a 10 percent gross receipts tax on users of electricity, natural gas, steam and telephone.
If the site for your business will be a new or renovated structure or
newly developed property it might be necessary to meet still additional requirements including rezoning, platting
and the securing of public improvement and/or building permits. The necessity of your meeting these requirements
will be determined before the business opens. Staff of the following City Departments can provide assistance in
seeing that these requirements are met.
Contact:
Counties
The three counties in which Kansas City is principally located may also
have requirements your business will need to meet. These include occupation or liquor licenses and personal or
real property taxes. You should contact the county in which your business will be located to determine which of
these requirements apply.
- Contact:
State of Missouri
Missouri Tax Registration - Applicable to both wholesalers and retailers depending upon the type of business conducted.
Wholesalers - Must
register for a use tax number if the firm wants to make sales-tax-exempt purchases. Bond is not required, although
a Missouri Tax Registration Application must be filled out to properly register and receive a use tax number.
Retailers - Anyone
making sales of tangible personal property to the final consumer is required to submit a Missouri Tax Registration
Application accompanied by a cash or surety bond in order to obtain a tax identification number.
Contact:
Tax Withholding Number Income - Required for all businesses having employees. The filing of other tax forms is also required. Tax withheld is
remitted to the state on a regular basis.
Contact:
Missouri Department
of Revenue
Taxation and Collection Department
Withholding
Tax Forms
(Select the tax period for the form you need)
Unemployment Insurance Tax - Required if an employer has workers in employment in as many as twenty calendar weeks out of the year or pays
at least $1,500 in wages in a calendar quarter.
Contact:
Missouri
Division of Employment Security
421 E. Dunklin St.
P.O. Box 59
Jefferson City, MO 65105-0059
Phone: (573) 751-3215
Fax: (573) ) 751-4945
Worker's compensation - Participation mandatory if you have five or more employees. Forms available through the insurance company of
your choice.
Contact:
Missouri
Division of Workers Compensation
3315 W. Truman Blvd., Room 131
P.O. Box 58
Jefferson City, MO 65102
Phone: (573) 751-4231
Fax: (573) 751-2012
Corporate registration - Minimum $53 incorporation fee for newly established corporations. Foreign corporations pay an additional $10.
Annual registration fees are also required for all domestic and foreign corporations doing business in Missouri.
Franchise tax - Based on capital employed in a company. $25 minimum fee. Rate is $.50 per $1,000 of par value of outstanding
shares or total assets.
Contact:
The State of Missouri operates the Missouri Business Assistance Center that can provide information about financing, business planning and state and
federal regulatory and tax requirements. This office also provides assistance in dealing with state agencies.
Federal government
Federal Employee Identification Number (FEIN) - Required for any business that pays wages to one or more employees. May also be required
in other instances.
Federal Income Tax Withholding -
Businesses with employees must withhold income tax and remit it along with a quarterly return by the last day of
January, April, July and October.
Social Security or Self Employment Tax Withholding - Must be withheld from employees wages or paid for yourself (if self- employed)
and remitted to the federal government on a regular basis.
Federal Unemployment Tax (FUTA) - Same general guidelines as with state unemployment tax for determining if you will be required to make FUTA payments.
Tax forms (1-800-829-3676)
and other information
(1-800-829-1040) on federal taxation requirements can be obtained from the Internal Revenue Service.
Other helpful resources
Small Business Administration
Kansas City District Office
323 W. 8th St., Suite 501
Kansas City, MO 64105
Phone: (816) 374-6701
SCORE - Service Corps of Retired Executives
Kansas City SCORE,
Chapter 19
4747 Troost Ave., Suite 128
Kansas City, MO 64110
Phone: (816) 235-6675
Fax: (816) 235-6590
KC Source Link
Hotline hours: 8:30 a.m. to 4:30 p.m.
Monday through Friday
Phone: (816) 235-6500
Toll-Free: (866) 870-6500
Economic Development Corporation
of Kansas City
10 Petticoat Lane, Suite 250
Kansas City, MO 64106-2103
Phone: (816) 221-0636
UMKC Small Business
Development Center
4747 Troost Ave.
Kansas City, MO 64110
Phone: (816) 235-6063
