A business operating in Kansas City, Missouri must obtain an occupation license. This requirement applies to business entities regardless of their size or composition: corporation, partnership, association, company, individual or any other type of business arrangement. A few professions which are licensed by the state, most notably doctors, dentists, and lawyers, do not require occupation licenses.

Most occupation licenses are issued on a calendar year basis (January 1- December 31). The cost of a license varies by type of business. When first obtaining the license, an initial fee must be paid. This fee will be prorated based on the number of months remaining in the year. The fee for subsequent years is due at the time of license renewal; and is often based on the firm’s gross receipts during the previous year of operation.

A prerequisite for obtaining an occupation license is a zoning clearance issued by the City’s Codes Administration Department. This clearance assures that the location from which the business will operate has the proper zoning. Many types of businesses which operate out of a residentially zoned area can legally do so if they meet the City’s "home occupation" requirements.

Businesses selling on a retail basis must also obtain a tax identification number from the Missouri Revenue Department prior to obtaining the city occupation license. This tax I.D. number is part of the mechanism whereby a business remits to the state the sales tax it collects.

Depending upon the type of business, additional clearances may be required. For example, food-serving establishments must have Health Department clearance before receiving their occupation license.