If you’ve decided to start a business in Kansas, you’re about to enter an exciting time in your life. But being a small business owner also means taking care of the legal and administrative side of things. One of the most important things to check off your list is learning how to get a business license in Kansas.
Do you need a business license in Kansas?
Kansas doesn’t issue a general business license, but many specific businesses will need to obtain licenses or permits from state and local governments. It’s important to do your research to understand what’s required.
Kansas state licenses
Kansas businesses in certain industries do need a state-issued license. Some of the most common licenses Kansas requires include the following.
- Professional licenses: If you work in law, medicine, real estate, cosmetology, or another licensed profession, you’ll need a license from the Kansas board that regulates your industry.
- Health permits: Businesses that handle food or beverages—including food trucks and catering businesses—must get a state health permit.
- Liquor licenses: Selling or serving alcohol requires a license. There are different licenses for retailers, distributors, and manufacturers.
- Sales tax permits: If your business sells taxable goods or services, you must obtain a sales tax permit from the state.
Local licenses
Many Kansas municipalities require local business licenses. Check with your city hall or county clerk’s office for specific filing requirements. Here are some common local licenses in Kansas:
- General business licenses. Many Kansas cities, towns, and unincorporated areas require businesses to obtain a general license.
- Home-based business permits. If you run a business from home or have a home office, you may need a permit. For example, in Wyandotte County, home of Kansas City, you’ll need to submit a Home Occupation License Memorandum for approval.
- Zoning permits. If you operate from a commercial location, you may need a zoning permit to confirm that your business activities are allowed.
- Local sales tax permits. Some counties and cities have local sales taxes in addition to the state tax. For example, Kansas City imposes a sales tax within city limits, with higher rates for certain community improvement districts (CIDs), like Kansas City Plaza.
- Contractor licensing. Some local governments, including the most populous county, Johnson County, require electricians, plumbers, HVAC technicians, and other contractors to hold local licenses.
Federal licenses
Businesses in federally regulated industries may need to obtain federal licenses. Some common examples in Kansas include the following:
- Agriculture
- Meat and poultry processing
- Aviation
- Firearms and ammunition sales
- Alcohol and tobacco sales
- Transportation
- Telecommunications
- Investment and insurance
How to get a business license in Kansas in 5 steps
The process to get a Kansas business license can become complex, especially if you operate in multiple locations. It’s important to carefully follow the steps below.
Step 1: Form your business
Before you can apply for a business license, you must legally establish your business. First, choose a business structure:
- Sole proprietorships provide simplicity because you don’t need to register with the Kansas Secretary of State.
- Limited partnerships and limited liability partnerships allow multiple owners to share profits and losses.
- Limited liability companies (LLCs) offer liability protection and pass-through taxation.
- Corporations provide the best liability protection but may have additional requirements.
Next choose your business name. Every business required to register with the Kansas Secretary of State must have a unique name that also complies with state regulations. You can conduct a Kansas business search to see if your name is available. Then file the required paperwork with the Secretary of State via the Kansas Business One Stop system, and you’ll soon be official.
Step 2: Get your tax ID numbers
If you plan to have employees, operate as a corporation or partnership, or open a business bank account, you’ll need to obtain an employer identification number (EIN) from the Internal Revenue Service (IRS). Sole proprietors aren’t required to obtain an EIN, but may want to keep their Social Security number (SSN) private.
In addition to an EIN, Kansas requires businesses with tax obligations to get a state tax ID number. Check with the Kansas Department of Revenue to see if you’ll need to pay any of the following:
- Sales tax: Any business that sells tangible goods or taxable services must get a Kansas sales tax permit through the Kansas Department of Revenue.
- Withholding tax: If you plan to hire employees, you’ll need to register for Kansas withholding tax, which is deducted from employees’ wages and paid to the Kansas Department of Revenue.
- Corporate income tax: Corporations operating in Kansas are subject to a state corporate income tax based on net taxable income.
Step 3: Apply for state licenses and permits
A state business license or permit grants you legal permission to operate within a particular industry. Certain businesses may need multiple state licenses and permits. Here are a few examples of important departments you can contact:
- The Kansas Department of Agriculture issues health permits for food service businesses.
- Kansas Alcoholic Beverage Control takes care of liquor licenses.
- The Kansas State Board of Technical Professions is the licensing agency for engineers and architects.
- The Office of the State Bank Commissioner regulates banks, trust companies, mortgage businesses, lenders, and credit services.
Step 4: Research local licenses and permits
Many Kansas cities and counties have their own business licensing requirements. Figuring out exactly which local licenses you may need for your area or industry can be confusing. For example, Kansas City requires specific businesses, like private security guard services and pawn brokers, to have permits. Contact your local city hall or county clerk’s office to find out if you need a business license, and check for zoning permits, fire safety approval, and signage regulations if you’ll have a physical office or store.
Step 5: Obtain federal licenses if required
Check federal licensing requirements if your business operates in a regulated industry, as application fees and licensing processes like background checks can vary. Some of the most common agencies that Kansas businesses might need to contact are as follows:
- Agriculture. Businesses involved in importing, exporting, or transporting agricultural products may need licensing from the U.S. Department of Agriculture (USDA).
- Alcohol and tobacco sales. Businesses manufacturing, distributing, or selling alcohol or tobacco should contact the Alcohol and Tobacco Tax and Trade Bureau (TTB).
- Aviation. Operating aircraft for business requires a license from the Federal Aviation Administration (FAA).
- Firearms and ammunition sales. Firearms dealers must be licensed through the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
- Transportation. Businesses that transport goods or operate commercial vehicles across state lines must register with the U.S. Department of Transportation (DOT).
After getting your Kansas business license
Now that you know how to get a business license in Kansas, you need to learn how to maintain compliance and remain in good standing.
- Display it properly: Kansas requires some businesses, such as restaurants, salons, and retail establishments, to post their health permits, liquor licenses, or occupancy certificates.
- Renew on time: Many business licenses and permits need to be renewed every year or two, so be sure to check the requirements for your specific license type.
- Know the rules: Different cities and counties in Kansas have specific rules regarding operating hours, health and safety regulations, zoning laws, and other business-related policies.
- Follow reporting requirements: Kansas requires registered businesses to file annual reports with the Kansas Secretary of State and comply with tax obligations.
Getting a KS business license the easy way
Navigating Kansas business license requirements can be complicated, but it doesn’t have to be. LegalZoom can help you find and manage your business licenses to stay on top of changes and stay in good standing. We help you gather the right documents, fill out applications correctly, and keep track of renewal deadlines all in one place. Let us take care of licensing so you can focus on your business.
FAQs
Does Kansas require a contractor license?
Kansas does not have a statewide general contractor license, but certain trades may need local licenses. Many municipalities, including Wichita and Overland Park, have their own additional requirements, so check with your local county clerk’s office if you plan to start a contracting business.
What should I do before getting a Kansas business license?
Before filing for a business license, you should form your business and register your business name with the Kansas Secretary of State. You may also need to register for an EIN with the IRS and obtain necessary tax permits from the Kansas Department of Revenue.
How much is a business license in Kansas?
The cost of a business license in Kansas varies depending on the type of business and location. Some local business licenses start at around $30, while certain industries need licenses, such as liquor permits or contractor licensing, that can cost several hundred dollars. There might also be fees for inspections or renewals.
How long does it take to register a business in Kansas?
Registering a business in Kansas typically takes a few days when filing online through the Kansas Secretary of State's website. Paper applications take longer, often around one to two weeks for processing. Getting federal and Kansas business licenses and permits can add to the timeline, especially for zoning permits, health permits, and industry-specific licenses that require a background check.