How To Get A Business License In Kansas
A business license is a legal requirement for any business in Kansas to function. Without it, the business may be facing penalties such as fines and even jail time for the owner/s. Not to mention that the business may face some severe limitations and restrictions on how it operates and who it can do business with. Basically, the business is being held back from fulfilling its full potential by operating without a license.
What Is A Business License?
Unfortunately, a business license is not a single document that allows the business to operate legally. There are federal, state, and local requirements that must be met. Over and above this, different types of businesses have different licensing requirements and permissions.
First, you will need a Federal Tax Identification Number that allows you to operate according to federal laws governing business entities. The business may also require a permit at the state level if the state regulates certain products or services associated with the business. For example, a bar needs a permit to sell alcohol and a clinic needs a permit to provide healthcare services. Local permits may also be needed.
Only sole proprietor businesses do not require a Federal Tax Identification Number to operate legally. However, it is still recommended to avoid having to use a personal social security number on business documents.
These licenses and permits are there to ensure that the business operates in accordance with the laws, regulations, and rules set out for businesses by the federal government and the state.
* The state of Kansas does not have a “general business license”. Businesses are however required to register with the Kansas Department of Revenue. Some businesses will also need to apply for tax registration for the specific operation. For example, a business that involves sales will require a Sales Tax Registration Certificate. Permits to regulate specific types of services and products must be obtained locally and include alcohol sale permits, building permits, animal licensing, food service permits, and so on.
Who Needs A Business License In Kansas?
All businesses require a license to operate. However, there are some exceptions to the rule. Businesses that provide services that do not require any training or qualifications can operate without a license. For example, a consultancy.
* In Kansas, business licenses are issued by the city in which the business will be operating. There are some cities that do not require a business license. It is recommended to contact the local city or county department to find out if a business license is required for the specific business to operate.
How To Get A Business License In Kansas?
The first step is to determine the name that the business will use to register. A search can be done on the official State of Kansas website to ensure that the name does not already exist. A business must have a unique name and cannot have the same name as an existing entity.
Next, the type of business entity will need to be determined. Will the business be operating as a sole proprietorship, an LLC, corporation, etc.?
This information will be used to file for a unique business Federal Tax Identification Number. Once the number is issued, it will be needed to register the business with the Kansas Department of Revenue. This is with the exception of a sole proprietorship where the business owner can use their personal social security number to register the business with the Kansas Department of Revenue.
The Kansas Department of Revenue will also issue any additional tax registrations applicable to certain services or products.
Once these registrations have been filed, an application for a business license can be made to the specific city in which the business will be operating. These applications can commonly be made in conjunction with any special licenses that the businesses may require or permits that allow them to provide specific services and/or products.
Where To Apply For A Business License In Kansas?
The Kansas Department of Revenue website provides all the information and requirements that need to be fulfilled in order to register a business. Application for registration can be made online at this website. Corporations can apply online for registration with the Secretary of State, the Kansas Department of Labor, and for any special licenses that may be applicable to the business.
There is also a downloadable and printable PDF on the website that can be completed and returned to the Kansas Department of Revenue via snail mail or fax.
It is recommended to visit the City Hall or contact the county in which the business will be operating to find out which permits and licenses will be needed and get the required application forms or documents.
Applying for a business license and meeting the current requirements for registration and permits can be a complicated and time-consuming process. It is highly recommended to use an agency that provides business licensing services to speed up the process and ensure that filing is done right the first time around.
It generally takes as long as 4 weeks for registration with the Kansas Department of Revenue to be completed before a business can legally begin to operate. However, it can take much longer if there are any problems with the filing of the application.