Start a Business in Kansas City, MO: When it comes to starting a business, entrepreneurs must look for the place with the most potential. Whether a corporation, sole proprietorship, partnership, or LLC, having a business in Kansas City, MO, is a plus for any entrepreneur. In general, setting up any form of business in Missouri, US, is the initial step to building an international brand.
Entrepreneurs across the globe are interested in starting and expanding their businesses in Kansas City, MO. With an urban population of 1602005 (estimate), the city has a lot to offer to all emerging entrepreneurs. The main reason for this is the economic environment and flexibility of the business structure in Missouri. Like most places in the US, Kansas City, MO also offers business structures for all types of entrepreneurs; no matter what business you want to do, there’s a perfect solution for you. If you want to start limited liability company (LLC) or a corporation, or a sole proprietorship, Kansas City, MO has a proper business environment for all.
In this article, you will read about how to start a business in Kansas City and why you should choose Kansas City to start and run your business. We recommend you check below the important facts about Kansas City, MO; these might help you.
On this page, you’ll learn about the following:
- Kansas City, MO Household Income Statistics
- Kansas City, MO Education & Labor force Facts
- Kansas City, MO Demographics
- How to Start a Business in Kansas City, MO
- Other Things to do After Starting Your Business
- Important Kansas City Stats for Starting a Business
- Reasons to Start a Business in Kansas City
- FAQ About Kansas City, MO
Kansas City, MO Household Income Statistics
| Kansas City Median household income | 56179 USD |
| Kansas City households with dual income earners | 55 % |
| Kansas City households $150K+ Income | 10.8 % |
| Kansas City households $100K+ Income | 24.8 % |
| Kansas City households $100-150K Income | 14 % |
| Kansas City households $75-100K+ Income | 12.7 % |
| Kansas City households $50-75K+ Income | 17.2 % |
| Kansas City households $35-50K+ Income | 13.3 % |
| Kansas City households $25-35K+ Income | 10.6 % |
Kansas City, MO Education & Labor force Facts
| Kansas City residents with a bachelor’s degree (or equivalent) | 22.5 % |
| Kansas City residents with at least a 4-year degree | 35.7 % |
| Kansas City residents with a graduate degree | 13.2 % |
| Kansas City residents with a high school diploma but no more | 25.2 % |
| Kansas City residents with less than high school education | 9.3 % |
| Kansas City residents with some college but no more | 29.8 % |
| Kansas City residents with a Bachelor’s degree or higher (STEM fields) | 39.6 % |
| Kansas City households that own (rather than rent) their residence | 53.8 % |
| Kansas City residents 16 and older in the labor force | 69.4 % |
| Kansas City residents unemployed | 4.9 % |
Kansas City, MO Demographics
| Kansas City residents aged 0-9 | 13 % |
| Kansas City residents aged 10-19 | 12 % |
| Kansas City residents aged 20-29 | 16.1 % |
| Kansas City residents aged 30-39 | 15.3 % |
| Kansas City residents aged 40-49 | 12 % |
| Kansas City residents aged 50-59 | 12.4 % |
| Kansas City residents aged 60-69 | 10.6 % |
| Kansas City residents aged 70-79 | 5.3 % |
| Kansas City residents aged over 80 | 3.2 % |
| The average size of resident families in Kansas City, MO | 3.15 |
| Estimated population per square kilometer in Kansas City, MO | 602 |
| Kansas City, MO urban population (estimate) | 1602005 |
| Kansas City, MO municipal population (estimate) | 491158 |
Now that you know what makes Kansas City of Missouri good for business, let’s get started with the exact steps on how to start a business in Kansas City.
How to Start a Business in Kansas City, MO
Starting a business in Kansas City, MO, needs planning, financial decisions, legal procedures, and a handful of other things. Be it a corporation, sole proprietorship, partnership, or LLC in Missouri, you must go through the following steps. These steps are general steps. They are subject to change depending on the structure of your business.Generally, starting a Limited Liability Company is easy to form. Read our guide on how to start an LLC before you start your own business. Here are the steps to set up your business in Kansas City.
Step 0: Decide on What Business to Start
This is the first thing you work on, the type of business you want to start in Kansas City. Depending on that, you need to make your business plan. Apart from the legal documentation and process, you must include the following points in your business plan,
- Through market research on demand trend
- Complete Budget plan – funding your business. If you’re planning to start an LLC, then take a look at the cost of LLC
- What competitors are doing
- SWOT Analysis – check what your Strengths, Weaknesses, Opportunities, and Threats are
- Your targeted buyers
Once you have the entire plan with you, you can continue working on the legal structure of your business. LLCBuddy will guide you through the legal process of forming an LLC for your business. It’s very likely that you have already done this step 0, so that we won’t go deep into this step, let’s move to step 1.
Step 1: Choose Your Business Structure
The very first step after you decide on what type of business you want to start is to choose what type of business structure you want to form. You can form an LLC, a sole proprietorship, a corporation, or a partnership. Each type of structure has different rules and regulations. For example, if you want to start a Missouri LLC, there are different types of tax and fee structures. An LLC formation is similar to forming a sole proprietorship. On the other hand, forming a corporation is much more complicated. The tax and fee structure is completely different in corporation formation.
Step 2: Name Your Business
The next step in forming a business is to give it an appropriate name. Having a business name is not so easy task. You cannot pick a random name for your company. One has to follow proper naming guidelines before they name their company. Besides, before you settle a name, you must check if the name you are looking for is available to use. You can visit the official government site of Missouri to do the Missouri LLC name search before you pick the available name. Below are some of the naming rules you need to follow,
- You cannot name your business that has words or phrases like Bank, University, Government, or anything that can confuse people with a government sector.
- If you are forming an LLC in Missouri, then you must include words like “LLC,” “LC,” “LLC,” “Liability Company,” and “L.L.C.” If it is an LLP, then you must include “LLP” in your business name.
- The name should reflect the nature of your business. Any name that can confuse people should not be picked.
- You can check if the name of your company is available. Through the business name search process, you can search if the desired name is available for use or not.
- You can reserve your business name for a certain time before you form your business in Kansas City, MO by filing a name reservation application.
The above-mentioned points are basic naming rules that all businesses have to follow while naming their company. As mentioned above, these rules are subjected to change depending on the structure of the business.
Step 3: Get a Registered Agent
A Registered Agent is a person who receives all types of legal and official documents on behalf of the business. Whether a suit against your company or formation-related documents from the state, a Missouri LLC Registered Agent is responsible for receiving these documents at his/her official address. In general, anyone who has the right to conduct business in Kansas City can be a registered agent. However, there are some requirements to becoming a registered agent.
- The person has to be 18+ years of age.
- Must be a citizen of the Missouri
- Must have a physical street address in the Missouri
- Must have legal rights to conduct business in the Missouri
Anyone who fulfills the requirements can be a registered agent. Also, anyone from the company, your spouse, any relative, or yourself can be a registered agent. But, it is recommended that you hire a professional registered agent to look after your documentation. You can choose from the best LLC services that also offer registered agent for LLCs.
Step 4: Register Your Business
The next step is to register your business under the Secretary of State, Missouri. The Articles of Organization (or certificate of incorporation) of your company should be submitted online, by mail, in person, or by fax to the Missouri SOS. You need to pay the state filing fee either by Credit Card or by check to the SOS while registering your business in the Kansas City, MO. Your Missouri LLC articles of organization should have the following details about your business
- Company/Business name, address
- Registered Agent Name, address
- Member-managed or manager-managed (in case of LLC)
- Type of business
Depending on the type of business structure, you may have to add some more information to the formation document.
Step 5: Write the Operating Agreement
An operating agreement is a document that has all the structural information of your business. In most states, it is not mandatory to create an operating agreement. However, it is highly recommended to have one as an internal document. This document records information such as,
- About Business
- Members and management
- Capital contribution
- Profit Distribution
- Change of membership
- Dissolution
In future, if any member wants to leave the company or you want to dissolve the business, then the Missouri operating agreement has everything recorded, from clauses to contributions.
Step 6: Obtain EIN
EIN or Employer Identification Number is required to file taxes, open a business bank account, and if your business has employees. EIN can be obtained from IRS. It is a 9-digit number similar to Social Security Number. However, EIN is different from SSN. It is solely used for business purposes, especially for general tax filing. You have to fill out the form and submit it to the IRS website. It does not cost you anything to obtain EIN.
Step 7: Get Business Bank Accounts
Once you obtain the EIN for your business, you are free to open a business account in the US. Having a US business bank account can ease your business transactions in Kansas City, MO. It increases your business credibility and liquidity. It will also be helpful for business loans.
Step 8: Create Your Business Website
Business websites are as important as your business structure. It is necessary to have a catchy business website with all the information regarding your company. Along with the website, you need some more things. Things such as logos, business cards, business emails, domain names, and social media accounts are needed to promote your business. You can hire a professional business service to get all of these services under one roof.
Other Things to do After Starting Your Business
- Once your company is set in the Kansas City, Missouri, you need to file your taxes and apply for licenses (if needed).
- Apart from the license and permits, you need to get insurance for your business. Such as General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance are some of the insurances you need to get if you are about to start an LLC.
Important Kansas City Stats for Starting a Business
Before you start a business in Kansas City, it is required that you know some facts about the city. Following are some of the stats to consider before starting a business.
Education & Employment
Kansas City has a diverse population that comes from various educational backgrounds. There are students who haven’t finished their high-school education, whereas there are people who are more than just college graduates. Check the table (Education & Labor Force) for detailed data. From the data, it is clear that the city has enough educated and skilled people who can contribute to the labor force.
Demography
As we talk about the urban population density, the young population percentage in the city is approximately 16.1 (people in their 20s) and 15.3 (people in their 30s). This means that having any business that is new and tech-based might be profitable. The median age of the population in the city is 35.4. On the contrary, if anyone wants to start a business that is related to any old-age service, such as caregiver, primary old-age support, or something of a similar sort, then Kansas City has approximately 3.2 (people in their 80s and above) percent of old people. Check out the table (Demography) above for more information.
Real Estate
Another important factor to mention about Kansas City is the home value of owned properties. The average value of owned houses is 159013. Also, the percentage of people living in their own houses is 53.8. This reflects the real estate market of the city. For a metropolitan city, this is a considerable number.
Health
It is inevitable that living in a big city is different from living in a town or a comparatively smaller city. It directly affects lifestyle and health. It is obvious that having health insurance is important, no matter which city or region you are residing in. But there are people in Kansas City who still do not have health insurance. The rate of people not having health insurance is 11.8. This depicts the lifestyle and overall health demography of Kansas City. As you plan to start your business in this city, you must consider this stat as well.
Income & Lifestyle
The income pattern of the people in this city is given in the table (Income) above. In Kansas City, a part of the population has a dual family income that reflects a better standard of living. As in, people have more than one source of income. The table above shows the income percentage of various slabs.
Similar Read – How to Start Business In Indianapolis, IN
Reasons to Start a Business in Kansas City
Kansas City offers a bunch of business-friendly services for entrepreneurs. A proper business environment, skilled labor, tax advances, deductions, and much more are awaiting if you are interested in starting your business in Kansas City. Here are some of the reasons,
Stable Economic Growth
Kansas City or any other city in Missouri has stable economic growth and an environment that helps any business to grow successfully. The economic structure of Missouri shows not only balanced but also a sustainable condition of economic growth, which in turn triggers the businesses to flourish in the state.
Minimize Personal Liabilities of the Entrepreneur
If you’re considering starting an LLC in Kansas City, then it will be your best choice. An LLC protects your personal assets and minimizes your personal liabilities. This is one of the many reasons why having an LLC in Kansas City is a wise choice. Also, if you are opting for an LLC, the tax deductions will be more than having a corporation.
Federal and State Tax Relaxation
There is a series of federal taxes that an entrepreneur has to pay when operating a business in the US. Depending on the state your company is located in, the state taxes are being imposed. For an LLC, both of these taxes are much lower compared to other business structures. Along with tax impositions, some tax deductions (state-wise) lower the filing fees and other government charges. Check out the Missouri LLC tax structure to know more about the tax structures for LLCs in the state.
Government Incentives for Entrepreneurs
Federal and state governments in the US ensure that entrepreneurs get a proper business environment in the state or city they are operating their business. The government provides a few incentives to the business holders in Missouri or any other state. That means if you are operating any business in Kansas City, then Missouri State will provide an incentive for creating jobs, contributing to the state’s GDP, and/or balancing the state’s tax structure.
Low Corporate and Other Business Taxes
Corporations and other business structures (except for an LLC) are liable to pay a corporate tax in Missouri. Also, there is a Sales Tax that all businesses, including LLCs, have to pay. However, the rate of taxes is very low. Besides, as the businesses receive incentives, the tax burden gets lower.
Skilled Labour & Quality Manpower
In Kansas City, it is easy to hire employees for your business. They are not only skilled but also well-educated to help your business grow. As mentioned above, the 69.4 is the percentage of labour participation. Hence, it is clear that having a business in Kansas City will make a lot of difference to the existing labor force.
Demand for New Market and Industry
In Kansas City, Missouri, there is an uprising demand for new industries and new markets. Entrepreneurs who are willing to start a business in any of the cities of any state are given enough opportunities to stay in business. Business licensing, tax deductions, incentives, and relaxation of business taxes are some of the benefits that encourage start-ups and budding entrepreneurs to start their own businesses in Kansas City.
If we follow the US Data, the median value of commute time for the residents to their work is approximately 22. If you are starting a business here, you must keep in mind that commutation can be a point to consider.
Intellectual Property Protection
The US government receives roughly more than 1 million applications for IPR every year. The federal government makes sure that there is no infringement of any patent or property rights. It does not matter which city in which state you are running your business. The rule of Intellectual Property Protection is the same for all. If you have a foreign business in the US, then you might get more benefits under the IPR act.
Other Benefits
Kansas City (aka ) is ranked at 1 in terms of importance. Apart from the above mentioned reasons, there are some other benefits that businesses enjoy in Kansas City. For example, technological advancement, a stable political environment, renewable resources, sustainable non-renewable resources, and some more benefits make things easier for entrepreneurs to start and run their businesses. According to US Data, the percentage of young people in Kansas City is 15.3. Hence, it would be great to start a business that is related to tech here as you might get a good number of clients.
Next Read – How to Start Business In Cambridge, MA
How Fast Can You Start Business In Kansas City Missouri
Depending on the type of business you are starting, there are different licensing and registration requirements. For example, you can register as a sole proprietorship or you can form an LLC. You may also have to apply for an environmental certificate.
There are many government programs that support local business. These include the Missouri Works Program and Missouri Innovation Centers. These programs allow entrepreneurs to gain access to capital and technical assistance. In addition, they provide business planning assistance. The Missouri Tech Corporation is an initiative that seeks to reinvigorate the state’s entrepreneurial support efforts.
There are a number of funding sources, including angel investors, commercial banks, venture capitalist groups, and the U.S. Small Business Administration. Choosing the funding source that works best for you is critical. You need to be smart about how you spend your money and create a comprehensive financial plan. The cost of running your business will determine which funding source is best for you.
If you have a great idea, it’s important to determine whether or not there is a market for it. Researching the competition will help you determine whether or not there is a need for your product. You can also perform market research by utilizing focus groups, surveys, and SEO research.
To start your business, you’ll need to register with the state of Missouri and the city or county where you want your business to operate. You’ll also have to apply for a business license and other permits. It’s important to consult an attorney before you begin the process. If you plan on hiring employees, you’ll also need to fill out additional forms. Some businesses may also need a food license.
The University of Missouri-Kansas City Innovation Center’s hotline saw a 176% increase in the number of calls from people seeking to start a business. This increase came as people found more time to pursue business plans during the Great Recession.
There are also a number of tax incentives available in Missouri. You can qualify for an Angel Investment Tax Credit, which is a tax credit for investing in a start-up business. You can also apply for the Small Business Incubator Network and Missouri IDEA Funds. In addition to these programs, there are several professional sports teams and outdoor recreation available. In fact, Missouri is home to more than 28 million acres of farmland.
Starting a business in Kansas City, Missouri, is easy, as long as you follow the right steps. A professional Registered Agent will be able to assist you in updating your address and forwarding important documents to you. The state also has a Business Plan Generator that will allow you to create a business plan. The website also offers a free sample business plan.
There are many reasons to start a business in Kansas City. From the low cost of living to the great outdoors, Missouri offers something for everyone. However, if you want to start your own business, you should take the time to research your competition and learn about your product’s market. You can also get advice from an accountant or lawyer.
FAQ About Kansas City, MO
In Kansas City, MO, $7,000 is the minimum living wage. In Kansas City, a reasonable income would be between $40,000 and $60,000. In this city, you may need to make more money if you want to live a luxurious lifestyle.
You may simply generate money by selling your goods or services if your LLC is registered in Kansas City, MO. Find prospective buyers and advertise your LLC to attract additional customers from throughout the state or the nation.
You’ll need to take a few steps if you want to establish your own LLC in Kansas City, MO. You must first register your company with the state of Missouri. Additionally, a registered agent must be named. By submitting formation paperwork, you may do this.
You may get an EIN number from the IRS if you reside in Kansas City, MO. Through the IRS website, you may get the EIN in a matter of minutes. If you are the owner of the business, you may even get an EIN number.
It is difficult to predict what will happen next in the real estate industry in Kansas City, MO. Because of the industry’s volatility, prices often rise in the absence of an outside economic shock. If an adverse economic situation arises, it can decline.
Honestly, there is no such business that can run itself in Kansas City, MO or in any city. In every business you must put your effort to run it. In Kansas City, MO, if you start a small business around a small circle or locality, then you might get some free time.
Food trucks, coffee shops, modest real estate, and internet enterprises are the small businesses that generate the greatest revenue in Kansas City, MO. These companies are wonderful options to think about if you want to establish a small company in Kansas City and earn some nice money there.
Yes, your LLC in Kansas City, MO must have a registered agent. An individual who accepts all official correspondence on your LLC’s behalf is known as a registered agent. Having a registered agent is thus required.
A seller’s permit is inexpensive and available in Kansas City, MO. Having a permit enables you to lawfully sell goods in Kansas City. You may also need to get a number of other licenses and permissions before you may lawfully sell goods.
Businesses in Kansas City, MO who are interested in insurance should get in touch with an agent to see how much it will cost. There are many various kinds of insurance plans available, so it’s crucial to choose which is ideal for your company. Asking the agent is an excellent place to start.
Starting a small business in Kansas City, MO is not as hard as it may seem. Kansas City is a very creative city, and there are many resources to help you get started. The city offers a lot of opportunities for entrepreneurs and is a great place to start a business.
You shouldn’t relocate to Kansas City, MO unless it is for business purposes exclusively. You shouldn’t relocate to Kansas City if you can’t find the city to be the finest atmosphere for your company. You shouldn’t relocate if Kansas City cannot attract prospective customers for your company.
A company may be launched successfully in Kansas City. The cost of living is modest, and launching a company is not too expensive. Depending on the sort of company you want to establish, it might cost anywhere from $100 to $50 to get off the ground.
Small companies in Kansas City, MO, must pay a certain amount in taxes. The company structure will determine this. Businesses are required to pay a variety of taxes, including corporate income tax, franchise tax, and sales tax.
Kansas City, MO offers a variety of opportunities for working from home. As a freelance writer, graphic artist, or web developer, you may earn money. As a virtual assistant, transcriptionist, or translator, you may work from home. Additionally, you may work from home baking or as an online instructor.
It’s a terrific place to live, Kansas City, MO. This city is renowned for its people, art, culture, and, of course, its thriving economy. Living in Kansas City or moving there will allow residents and potential residents to experience a wide range of commercial, artistic, and cultural opportunities.
It’s not difficult to register a company in Kansas City, MO. Before you can begin, there are a few tasks to do. If you’re submitting online, it takes a day to register your company in Kansas City, MO.
In Kansas City, MO, for an LLC, you may act as your own registered agent. You must be older than 18 and have the right to do business in Kansas City, MO in order to register as a registered agent there.
Houston, Texas is more expensive to live in than Kansas City, MO. Kansas City offers a more affordable standard of life than Houston. Kansas City offers more affordable homes than Houston does. Houston has higher grocery prices, whereas Kansas City has cheaper prices.
Kansas City is a unique city that is home to a diverse population. It has a rich history that is reflected in the many restaurants and shops. Kansas City in Missouri is a city that is always growing, so there are plenty of opportunities for entrepreneurs to create their own small businesses.
If you look at the data from the last few years in Kansas City, MO, you can see how fast the city is growing. It is because the industries, especially the service sectors, are doing really well in Kansas City, MO. Service sectors are making the economy stronger.
Deciding whether or whether to relocate to Kansas City, MO, is a smart decision is a little tricky. You have the discretion to make a choice based on the kind of business you are doing. If you’re an aspiring entrepreneur looking to launch your own business, Kansas City presents amazing chances.
The kind of company you wish to launch will determine this. In Kansas City, MO, there might be government fees, license fees, and some other state taxes that you must be paid to start your business in the Kansas City, MO.
If you’re asking which is preferable to an LLC in Kansas City, MO, the answer is a single proprietorship. But it all depends on the kind of company you wish to launch in Kansas City, MO. You may decide if an LLC or a single proprietorship is preferable based on that.
Every LLC in Kansas City, MO, is required to have a registered agent. It may be an expert, a member of the LLC, or a family member. In their Kansas City office, this individual is in charge of picking up all the paperwork on behalf of the LLC.
Developing a company concept is the first step in starting a business in Kansas City, MO. The specifics of the kind of company you wish to launch in Kansas City, MO, should be included in a draft or business plan.
To apply for an LLC in Kansas City, MO, you must fill out an application form and submit it for approval. You’ll need to include the name of your LLC, the registered agent’s name, the address of the registered agent, and the name of the registered agent’s mailing address.
Here are some original business ideas if you want to launch a company in Kansas City, MO. You may start by selling homemade home décor, DIY items, hygiene goods, etc. online. Additionally, you may start a dog walking or pet sitting service.
In Kansas City, MO, an LLC can write off a few taxes. Some of them are business insurance, office supplies, professional travel or use of a car, home office expenses, and many more. Check with the local tax office to know more.
Kansas City, MO, is a great place to start a business. You may get support from a variety of places. The first stage is deciding what kind of company you want to start. You may always start with an LLC since it is simple to do so if you’re unsure.
LLC in Kansas City, MO is required to pay a certain amount in taxes each year. You must pay sales tax, franchise tax (not in all states), and employment tax if your LLC has workers. However, Kansas City, MO does not impose an income tax on LLCs.
Unfortunately, LLCs cannot be formed for absolutely free in Kansas City, MO. You must pay a state filing fee to the MO Secretary of State. You can be your own registered agent; hence, you can save money here.
You need a few things in Kansas City, MO, if you want to operate a company. Develop a strong business strategy first. Then, find out who your customers are and what your rivals are doing. Once your study is complete, register your firm with the state and launch it.
For those who wish to purchase somewhat unique clothing and footwear, you may create a shop in Kansas City, MO. You may market handcrafted, original clothing and footwear manufactured by independent designers. The shop may also have a small café.
In Kansas City, MO, the majority of enterprises are subject to taxation. The kind of business—such as an LLC, LLP, corporation, or partnership—determines the tax rate. Tax benefits for some firms may exist in Kansas City, MO. The kind of company will determine how that is answered.
In Conclusion
Starting a business in Kansas City is not only easy but also profitable. A large portion of the US and even people from other countries are registering their business in the US for intercontinental brand building. Besides, Missouri has a sustainable economic atmosphere that is enough to encourage newbies to start and run their businesses in Kansas City, MO.