Wholesalers must be registered and licensed to do business in Kansas City, Missouri. The first step is to submit a Registration Application (
Form RD-100).
Form RD-100 can be submitted electronically on
Quick Tax or in person to the Business License Office at 1118 Oak Street, Kansas City, Missouri 64106. A
Zoning Clearance is required for a wholesaler located in Kansas City, Missouri.
Once the application is processed, the appropriate tax accounts will be created and you will receive a notice listing your account numbers to reference on returns you file and when communicating with the Revenue Division.
To obtain a license, new businesses are required to file
Form RD-105 no more than 60 days after opening in Kansas City, Missouri. A business license must be renewed each year by filing
Form RD-105 prior to March 1. The cost of a license is determined by the amount of gross receipts from the prior calendar year using rate Table A included with the form.
Tips
- A wholesaler located in Kansas City, Missouri should include both “destination sales” (i.e. sales delivered to a point within Kansas City, Missouri) and “origin sales” (i.e. sales originating in Kansas City, Missouri and shipped to a point in the State of Missouri) as gross receipts.
- A wholesaler that is not located in Kansas City, Missouri (and has no employee presence) should only include “destination sales” delivered into Kansas City, Missouri with their own trucks as gross receipts. If the goods are shipped into Kansas City, Missouri only by common carrier (i.e. USPS, UPS, Fedex, etc.) a business license is not required.
Resources
Code of Ordinances,
Chapter 40, Article IForm RD-108/ 108B is a tax return filed annually and is used to pay the 1% earnings tax on the net profits of a business. The return is due by April 15 of each year and is required even if there is a loss. If you file income taxes on a fiscal year basis, the return is due 105 days from the end of your fiscal year.
Extensions of time to file may be requested by submitting Form RD-111. Extension requests are granted to provide an additional six months to file. They are not an extension of time to pay the tax due. A payment of at least 90% of the tax due must be submitted with Form RD-111 to avoid penalty and interest. This request is separate from an extension request submitted to the IRS for federal income tax purposes and should be sent directly to the Revenue Division. The IRS does not send this information to municipalities.
Tips
- Wholesalers should only report their “destination sales” (i.e. sales delivered to a point within Kansas City, Missouri) on Line 24 B of Schedule Y on Form RD-108B.
Resources
Code of Ordinances, Chapter 68, Article VI
Earnings and Profits Tax Regulations
