Franklin County, Missouri Merchant License: Washington, Union, Pacific

Starting a retail or service business in Franklin County, Missouri requires a merchant license from your local government. Unlike many states, Missouri has no statewide business license. Instead, Franklin County and its municipalities handle licensing locally. This guide covers merchant license requirements for Washington, Union, and Pacific areas within Franklin County.

Franklin County Structure and Licensing Authority

Franklin County is a rural Missouri county with a county seat in Union. The county government and individual cities within it each issue separate licenses and permits. The Franklin County Collector, located in Union, issues merchant and manufacturer licenses for unincorporated areas of the county. Cities like Washington and Pacific have their own separate requirements for businesses operating within city limits.

This means a business may need licenses from both the county and the city, depending on the business location. If your business is in Washington city limits, you need a Washington city license. If you operate in unincorporated Franklin County, the Franklin County Collector issues your merchant license. Understanding your exact location matters for licensing purposes.

Franklin County Merchant License: County-Issued

The Franklin County Collector issues merchant and manufacturer licenses for businesses in unincorporated areas of the county. A merchant license covers retail businesses, service providers, and most other for-profit enterprises. The license is generally required before you open for business.

The merchant license fee from the Franklin County Collector varies by county policy. Most Missouri counties charge around $25 for a merchant license, but confirm the exact fee directly with the Franklin County Collector's office in Union. Missouri county merchant's licenses are renewed each year, so plan for an annual renewal with the Collector.

To apply for a Franklin County merchant license, contact the Franklin County Collector's office in Union at the county courthouse. You will need to provide your business name, business address, the type of business you operate, and the ownership information. Some counties request an estimated annual revenue or number of employees. Processing is typically completed within days.

Washington City Merchant License

If your business operates within the city limits of Washington, Missouri, you must obtain a Washington city merchant license in addition to or instead of a Franklin County license, depending on your location. Washington is an incorporated city with its own licensing requirements separate from Franklin County.

The Washington city license fee, renewal requirements, and application process differ from the county. Contact the City of Washington's city clerk or business licensing department to obtain current fee information and application procedures. City licenses typically require an annual renewal, as the county license does.

Washington's city hall or business office can confirm whether your specific address falls within city limits and provide instructions for local licensing. Some businesses near city boundaries need to verify whether they are in the city or unincorporated county area before applying for the correct license type.

Pacific City and Other Municipalities

Pacific, Missouri is a separate incorporated city within Franklin County with its own city government and licensing requirements. If you operate in Pacific, contact the City of Pacific for merchant license requirements, fees, and application procedures. City licensing usually involves applying directly to the city clerk or a dedicated business licensing office.

Other smaller municipalities within Franklin County may also have local licensing. Always confirm your city's specific requirements before opening for business, as each city sets its own fees and processes.

Sales Tax Registration: Department of Revenue

Separate from a merchant license, any Franklin County business that sells tangible personal property or taxable services must register for a Missouri sales tax license with the Missouri Department of Revenue. This is required even if your city or county does not require a merchant license, and it is required whether or not you have employees.

Missouri's state sales tax rate is 4.225 percent, but Franklin County and its cities add local sales taxes. The combined rate in Union (the county seat) is higher than the state rate alone. Washington and Pacific may have different combined rates depending on local option taxes. Check the Department of Revenue website to confirm your area's exact sales tax rate.

Register for a Missouri sales tax license online through the Department of Revenue at https://dor.mo.gov/register-business/. You will need your business address, federal employer identification number (EIN) or Social Security number, business type, and an estimate of monthly sales. Online registration is free and typically completed immediately. You will receive a certificate of registration to display at your business location.

A sales tax license is not optional if you sell taxable goods or services. Operating without one exposes your business to penalties from the Department of Revenue.

Complete Cost Breakdown for Franklin County

Item	Fee	Notes
Franklin County Merchant License (unincorporated areas)	Verify with county	Typically around $25; contact Franklin County Collector's office for current fee
Washington City License (if applicable)	Verify with city	Contact City of Washington for current fee and renewal schedule
Pacific City License (if applicable)	Verify with city	Contact City of Pacific for current fee and renewal schedule
Missouri Sales Tax License	Free	Register online at Department of Revenue; no fee to obtain certificate
Federal EIN (if needed)	Free	Apply online at irs.gov; no cost, immediate in most cases

The total upfront cost for licensing in Franklin County is minimal. The merchant license is the largest cost, typically under $50. Many new businesses spend less than $50 to obtain all required licenses before opening.

Employer Withholding and Unemployment Insurance

If you hire employees, you must register for payroll withholding and unemployment insurance, separate from your merchant license. Missouri employers must withhold state income tax from employee paychecks and remit it to the Department of Revenue.

New employers must register with the Missouri Division of Employment Security for state unemployment insurance. This is also free to register but is mandatory if you have employees. Register online once you become liable as an employer.

These registrations are in addition to federal requirements like the federal EIN and federal payroll withholding, which all employers must handle through the IRS.

Application Timeline and Deadlines

Franklin County merchant licenses are typically issued within days of application. There is no waiting period or processing delay. Sales tax registration from the Department of Revenue is usually immediate for online applications.

Plan to complete all licensing applications before your opening date or before you begin serving customers. It is illegal to operate without a required merchant license or sales tax registration, so do not plan to operate during a licensing gap.

Applications submitted on Friday may not be processed until the following business week. Plan accordingly if your opening date is close to a weekend or holiday.

How to Apply: Step-by-Step

1. Determine your location (city limits or unincorporated county area).
2. If in unincorporated Franklin County, obtain the merchant license application from the Franklin County Collector in Union.
3. If in Washington or Pacific city limits, contact the relevant city's business licensing office.
4. Complete the application with business name, address, owner information, and business type.
5. Submit the application and fee (if any) to the appropriate office.
6. Receive your license; this is not a certificate you receive later but a license issued immediately upon approval.
7. Register for a Missouri sales tax license online at https://dor.mo.gov/register-business/.
8. If you hire employees, register for unemployment insurance with the Missouri Division of Employment Security.
9. Post your sales tax certificate and merchant license visibly in your business location.

Frequently Overlooked Requirements

Many new business owners in Franklin County overlook the sales tax registration requirement. Even if a city does not require a merchant license, the state requires a sales tax license if you sell taxable products or services. Failure to register results in penalties, so do not skip this step.

Confirm your exact location before applying. A business a few blocks outside city limits needs a county license, not a city license. Applying for the wrong license wastes time and requires starting over with the correct office.

Some businesses believe they need a Franklin County license and a state business license. Missouri has no statewide business license, so do not search for one. County and city licenses are all you need, plus sales tax registration.

Key Resources

• Franklin County Collector (Union): For merchant licenses in unincorporated Franklin County. Located at the Franklin County courthouse. Contact information and hours are available through Franklin County government.
• City of Washington: For merchant licenses within Washington city limits. Contact the Washington city clerk or business licensing office.
• City of Pacific: For merchant licenses within Pacific city limits. Contact the Pacific city clerk or business licensing office.
• Missouri Department of Revenue: https://dor.mo.gov/register-business/ for sales tax registration.
• Missouri Division of Employment Security: For unemployment insurance registration if you have employees.
• IRS: https://www.irs.gov/ for federal EIN and payroll withholding setup.

Disclaimer

This guide provides informational content about merchant licensing in Franklin County, Missouri, based on general Missouri business formation requirements as of October 2026. It is not legal or tax advice. Local requirements, fees, and processes change, and individual circumstances vary. Confirm all current fees, requirements, and procedures directly with the Franklin County Collector, the relevant city government, and the Missouri Department of Revenue before applying. Consult a qualified attorney or tax professional if you have questions about your specific situation or business structure.