St. Louis City Business License: Graduated Fee by Employee Count

A St. Louis City business license is required for nearly all businesses operating within the city limits. Unlike many jurisdictions, St. Louis City bases its license fee on how many employees you have, creating a graduated fee schedule that ranges from $200 for micro-businesses to $37,500 for large employers. This guide walks you through getting your license, understanding the fee structure, and meeting the city's tax obligations before you open your doors.

Why You Need a St. Louis City Business License

The St. Louis City License Collector requires a business license to operate legally within city limits. The license serves as proof that your business is registered with the city and that you have agreed to pay its two local taxes: a 1% earnings tax on net profits and a 0.5% payroll expense tax on wages paid to employees. The license term runs June 1 through May 31 each year, and your license will be withheld if you owe any city taxes, so tax compliance is non-negotiable.

The Graduated Fee Schedule: What Your License Will Cost

St. Louis City's renewal fee depends on your number of St. Louis employees during the previous calendar year, counting full-time and full-time-equivalent employees (including owners, partners and officers). Here is the renewal schedule in effect since fiscal year 2007:

Employee Count	Annual License Fee
0 to 2 employees	$200
3 to 5 employees	$325
6 to 10 employees	$675
11 to 20 employees	$1,500
21 to 30 employees	$2,250
31 to 40 employees	$3,000
41 to 50 employees	$4,500
51 to 75 employees	$7,500
76 to 100 employees	$11,250
101 to 150 employees	$15,000
151 to 200 employees	$20,250
201 to 300 employees	$25,500
301 to 400 employees	$30,000
401 to 500 employees	$34,500
501 or more employees	$37,500

New businesses do not pay from this schedule in their first year. A new business that starts between June 1 and January 1 pays an initial fee of $200, and one that starts after January 1 and up to May 31 pays $100. The graduated schedule applies at renewal.

Materials You Will Need Before Applying

Gather these items and information before you visit the License Collector or submit an application:

• Your Social Security Number or Federal Employer Identification Number (EIN), depending on your business structure
• Proof of business name registration with the Missouri Secretary of State (if you formed an LLC or corporation)
• A description of the business activity you will conduct
• The exact address where your business will operate within St. Louis City
• Your expected gross annual revenue (the city uses this to estimate your earnings tax liability)
• An estimate of the employees you will have in the city (renewal fees are later based on the prior calendar year's count)
• Your Missouri sales tax permit number (if you will sell taxable goods or services)
• Contact information for the business owner or manager

If your business structure is new (an LLC or corporation), file your Articles of Organization or Articles of Incorporation with the Missouri Secretary of State first and receive your confirmation. This typically takes one business day if filed online.

Step-by-Step: How to Get Your St. Louis City Business License

Step 1: Register with the Missouri Secretary of State (If Forming an LLC or Corporation)

If you are starting a sole proprietorship or partnership, skip to Step 2. If you are forming an LLC or corporation, file your formation documents with the Missouri Secretary of State online at https://bsd.sos.mo.gov/. An LLC filing costs $50 and is typically processed immediately or within one business day if filed online. You will receive filed articles and a charter number confirming your entity exists. Write down your charter number and keep a copy for your records, since the city application asks for your business's legal details.

Step 2: Contact the St. Louis City License Collector to Begin Your Application

The License Collector is a separate city office located in City Hall, 1200 Market Street. You can apply in person at their office, by mail, or sometimes online, depending on current procedures. Contact the License Collector's office directly to confirm the current application method, which may have changed since this article was published. St. Louis City has consolidated its business services, so the License Collector also handles merchant licenses, manufacturer licenses, and other business registrations. They will provide you with an application form or direct you to an online portal.

Note: St. Louis City is independent from St. Louis County. If your business is in the City proper, you apply to the City License Collector, not the county.

Step 3: Complete the Business License Application Form

The application asks for your business name, business address (must be in St. Louis City), type of business, number of expected employees, and estimated gross annual revenue. The city uses the employee count to calculate your license fee according to the graduated schedule. New businesses pay the flat initial fee. At renewal, part-time workers count as full-time equivalents: each group of part-time employees who together work 1,920 hours in a calendar year counts as one employee. Once you start operations, if your employee count changes in a later fiscal year, your license fee may change when you renew.

The application will also ask whether your business will conduct any activity that requires a state professional license (for example, law, accounting, real estate, contracting). If you will, the city may refer you to the relevant state board for additional licensing. Similarly, if you will sell alcohol, food, or other heavily regulated products, the city will note this and you will need to pursue those licenses separately.

Step 4: Pay the License Fee Based on Your Employee Count

Once your application is complete, you will pay the fee according to the graduated schedule. Count all full-time employees expected to be on your payroll. A new business pays $200 (or $100 if it starts after January 1). At renewal, 0 to 2 employees (counting owners, partners and officers) pays $200, and 41 to 50 employees pays $4,500. The city will not issue your license until payment is received.

If you are unsure which tier you fall into, contact the License Collector's office to confirm. They can tell you whether your employee count is calculated correctly and which fee applies.

Step 5: Register for St. Louis City Income and Payroll Expense Taxes

At the same time you apply for your business license, register with the St. Louis City Collector of Revenue for the two local taxes the city levies: the 1% earnings tax and the 0.5% payroll expense tax. The earnings tax applies to your net business income. The payroll expense tax applies to wages you pay employees. Both are calculated based on your income tax return or payroll records, so you will need to file returns with the city. The License Collector's office can direct you to the tax registration system or provide a form.

If you do not register for these taxes before your license is issued, your license may be withheld, and you could face penalties. Ensure you complete tax registration as part of your license application process.

Step 6: Confirm Receipt and Keep Your License Handy

Once your application is approved and payment is received, the License Collector will issue your license. Some jurisdictions provide a physical certificate; others issue digital proof. Either way, keep a copy accessible at your business location. Some city inspectors or auditors may ask to see it during a business visit.

Your license is valid from June 1 through May 31 of the following year. You will need to renew it each year. Start the renewal process in late April or early May to avoid gaps in your licensing.

Tips and Common Mistakes to Avoid

Tip 1: Understand the Employee Count Carefully

The License Collector counts full-time and full-time-equivalent employees, including owners, partners and officers, who worked in the City during the previous calendar year. Part-time employees are combined: each group that together works 1,920 hours counts as one employee. If you hire more employees this year, your fee may increase at next year's renewal. Plan your budget accordingly.

Tip 2: Do Not Confuse City License with State or County Requirements

A St. Louis City business license is separate from Missouri state registration (LLC formation or corporation filing). It is also separate from St. Louis County licensing if your business operates in both places. If you have a physical location in St. Louis City and nowhere else, you need only the city license. If you have locations in multiple counties or in unincorporated areas, you may need additional licenses. Check with the License Collector for clarification.

Tip 3: Budget for City Taxes, Not Just the License Fee

The license fee is a one-time annual charge. However, you also owe the 1% earnings tax and 0.5% payroll expense tax throughout the year. If you operate a sole proprietorship netting $50,000 in annual profit, you will owe approximately $500 in earnings tax ($50,000 times 1%) to the city. Do not assume the license fee is your only city tax cost.

Common Mistake 1: Waiting Until After June 1 to Apply

You must obtain the license before you begin business activity. A business that starts after January 1 pays a reduced $100 initial fee, but the license still expires May 31 and the renewal is due before June 1, with late filing penalties of 5 percent per month and closure procedures starting June 15 for businesses operating without a valid license.

Common Mistake 2: Not Registering for City Taxes

Many new business owners focus on the license fee and forget to register for the city income and payroll taxes. The city will withhold your license if you have not registered for these taxes. Even if you have not yet earned income or hired employees, register during the application process to avoid delays.

Common Mistake 3: Miscounting Employees

A low employee count saves you money on the license fee. However, if you miscount and the License Collector's office later verifies a higher count during an audit, you may owe back fees and penalties. Count every full-time and full-time-equivalent St. Louis employee from the previous calendar year, including owners.

Expected Results and Timeline

Once you submit your application and payment, processing time varies, so ask the License Collector's office what to expect. Some offices may process applications faster if submitted in person or online compared to by mail. After approval, you will receive your license (either as a certificate, email confirmation, or online portal access, depending on the office's method). Your license becomes valid on the date issued and remains in effect through May 31 of the next calendar year.

You should budget for the license fee to be paid before or shortly after you open for business. Many landlords or commercial real estate managers ask for proof of a valid business license before allowing you to occupy a space, so obtain it early in your setup process.

Each year during the months of April and May, the License Collector will send you a renewal notice. Renew your license before June 1 to avoid operating without a valid license. If your employee count or business activity has changed, update your information on the renewal form. If your employee count has increased, your renewal fee will reflect the new tier.

Additional Considerations

Missouri Sales Tax

If you sell taxable goods or services, you will also need to register for a Missouri sales tax permit with the Department of Revenue. The state sales tax rate is 4.225% (plus any applicable local sales taxes). Obtaining a sales tax permit is a separate process from the St. Louis City business license, but both are necessary if your business model includes taxable sales. Register at https://dor.mo.gov/register-business/.

Professional or Regulated Licenses

If your business requires a professional license (such as a contractor's license, real estate license, or food service permit), the St. Louis City business license does not replace those. You must obtain them separately from the appropriate state or local agency. The License Collector's office can point you toward the right agency if you are unsure.

Small Business Support

Once you have your license in place, the Missouri Small Business Development Center (Missouri SBDC) at https://sbdc.missouri.edu offers free consultations and training to help you manage your business, navigate taxes, and plan growth. They can answer follow-up questions about compliance and best practices for St. Louis-based businesses.

Disclaimer

This article is informational and not legal or tax advice. St. Louis City licensing rules, fee schedules, and tax rates can change. Before applying for your license, confirm the current requirements and fees by contacting the St. Louis City License Collector directly. Consult a qualified tax professional or attorney to discuss how city taxes and licensing affect your specific business situation, particularly if you operate in multiple jurisdictions or have a complex business structure.

Resources

• St. Louis City License Collector: Contact the License Collector's office for current application procedures and fee confirmation.
• Missouri Secretary of State (LLC and Corporation Filing): https://bsd.sos.mo.gov/, File formation documents for LLCs and corporations.
• Missouri Department of Revenue (Sales Tax): https://dor.mo.gov/register-business/, Register for a sales tax permit if you sell taxable goods or services.
• Missouri Small Business Development Center: https://sbdc.missouri.edu, Free consultations and resources for St. Louis business owners.