How do you define when a person is in business?
A person shall be deemed to be in business in the City of Salem when they are selling goods or services, soliciting business, or offering goods or service for sale or hire, or using any vehicle or premises in the city for business purposes. (City Code, Sec 7-1, Business Regulations and Licenses)
When are Business License Fees Due?
(a) The date by which all renewals of business licenses covered in this Chapter shall be made will be January 31 of each year.
(b) Any licenses of active business for which application for renewal shall not have been made by February 1 of that year shall be deemed delinquent.
(c) There shall be added to the fee for the new license or for any license whose renewal is deemed delinquent a charge of 1% of the license fee; and on the first day of each successive month another 1% of the license fee shall be added to the fee for the new license, such charge, however shall not exceed 10% of the license fee in any one year.
According to City Code Sec. 7-17, Business License-Renewal Date; Delinquent Fee;
How does a new business apply for a license?
To apply for a Business License, an application must be completed along with the appropriate supplemental forms. Applications are available at the City Clerks Office, 400 N Iron St. in the City Administration Building, Salem. MO 65560, by calling 573/729-5211 or download a Business License Application form in Adobe Acrobat (.PDF) format.
Complete the forms and return to the City Clerk’s Office along with the proper payment. Your business license will be issued after payment has been received and all required information has been obtained, and upon application approval by the City Clerk. This license must be posted in a conspicuous location at the place of business.
How much are the application fees?
• The fee is $25.00 per year.
Do I need to provide Proof of Workers' Compensation insurance?
Proof of Workers' Compensation insurance, in the form of a Certificate of Insurance, must be provided by all construction industry businesses with one (1) or more employees.
Missouri Tax ID Number – The State of Missouri requires that all businesses selling a product and collecting taxes to complete a Missouri Tax Registration. Registration forms are available from www.dor.mo.gov or by calling (573) 751-5860 the Mo Department of Revenue, PO Box 3300, Jefferson City, MO 65106-3300, or email firstname.lastname@example.org
Section 7-23 Posting or display of licenses
Every licensee under this Chapter shall post and maintain his license upon the premises in a place where it may be seen at all times. Every licensee under this Chapter who does not have licensed business premises shall carry his license on his person and shall display it to city officers having authority to enforce this Chapter and to persons with whom he transacts business at their request.
BUSINESSES THAT COLLECT SALES TAX need a copy of your State of Missouri Retail Sales License, which identifies your Missouri Tax ID Number, along with the completed application and license fee.
BUSINESSES THAT PROVIDE ONLY A SERVICE need only provide the completed application and license fee.
CONTRACTORS need to provide a copy of your Certificate of Proof of Workers Compensation Insurance mandated by law or provide the Notarized Affidavit of Exemption for Worker’s Compensation Insurance pursuant to Missouri State Statute 287.061, which I have provided a copy for you. Failure to provide the Certificate of Insurance or Affidavit of Exemption will cause your application to be denied and returned to you. The City is required to have this proof before a license is issued according to State Statute 287.061. If at anytime during the period your license is in effect, your Workers Compensation Insurance expires, it is your duty to provide a copy of your new Proof of Insurance to the City of Salem.
FEIN - You may be required to obtain a Federal Employer Identification Number (FEIN). The FEIN is issued by the Internal Revenue Service (IRS). The FEIN is used to identify taxpayers who are required to file various business tax returns. Employers, corporations, partnerships, limited liability companies, trusts and estates, and other business entities are required to have a FEIN. Domestic employers are not required to obtain a FEIN. For more information, regarding FEIN’s or to obtain a number online, clicks on the following IRS link. Federal Employer Identification Number (FEIN) http://www.irs.gov/businesses/small/
Completed application, license fee and all other required forms, should be returned to the City Clerk no later than January 31, otherwise it will be considered delinquent February 1.
No application can be processed without all necessary forms being returned.
How long is a business license valid?
The term of a Business License is January 1 of each year until the 31st of December each year. A renewal notice shall be mailed to each licensee on or before January 1 informing him/her that the license shall expire on December 31 unless otherwise renewed. For each month that such license fee remains unpaid, a fee of 1% per month, up to 10% per year of the business license fee is assessed.
Mary Happel, City Clerk
Fax: (573) 729-5371