LLC in Missouri: Everything You Need to Know
An LLC in Missouri is governed by the Missouri Revised Statutes. An LLC structure has several advantages, including the protection of your personal assets.3 min read
2. Additional Tax and Regulatory Requirements
An LLC in Missouri is governed by the Missouri Revised Statutes under Chapter 347 Limited Liability Companies – Title XXIII. This type of business structure has several advantages, including protection of your personal assets if the business is sued. The LLC can be used to either operate a business or hold assets, such as property, boats, aircraft, or vehicles. Forming an LLC in Missouri is easy and straightforward.
Steps in Forming an LLC: Overview
There are several steps that must be followed when you form your LLC in Missouri, including the following:
- Choose your business name
- File the Articles of Organization
- Appoint a registered agent
- Prepare the Operating Agreement
The Articles of Organization has a filing fee of $50 for filing online and $105 for filings that are done on paper and subsequently faxed or mailed. If you choose to file online, there is a $1.25 additional “convenience” fee. The turnaround time is approximately 5 to 7 business days. Unfortunately, the state doesn’t offer expedited processing.
In the State of Missouri, the registered agent can be a resident of the state or a foreign corporation that is authorized to conduct business in the state. You can also elect a member of the LLC (who is located in the state) to act as the registered agent.
Regarding the Operating Agreement, this is now a required step in the state of Missouri as of 2018. While a lot of states don’t require this, Missouri requires that you draft this agreement, which can be either verbal or written. The agreement should include membership rights and roles, voting rights, membership interest, liabilities, and other important decision-making processes of the business.
Additional Tax and Regulatory Requirements
There are additional tax and federal/state/local requirements that might be required after you form your business. Such requirements could include:
- Obtaining an Employer Identification Number
- Obtaining business licenses
- Obtaining business permits
- Registering with the Department of Revenue if you have employees or sell products
- Registering for unemployment insurance if you have employees
- Registering for state income tax withholding if you have employees
- Obtaining general liability insurance if you choose (usually done when the LLC has employees)
- Registering for Missouri state taxes
After completing the above-mentioned steps, you will need to ensure that you abide by any additional tax and regulatory requirements that apply to your LLC. For example, if you operate a single-member LLC, then you are not required to obtain an Employer Identification Number (EIN) unless you have employees. However, if you operate a multi-member LLC (2 or more members), then you will need to apply for an EIN, even if you don’t intend to hire any employees.
This number is required when filing state and federal taxes. Additionally, banks might require the LLC to have an EIN before agreeing to open a business checking account. You can obtain this number for free on the IRS website after you form your business. If you choose to mail or fax the form, you can also submit the document in this manner.
You might also be required to obtain a business license for your business, along with other state and local business licenses. Therefore, you should contact the Secretary of State in Missouri to find out what permits and licensing you need to obtain before conducting business in the state. You can also view the U.S. Small Business Administration guide to federal business licenses and permits. You can also locate your local Chamber of Commerce and ask about what is required of you. Alternatively, you can use a professional service to research what business licensing and permits are required for your LLC.
Some businesses with employees or those selling products to the public will need to register with the Missouri Department of Revenue (DOR). You can apply online on the DOR’s Business Registration website or submit Form 2643 via mail.
If you have employees working for your LLC, you will need to apply for unemployment insurance tax and state income tax withholding. Another type of insurance you should think about obtaining is general liability insurance. You will also have to apply for Missouri state taxes on the Missouri online business registration center website. If you are a company selling your products, the sales tax rate is 7.18% (4.23% state tax and average local tax of 2.95%).
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