Missouri LLC Tax Filing Requirements: Everything You Need to Know
Missouri LLC tax filing requirements must be undertaken in order to keep your business in compliance with state regulations. 3 min read
2. Information Regarding Filing Missouri Taxes
Missouri LLC tax filing requirements must be undertaken in order to keep your business in compliance with state regulations.
Steps for Filing Missouri LLC Taxes
There are steps to be taken for filing annual taxes in Missouri.
- The legal structure you choose for your LLC - sole proprietorship, partnership, or corporation - determines how it will be taxed.
- If electing to be taxed as a sole proprietorship, the income from the business is attributed to the owner(s).
- In the instance of a sole proprietorship, an owner receiving payment from the LLC must pay self-employment taxes.
- An LLC taxed as a corporation has the income taxed to the business first, then any payment made to shareholders or officers becomes taxable income.
- It is recommended that self-employment taxes and corporate income taxes be estimated and reported quarterly to the Internal Revenue Service (IRS). At the end of the fiscal year, taxes are then reconciled.
- An LLC may be treated like a corporation. Do this by filing Form 2553 with the Internal Revenue Service.
- For LLCs electing to be taxed as corporations, Form MO-1120 must be filed in Missouri.
- A single-member LLC that is considered disregarded for federal taxation purposes must report income and expenses accrued by the LLC on the member's tax return.
- In Missouri, a state tax identification number is required. Use Form 2643, which is the Missouri Tax Registration Application.
- You will need to obtain an Employer Identification Number (EIN) from the IRS to pay federal taxes.
- The state requires a MITS/MO identification number to be included when submitting any forms to the Missouri Department of Revenue.
- Withholding taxes are reported monthly or quarterly using a version of form MO-941.
- Form MO-W3 is used to reconcile the LLC's tax withholding.
- Form MODES-2699 is used to register to pay state unemployment taxes.
- Quarterly taxes are filed using Form MODES-4-7 with the Division of Employment Security (DES).
- For an LLC that is selling goods to customers, you'll need to collect and pay sales tax.
- Missouri also requires that a bond is posted with the Department of Revenue.
- If you have any questions or concerns about filing taxes, it is advised that you contact an attorney.
Information Regarding Filing Missouri Taxes
- Missouri is known for having one of the most favorable tax structures in the nation.
- Some states charge an LLC an extra tax or fee for being allowed to do business in their state. Missouri does not impose such a charge.
- Keep in mind that an LLC is considered a "pass-through" tax entity. This means paying federal taxes passes through the LLC and becomes the responsibility of the individual LLC members.
- If the LLC opts to forego the default pass-through tax process and chooses to be taxed as a corporation, a separate tax return must be filed for the LLC.
- The Missouri Department of Revenue accesses corporate taxes. The tax accessed is against all income earned by a registered company in Missouri.
- The Department of Revenue for Missouri follows the same procedures as the Internal Revenue Service, meaning, the LLC can be taxed as a partnership, corporation, or disregarded if the LLC is a single-member entity.
- The corporate tax bill for companies doing business in Missouri is generally lower than other states.
- The state of Missouri sets the rate for corporate income tax using a percentage of the net taxable income earned by a Missouri-based company.
- A franchise tax is also accessed on assets within the state of Missouri. The current rate is 1/30th of one percent of the asset base for assets more than $1 million dollars.
Q. Where do I get information about fees and forms?
A. Contact the Secretary of State Corporations Division at 600 W. Main St., Room 322, Jefferson City, MO 65101. You may also call toll free at 1-866-223-6535.
Q. When do I need to file an annual report with the state of Missouri?
A. As of 2011, an LLC registered in Missouri must file by April 15 each year. Currently, the fee is $250 payable to the Secretary of State.
Q. What is the corporate rate tax in Missouri?
A. Currently, it is a flat rate of 6.25 percent for taxable income.
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