Having a Missouri LLC is a better and cheaper option than having other business structures. A limited liability company (LLC) reduces the owners’ personal liability and protects their personal assets. One can start an LLC in two ways, domestic LLCs or foreign LLCs (LLCs in more than one state). By following some basic steps, you can easily form an LLC in Missouri.
On this page, you’ll learn about the following:
- How to Start an LLC in Missouri
- After Starting your Missouri LLC
- Missouri Foreign LLC
- Why an LLC in Missouri
- Best Businesses in Missouri
- Missouri LLC Formation Review
How to Start an LLC in Missouri
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. This section gives you a step-by-step guide on how to start an LLC in Missouri.
Step 1: Decide a Name for Your LLC
Deciding on a business name is the first step to start an LLC. In Missouri, before you name your LLC, it is important to note a few things. Firstly, make sure the name is available to use. If the name is available, then check if the name complies with all the Missouri business naming requirements. Once you pass through them, you can successfully name your business.
Why do you need a proper business name?
If you want your LLC to have special identification, your company name is essential. However, many people face lots of issues by avoiding focus on choosing a business name for their LLC business formation filings.
Because of this, here are some of the major benefits of choosing the best LLC corporate names.
- To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
- After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
- You can only get the EIN number when you have your name registration certificate with you.
Requirements when deciding a name for your LLC
LLC Name Search: A business name search is required to check if the desired name is available or not. If the name is available then the business owner has to fill up a name reservation form and send it to the Secretary of State, Missouri. To do the name search, one has to visit the Business Entity Search page on the official Secretary of State website. Send the name reservation form to the below address by mail to reserve your LLC name in Missouri. The cost of a name reservation is $25.
Important Quick Links:
Attn: Corporations Division
P.O. Box 778
Jefferson City, Missouri 65102
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Step 2: Assign a Registered Agent in Missouri
A registered agent, or business entity, is a person that will act or work on your behalf. This person or business will receive significant tax forms, legal forms, formation documents, any internal document, a notice of lawsuits, and other official government correspondence in Missouri. Choosing a Missouri registered agent for service of process for your LLC is required.
Make sure your registered agents are residents of Missouri having a physical street address. It could also be a business. Here are the recommended agents and employees for you:
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Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Missouri. Compare them to check the best yet cheapest option for you. Besides, they can guarantee you professional service because they have been in the business for years.
Step 3: File Articles of Organization in Missouri
A Certificate of Name Reservation is needed to file Articles of Organization, as other states call it. You need to make reports of this certificate with the Missouri Secretary of State, which costs $50. You may file them online or by mail.
This Missouri Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in Missouri, like if it is a member-managed or managers-managed. LLCs with employees are needed to check the Missouri government portal for rules to hire employees in Missouri.
Before you start filings, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Missouri LLC will offer.
How to File Online
Go to the Secretary of State Online Service. Select “non-subscriber.” Fill out the online form. The website will alert you if your county does not support online filings after selecting your principal county. To know more about online filing, visit the Missouri Certificate of Formation.
How to File by Mail
If you prefer filing real-life forms for your Missouri LLC registration, then you can download the Missouri Limited Company Certificate of Formation. Read the form thoroughly and fill it out. It will have to fill, among others, your name, city, state, zip code, and signature. You may also file in person by visiting the office on business days.
Mail To: Corporations Unit
James C. Kirkpatrick State Information Center
P.O. Box 778
Jefferson City, MO 65102
Step 4: Create Your Missouri LLC Operating Agreement
An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to an LLC operating agreement Missouri does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all your details of business operation. This document would be useful if you decide to dissolve Missouri LLC later.
Step 5: Filing a Missouri LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes and taxes in general. It is like a Social Security number dedicated to a business’ taxes. The EIN is necessary for any active business or any form of business for that matter.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Before sending the form, ask for EIN Assistant. Enter details of your LLC, and finally complete the form and send it to the address given.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
And that’s all! Congratulation, you are now done with all the necessary steps to form your Missouri LLC. If you still haven’t used a professional service from here, I strongly recommend having one to handle the remaining tasks.
After Starting your Missouri LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File Missouri business permits & licenses
- Get liability for business and professional liability insurance with coverage for employees
- File a Missouri LLC annual report or biennial report
- Already existing LLCs that wish to operate in Missouri must register as Missouri foreign LLC.
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
Missouri Foreign LLC
To register a Missouri foreign LLC, one has to file the foreign LLC formation certificate with the Secretary of State, Missouri. Forming a foreign LLC allows you to operate your business in more than one state in the USA as a single business entity. Check Missouri Foreign LLC to know more about having a foreign LLC.
Why an LLC in Missouri
The concept of LLC in Missouri is new in LLC locations, but many people are turning to this option. According to reports, this state is becoming famous for its higher ROI and lower cost, which a person must bear for operations.
The state tax climate ranking of the state is fair enough to become a point of attraction. Other than the reduction in tax liabilities and various business funding options, there are many attractive benefits of Missouri State which are discussed below.
Manufacturers get an exemption from the sales tax
If a manufacturing unit is forming an LLC in Missouri, they should know that they will get a sales tax filing benefit. The government waives off the whole tax that they are about to file in on the product’s manufacturing. Along with that, some local usage tax is also lifted from them.
Working program in Missouri
When a new LLC is formed, then the government helps them in the task of generating jobs. In this way, the government helps the local people to get jobs in private businesses. On the other, by providing incentives, the state is helping the LLCs to expand their business. The benefit they will get is saving the state withholding tax that they have to pay as the government provides credit.
Benefits for charging points
LLCs in Missouri that are operating for installation of Charging Points at the fuel points will be benefited from the government of Missouri. Businesses will receive tax credits of $22,000 or 20% of the total cost. To get this credit or to enjoy the benefits, one has to be qualified for the program.
A load of formalities is less
There are many formalities that every LLC has to go through, which are set by the state they are operating. If these formalities are not completed by the LLCs properly, it can cause an issue for them, but in Missouri, one can get over these formalities. They are as follows.
- The LLC’s duties to impose on a person can be easily shifted, and the terms and conditions can be altered. All of these are handled by the top managing members of the LLC.
- The interest of a business can be transferred freely without any hassle.
- Annual reports are not required to be filed with the secretary of state.
- The annual manager or member meetings are also not necessary.
Best Businesses in Missouri
Are you about to start an LLC in Missouri? If yes, you must gain knowledge regarding the economics of the state and industries contributing the most to the state GDP. Here is a list of those top industries.
Forestry and Agriculture
If you look at the state’s forestry and agriculture industry, its total contribution is around $88.4 billion. There is a huge plantation of crops of cotton and soybean in the state. Other than the crops, Missouri is ranked at number 2nd in beef production and 6th in turkey production around the country.
Also, the forestry sector contributes around $10 billion to the country’s economy, out of which $170 million is the export value, which is grown to around 8% from the previous year.
Real Estate Rental and Leasing
The real estate and renting businesses have grown rapidly in the state, contributing around $35.6 million to the state GDP. People, instead of investing much in the property, are much willing to rent a property. It can be for their personal space or their professional space. Along with the rental sector, the legal industry has also got a little boost before renting the real estate space. You need to make a lease which is the work of a legal advisor.
The state of Missouri is contributing hugely to aerospace and defense. There are more than 80,000 people who are employed in the industry. There is a Boeing Defense space and security assembly station which is employing most of the employees. Also, an aviation maintenance center in the state has a considerable contribution to the economy.
Some of the small businesses that have great scope in Missouri state are:-
- Moving Company
- Hogs Business
- Photo Editing Business
- Speech Writing Services
Missouri LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Missouri. Click on the steps in this list to read the full detail.
- Name your Missouri LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a registered agent
In Missouri, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
- File a formation certificate
Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create operating agreement
An operating agreement is not a strict requirement but something encouraged when you start an LLC.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
If you are a resident of Missouri, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $50 (domestic LLC) and $105 (foreign LLC), LLC costs in Missouri do not include any Annual fee as it does not require any annual report. LLCs are liable to pay sales tax of 6.225% every year
It takes no time (immediately) to get a Missouri LLC if you file it online. For the mail filing, it takes 5 to 6 business days to get an LLC.
Every year all the LLC have to submit an Annual Report in other states. But for Missouri, LLCs have to fill up a renewal form (costs $7) and submit it to the Missouri Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start their LLC in Missouri at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, leave a comment below.