Before you start an LLC in Missouri, there are a few important steps to should take to ensure that your business is set up correctly and to avoid any potential delays.
The Missouri Limited Liability Company Act, which has been in effect since 1997, provides the rules and regulations governing LLCs operating in the state. The act clearly outlines the differences between LLCs and corporations and explains what you can expect during the process of forming an LLC.
It is important to familiarize yourself with this act before starting your LLC in Missouri.
Missouri LLC Formation – How To Get Started
Starting an LLC in Missouri can provide many benefits for your business, including limited liability protection and potential tax savings. Before forming an LLC, it is important to consider the requirements and steps involved in the process.
To form an LLC in Missouri, you must first choose a unique name for your business and ensure it is not already in use by another company. You can search the Missouri Secretary of State’s website to check the availability of your desired name.
Once you have chosen a name, you must file articles of organization with the Secretary of State. This document includes important information about your LLC, such as the names of the members and the registered agent.
After filing your articles of organization, you will need to draft an operating agreement. This document outlines the rules and regulations for your LLC, including how decisions will be made and how profits and losses will be distributed among members.
Once your LLC is formed, you will need to obtain any necessary licenses and permits to operate your business. This may include a business license from your city or county, as well as any industry-specific permits or licenses.
In addition to the initial steps involved in starting an LLC in Missouri, it is important to keep in mind ongoing requirements for maintaining your LLC. This may include annual reporting and tax obligations, as well as maintaining records and following all state laws and regulations.
Generally, starting an LLC in Missouri can provide many benefits for your business, but it is important to carefully consider the requirements and steps involved in the process. By understanding the requirements and planning carefully, you can set your LLC up for success.
It is important to understand that not all businesses are eligible to be formed as LLCs. In Missouri, your business must meet certain requirements in order to be eligible to form an LLC.
Additionally, it is important to note that an LLC may not be the right choice for every business. It is always a good idea to consult with a qualified attorney or accountant to determine whether an LLC is a right choice for your business.
This blog post is intended to provide helpful information and resources for starting an LLC in Missouri, but it should not be considered legal advice. If you have any specific questions or concerns about forming an LLC, it is best to consult with a qualified professional.
Benefits Of Starting A Missouri LLC
Before going further, let’s talk about the benefits of starting a Missouri LLC.
Limited Liability Protection
Starting your Missouri business as a limited liability company (LLC) provides you with limited liability protection. This means that if your business is sued for something you did while operating it, your personal assets such as your car or house will not be at risk of being seized to pay for any damages.
Instead, the business itself is liable for paying out any damages. This benefit is one of the reasons many entrepreneurs choose to start their businesses as LLCs.
Taxation Flexibility
As an LLC in Missouri, you have the flexibility to choose how your business will be taxed, whether as a Sole Proprietorship, Partnership, or Corporation.
This can be especially beneficial for start-ups, as it allows you to avoid the need to find an accountant or other tax professional right away. Note that Single-Member LLCs are treated as Sole Proprietorships by default.
Minutes Of Meetings Is Not Compulsory
Another benefit of starting an LLC in Missouri is that you are not required to keep minutes of meetings. This means that members of your LLC do not need to travel for regular meetings, saving time and effort.
Instead, members are only required to follow the operating agreement, which does not require a significant time commitment. This can make running an LLC in Missouri more convenient and efficient.
Main Requirements To Form A Missouri LLC
1. Name Your Missouri LLC
One of the first steps in forming a Missouri LLC is choosing a name for your business. This can be a fun process, but it is important to keep in mind that there are rules you need to follow. If the Missouri Secretary of State rejects your proposed name, you will need to start the filing process again. To avoid this, make sure your proposed name meets the requirements set by the state.
When choosing a name for your Missouri LLC, there are several guidelines you must follow according to state law. Your LLC’s name must be distinguishable from any other registered business in Missouri, and it must contain a designator indicating that it is an LLC (such as “Limited Company” or “LLC”).
Additionally, the name must not imply that your LLC is a different type of business entity, and it cannot imply that the LLC is a governmental agency. You also cannot use words or phrases that suggest your LLC is organized for purposes other than those stated in its Articles of Organization.
How To Find A Good Name
If you want to find out if the business name you have in mind is available in Missouri, you can conduct a business search through the state. If you are not ready to register your business yet, you can reserve the name for 60 days by completing an application and paying a filing fee. If you are unsure about the process, you can use a business name reservation service to handle it for you and check if your desired name is available.
Check For Trademarks
To ensure that your LLC’s name is available for use, you should check for trademarks at the federal and state levels. The United States Patent and Trademark Office website can be used to check if anything similar to your desired name has been trademarked at the federal level.
To check for state trademarks in Missouri or apply for a state trademark, you can contact the Missouri Secretary of State office. Additionally, you can conduct independent research or consult a trademark attorney to confirm that the name you want is not already in use.
Check For Domain And Social Media Handles
When choosing a name for your Missouri LLC, it is important to consider whether a domain name is available that matches or is similar to your desired name. Having a website with a URL that is easy to remember and relates to your business name can be important for potential clients who may search for your business online.
You can use a domain name search tool to see if your desired name is available as a URL, and if not, consider other options. It may even be worth naming your business after an available domain name.
Furthermore, you should check for available social media handles on platforms like Instagram, Facebook, and Pinterest to ensure effective online marketing.
Namecheap domain name service can help you find and purchase a domain name, create a business website, and provide domain name privacy.
2. Choose A Registered Agent
To fulfil the requirements of Missouri, you must name an individual or business entity as your LLC’s registered agent. This person or entity must be responsible for receiving service of process and other legal notices on behalf of your LLC.
The registered agent must have a physical street address in Missouri, and this address must be registered with the state as the registered office for your LLC. Note that the registered office does not have to be the same as your business address. It is important to have a registered agent and registered office in order to ensure that your LLC is in compliance with state regulations
Who Can Be Your Registered Agent?
According to Missouri law, a registered agent may be either an individual resident of Missouri with a business office that matches the entity’s registered office or a corporation authorized to do business in Missouri with a business office that matches the entity’s registered office.
The registered agent must be available to accept legal notices in person at the registered office during normal business hours. It is the responsibility of the entity to keep the agent information current and to file a statement of change of registered agent if necessary, along with the written consent of the new agent.
There is no big deal about this. We will show you how to get a registered agent for your Missouri LLC as a US resident or non-US resident.
3. File The Articles Of Organization
To create a Missouri LLC, you will need to file Articles of Organization with the Missouri Secretary of State. To do this, you will need to create an account on the Business Registration Online Portal on the Missouri Secretary of State website.
In your Articles of Organization, you will need to provide the following information:
- The name of your company
- The purpose of your company (you can either list specific purposes or use a general statement like “to transact any or all lawful business for which a limited liability company may be organized under the laws of the State of Missouri”)
- The name and address of your registered agent (no P.O. boxes allowed)
- Whether the LLC will be managed by its members or managers
- The duration of the LLC (if you don’t want it to be perpetual)
- The names and street addresses of all organizers
- The name and address to return the filed document
- The effective date of the LLC (you can choose a future date up to 90 days from the time of filing if you don’t want the LLC to be created immediately)
- The signatures of all organizers
- Whether you want to form a Series LLC (a parent LLC that shields multiple separate entities from each other’s liabilities, available in certain states including Missouri)
Once you have completed and submitted your Articles of Organization, you will need to pay the required filing fee. Once the state approves your online filing, your LLC will be official. Note that the information you provide in your Articles of Organization becomes a public record.
4. Create An Operating Agreement
An LLC operating agreement is a document that outlines the internal operating procedures of a limited liability company (LLC). It is a legally binding agreement that outlines the rights and responsibilities of the LLC’s members, as well as the management and ownership structure of the company.
To create an LLC operating agreement for a Missouri LLC, you will need to include information about the ownership and management of the company, as well as rules and regulations for conducting business. A good operating agreement may include the following:
- The ownership percentage of each member of the LLC
- Rules and regulations for the company’s operations
- Details on how the LLC will be managed, including the appointment of managers and the scope of their authority
- The rights, powers, and duties of employees, members, and managers
- The voting structure for making business decisions
- The profit allocation among members
- Procedures for admitting or removing members
- Procedures for dissolving the LLC and dividing its assets
While Missouri requires all LLCs to have an operating agreement, it does not need to be filed with the Secretary of State or any other government agency. It is an internal business document that serves as a reference for how the company will operate.
5. Get An EIN
In order to pay your federal taxes, you may need to apply for an EIN (also known as a federal tax identification number) from the Internal Revenue Service (IRS). This number is similar to a Social Security number for your LLC and is used by the IRS to identify your business. Banks may also require it in order to open a business bank account.
You can obtain your EIN through the IRS website, by mail, or by fax.
Once you have your EIN, you will need to register your business with the Missouri Department of Revenue and, if you have employees, the Missouri Department of Labor and Industrial Relations, Division of Employment Security. You can register online for the following:
- Sales tax
- Vendor’s use tax
- Consumer’s use tax
- Withholding tax
- Unemployment tax
- Tire and lead acid battery fee
- Corporate income tax (if you plan to have your LLC taxed as a corporation)
After completing the online registration, you will receive a confirmation number and additional information about your registration. Processing usually takes two to three days. Keep the confirmation number for your records and contact the Missouri Department of Revenue for more information.
In Missouri, LLCs are not required to file annual reports. This is different from the requirements in most other states in the United States.
By default, an LLC is taxed as a “pass-through entity,” meaning that the business itself does not pay federal income tax on its profits. Instead, the individual business owners are responsible for paying taxes on their share of the company’s profits.
In contrast, a typical corporation is subject to “double taxation,” where profits are taxed at both the corporate level and the individual level for shareholders. This is a good reason why anyone should start an LLC in Missouri.
How Much Does It Cost To Start An LLC In Missouri?
The fees for forming a Missouri LLC can vary but typically range from $50 to $130. These fees may be affected by factors such as the method of filing and whether you choose to reserve your business name.
It is important to note that these fees may change over time, so it is recommended to check the Missouri Secretary of State’s website for the most up-to-date fee schedule.
Missouri is one of the cheapest states to form an LLC, and this comes with the benefit of no annual tax fee.
If you are a non-US resident (a foreigner) not living in the United States, you can still a create Missouri LLC. You just need to get a US house address and US phone number. All you need to use Shipito and create your US house address. To get an active and working US phone number, you should use Dingtone.
You can register your LLC in Missouri and the process won’t take you up to 10 minutes if you use the right LLC formation service.
You can form an LLC on your own or use a service to help you with the process. LLC formation services typically provide assistance with the paperwork and filing requirements and can help ensure that your LLC is properly set up and compliant with state laws.
Our focus on this post in creating an LLC in Missouri will be that of using an LLC formation service. They make the process faster, easier and cheaper.
What LLC Formation Service Is Recommended?
Incfile is a company that provides assistance with the process of incorporating a business in the United States. They offer a range of services including assistance with choosing the right business structure, preparing and filing the necessary paperwork, and obtaining any required licenses and permits.
One of the main benefits of using Incfile is that they make the incorporation process relatively straightforward and hassle-free.
They provide step-by-step guidance and support throughout the process, which can be particularly helpful for those who are unfamiliar with the legal requirements for incorporating a business. In addition, Incfile offers competitive pricing for their services and provides a 100% satisfaction guarantee.
Incorporating a business can be a complex and time-consuming process, but Incfile helps to streamline the process and provide the necessary support to ensure that everything is done correctly.
Whether you are just starting a business or are looking to take your existing business to the next level, Incfile can provide the expertise and assistance you need to succeed. Visit Incfile.com to get started.
Frequently Asked Questions On Missouri LLC
Is Missouri A Good State For An LLC?
Missouri is an attractive place to start an LLC because it does not impose annual reports or fee requirements on LLC owners, saving you both time and money. Keep in mind, however, that you can start an LLC in any state.
Do LLCs Pay Taxes In Missouri?
In general, an LLC that is taxed as a partnership does not pay income tax. Instead, the responsibility and liability for the debts and obligations of the partnership are shared among all the members of the LLC. This means that each member of the LLC is responsible for their share of the partnership’s debts and obligations
What Are The Benefits Of An LLC In Missouri?
– File your taxes easily and learn about possible tax benefits.
– Easily create, manage, regulate, and administer your taxes, while remaining compliant.
– Shield your personal assets from business liabilities and debts.
– The cost to file is low, at just $50 plus a $2 online fee.
How Hard Is It To Get An LLC In Missouri?
Forming an LLC in Missouri is a simple process. To get started, you will need to file the Articles of Organization with the Missouri Secretary of State. This legal document officially establishes your Missouri Limited Liability Company. You can file the Articles of Organization online or by mail, and the fee is $50. Once you have completed these steps, your LLC will be officially formed and you can begin doing business in the state.
Do I Need A Business License For An LLC In Missouri?
In Missouri, a business license may be required at the city or county level. However, the only business license regulated by the state of Missouri is the sales tax license, also known as a seller’s permit. It is important to check with your local government to determine what business licenses may be required for your specific business.
What Taxes Does An LLC Pay In Missouri?
In Missouri, forming an LLC is not usually as straightforward as paying taxes. The state charges a 6.25% corporate net income tax and a sales tax of 7.18% on retail products and services (made up of a 4.23% state tax and an average of 2.95% for local taxes).
How Do I Change Ownership Of A Missouri LLC?
To begin with, you should identify which parts of the LLC (if not the whole company) will be affected by the change in ownership. Once you have done this, you will probably need to revise the LLC operating agreement and file an amendment to the Articles of Organization with the state.
How Do I Dissolve An LLC In Missouri?
To dissolve or transfer your limited liability company (LLC), you must submit either a Notice of Winding Up or a Notice of Abandonment of Merger or Consolidation of Limited Liability Company form, along with a payment of $25. This will inform the state of your intention to dissolve or transfer the LLC.
How Long Does An LLC Take To Process In Missouri?
The approval process for mail filings of Missouri LLCs typically takes 4-6 weeks, including the 2-4 week processing time and the time required for the mail to be delivered. Online filings, on the other hand, are approved immediately.
How Do I Get An EIN Number In Missouri?
There are three ways to apply for an EIN: by fax, by mail or online through the IRS website. The state of Missouri has compiled helpful information on how and where to obtain a tax ID number on their website to make the application process easier.
How Often Do You Renew Your LLC In Missouri?
Application Assistant registration is valid for a period of two years and can be renewed by completing an online renewal test.
Does An LLC Need To File An Annual Report In Missouri?
Unlike many other states, Missouri does not require LLCs to file an annual report.
Can I Be My Own Registered Agent In Missouri?
In Missouri, a registered agent is a person or business entity that is designated to receive legal documents on behalf of a business. The registered agent must be available during normal business hours at a physical address in the state of Missouri.
As an individual, you can serve as your own registered agent for your business as long as you meet the requirements. You must have a physical address in Missouri where you can receive legal documents during normal business hours.
It is important to note that the registered agent’s address will be part of the public record, so you should use a location where you are comfortable receiving mail and being contacted by the public.
If you do not have a physical address in Missouri or are not available during normal business hours, you may need to appoint another person or business entity to serve as your registered agent. You can also hire a commercial registered agent service to handle this responsibility for you.
How Much Does A Registered Agent Cost In Missouri?
In Missouri, the cost of a Registered Agent service typically ranges from $100 to $300 per year. If you are able to serve as your own Registered Agent and have a physical address in the state where you can receive legal documents during normal business hours, you may be able to save money by fulfilling this role for your LLC. Alternatively, you can hire a commercial Registered Agent service to handle this responsibility for you.
This post is for informational purposes only and is not intended to provide legal, tax, or business advice. It is your responsibility to review and use this information appropriately. Requirements may change frequently, so it is important to conduct your own research and consult with professional legal, tax, and business advisers as needed. Note that the steps and requirements for businesses outside of Missouri may differ.
