How To Start an LLC in Missouri in 11 Steps — Starting a Business (2022)

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Show Me State is a great place to launch your limited liability company (LLC). Whether you’re in downtown St. Louis or the forests of the Ozark Highlands, there are many benefits to starting a business in the State of Missouri—including low administrative start-up costs, a relatively uncomplicated regulatory compliance system and lower business taxes than major markets like California and New York. Here are 11 steps to get your Missouri LLC up and running.

What is an LLC?

An LLC, or limited liability company, is a type of business entity that offers liability protection to its owners, while allowing more flexibility than a corporation. An LLC can be founded by one person or several people, and the owners are called “members.”

Unlike a sole proprietorship or partnership—which does not make a legal distinction between the business and its owners—LLC members will not be financially responsible for the company’s debts or lawsuits.

And unlike corporations, LLCs are pass-through entities by default. This means you do not need to file federal taxes for the LLC itself. Instead, any profits are passed on to the LLC members who record them on their personal tax returns.

Is an LLC right for you?

LLCs have the best features of sole proprietorships and corporations, so it’s no wonder they’re a popular choice for small businesses in Missouri. But is it right for your business? Some things to consider:

• You want to limit your personal liability. LLC owners are not personally liable for legal damages and debts incurred by the business.
• You want to limit your tax liability. LLCs are taxed at the member’s personal income level, unlike corporations, which also pay tax on income generated at the business level.
• You do not need to raise funds through stock issuance. An LLC does not issue stock or have shareholders like a C corporation, which limits the business’s ability to raise money from investors.

1. Name your Missouri LLC

Choosing a name for your Missouri LLC is one of the most important decisions you will make for your business. A good business name helps build brand recognition. Ideally, it should be short, easy to remember and say something about what you do. You should also consider the Missouri rules for naming an LLC:

• Your name must be unique. The LLC name must be distinguishable from any existing business registered in Missouri. Naming rules in Missouri are strict—not only must your name not match another Missouri business, it also cannot be significantly similar. Adding “LLC” to the end of your name is not enough to distinguish it from a C corporation of the same name. You can check if your preferred name is available by running a search on the Missouri Secretary of State’s website.
• Your name must include an entity type. The Missouri LLC name must contain the words “limited liability company”, “LLC”, or “LLC”.
• Your name cannot contain certain words. Your Missouri LLC must not contain words that would confuse it with a government agency (such as the FBI or the Treasury) or suggest affiliation with a government agency, or use the term “Olympic” or any other trademark of the International Olympic Committee, or imply an illegal business purpose.

2. Make a business plan

A business plan helps you assess the viability of your idea and determine the resources you need to make it a reality. A workable business plan includes the name of your LLC and a brief description of business functions. It also includes a detailed market analysis, a flowchart of the organizational structure, a description of your products and services, target customer profiles and marketing, logistics and financial plans.

3. Get a federal employer identification number (EIN)

For tax purposes, your Missouri LLC needs a federal employer identification number (EIN), which is assigned by the federal government. You can apply for this number, which identifies your company to state and federal tax authorities, for free by applying through the US Internal Revenue Service (IRS).

4. Choose a registered agent in Missouri

As in every other state, a Missouri LLC must appoint a registered agent to receive legal correspondence and service of process (notice of legal action). Your registered agent can be a person, such as an employee or member of your LLC, or an organization, such as a registered agent service. If your agent is a single person, they must live in Missouri. If your agent is a service, it must be authorized to do business in Missouri. The registered agent must be present during normal business hours.

5. File your Missouri Articles of Organization

After appointing a registered agent, you are ready to register your business with the Missouri Secretary of State by filing your Articles of Organization. This legal document officially establishes your Missouri LLC. You can submit the filing online or by mail with a filing fee of $50 for online registration and $150 for paper filing. Article should contain:

• The name of your LLC
• Purpose of your LLC
• Name and address of your registered agent
• A description of how your LLC is managed (by members or managers hired by the LLC)
• The intended term of your LLC (can be unspecified)
• Name and address of your organizer (your member)
• The type of LLC you formed (pass or S corporation)
• Date of filing

6. Get business licenses and permits

Local county and municipal governments administer business licenses in Missouri. For example, in St. Louis, any person or organization engaged in business activity must have a permit for the business and each physical location where the business operates (warehouse, store, etc.). A special license is also required for certain businesses in St. Louis, such as auction houses, catering companies, jewelers, liquor stores, restaurants and security services. Check with your local county or city clerk’s office to find out what is required where your LLC is located.

7. Understand Missouri state tax requirements

Once your Missouri LLC is legally established with the Missouri Secretary of State’s office, you must register for state taxes. The Missouri Department of Revenue website contains tax forms based on business activity and structure. If you have employees, you must also register with the Missouri Department of Labor so that your payroll taxes can be assessed.

You will pay a flat corporate tax of 6.25% if your Missouri LLC is taxed as an S corporation. If you choose to run your LLC as a pass-through organization, your business will be taxed at the personal income level of your members.

Special taxes are also imposed on businesses that sell certain products, such as tobacco, petrol and liquor; and on businesses where customers engage in certain activities, such as gambling.

8. Prepare an LLC operating agreement

An operating agreement is a legal document that outlines your LLC’s ownership, organizational structure, and operating procedures. LLCs in Missouri are not required to prepare an operating agreement, but for administration and goal setting purposes, it is a good idea to have one. A strong operating agreement describes:

• How ownership is distributed between business owners (members)
• Roles and responsibilities of members
• Procedures when a member leaves the LLC or when the LLC ceases
• How you have elected to be taxed as an LLC

9. Check for business insurance in Missouri

Unexpected losses can be devastating to a fledgling LLC, so it’s important to consider a business insurance policy. Standard insurance plans for businesses in Missouri include:

• Workers compensation insurance. Workers’ comp insurance covers employee injuries and illnesses (even death) sustained while on the job. Some businesses in Missouri are required to carry this coverage, including businesses with five or more employees and companies in the construction trade, regardless of size. You can check the Missouri Division of Workers’ Compensation website to see if your business qualifies for an exemption.
• General liability insurance. General liability insurance protects your business against lawsuits, financial losses due to property damage and work-related injuries, such as slip and fall injuries. State law does not require you to purchase general liability insurance, but many commercial leases require it.
• Professional liability insurance. Professional liability insurance protects LLCs that provide professional services—such as consultants, accounting offices, medical professionals or real estate agents—from financial loss due to mistakes such as bad advice.

10. Understand financial considerations

You may need to make additional investments to set up your Missouri LLC, including leasing a brick-and-mortar retail space, paying for a professionally designed website or social media consultant, or purchasing equipment and software. In addition to paying employees, you may want to hire contractors and other professionals, such as lawyers and accountants. These costs can add up, but resources are available to help you raise startup funding.

11. Market your Missouri LLC

With the initial administration phase out of the way, it’s time to get the word out about your Missouri LLC and make it stand out. A solid marketing plan for your small business includes:

• Market research. Before marketing your product or service, get an understanding of your target customers as well as a sense of what your competitors are doing.
• Advertise. Promote your LLC by paying for print, TV, radio or digital advertising, or by hiring an agency to do this for you.
• social media. Your small business has everything to gain from a strong social media presence. Make your Missouri LLC known on platforms like Facebook, Instagram and YouTube.
• Public relations. Paid media only goes so far. To increase the visibility of your business, try connecting with local and national media organizations for publicity.

FAQ Forming an LLC in Missouri

How much does it cost to start an LLC in Missouri?

It costs $50 to $150 to register your LLC in Missouri. Missouri LLCs do not have to file annual reports or pay annual fees (other than corporate taxes if they form as an S corp).

Do you need a registered agent in Missouri?

Your LLC must appoint a registered agent in Missouri—either an individual or an agency with an address in that state.

How do state taxes work in Missouri?

State income tax is imposed on any income members draw from the LLC and is collected through your personal income tax return. Sellers of retail goods and services pay a sales tax of 4.225%. Every LLC in Missouri with employees must withhold taxes from the employee’s wages.

source: https://www.shopify.co.id/blog/how-to-start-an-llc-in-missouri