Many people hope to find out how to start an LLC in Missouri for free. Unfortunately, that’s not possible. It does cost a little money to file all the paperwork with the Secretary of State.
It’s safe to assume you’re focused on creating an LLC in Missouri, and this guide can help.
It teaches you the steps needed, the costs, taxes, marketing, and what to do after your limited liability company is formed in the state. Let’s get started!
|LLC Filing Fee||$50||$150||$45||$50||$130.38|
|LLC Annual/Biennial Fee||$0 (no fee and no information report)||$75 (every year)||$150 (every year)||$45 (every 2 years)||$89.34 (every year)|
|Corporate Tax Rate||4.00%||9.50%||1-5.9%*||5.5-9.8%||5.60%|
|Nominal GDP per capita||$58,356||$74,052||$47,770||$68,849||$64, 773.08|
|Overall Rating for Starting an LLC||4/5|
Before You Set Up An LLC In Missouri
Learning how to start an LLC in Missouri often means that you’ve got a product or service you want to market. If not, you should consider what you’re selling and why you require a business to do so.
This guide helps you with all aspects of starting an LLC in Missouri, so let’s get going!
How Much Does It Cost To Start An LLC In Missouri?
The first thing people want to know is how much to start an LLC in Missouri. Here, we break down the price you pay to begin.
Generally, the primary cost to start the Missouri LLC is $50 (online) for the Articles of Organization. This is the only formal fee, but most people choose to work with a registered agent, which costs about $99.
Consider reserving your LLC name for $7 from the Secretary of State, too.
You may also have to pay for business licenses or permits, which vary based on various factors.
Those who have an LLC in another state must also register as a Foreign LLC, which costs $105.
Overall, most LLC owners can expect to pay about $150 to get started. However, licenses and other fees might raise the price to upwards of $300.
Steps To Start An LLC In Missouri
Here are the steps to take when starting an LLC in Missouri:
1. Pick A Name For Your LLC
The first thing to do is choose your company name. Make sure it complies with the Missouri naming rules, is easily searchable by potential customers, and is available.
Here are a few guidelines:
- The name has to include “limited liability company” or “LLC.”
- It can’t contain words that may confuse the business with any government agency, such as “State Department,” FBI,” and “Treasury.”
- Restricted words often require more paperwork and a licensed individual to be part of the LLC. These terms include “bank,” “university,” and “attorney.”
- The name has to be distinguished from other LLCs, corporations, limited partnerships, and more.
You should also check online to ensure that the URL is available when you choose to set up a website.
2. Find A Registered Agent In Missouri
The registered agent is a business entity or person who is responsible for receiving government and state correspondence on behalf of the company. This includes lawsuit notices, tax forms, and legal documents. It’s the point of contact for the LLC from the state.
Registered agents can be individuals residing in Missouri or corporations authorized to do business in the state. It may be yourself, another member, or a registered agent service, such as LegalZoom or ZenBusiness.
Do You Need a Registered Agent in Missouri?
|ZenBusiness – $49 + state fees to register your LLC (read review)|
|Incfile – $0 + $50 state fees to register your LLC (read review)|
Yes, you require a registered agent for the Missouri LLC.
3. Articles Of Organization
You’ve got to register the Missouri LLC, so that means filing your Articles of Organization.
4. Other Required Documents
You may have to form a foreign LLC, which lets you operate as a single entity in many states. Therefore, if you’ve got an existing limited liability company and wish to do business in Missouri, you should file as a foreign LLC by mail or online.
While you don’t require a Certificate of Good Standing in Missouri, it’s beneficial. This document verifies that the LLC was formed legally and is being maintained. It can help you:
- Obtain and renew business permits and licenses
- Form the business as a foreign LLC
- Seek funds from lenders and banks
There’s a $10 processing fee!
5. Operating Agreement
LLCs in Missouri are required to utilize an operating agreement per the state’s legal code (Revised Statutes Section 437.081). This legal document outlines the operating and ownership procedures for the limited liability company.
They’re crucial to ensure that everyone knows what’s expected of them to reduce future conflict. However, you don’t have to file this with the state of Missouri. It’s an internal document to keep on file.
6. Get An EIN
An EIN is a nine-digit number given to businesses by the IRS to help identify them for tax purposes. It’s similar to a person’s Social Security Number and is for companies.
The Employer Identification Number is needed to file/manage your federal/state taxes, open business bank/credit accounts, and hire employees. Generally, you need a new EIN when you convert a sole proprietorship to an LLC and can get it for free from the IRS, either online or by mail/fax.
The Forms You Need to Register an LLC in Missouri
- Articles of Organization (Online or By Mail)
- Certificate of Good Standing
- Operating Agreement
- EIN (Online or Mail/Fax)
- 1065 Partnership Return
- 1040 Schedule C
|Did You Know?|
There are roughly 127,000 LLCs actively operating in Missouri. This is a relatively new business option and was only recognized by the state starting in 1993.LLCs don’t have to be managed by the members/owners. They could use appointed managers instead. Limited liability companies don’t file annual reports with the state and don’t have to hold annual meetings.
LLC Taxes In Missouri
Typically, every company pays taxes to the federal government and state. State options include sales tax, employer taxes, and much more.
How Much Do LLCs Have To Pay In Taxes In Missouri?
Most LLCs aren’t taxed as a corporation. If they are, though, they must pay the 6.25 percent Missouri taxable income tax.
Usually, people divide the earnings equally among members and are taxed on that at the federal and state levels. It’s hard to determine how much you might pay.
Differences Between State And Federal Taxes
There’s really no difference between the state and federal taxes. You pay based on what you earn if you choose to file as a sole proprietor or member of an LLC.
How Much State Taxes Do LLCs In Missouri Have To Pay?
Missouri LLCs are required to register for a seller’s permit if they’re selling physical products. This shows that the business can collect sales tax for any taxable sales.
How Much Federal Taxes Do LLCs In Missouri Have To Pay?
The way you pay yourself as the LLC owner affects how much federal taxes you dish out, too. Most LLCs report to the IRS with a 1065 Partnership Return (for multi-member LLCs) or a 1040 Schedule C (for single-member LLCs).
Is Missouri A Good Place To Start An LLC?
Generally, Missouri is a great place to form an LLC. It doesn’t require fees or annual reports from the owners, which saves people time and money. Plus, it shields owners from legal and financial issues, meaning they don’t pay for them out of pocket.
How Long To Form An LLC In Missouri?
Most people focus on the processing times when determining how long it takes to form an LLC. However, that’s anywhere from a few days to weeks. Still, you’re not finished after that.
Overall, it takes about six to 12 months to form your LLC in Missouri. That gives you plenty of time to get the paperwork ready, send it in, pay the fees, find a building to rent, and all the rest.
How Much Does It Cost To Run An LLC In Missouri?
Once the LLC is formed, you must pay ongoing fees to keep it running. For example, your business permits and licenses might have to be renewed each year. You may also have registered agent fees to cover annually.
There are also business operating costs to think about, such as:
- Employee wages
What To Do After Formation
After forming an LLC in Missouri, you aren’t finished. This section discusses additional things you should take care of so that your business runs smoothly.
- Create a Logo – A logo is instantly recognizable to people, and they associate it with your brand. Make sure it pops!
- Build a Website or eCommerce Store – All companies need a website to help them establish authority, trust, and legitimacy.
- Bank Account – You’ve likely got a personal bank account, but you need a business one to protect your personal assets. A company credit card doesn’t hurt, either.
- Business Insurance – Insurance helps people manage their risks. At the least, you should have worker’s compensation, professional liability, and general liability insurance.
- Annual Reports – It’s important to keep the shareholders and members updated on what’s happening with annual reports.
- Create and Maintain Social Media Accounts – Social media helps new companies get found and establishes trust. Build these accounts and nurture them.
You might not think about the things listed above, but you want to focus on them immediately after creating an LLC in Missouri. This ensures that you’re ready to go when the time comes.
Resources To Start A Successful LLC In Missouri
Start Marketing Your LLC In Missouri
Most people believe that their websites and blogs are all they need, but marketing yourself effectively takes more effort. Content marketing is crucial to building credibility and authority. You’re moving customers through the purchase journey, understanding their pain points, and learning about them.
Social media is an excellent way to interact with others and build your brand. You also need email marketing, SEO services, and much more.
How To Dissolve An LLC In Missouri
You may decide to dissolve your LLC in Missouri and should do so officially. This means filing the Articles of Dissolution and closing your business accounts.
You have to ensure that you dissolve the LLC according to your Operating Agreement.
Learning how to start an LLC in Missouri is easy with this helpful guide. We focused on the steps to take, the forms needed to register, and handling taxes. You also found out about costs, what to do after formation, and ways to market your new company.