How to Start an LLC in Missouri (May 2024 Update)
Starting a new business is an exciting prospect, but also involves many questions and legal requirements, especially when it comes to choosing the right business structure. One popular option for small business owners is forming a limited liability company, commonly known as an LLC. LLCs provide business owners with personal liability protection while allowing flexibility in management and taxation.
Forming an LLC in Missouri involves several key steps, including choosing a business name, designating a registered agent, filing official paperwork with the Secretary of State, creating an operating agreement, obtaining tax IDs, opening a business bank account, and staying compliant with state regulations. While the process may seem complex, it becomes much easier when broken down into simple, digestible steps. This guide will walk you through everything you need to know to start your Missouri LLC from initial planning to launch and beyond.
Choosing an LLC Name
The first official step is to decide on a name for your Missouri LLC. There are a few key naming guidelines and rules to keep in mind:
- The name must include a designator such as "Limited Liability Company," "Limited Company," "LLC" or "LC" to identify it as an LLC.
- You cannot use a name already taken by another Missouri business entity or one too similar to an existing name. Check the Secretary of State database for availability.
- Your selected name cannot include words that imply the LLC is a different kind of business entity, such as "Incorporated," "Corp," or "LP."
- The name cannot falsely imply connection with a government agency at city, state or federal levels.
If you need additional time to prepare paperwork, you can reserve a business name for 60 days in Missouri for a small fee. Before finalizing the LLC name, check that the domain name is available for a future company website.
Appointing a Registered Agent
Missouri law stipulates that every LLC needs a Missouri registered agent, which is a person or business designated to receive important legal documents on behalf of your company. The registered agent's address serves as a main point of contact for your business and they must be located in Missouri and available during normal business hours.
You can serve as your LLC's registered agent yourself or appoint another individual or hire a professional registered agent service to handle this role. Using a dedicated service can add a layer of privacy since your personal home address will not be listed on public business records.
Filing the Articles of Organization
To legally form your LLC, you must file Articles of Organization paperwork with the Secretary of State, which includes basic information about your Missouri LLC such as:
- The LLC's official name
- Your registered agent's name and valid physical address
- The specific business purpose
- Whether member(s) or manager(s) hold authority
- Dissolution procedures
- Organizer name(s) and address
The filing fee differs for online versus paper submissions but takes one to six business days to process. Filing online is faster, more secure and recommended. The state will officially approve your Missouri LLC once the articles meet all requirements.
Drafting an Operating Agreement
Even though it doesn’t get submitted during company formation, Missouri law mandates that every LLC have an Operating Agreement for the internal governance of the business. This important document should cover topics like:
- Member capital contributions and distribution of profits/losses
- How members and managers are appointed and removed
- Details on member voting rights and decision-making procedures
- Steps for transferring membership interests
- Processes for dissolving the LLC
Single-member LLCs also benefit greatly from having an Operating Agreement in place in case of membership changes or legal disputes later on. Overall, the agreement helps owners codify rules and regulations for the LLC that best fit their vision for the company.
Obtaining an EIN
Nearly all LLCs need an Employer Identification Number (EIN), which serves as an official business tax ID number from the IRS. An EIN is required to properly report taxes, open business bank accounts and, for LLCs with employees, to manage payroll taxes.
As the primary owner, you can easily request an EIN for free directly from the IRS website in a few minutes. However, formation services can also obtain an EIN for you quickly as part of a business filing package.
Paying Taxes
One major benefit of LLCs is pass-through taxation, meaning business profits pass directly to members’ personal tax returns. As such, your Missouri LLC itself does not have to file income taxes. However, you may need to register for other Missouri and federal taxes the LLC must collect or remit, which varies by industry and location. Be sure to consult a tax expert about your LLC's specific tax situation.
Opening a Business Bank Account
Keeping your LLC finances separate from personal funds is critical for limiting liability. Once you have your EIN, shop around to find a business bank account best suited for your Missouri LLC’s needs while keeping fees low. Bring copies of your filed Articles of Organization, Operating Agreement and EIN confirmation when applying for LLC business accounts.
For more information, take a look at our article on the key benefits of business checking accounts.
Hiring Employees
If you plan to hire employees, be sure to register with the state Department of Revenue to handle taxes like unemployment insurance and withholding. You must also report newly hired workers to the Department of Social Services within 20 days along with meeting other compliance requirements before officially adding staff.
Staying Compliant
Unlike other states, Missouri does not require domestic LLCs to submit annual reports at the state level. However, you still must maintain a valid registered agent and address whenever business details change. Since Missouri LLCs ultimately pass profits directly to owners’ personal tax returns, be diligent about income reporting each year as well.
Keep your business compliant and avoid any legal hang-ups down the road by following all regulations federal, state and local agencies set forth. Consider hiring a lawyer or compliance firm for assistance understanding what Missouri requires depending on your LLC’s situation.
Conclusion
Launching an LLC requires carefully thinking through how you will run your business in both its beginning stages and years down the line while keeping up with legal compliance. While forming an LLC in Missouri involves several steps, you now understand exactly what it takes to properly start your company.
From naming your LLC to handling taxes to keeping state filings up to date, use this guide as your roadmap to startup success. And don’t forget that plenty of online legal and business formation services exist to help you seamlessly handle the technical aspects of LLC creation in Missouri too.
With a trusted expert support team in your corner, starting your own LLC will be a smooth journey. So take the leap and begin the rewarding process of making your Missouri business ownership dream a reality today. The Show Me State awaits your next great entrepreneurial endeavor!