A startup company in Missouri has several advantages in the state right from low operating cost to tax credits and easy availability of grants and loans for business expansion. It was ranked #1 in 2014 and became the best state for banking and is considered among the top 10 states in the nation where financial sector employment growth is concerned. According to the Tax Foundation’s State Business Tax Climate Index, the overall rank of Missouri is #15 in the State Business Tax Climate Index.

Advantages of setting up an LLC or Corporation

One of the salient aspects of the “Cave State” is the “Missouri Advantage”, which stems from the low operating costs and high return on investment. This is one of the reasons why companies like Edward Jones and VA Mortgage Center are based in the state. Let’s take a look at what advantages you can benefit from when you register a new company in Missouri:

Advantage#1: Salient benefits of Corporation or LLC

Corporation

• Tax Credit Programs: After you register a new business in Missouri, you will be able to benefit from the various tax credit programs offered by the state including Business Facility Tax Credit Program, Small Business Incubator Tax Credit program, Missouri Works Program – Employment Tax Credit, and Work Opportunity Tax Credit program among others.
• Pass through taxation: If you register a new company in Missouri as an S corporation then the corporation or firm will not pay any income tax. Instead, the income or loss of the corporation will be passed on to the stockholders.
• Independent Life: One of the salient advantages of an S Corporation in Missouri is that it enjoys an independent life. The death or incapacitation of a stockholder will not disturb operations of the business.

LLC

• Sales Tax Exemption For Manufacturers: One of the business incentives programs for a startup company in Missouri LLC is the exemption on state sales tax and local use tax.
• Flexible Profit Distribution: An LLC has the opportunity to select different ways of distribution of profits.
• Limited Liability: If you register a new business in Missouri as an LLC then you will be able to enjoy limited liability protection. This means claimants can sue the LLC and not the owner or investors.

Advantage#2: Business Incentives

The number of small business in Missouri grew from 507,712 in 2015 to 523,459 in 2017 while the annual growth rate witnessed by the state was from 2.3% in 2016 to 3.6% in 2017. Business and economic growth has been driven by a variety of business incentives provided through state based programs. Once you register a new business in Missouri, you will be able to qualify for most of the programs. Let’s look at some of the top programs in this state:

• Missouri Works Program: This is a program focusing on employment tax credit. The aim of the program is to help new businesses in creating jobs and also help existing businesses to expand their facilities as they can now save on state withholding tax by receiving state tax credits.
• Missouri Alternative Fuel Infrastructure Tax Credit: This is another tax credit program that you can qualify for once you register a new company in Missouri. The benefit lies in installing and operating an alternative fuel charging station or an electric car through which you can receive credits of up to $20,000 or 20% of the eligible costs.
• Missouri Youth Opportunity Tax Credit: If your business provides opportunity to Missouri youth in the form of apprenticeship or internship then the business would be eligible to receive tax credits for up to 50% for monetary contributions.
• Enhanced Enterprise Zone Tax Credits: If you register a new business in Missouri Enhanced Enterprise Zone (EEZ) then you will be able to benefit from incentives offered by the local municipalities. You can receive tax credits on eligible investments including original cost of equipment, machinery, fixtures, furniture, and land and building among others. Map of EEZ zones.

Are there any Disadvantages of Incorporating in Missouri?

When you register a new business in Missouri, you can be rest assured that there is a wide variety of business incentives to leverage but are there any disadvantages? There are limited numbers of disadvantages that are dependent on the type of business you register for example: the disadvantage of an LLC is that it will get dissolved when a member dies or if it undergoes bankruptcy. Similarly, incorporation may lead to higher overall taxes. These disadvantages are far outweighed by the benefits and advantages of forming a business in Missouri.

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Once you have decided to form a business in Missouri, how do you make your business operational? Apart from the registration or incorporation of your business, you will require a business license or permit to operate in the state. The permits or licenses, their fee, and issuing authority vary according to the type of business or industry and the physical location of your business.

It is important to know that not every business requires a license to operate in the state of Missouri. At the same time, some businesses require state-wide business licenses while others have to apply for a license issued by the city or county the business is based in. Some of the general categories of permits and business license in Missouri are:

• Professional licenses
• Agricultural license and permit
• Environmental permits

Missouri Business License Requirements

What are the requirements for obtaining a business license in Missouri? Which business entities require a license and which requires permits? Who is the issuing authority for these licenses? These are some of the important questions that you might be confronted with.

Here is a step-by-step approach towards acquiring a business license in the state of Missouri.

Step#1: The Industry or Business Type

How would you know what type of business or professional license is required to operate in Missouri? The type of industry or the activities of a business entity helps in identifying the type of business license required.

Let’s look at an example to understand this well.

Type of Business/Industry

• Ambulatory Surgery Centers (ASCs) – License is issued by Missouri Department of Health & Senior Services
• Commercial Lodging for Tourists – License is issued by Missouri Department of Health & Senior Services
• Liquor Manufacturing and Retail – License is issued by Missouri Department of Public Safety; Alcohol & Tobacco Control

The above example clearly shows that different businesses need to approach different state and city organizations to get their Missouri company license. It is also important to note that a specific business type may require more than one license or permit to operate in the state.

Step#2: Licenses issued by City/County

If your business or industry type doesn’t fall under a state-wide license then you will have to check with the local city or county office. A business license in Missouri can also be issued by local counties or cities in which the business is located.

Let’s take a look at an example to understand this better.

If you establish a Permanent Food Service Establishment in the City of Jefferson, then the Missouri company license will be issued by the Environmental Health Division of the Department of Planning & Protective Services. The process of application and issuance of the license can be understood from the following steps:

1. Identify the type of permanent food service establishment from the ones below:

• Restaurant
• Grocery Store
• Convenience Store
• Catering
• Tavern
• Mobile Food Unit
• Mobile Push Cart
• Child Care Food Establishment
• Others

2. Inspection needs to be coordinated. The fee varies according to low, medium, or high assessment. Low assessment inspection fee is $255.00 annually while that of high assessment is $383.00 annually.

3. Download “Food Establishment Permit Application”

4. Completed application needs to be submitted at least 30 days prior to opening date of your establishment

Note: It is important to note that you will require a valid food service operating permit as well as a Jefferson City business license prior to opening your food establishment.

Step#3: Issuance of a Business License

How is a business license in Missouri issued? Once you have identified the type of business and whether it will be issued by the state or the county, you need to download the proper application and submit it along with the required fee.

The fee would be different according to business types and the location. The licenses will have to be renewed annually to keep the business operational.

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Small and medium enterprises in Missouri have witnessed good growth and expansion in the last few years thanks to the low-cost business climate and a range of business incentives for short and long-term gains. According to a CNBC report, one of the reasons people form a Missouri business is that the state has the 3rd lowest business costs and this includes taxes, labor, and utility costs. The corporate tax rank of Missouri is 8th in the nation.

What is the process of company formation in Missouri? There are procedures and specific documentation required to register your business entity in the state. We have provided a small guide to help you in getting an insight into the process. If you feel overwhelmed by the process or require any information, we as one of the top Missouri registered agents can make the process simpler for you.

Let’s take a look at how you can form a Missouri business LLC or Corporation.

Missouri LLC Registration and Formation

LLC company formation in Missouri is governed by 2011 Missouri Revised Statutes, TITLE XXIII Corporations, Associations and Partnerships, Chapter 347 Organizations. The procedure for registration and formation of LLC is as follows:

Step#1: Maintain a registered agent

If you are planning to form a Limited Liability Company in Missouri then you will be required to continuously maintain a registered agent in the state pursuant to MO Rev Stat § 347.030. This law is applicable to domestic limited liability companies as well as foreign limited liability companies. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Missouri. We can assist you to form a Missouri business LLC.

Step#2: LLC Name Reservation

One of the foremost steps towards company formation in Missouri is identifying a name for your business entity. What is the process? The process is as follows:

• Identify a name for your business entity
• According to MO Rev Stat § 347.020, the name should contain the phrase or words “limited liability company” or the abbreviations “L.L.C.”, “LC”, or “LLC”.
• The chosen name should be distinguishable and should not be deceptively similar to the name of any limited partnership, corporation, or limited liability company
• Apply for reservation of name pursuant to the provisions of MO Rev Stat § 347.025
• Submit the reservation form through mail or online with the Missouri Secretary of State, Corporations Division along with the applicable fee. An LLC can reserve its name for a period of 180 days.

Step#3: Articles of Organization and Application for Registration

If you are planning to form a Missouri business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:

• If you want to register a domestic LLC then you will be required to file “Articles of Organization” governed by MO Rev Stat § 347.037.
• If your business entity is a foreign LLC then you will be required to file ” Application for Registration” of a Foreign Limited Liability Company pursuant to MO Rev Stat § 347.153-155.
• The application or documentation for registration of LLC can be filed with the office of the Missouri Secretary of State, Corporations Division, through mail or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.

Should you have any questions regarding how to form a Missouri business, feel free to call us on 702-871-8678.

Missouri Corporation Registration and Formation

If you are planning to form a Corporation in Missouri then the procedure for registration and formation is as follows:

Step#1: Maintain a Registered Agent

If you are planning to form a business or professional corporation in Missouri then you will be required to continuously maintain a registered agent in the state pursuant to MO Rev Stat § 351.370. This law is applicable for domestic as well as foreign corporations. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Missouri. We can assist you to form a Missouri business as we are in compliance with all regulations in the State of Missouri.

Step#2: Corporate Name Reservation

In order to form a corporation in Missouri, one of the key steps is identifying a name for your business entity. What is the process? The process is as follows:

• Identify a name for your business entity
• According to MO Rev Stat § 351.110, a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
• The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or corporation
• Apply for reservation of name pursuant to MO Rev Stat § 351.115.
• Submit the form through mail or online with the Missouri Secretary of State, Corporations Division along with the applicable fee. A corporate name can be reserved for a period of 180 days.

Step#3: Articles of Incorporation and Certificate of Authority

If you are planning to form a corporation in Missouri, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:

• If you want to register a domestic corporation then you will be required to file “Articles of Incorporation” pursuant to MO Rev Stat § 351.055.
• If your business entity is a foreign corporation then you will be required to file a ” Certificate of Authority” to transact business in the state pursuant to MO Rev Stat § 351.576.
• The application or documentation for registration of a corporation can be filed with the office of the Missouri Secretary of State, Corporations Division, through mail or online.

We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.

If you have any questions regarding Missouri incorporation or LLC formation, you can simply visit the Missouri Business formation page.

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Business Information & Rankings

• Missouri ranked 11th on the State Business Tax Climate Index. (The Tax Foundation, 2005)
• The Show-Me State ranked 6th in Expansion Management magazine’s annual Health Care Cost Quotient of lowest cost, adequate coverage, and least risk to employers. (2005)
• Missouri’s tax administration ranked among the four most fair in the country (Council on State Taxation survey, 2004)

Cost of Living Index

Crime Rate

Missouri has the 34th lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Business inventory is exempt.

Corporate Income Tax
Missouri’s corporate tax structure consists of a flat tax of 6.25% on all corporate income.

Personal Income Tax
Missouri’s personal income tax system features ten separate income brackets with a top rate of 6% starting at $9,000.

Personal Property Tax
Taxable. Missouri is one of the 38 states that collect property taxes at both the state and local levels. There is no tax assessed on intangible property.

State Sales and Use Tax
Base Rate: 4.225%
Machinery Rate: None

There is an exemption for machinery and equipment replacing other machinery and equipment because of design or product changes used directly for manufacturing or fabricating a product intended to be sold ultimately for final use or consumption. Machinery and equipment purchased to establish new or to expand existing manufacturing, mining or fabricating plants in the state, if such machinery is used directly in manufacturing, mining or fabricating a product intended to be sold ultimately for final use or consumption.

Unemployment Insurance
Missouri’s new employers’ rate is 3.51% for 1 year.

Once your company is set up, you will need:

1. Tax ID (EIN) – free over the Internet or phone.
2. Yearly Requirements and Fees for Montana companies
3. Company Minutes & Stock Certificates – are included in incorporation. You will have access to documents generated on your client account.

Montana additional services

• Registered Agent
• Annual Report
• EIN (Tax ID)
• More Additional Services

• Why Montana?
• Montana Registered Agent
• Montana Annual Requirements
• Montana Corporation Statutes: Montana Annotated Code 2003, Title 35, Chapter 1