How to Start an LLC in Missouri (Step-by-Step Guide)

When starting a new company, choosing a business entity is the most important decision that the founders must make. For most businesses with more than one founding member, forming as an LLC is often the best option for a number of reasons.

An LLC is an uncomplicated business structure that affords business owners legal protection by separating personal assets from business debts. Moreover, LLCs often enjoy a lower tax rate than corporations. Nevertheless, creating an LLC can get complicated depending on where you are based, with the formation process, filing fees, and continuing legal obligations differing from state to state.

Lucky for entrepreneurs based in the Show-Me State, starting an LLC in Missouri is a simple process, and what’s more, it’s one of the few states in the U.S. that doesn’t require LLCs to file an annual or biennial report.

1. Select a name for your Missouri LLC

Follow naming requirements

There are two major guidelines to follow when naming your LLC in the state of Missouri:

1. An LLC’s name must be distinguishable from the names of existing business entities on file with the Missouri Secretary of State.
2. An LLC’s name must contain one of the following phrases or abbreviations: “Limited Liability Company”, “Limited Company”, “L.L.C.”,  “LLC”, “L.C.”, or “LC.”

Need help coming up with a business name? Check out our free business name generator.

Check the availability of your LLC name

Now it’s time to confirm that your chosen LLC name is available for use in Missouri. Perform a search of the Missouri Secretary of State Business Name Database to make sure that another business hasn’t already laid claim to the name or one that’s overly similar.

Reserve your LLC name with the Secretary of State

Once you have an LLC name that is available to use in Missouri, it’s a good idea to reserve it with the Missouri Secretary of State to make sure that another business entity doesn’t snatch it up before you are able to file your Articles of Organization and legally form your LLC.

You can file an Application for Reservation of Name in order to reserve your name for up to 60 days (with the option of renewing the reservation for two more 60-day periods). Filing the application can be done online or by postal mail and the filing fee is $25.

2. Designate a registered agent

As in every U.S. state, forming an LLC in Missouri requires the appointment of a registered agent service to handle state and federal legal documents and service of process on the business’s behalf. The registered agent must either be a state resident or business entity with a street address in Missouri  OR if the individual or business is based out-of-state, they must have a business office in Missouri.

3. File Articles of Organization

Once you are prepared, file Articles of Organization with the Missouri Secretary of State to officially form your LLC. The articles can be filed online (requires the creation of an account with the Missouri Secretary of State’s online filing system) or through the mail. However, the online filing fee of $50 (along with a $1.25 convenience fee) is considerably less than the $105 paper and mail filing fee. Online filers may pay by credit card.

A Missouri LLC’s Articles of Organization must include the following information:

• LLC name
• Registered agent’s name and address
• LLC’s purpose
• The date that the Articles will become effective (either upon filing or at a future date)
• LLC’s duration (perpetual or temporary for a specific period)
• A statement declaring whether the LLC is member-managed or manager-managed
• The signature and address of all organizers

4. Create an operating agreement

Although not a legally mandated step for forming an LLC in Missouri, drafting a comprehensive LLC operating agreement is strongly recommended for all nascent limited liability companies.

The operating agreement should do the following:

1. Describe the LLC’s business structure
2. Establish the individual responsibilities and obligations of LLC members
3. Detail how the LLC will be run

Without an operating agreement clarifying the specific duties of its members, an LLC may face significant legal and operational difficulties.

5. Obtain an IRS Employer Identification Number (EIN)

All newly formed LLCs in the United States must acquire an Employer Identification Number (EIN) from the Internal Revenue Service (with the exception of single-member LLCs). The nine-digit EIN is like a social security number for a business and is necessary to pay income tax, file tax returns, open business bank accounts, and perform many other important functions.

You can apply for an EIN online on the IRS website without paying a filing fee.

6. Fulfill your legal obligations

Once an LLC is registered, its members must devote attention to fulfilling legal requirements that apply for the duration of the company’s existence. Unlike a majority of other states, Missouri does not require LLCs to file annual reports, however, there may be additional legal and financial responsibilities that must be addressed.

Obtain business licenses and permits

In Missouri, LLCs are not mandated to obtain a general business license at the state level for their operation. This means that just operating an LLC does not necessitate a state-level business license.

• Seller’s Permit: For LLCs that sell tangible personal property or taxable services, a seller’s permit, also known as a Missouri Sales Tax License, is required. This permit is easy to get through the Missouri Department of Revenue and is what allows businesses to sell their products or services within the state legally.
• Occupational licenses: In addition, LLCs operating within certain industries may face additional licensing requirements. These industry-specific licenses are particularly common in regulated professions such as cosmetology, food service, and others, where adherence to specific standards and regulations is critical for public safety and compliance.
• Local licenses: Local governments  in Missouri, including cities and counties, often have their own licensing requirements. These local licenses and permits vary significantly based on the LLC’s operational location and the specific type of business it is.

To learn about local license requirements, you should contact a city clerk in the municipality where your LLC is based. The Missouri Business Portal offers detailed information on state business licenses and permits and how to obtain them.

Understand state taxes

Like many states, Missouri offers a favorable tax environment for LLCs by not imposing a franchise tax. However, your business might still encounter various state taxes based on its specific business operations and will need to pay federal taxes.

State income tax: The primary tax consideration for LLCs in Missouri is state income tax. As pass-through entities by default, LLCs do not pay income taxes at the business level. Instead, profits and losses are passed through to the individual members, who then report this income on their personal tax returns. The tax rates applied to these earnings are graduated, ranging from 1.5% to 5.3%, depending on the income level of the member. This is in contrast to the 4% flat tax applied to c-corporations.

Other tax considerations: LLCs may also be liable for other taxes, especially if they have employees, such as the Unemployment Insurance (UI) Tax, which funds unemployment benefits and varies based on the LLC’s experience rating, and Workers’ Compensation Insurance, which is mandated for most employers to cover work-related injuries of employees.

Register with the Missouri Department of Revenue: Many LLCs active in Missouri are required to register with the Missouri Department of Revenue in order to fulfill a number of state tax obligations. This includes LLCs that collect sales tax on retail goods and LLCs with employees. Both LLCs formed in Missouri and foreign LLCs doing business in the state must fulfill this requirement.

You can register with the Missouri Department of Revenue online or through the mail.

Understand BOI reporting

The new Beneficial Ownership Information (BOI) reporting rules introduced by the Financial Crimes Enforcement Network (FinCEN) are designed to enhance transparency in business operations and combat financial crimes.

How to file: These rules mandate certain business entities, including corporations, limited liability companies (LLCs), and other entities that are formed or registered to conduct business in the United States, to report information regarding their beneficial owners to FinCEN.

Filing deadlines: 

• For entities that were formed or registered before January 1, 2024, there is a deadline of January 1, 2025, to submit their initial BOI report.
• Conversely, entities that are formed or registered after January 1, 2024, are allotted 90 days following the notice of their formation or registration to file their initial report.
• In 2025, entities have 30 days to file the report.
• Any changes to the information previously reported must be updated within 30 days.

Learn more about BOI Reporting.

Post LLC tasks

Set up business bank accounts

While not required, a business bank account is crucial so that an LLC can effectively separate personal and business finances, simplifying accounting processes and ensuring clearer financial management. This separation is not only beneficial for tax purposes, but it also enhances credibility with customers, suppliers, and potential investors by presenting a more organized and legitimate business operation.

Banks like Found, Relay, and Mercury specialize in offering business banking solutions that cater specifically to the needs of small businesses and LLCs. These institutions often provide tools and features designed to support the financial operations of a business, such as digital banking services, invoicing capabilities, and integration with accounting software, making them great options for LLCs looking to establish their business bank accounts.

Obtain a Certificate of Good Standing

In Missouri, businesses can obtain a Certificate of Good Standing, which This is issued by the Missouri Secretary of State’s office.

Why you need it: It serves as an official affirmation that a business entity—be it a Missouri corporation, professional corporation, Missouri LLC (Limited Liability Company), or limited partnership—is in legal operation within the state and adheres to all requisite state regulations and requirements.

How to get it: The Certificate of Good Standing can be obtained online, which offers immediate access for a $10 fee.  You can also apply through mail or fax, with a 5 day turnaround time.

Build a website

For an LLC, establishing a website is a crucial step in enhancing your visibility, credibility, and accessibility to both current and potential customers. In today’s digital age, a website is the first place most people will look for information.

While every LLC owner knows a website is necessary, you might not know where to start. Follow these steps to get started:

1. Search for and purchase a domain name.
2. Sign up for web hosting.
3. Pick a web builder like Domain.com or GoDaddy to create a site with no coding experience necessary.
4. Tailor your site to your customers, adding appropriate pages, content, and images.
5. If you’re selling goods, add an e-commerce section to your site.
6. Review, test, and publish your site.

Costs to set up an LLC in Missouri

Average cost to set up an LLC in Missouri: $142-$342

Missouri offers a cost-effective environment for forming an LLC, with mandatory fees that are generally lower than those in many other states.

• Incorporation fees: The cost to file an LLC in Missouri varies depending on the method of filing; doing so online incurs a fee of $50, while the paper filing fee is set at $105. Additionally, there’s an optional fee for name reservation, which is $7. This option lets you secure your desired name before officially filing LLC paperwork.
• Annual Report filing fees: Each year, you must file an Annual Report, which costs $21.25 to file online or $45 via mail.
• Registered agent service fees: Beyond the initial filing fees, there are other potential costs that LLCs may encounter. For instance, while Missouri does not require LLCs to use a registered agent service, many businesses opt for one to facilitate the handling of legal documents and ensure regulatory compliance. The annual cost for such services typically ranges from $50 to $200.

Foreign LLCs

An LLC formed in a different state that intends to do business in Missouri must register with the Secretary of State.

Follow these steps to do business in Missouri as a foreign LLC:

1. Comply with Missouri LLC naming guidelines and confirm that your LLC’s name is open for use in the state by searching Missouri’s Business Name Database.
2. Appoint a Missouri registered agent.
3. File an Application for Registration of a Foreign Limited Liability Company with the Missouri Secretary of State online or by postal mail.  The online filing fee is $105.
   • The application must be accompanied by either a Certificate of Good Standing or a Certificate of Existence from the LLC’s state of origin. The certificate must be dated from within 60 days of its filing with the Missouri Secretary of State.