How To Start an LLC in Missouri 2024: Step-by-step Guide

Featured Image

Vault’s Viewpoint

• The first step to forming an LLC in Missouri is to file Articles of Organization with the Secretary of State. 
• Before you file, you’ll need to ensure you have a registered agent who can receive documents during business hours. 
• Lastly, you’ll need to get a free EIN from the IRS to open a bank account.

How To Start an LLC in Missouri 2024: Step-by-step Guide

See Offers

See Offers

See Offers

How to Start an LLC in Missouri

Follow these steps to establish your LLC in the state of Missouri.

Step 1: Choose a Company Name

Before you do anything to form your LLC, the state of Missouri requires that you pick a name for your company. As you play with various names, our experts recommend making sure that your name of choice complies with the state’s rules on naming a company.

With any name option, you’ll want first to do a name search to see if any other business in the state is using the name. You can do so by using name searches via the published site tool on Missouri’s Secretary of State page. If your name is not distinguishable from other companies, you’ll have to pick another one or risk getting your registration rejected. This is because the Secretary of State doesn’t want consumers confused by similar-name companies.

In addition to being distinguishable, your name must identify the entity type of your company. If your company is a limited liability company, the company name should end with “Limited” or any abbreviation of the word such as “Ltd.”

Our experts do want to note that using “Limited” or “Corporation” does not make a name distinguishable.

If you’ve decided on a name but aren’t quite ready to file for the LLC, you can reserve the name for $25 by creating an account in the Missouri Online Business Filing portal and completing the name reservation prompts. Name reservations are valid for up to 180 days.

Step 2: Assign a Registered Agent 

The next step in the LLC process is securing a resident—or a registered agent. This term defines a person or entity who is authorized to accept official correspondence and notices on behalf of the LLC. Official correspondence includes letters from the Secretary of State or a tax office, or it might consist of a lawsuit filing with a notice to appear in court.

The registered agent is responsible for forwarding all accepted correspondence and notices to a member or manager of the LLC upon receipt, ensuring that stakeholders receive the correspondence. Every business entity in Missouri must have a registered agent.

Some rules exist around the Missouri registered agent selection process, however. For example: The registered agent must have a physical address in Missouri and should be available to receive documents on behalf of the company during regular business hours. When you file your articles of organization, you’ll need to include the name and address of the registered agent—which means it must be a person or entity who consents to having their name on your Articles of Organization.

While a member of the LLC can be a registered agent, many businesses opt to hire a professional registered agent company to do the job. If you decide to hire a company, expect to pay an extra annual fee for the service.

Step 3: File the Articles of Organization

To officially register the company, you must file Articles of Organization with the Secretary of State.

You have two ways to take this action: you can either register through the Missouri Online Business Filing portal or file a paper form. We do want to note that the cost is significantly lower if you file online, costing you just $50 to do so. It is $105 to file the paper form version.

If you are filing online, you can simply follow the prompts in the portal to guide you through the process and pay with a debit or credit card at the end.

A paper form should include a check made payable to the “Secretary of State” and forwarded to:

Secretary of State

Attn: Corporations Division

P.O. Box 778

Jefferson City, MO 65102

Step 4: Write an Operating Agreement for the LLC

An operating agreement is a company document outlining how the company will function and the members’ responsibilities. While it is not a form you file with Missouri state, your LLC is required to have one by Missouri law.

When you write an operating agreement, it should include the following:

• Members’ ownership percentage
• Voting rights and responsibilities
• Powers and duties of members and managers
• How profits and losses are distributed
• When meetings should be held
• What the buyout and buy-sell rules are
• Tax elections of the company

Our experts recommend creating a company binder with the Articles of Organization, EIN and operating agreement to keep everything centralized.

Step 5: Obtain an Employer Identification Number (EIN)

An Employer Identification Number (EIN) is a unique number the Internal Revenue Service (IRS) assigns to the business. It’s a free number assigned by the IRS, and it’s used for all business-related financial accounts and is needed for certain licenses and permits.

To get the EIN, you’ll need to complete Form SS-4. This form can be completed online, faxed in or mailed in. Note that the option you choose to file will impact how long it takes to get the EIN. Filing online typically gets immediate results; while faxing it can take up to four business days to process. Mailing it in can take up to four weeks.

To complete the form online, simply visit the IRS application portal and follow the instructions. Alternatively, if you are faxing the form, you can complete it and send it to the fax number: 855-641-6935.

If you choose to mail your forms in, you can use the following address:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

You’ll need the EIN to open the company’s bank, payroll and credit accounts, so you should get it as soon as possible and add it to the company binder.

Step 6: Open a Business Bank Account

Once you have the EIN, you can open your business bank account. You’ll want to have an account dedicated to the business so that you don’t mix personal assets and debts with the business’s, as this action can reduce the personal liability protection the LLC formation provides.

Our experts recommend taking your company binder with you to the bank, as you’ll need to give the bank representative details from it. Prior to opening the account, the representative will then confirm that the LLC is registered with the state and that the EIN is valid. Once they confirm, you can then open a business checking account in the company’s name.

When opening a banking account for a new business, our experts recommend keeping in mind that some business accounts have minimum balances and limits. To avoid extra fees, consider talking with the banker to find an account that best suits your needs as a new business, and confirm what the exact account parameters are before you sign on.

How Much Does It Cost to File an LLC in Missouri?

It costs anywhere from $50 to $105 to file articles of organization with the Missouri Secretary of State. Unlike other states, Missouri does not require that you file an annual report, and you have no annual fees to be aware of.

Our experts do want to note that you will need to register with the Missouri Department of Revenue and create a tax account for sales tax.*

*There is a 4.225% sales tax rate in the state. Check with local authorities about other local taxes to consider in your business’s financial outlook.

Frequently Asked Questions

Are LLCs Exempt From Registering With the Missouri Secretary of State?

To become a viable business entity, an LLC must file articles of organization with the Missouri Secretary of State. The filing costs between $50 and $105.

Do Missouri LLCs File Annual Reports?

Missouri does not require LLCs to file an annual report. Also, the state does not require an annual franchise fee.

Does Missouri Require an Operating Agreement for an LLC?

An operating agreement is required by state law for all LLCs. However, this document is not filed with the state. You’ll draft it up yourself and have it for members to reference.

The post How To Start an LLC in Missouri 2024: Step-by-step Guide first appeared on Newsweek Vault.