How Much Does an LLC Cost in Missouri (Fees Breakdown)
Establishing an LLC in Missouri entails registering with the Secretary of State and paying the filing fees to ensure your company stays compliant with the state.
As a Mergers and Acquisitions specialist, I assisted countless entrepreneurs in forming their businesses and creating new joint organizations.
With the help of our licensed business advisors in the state, we researched and summarized the Missouri LLC fees and regulations for you so that you can plan your business funds wisely.
Although you can form an LLC by filing the legal paperwork by yourself, delegating the work to professional LLC services in Missouri might be a better option if you want to avoid costly mistakes.
Quick Summary
- An LLC in Missouri costs $105 if you file the Articles of Organization by mail and $52 if submitted online.
- Once the business has been approved, additional expenses include licenses and permits, taxes, operating agreement, and other business documents.
- The federal income tax rate is 15.3%, while the state's income tax varies based on your tax rate from 1.5% to 5.3%, according to the Internal Revenue Service and the Missouri Department of Revenue.
- Through my experience of establishing an LLC in Missouri, I can say that the state caters well to new businesses since they have access to major markets.
Cost to Start an LLC in Missouri
Before an LLC is allowed to operate in the state, there are mandatory and optional expenses that have to be shouldered by the company.
1. LLC Formation Filing Fee ($105/Mail-$52/Online - Mandatory)
The Secretary of State must receive your Missouri LLC Articles of Organization before your business can be legally established.
The $52 charge is the primary fee for forming an LLC online. But if you prefer to file by mail, you'll need to pay $105 [1]. According to the Missouri Secretary of State, this fee structure has led to a significant preference for online filings, with over 70% of all LLC formations in Missouri now being processed electronically, streamlining the establishment of new businesses in the state.
When a client wanted to avail of expedited processing, we learned that the state doesn’t offer one since applications filed online are processed within the same day.
The Startup for Soldiers program is open to all active-duty military personnel, including members of the Missouri National Guard [2].
Under this initiative, Missouri LLC filing fees for Articles of Organization may be waived for businesses having an organizer or member who is an active-duty service member.
2. Registered Agent Fee ($80-$300 – Optional)
All business owners are required to choose a registered agent when establishing their LLC per Missouri law.
The best alternative is to work with a registered agent service, which can safeguard your privacy while providing other beneficial business services. You'll pay between $80-$300 a year for this.
If you change your Missouri registered agent, the SOS expects you to submit a Statement of Change form and pay a charge of $37.
3. Name Reservation Fee ($22 - Optional)
An Application for Reservation of Name must be submitted to reserve an LLC name in Missouri, costing $25.
Your prepayment secures the use of your name for 60 days, but you can submit further name reservation requests to block the use of your name for up to 180 days.
Before submitting an application, I advise clients to determine whether their preferred business name is available and if it follows state regulations.
Expenses Following the Approval of Your LLC
All of the charges we've mentioned up to this point are prerequisites for forming an LLC in Missouri. Yet, there are extra expenses to consider.
Below is a breakdown of the possible startup fees for an LLC in Missouri.
1. Local Business License (Depending on Line of Business - Mandatory)
Most Missouri cities and governments will need your LLC to obtain a local license, which will range in cost.
For instance, LLCs in Jefferson City must obtain a business license, the fee of which varies depending on the services your company provides.
When I had to acquire a municipal business license in Branson, Missouri, I learned that the cost depends on the number of staff on a busy day and ranges from $50 to $300.
2. Professional Licenses In Missouri (Depending on the Profession - Mandatory)
The Missouri Division of Professional Registration issues licenses to specific occupations, including psychology, interior design, and professional wrestling.
For instance, I learned that professional wrestlers are required to submit an Application for a Professional License with a $40 fee.
3. Taxes (Depending on Income Bracket - Mandatory)
As an LLC owner, you are subject to "pass-through taxation," which entails federal and state tax on your business income in Missouri.
The federal income tax rate is 15.3%, while the state's income tax varies based on your tax rate from 1.5% to 5.3%, according to the Internal Revenue Service and the Missouri Department of Revenue.
4. Operating Agreement (Optional, but Recommended)
A Missouri LLC Operating Agreement is a formal agreement between the LLC Members. It contains comprehensive information on who owns the LLC, how it's run, and how earnings are shared.
For LLC Operating Agreements, most online formation services charge between $100 and $200.
For clients with budget to spare, I encourage them to hire a lawyer to draft the document to ensure its legality.
5. DBA Name ($7 - Optional)
If you want to use a name different from your registered LLC name, submit a Registration of Fictitious Name form, which costs $7.
You should submit a different form for each to use a fictitious name. After 5 years, your fictitious name expires; however, it may be renewed by completing the same document.
"A DBA, also known as a Trade Name, Fictitious Name, Assumed Name, or Fictitious Business Name, refers to the same concept."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
6. Certificate Of Good Standing ($10 + $0.50 per page - Optional)
A Certificate of Good Standing confirms your LLC's observance of state LLC regulations regarding LLC annual reports in Missouri and fees.
It can be obtained by fax, mail, in-person, email, or online for $10 plus $0.50 per page for filing by mail.
I have observed that limited liability companies that posses a Certificate of Good Standing have a better chance of pursuing investors and availing loans.
7. Employer Identification Number ($0 - Optional, but Recommended)
An Employer Identification Number (EIN) is required to register an LLC business bank account or file income taxes.
The Internal Revenue Service (IRS) will provide you with a free EIN for your LLC, which takes only a few minutes to file.
If you don’t feel confident applying for an EIN by yourself, you can hire a professional LLC agency to do it for you at a cost that varies between $10-$50.
FAQs
How Much is Business Tax in Missouri?
Business tax in Missouri is 4%. However, additional local taxes are applicable depending on the county or city where your business operates.
Is There A Penalty For Paying My Taxes Late In Missouri?
There is a penalty for paying your taxes late in Missouri. The state imposes a 5% charge for late filing and another 5% for delayed payment.
References:
- https://www.sos.mo.gov/business/corporations/startbusiness
- https://www.sos.mo.gov/business/corporations/soldiers
