LLC Cost in Missouri | How Much Does It Cost to Start an LLC

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LLC Costs in Missouri

Forming a Limited Liability Company (LLC) in Missouri is a popular choice for entrepreneurs and small business owners who want to protect their personal assets and enjoy flexibility in their business operations. LLC formation costs vary from state to state, and it is essential to understand the costs involved in forming and maintaining an LLC in Missouri.

If you would like to know more about the Missouri LLC Cost, read the whole article until the end. Webinarcare Editorial Team will help you gain knowledge on how much an LLC Costs in Missouri. You must be guided by all the factors gathered in this article.

How to Start an LLC?

Before we dive into the LLC Cost in Missouri, you should know the step-by-step process of starting an LLC, including selecting a unique business name, appointing a Registered Agent, filing the necessary documents, and fulfilling any additional requirements, such as obtaining licenses or permits that are specific to your industry or location.

Here are the steps in starting an LLC in Missouri:

  • Step 1: Choose a Unique Business Name
    The first step in starting an LLC in Missouri is to select a unique business name for your company. The name should be distinguishable from any other registered businesses in the state. You can check the availability of your desired business name by searching the state’s business name database. Once you’ve found an available name, you may need to include “LLC” or “Limited Liability Company” at the end of the name to comply with state requirements.
  • Step 2: Appoint a Registered Agent
    A Registered Agent is someone who will receive official legal and tax documents on behalf of your LLC. The Registered Agent must have a physical address in Missouri and be available during normal business hours. You have the option to appoint yourself as the registered agent or hire a professional registered agent service.
  • Step 3: File the Articles of Organization
    To officially form your LLC, you need to file the Articles of Organization with the Missouri Secretary of State or the appropriate state agency. The Articles of Organization typically requires basic information about your LLC, such as its name, address, Registered Agent details, and the name and address of the LLC’s members or managers.
  • Step 4: Create an Operating Agreement
    Once your LLC is formed, it’s highly recommended to create an operating agreement in Missouri. Although not required by Missouri law, an operating agreement is a crucial internal document that outlines the ownership, management, and operating procedures of your LLC. It helps establish clear guidelines and expectations among members, and it can be especially useful in the event of disputes or disagreements in the future. The operating agreement can be customized to fit the specific needs and goals of your LLC.
  • Step 5: Obtain Required Licenses and Permits
    Depending on the nature of your business, you may need to obtain specific licenses or permits at the federal, state, or local level. Research the licensing requirements in Missouri and apply for business licenses in Missouri related to your industry or activities. Common examples include professional licenses, health or safety permits, and sales tax permits.
  • Step 6: File for an Employer Identification Number (EIN)
    An Employer Identification Number (EIN) is a unique nine-digit number issued by the Internal Revenue Service (IRS) that is used to identify your LLC for tax purposes. Even if you don’t have employees, obtaining an EIN is typically required if you plan to open a business bank account, hire contractors, or file certain tax forms. You can easily apply for an EIN in Missouri through the IRS website.
  • Step 7: Comply with Ongoing Requirements
    Once your LLC is established in Missouri, it’s important to stay in compliance with any ongoing requirements. This may include filing periodic reports, paying Annual Report fees, and renewing licenses or permits. Familiarize yourself with the specific obligations for maintaining your LLC’s good standing in Missouri.

Remember, starting an LLC in Missouri involves some specific steps and requirements that may differ from other states. It’s advisable to hire an LLC Services in Missouri that specializes in business formation to ensure that you follow all the necessary procedures accurately and efficiently. We reviewed the Best LLC Services for you to check out.

LLC Cost in Missouri

It is crucial to consider the costs associated with the formation and maintenance of your business. The costs of establishing and operating an LLC in Missouri can vary based on several factors, including the initial formation fees, ongoing compliance requirements, and optional expenses.

Initial LLC Costs

When starting a limited liability company (LLC), knowing the initial costs associated with forming and registering your new business entity is essential. Understanding and preparing for these expenses can help you budget effectively and set your Missouri business on a path to success. Some common initial costs associated with forming an LLC include Articles of Organization filing fees, Registered Agent fees, and additional services, such as business name reservation fees. 

Articles of Organization Filing Fee

The first step in forming an LLC in Missouri is to file the Missouri Articles of Organization with the Missouri Secretary of State. This document officially creates the LLC and includes essential information about the business, such as its name, address, and Registered Agent. 

This document includes essential information about your LLC, such as:

  • The name of your LLC
  • The address of your LLC’s principal office
  • The name and address of your Registered Agent
  • The purpose of your LLC (optional in some states)

You can typically file the Articles of Organization online, by mail, or in person. A filing fee is associated with this process, which costs around $105. You can also file by mailing it to Missouri Secretary of State, which is located at Corporations Unit, James C. Kirkpatrick State Information Center, P.O. Box 778, Jefferson City, MO 65102.

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Registered Agent Fee

An LLC in Missouri must designate a Registered Agent who will be responsible for receiving legal and government documents on behalf of the business. You can act as your own Registered Agent or appoint someone you know. Professional Registered Agent in Missouri typically charge an annual fee ranging from $50 – $150.

 In Missouri, your Registered Agent must:

  • Be a resident of Missouri or a business entity authorized to do business in the state.
  • Have a physical address in Missouri (P.O. boxes are not acceptable)

Choosing a reliable and responsible Registered Agent is essential, as failure to receive and respond to legal documents can seriously affect your business. 

We reviewed some of the Best Registered Agent Services in Missouri and provided features as an add-on with their packages for you to check out.

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Business Name Reservation Fee

If you have a specific business name in mind and want to ensure it is available when you are ready to file your Articles of Organization, you can reserve the business name with the Missouri Secretary of State. 

In Missouri, your LLC name must:

  • Include the words “Limited Liability Company,” “LLC,” or “L.L.C.
  • Not contain any words or phrases that are prohibited by state law
  • Be distinguishable from the names of other businesses registered in the state

However, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 60 days. You must file a name reservation application in the Missouri Secretary of State to keep the name. 

The online name reservation fee is disclosed, while the mail name reservation fee is $25. You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for a DBA (doing business as). If you have decided to file for a DBA, you can file it in three methods, online, by mail, and in person filing. However, before filing Missouri DBA, you should know that you need to renew your DBA for up to five years, which cost $7.

Recommended: Embark on your entrepreneurial journey confidently and affordably with LegalZoom’s DBA service, the beacon that guides businesses to credible branding and comprehensive compliance. Discover how effortless success can truly be!

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Ongoing LLC Costs

After you know the initial costs of forming an LLC in Missouri, you should also know the ongoing costs once you have filed for an LLC. Here are the involved costs that you need to know.

Annual Report Filing Fee

To keep your LLC in good standing, you must file Annual Report with the Missouri Secretary of State. The Annual Report provides updated information about your LLC, such as changes in address, members, or Registered Agent. 

In Missouri, the Annual Report fee costs $7 which can be paid every 1 year (within 3 months of anniversary).

Franchise Tax or Annual LLC Tax

Some states require LLCs to pay an annual franchise or LLC tax, separate from the Annual Report filing fee. Franchise tax, or annual tax, is a fee imposed by Missouri on businesses, including LLCs and Missouri Corporations, for the privilege of operating within their jurisdiction. This tax is separate from income taxes and is usually based on factors such as the company’s net worth, assets, capital, or a fixed dollar amount, depending on the Missouri‚Äôs specific tax regulations. 

Missouri LLC Taxes To Be Paid

The State of Missouri is one of those rarest states in the United States that does not levy any personal income tax on businesses. However, the business LLCs must file other taxes with the State authorities.

  • Sales Tax: A sales tax is a government-imposed tax on the sale of goods and services. It is generally added to the price of a product or service at the point of sale and paid by the consumer. The tax is collected by the retailer or service provider, who then remits the collected tax amount to the relevant government authority. In Missouri, the sales tax rate is 4.225%. 
  • State Income Tax: Considering other taxes in Missouri, you should pay for the state income tax, with a rate of 4.00%. 
  • LLC Federal Self-Employment Tax: Federal self-employment tax rates are the same across all states. Self-employment taxes are imposed on self-employed individuals or members of a Limited Liability Company (LLC) taxed as a sole proprietorship or partnership.
  • Property Tax: The property tax is fixed at 1.00% of industrial, commercial, residential, agricultural, and all other properties.

Business Licenses and Permits

Depending on the nature of your Missouri business and the location of your operations, you may need to obtain permits and business licenses in Missouri. The costs of these licenses and permits will vary based on your specific business and location. In Missouri, the business license ranges from $50 – $300. However, research the requirements for your LLC in Missouri and budget for these expenses accordingly.

Optional LLC Costs

Here are the optional costs you must consider if you will form an operating agreement or hire a professional service.

Operating Agreement

Although not required by law, it is highly recommended that LLCs create an operating agreement in Missouri. This document outlines the LLC’s ownership structure, management, and operating procedures. Hiring a business attorney to draft an operating agreement can cost anywhere from $500 to $2,000, or you can use online resources and templates to create one yourself.

Professional Services

You may hire professionals such as attorneys, accountants, or business consultants to help you establish and run your Missouri LLC. These services can provide valuable expertise and guidance but come at an additional cost. Consider the potential benefits and weigh them against the costs when hiring professional assistance.

You may check out the Best Business Attorney Services in Missouri that offer their professional services to form your business.

Can I Set Up an LLC For Free?

It’s impossible to set up an LLC entirely for free, as state filing fees and other costs are associated with establishing an LLC. However, you can save money by handling the formation process instead of hiring a professional service. Here are some steps to help you minimize the cost of setting up an LLC:

  • Choose your LLC’s name and check for availability in your state. This can generally be done through the Secretary of State’s website.
  • Prepare and file the Articles of Organization yourself. Missouri offer an online filing option or downloadable forms on their websites. By completing this process independently, you can avoid paying additional fees for a professional service.
  • Act as your own Registered Agent if permitted within Missouri. It allows the business owner to serve as the Registered Agent, saving you the cost of hiring a professional registered agent service.
  • Create your own Operating Agreement using online resources and templates. Although not required in every state, an Operating Agreement is highly recommended to outline your LLC’s ownership structure and management. By drafting this document yourself, you can save on legal fees.
  • Research and apply for any required licenses and permits on your own. Depending on your business type and location, you may need specific permits or licenses. These costs can vary, but handling the application process yourself can save you the expense of hiring a professional service.

While you can’t set up an LLC for free, taking a do-it-yourself approach and minimizing the use of professional services can help you save money during the formation process. However, handling these tasks requires time and effort, and there may be additional legal or financial risks if mistakes occur.

FAQs

What is the cost of forming an LLC in Missouri?
The cost of forming an LLC in Missouri is $50.
Can I form an LLC in Missouri without an attorney?
Yes, you can form an LLC in Missouri without an attorney.
How long does it take to form an LLC in Missouri?
It usually takes about 5 to 7 business days to form an LLC in Missouri.
What is the annual fee for an LLC in Missouri?
The annual fee for an LLC in Missouri is $10.
Do I need to be a resident of Missouri to form an LLC in the state?
No, you do not need to be a resident of Missouri to form an LLC in the state.
Can I use a PO Box for my Missouri LLC?
No, you cannot use a PO Box for your Missouri LLC’s physical address.
Do I need a business license in Missouri to operate my LLC?
Depending on your industry, you may need a business license to operate your LLC in Missouri.
Can I change my Missouri LLC’s name after formation?
Yes, you can change your Missouri LLC’s name anytime after formation.
Can I have a single-member LLC in Missouri?
Yes, Missouri allows single-member LLCs.
What is the Missouri LLC operating agreement?
The Missouri LLC operating agreement is a legal document that outlines how the company will be run.
Does Missouri require the filing of an annual report for LLCs?
No, Missouri does not require the filing of an annual report for LLCs.
What is the Missouri LLC cancellation fee?
The Missouri LLC cancellation fee is $5.
Can I form an LLC in Missouri if I have an LLC in another state?
Yes, you can form an LLC in Missouri if you have an LLC in another state.
What is the penalty for not filing an annual report for my Missouri LLC?
There is no penalty in Missouri for not filing an annual report for your LLC.
Can I register my Missouri LLC for sales tax?
Yes, you can register your Missouri LLC for sales tax.
What is the Missouri LLC formation process?
The Missouri LLC formation process includes filing articles of organization with the Secretary of State.
What is a registered agent for a Missouri LLC?
The registered agent for a Missouri LLC is a person or company authorized to receive legal documents on behalf of the LLC.
What is the Missouri Corporation Division?
The Missouri Corporation Division is the state agency responsible for the registration and regulation of LLCs and other business entities.
What is a domestic LLC?
A domestic LLC is an LLC formed in Missouri for doing business within the state.
Can a Missouri LLC be taxed as an S corporation?
Yes, a Missouri LLC can be taxed as an S corporation.
Does Missouri have an LLC publication requirement?
No, Missouri does not have an LLC publication requirement.
Can I file my Missouri LLC paperwork online?
Yes, you can file your Missouri LLC paperwork online.
What is the Missouri LLC processing time for an expedited filing?
The Missouri LLC processing time for an expedited filing is 24 hours.
Can I use a registered agent service for my Missouri LLC?
Yes, you can use a registered agent service for your Missouri LLC.
Does Missouri have franchise tax for LLCs?
No, Missouri does not have franchise tax for LLCs.
Can I reserve a name for my Missouri LLC before formation?
Yes, you can reserve a name for your Missouri LLC before formation.
What is the tax rate for Missouri LLCs?
Missouri LLCs are subject to a flat tax rate of 6.25% for sales tax.
Do Missouri LLCs have to file a federal tax return?
No, Missouri LLCs are not required to file a federal tax return.
What permits do I need to operate my Missouri LLC?
Depending on your industry, you may need permits to operate your Missouri LLC.
What is the cost to form an LLC in Missouri?
The cost to form an LLC in Missouri is $50.
What is the annual report fee for an LLC in Missouri?
The annual report fee for an LLC in Missouri is $0.
Is it necessary to hire a lawyer to form an LLC in Missouri?
No, it is not necessary to hire a lawyer to form an LLC in Missouri.
What is the filing fee for Articles of Organization in Missouri?
The filing fee for Articles of Organization in Missouri is $105.
Can the members of an LLC in Missouri choose to be taxed as an S corporation?
Yes, the members of an LLC in Missouri can choose to be taxed as an S corporation.
What is the Missouri Division of Corporations’ mailing address to file LLC documents?
The Missouri Division of Corporations’ mailing address to file LLC documents is P.O. Box 778 / 600 West Main Street, Jefferson City, MO 65102.
Are there any additional fees for forming an LLC in Missouri?
No, there are no additional fees for forming an LLC in Missouri.
Do you need to put down a business plan when forming an LLC in Missouri?
No, you do not need to put down a business plan when forming an LLC in Missouri.
Can you file for an LLC online in Missouri?
Yes, you can file for an LLC online in Missouri.
How long does it take to file for an LLC online in Missouri?
It takes about 24-48 hours to file for an LLC online in Missouri.
What is the typical cost of hiring a registered agent for an LLC in Missouri?
The typical cost of hiring a registered agent for an LLC in Missouri is $50-$300 per year.
Is there a publication requirement for forming an LLC in Missouri?
No, there is no publication requirement for forming an LLC in Missouri.
Can an LLC in Missouri change its name after filing Articles of Organization?
Yes, an LLC in Missouri can change its name after filing Articles of Organization.
What is the cost to change the name of an LLC in Missouri?
The cost to change the name of an LLC in Missouri is $25.
Are there any fees associated with changing the name of an LLC in Missouri?
Yes, there is a $25 fee associated with changing the name of an LLC in Missouri.
Can an LLC in Missouri be formed by only one member?
Yes, an LLC in Missouri can be formed by only one member.
What if I don’t put down a registered agent when forming an LLC in Missouri?
If you don’t put down a registered agent when forming an LLC in Missouri, your LLC will not be approved.
Can a foreign LLC do business in Missouri?
Yes, a foreign LLC can do business in Missouri.
What is the cost to register a foreign LLC in Missouri?
The cost to register a foreign LLC in Missouri is $105.
Do I need to file an annual report for a foreign LLC doing business in Missouri?
Yes, you need to file an annual report for a foreign LLC doing business in Missouri.
Can a non-resident of Missouri be a member of an LLC formed in Missouri?
Yes, a non-resident of Missouri can be a member of an LLC formed in Missouri.
Is there a requirement for personal ties to Missouri to form an LLC in Missouri?
No, there is no requirement for personal ties to Missouri to form an LLC in Missouri.
Can an LLC in Missouri have no specified end date?
Yes, an LLC in Missouri can have no specified end date.
What is the cost to file Articles of Termination for an LLC in Missouri?
The cost to file Articles of Termination for an LLC in Missouri is $25.
How long after filing Articles of Termination does it take to terminate an LLC in Missouri?
It takes about 3-5 business days after filing Articles of Termination to terminate an LLC in Missouri.
Is there a penalty for not filing an annual report in Missouri?
No, there is no penalty for not filing an annual report in Missouri.
What is the cost to reinstate a dissolved LLC in Missouri?
The cost to reinstate a dissolved LLC in Missouri is $100.

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Conclusion

Forming and maintaining an LLC in Missouri involves various costs, including initial filing fees, ongoing annual report fees, and taxes. Understanding and planning for these costs is essential when establishing your LLC. Additionally, consider any optional expenses, such as hiring professional services or drafting an operating agreement, to ensure the success and longevity of your LLC in Missouri.

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