An LLC, or Limited Liability Company, is a type of business structure that gives you some protection as the owner. It’s like a hybrid between a corporation and a sole proprietorship or partnership. The main advantage is that it limits your personal liability. That means if your business runs into legal trouble or debts, your personal assets—like your house, car, or bank accounts—are generally protected. It’s a great option for you as a small business owner, even if you’re a large business owner.
To start an LLC in Missouri, pick a name for your LLC. This name has to be so unique that no other business in Missouri can have the same name. You can check the availability online with the Missouri Secretary of State’s office. Once you find a name that’s available, you should also make sure it includes “LLC” at the end, like “Smith Construction LLC.”
Next, file an Articles of Organization. This is like telling the state, You’re starting a business! You can file this online or by mail, and there’s a fee, usually around $50.
Then create an operating agreement, which is a written plan that explains how your business runs. While Missouri doesn’t require you to have one, keep things clear between owners if there’s more than one of you.
Get an EIN (Employer Identification Number) from the IRS. Think of this as a Social Security number for your business. It’s free and lets you open a business bank account and hire employees if you want to.
1. Choose a Name for Your LLC
The very first step in starting your LLC in Missouri is picking a name. Your LLC’s name is important because it’s how customers and clients know you, and it’s the first impression your customers have of your business.
To choose a name for your LLC:
- Include “LLC” or a variation: Your business name must end with “Limited Liability Company,” “LLC,” or “L.L.C.” For example, if you want to name your business “Great Services,” it should be “Great Services LLC.”
- Unique Name: The name you choose must be unique, meaning no other business in Missouri should have the same name. You can check if the name is available by searching the Missouri Secretary of State’s online database. Just type in your desired name, and it appears to you if it’s already taken or not.
- Avoid Restricted Words: Some words are restricted or require special approval, like “Bank,” “Insurance,” or “University.” If you want to include such words, you need to get additional permissions from the state.
- Reserving Your Name: If you find the perfect name but aren’t ready to file the LLC paperwork just yet, Missouri lets you reserve the name for 60 days. This costs $25, and you can do it online or by mail.
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2. Appoint a Registered Agent
Next, you need to appoint a registered agent for your LLC. A registered agent is someone who is responsible for receiving legal documents on behalf of your LLC. This could be court documents if your business is ever sued, or other important notices from the state.
Who Can Be a Registered Agent?
- Person or Company: Your registered agent can be either an individual (like yourself or someone you trust) or a company that offers registered agent services.
- Missouri Resident: The registered agent must have a physical address in Missouri (a P.O. Box won’t work). This address is where all legal documents can be sent.
- Availability: The registered agent must be available during normal business hours (9 AM to 5 PM) to receive these documents.
If you choose to be your own registered agent, keep in mind that your address appears public, and you must be available during business hours. If you prefer more privacy or flexibility, you might hire a professional registered agent service. These services cost around $100 to $300 per year.
3. File the Articles of Organization
This is the big step where your LLC becomes official in the eyes of the state. The Articles of Organization are a document that you need to file with the Missouri Secretary of State. It’s like the birth certificate for your LLC.
Ensures you include this follow in your Articles of Organization.
- Name of Your LLC: This is the name you chose for your business.
- Registered Agent Information: Include the name and address of your registered agent here.
- Duration of the LLC: Most LLCs are perpetual, meaning it continue until you decide to close it. But if you want your LLC to only exist for a certain period (like 5 years), you can specify that here.
- Purpose of Your LLC: Missouri doesn’t require you to be too detailed here. You can simply state that the purpose of your LLC is to engage in any lawful business activities.
- Management Structure: You need to decide if your LLC can be member-managed (where all members have a say in running the business) or manager-managed (where you appoint one or more managers to handle the daily operations).
- Organizer Information: Includes the name and the address of the organizer that is filing the Articles of Organization
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4. Get an EIN (Employer Identification Number)
An EIN, or Employer Identification Number, is like a Social Security number for your LLC. You need this number to open a bank account, hire employees, and file taxes.
How to Get an EIN
Getting an EIN is free, and you can apply directly through the IRS website https://www.irs.gov. The process is quick—you can get your EIN instantly after filling out the online application.
- LLC Name and Address: The name and address of your LLC.
- Business Structure: Select “Limited Liability Company” as your business structure.
After you complete the application, you receive your EIN right away. Make sure to keep this number in a safe place because you may use it a lot.
5. Open a Business Bank Account
Now that you’ve got your EIN, it’s time to open a bank account for your LLC. This is crucial because it separates your personal finances from your business finances. Keeping them separate helps protect your personal assets and makes accounting and taxes much easier.
- EIN: The EIN you just got from the IRS.
- LLC Certificate of Organization: This is the certificate you received when the state approved your LLC.
- Personal Identification: Your driver’s license or passport.
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6. Register for Missouri State Taxes
Depending on your business activities, you may need to register for various state taxes in Missouri. The most common taxes are sales tax (if you’re selling goods) and employer taxes (if you have employees).
Sales Tax
If your LLC sells physical products, collect sales tax from customers. To do this, register with the Missouri Department of Revenue for a sales tax license. This allows you to collect sales tax and then remit it to the state.
Employer Taxes
If you plan to hire employees, register for employer taxes. This includes withholding taxes from employee paychecks and paying unemployment insurance taxes. Again, you can register for these taxes through the Missouri Department of Revenue.
Comply with Local Requirements
If your LLC is located in a specific city or county in Missouri, you may want to contact the local government offices to check on any business licenses or permits you might need. These can vary widely depending on your business type and location. For instance, a construction business might need different permits than a retail store.
Additionally, if you plan to operate your business out of your home, some cities or counties may have zoning laws that you need to comply with. These laws govern where certain types of businesses can operate. Get everything sorted out early to avoid any surprises down the road.
7. Obtain Business Insurance
Business insurance is important in protecting your LLC. Depending on your industry, Missouri may require certain types of insurance, and even if it’s not required, it’s often a wise decision to carry it. You might want to consider this type of business insurance.
- General Liability Insurance: This is a must for you if you’re a business owner. It covers claims related to property damage, bodily injury, and personal injury that occur in your business operations.
- Professional Liability Insurance: Also known as errors and omissions (E&O) insurance, this is important if your business provides professional services or advice.
- Workers’ Compensation Insurance: If you have employees, Missouri law requires you to have workers’ compensation insurance. This covers medical expenses and lost wages if an employee gets hurt on the job.
- Commercial Property Insurance: Consider commercial property insurance for your own or lease physical space for your business; this insurance protects your business property against things like fire, theft, and natural disasters.
- Commercial Auto Insurance: If your business uses vehicles, this insurance covers vehicles owned or leased by your LLC.
Talk to an insurance agent to determine the right coverage for your LLC. It’s better to be overprepared than underprepared, especially when it comes to protecting your business.
8. Keep Up with Ongoing Requirements
Starting your LLC in Missouri is just the beginning. To keep your LLC in good standing with the state, there are a few ongoing requirements you need to take care of.
Annual Report
Good news—Missouri doesn’t require you to file an annual report for your LLC. This is a bit of a rarity among states, so it’s one less thing to worry about each year.
Taxes
You need to keep up with your federal, state, and local tax obligations. This includes:
- Federal Taxes: Depending on how your LLC is structured, file taxes differently. If it’s a single-member LLC, report the LLC’s income on your personal tax return using Schedule C. If it’s a multi-member LLC, then you need to file a partnership tax return using Form 1065, and each member needs to report their share of the income on their individual tax returns.
- State Taxes: If your LLC has employees or sells goods, file state taxes. Make sure you’re registered with the Missouri Department of Revenue and that you’re keeping up with filing and payment deadlines.
- Sales Tax: If your LLC collects sales tax, ensure you regularly remit this to the state. The frequency of your filings can vary depending on the amount of sales tax you collect, so be sure to check with the Department of Revenue.
Recap
Starting an LLC in Missouri is a great way to protect your personal assets while pursuing your business goals. By following these steps—choosing a name, appointing a registered agent, filing the Articles of Organization, creating an Operating Agreement, obtaining an EIN, opening a business bank account, registering for state taxes, obtaining necessary licenses and permits, getting insured, and keeping up with ongoing requirements—you may be well on your way to successfully establishing your LLC.
Remember, while this guide provides a comprehensive overview, each business is unique. You may encounter specific challenges or questions along the way, and when in doubt, ensure you consult with a legal or financial professional to ensure you’re making the best decisions for your LLC.
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