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Forming an LLC in Missouri is a wise move for entrepreneurs looking to enjoy all the benefits of a limited liability company. However, this comes at a cost - in the form of taxes, filing fees, and other expenses.
The question is, how much does an LLC cost in Missouri?
The answer depends on a host of factors, such as the business activity and the various licenses one needs to acquire.
This article offers a comprehensive overview of the associated cost of a Missouri LLC to help businesses make the best choice for their needs and budget.
What Is The Cost Of A Missouri LLC?
The following is a breakdown of the Missouri LLC cost (Optional & Required):
Missouri LLC Online Filing Fee
Businesses must file an LLC's Article of Organization with the Missouri Secretary of State (SOS) to form an LLC in Missouri. The cost for this is $50. It can be filed online, in person, or by mail. Missouri mail filings cost $105.
LLCs in Missouri must have an Operating Agreement. This contract between all the LLC members specifies the rights and responsibilities, how the money will be distributed, and all other related matters. Generally speaking, an Operating Agreement is legally binding. Hence, it is good to have one drafted by a lawyer to prevent any disputes or problems afterward.
Missouri LLC Annual Fees
While LLCs in MO pay taxes, they do not need to file an annual report and pay a fee like in most states.
Business License And Permits To Operate In Missouri
In addition to paying the above LLC formation fees and taxes, businesses looking to operate in Missouri need to apply for various permits and licenses after filing their Articles of Organization.
The cost for all these permits and licenses will vary depending on what a business needs. For example, suppose an LLC sells real estate or offers yoga lessons. In that case, they will require additional certification and license or permit from the state health department, respectively.
Furthermore, some local municipalities may require other licenses depending on the nature of the business.
Employee Identification Number (EIN)
Every LLC with employess in the United States is required to apply for an EIN. This number is used for taxes and other official purposes. Filing for EIN costs $0 and can be completed online, by fax, or mail.
Registered Agent Fees In Missouri
A Missouri LLC will also have to hire an authorized registered agent in the state. This is a person or entity that, as a resident and stakeholder of the state, will be responsible for receiving important legal and tax documents on the company’s behalf.
The main advantage of using an agent is that it shields the LLC from legal liability. Additionally, one can simply replace a registered agent without making major changes to the LLC.
The cost for this service ranges from $39 to $500 per year, depending on which company provides this service. For example, Incfile is a popular and affordable option for new businesses looking for a registered agent in Missouri.
LegalZoom is a pioneer in the field of online legal services. It's most recognized as a one-stop-shop for all LLC formation services. Their DIY platform and private network of attorneys offer legal assistance to individuals, communities, and small enterprises.
Northwest Registered Agent is another good LLC service provider to consider. They boast highly trained professionals who provide personalized customer service to help manage an LLC’s day-to-day affairs.
LLC Name Reservation
Interested parties in Missouri can reserve their business name for 12 months before forming their LLCs. This they can do by filing the LLC Name Reservation Form (Form BE-1) with the Missouri Secretary of State. The cost for a name reservation is $25.
Certificate Of Good Standing
Missouri LLCs can request a certificate of good standing to prove that their company is currently registered and in good standing. For example, this proves that the business has filed all necessary business tax returns and has not been previously dissolved or terminated.
Filing the Certificate of Good Standing costs $10 and can be requested online, by mail, or in person.
"Doing Business As" (DBA) Name
Suppose a business owner wishes to establish a name different than their official LLC company name. In that case, they'll have to fill out a Registration of Fictitious Name form. The filing fee for a DBA name in Missouri is $7.
What does a Missouri LLC cost?
Missouri LLC fees vary depending on the type of business and entity type. However, the LLC formation cost in MO is generally lower than in most other states.
When does an LLC need an EIN in Missouri?
Single-member LLC owners are not considered employees of the company by the IRS. Hence, they are not required to have separate EINs. However, when a single-member LLC has employees, they must acquire an EIN and submit employment taxes.
In summary, the cost of a Missouri LLC is not expensive compared to most states. It is well worth it after accounting for all the required state licenses and fees.
Just keep in mind that the higher the activity level of the LLC, the more extensive will be its cost structure.
Also, if a business chooses to hire a lawyer for formation services, they will have to factor in legal fees and perhaps other expenses.
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