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Starting a Limited Liability Company (LLC) in Missouri goes beyond simply completing forms. It requires a deep dive into all the costs that come with it. At first, this might look tough, but looking closer can help you make smart money moves.
This article will explain the different costs you need to know about when setting up an LLC in Missouri. We’ll also introduce you to helpful LLC services like Northwest Registered Agent. They can provide expert advice, helping you make well-informed decisions and possibly cut down on expenses.
Understanding the costs of forming an LLC and using available resources wisely can set you on a financially savvy path as you begin your business venture.
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What Is the Cost of Forming an LLC in Missouri?
The main expense for starting an LLC in Missouri is a $39 fee to submit your LLC’s Articles of Organization online to the Missouri Secretary of State.
Missouri Foreign LLC Formation Costs
If you own an LLC registered in another state and want to expand your business to Missouri, you must register your LLC as a foreign entity in Missouri.
Registering a foreign LLC in Missouri costs $105. To register your foreign LLC in Missouri officially, you must send in an Application for Registration of a Foreign Limited Liability Company (Form LLC-4).
Annual Cost for LLCs in Missouri
When you create an LLC in Missouri, knowing about the regular costs of keeping it running is important. This helps you handle your LLC’s money well and keeps it financially healthy.
The key continuing costs for an LLC in Missouri are a $7 renewal fee every five years for LLCs using fictitious names and a yearly registered agent fee between $100 and $300. The state requires this agent to accept legal papers and official messages for the LLC.
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How Much Does It Cost to Start an LLC in Missouri with the Best LLC Service?
Northwest Registered Agent LLC Formation Cost
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Starting an LLC in Missouri costs $39, though additional services might hike the price. Typically, the processing takes 2 to 3 weeks. If you need it faster, paying $50 cuts it down to 4 to 6 days, and $100 speeds it up to 1 to 2 days.
Northwest Registered Agent Plans:
- Lite LLC Plan
- Includes: Forming an LLC with standard processing
- Cost: Just the state filing fee
- Essential LLC Plan
- Includes: Faster processing, annual compliance support, and an operating agreement
- Cost: $199 plus state fees
- Maintenance: $199 yearly to continue the services
- Elite LLC Plan
- Includes: Everything in the Essential plan plus a suite of business tools
- Additional Tools: A free business domain for a year, website and online store builders, eight free logos, digital business cards, business card creation tools, and social media post tools
- Cost: $249 plus state fees
- Maintenance: $249 annually for the added features
Northwest Registered Agent’s tiered plans offer varying levels of service and convenience, from basic filing to comprehensive business support. Choose based on your needs and budget, ensuring your LLC gets off to a smooth start.
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Additional Costs When Starting an LLC in Missouri
Missouri LLC Name Costs
Choosing a name for your Limited Liability Company doesn’t cost anything. After your Articles of Organization are approved by the state, your selected Missouri LLC name is officially yours at no extra cost.
Reserving an LLC name may be necessary. However, this is different in most states. There’s no need for a Name Reservation to start an LLC in most places.
If you choose, you can secure the name you prefer for your upcoming LLC for a period of up to 12 months. This involves submitting the LLC Name Reservation Form (Form BE-1) along with a filing fee of $25.
Missouri Registered Agent Costs
Missouri requires that your LLC has a Registered Agent, which can cost $0 or up to $125 every year.
A Missouri Registered Agent’s job is to accept legal documents and state notices for your LLC. They must have a real street address in Missouri and be available during normal business hours.
It won’t cost anything extra if you choose to be your own Registered Agent or choose someone you know for the role.
Alternatively, you can hire a Registered Agent service, which costs between $100 and $300 annually. These services take care of receiving your LLC’s legal documents and often provide more business-related services, helping to keep your private information secure.
Hiring a Registered Agent service might be a good idea in certain situations:
- Your business doesn’t have an address in the state (Missouri law says Registered Agents need a state address)
- You want to keep your address private (some companies might let you use their address to keep yours secret)
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Missouri Operating Agreement Costs
Creating an LLC Operating Agreement comes at no cost. In Missouri, this agreement is a written contract among LLC Members. It details important aspects like ownership of the LLC, how it’s managed, and how profits are shared.
It’s recommended that both single-member and multi-member LLCs have an operating agreement. This document should be formally written down, stored in the company’s records, and given to all Members.
Unlike many websites that charge between $50 and $200 for LLC Operating Agreements, creating one doesn’t cost anything.
Missouri EIN Cost
Getting an EIN Number, also known as an Employer Identification Number (EIN) or Federal Employer Identification Number (FEIN), for your LLC doesn’t cost anything. This number is important for filing income taxes, opening an LLC bank account, and hiring employees if necessary.
Although some websites might ask for a fee to provide this service, you can get an EIN for your LLC for free directly from the Internal Revenue Service (IRS) through a fast online application.
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Missouri LLC Taxes
Owners of Missouri LLCs must pay various types of taxes, leading to big changes in their annual expenses.
Some taxes that LLC owners pay include:
Federal Income Taxes
The IRS offers various methods for managing taxes for your LLC. In the case of a Single-Member LLC, the IRS treats it as a Disregarded Entity, implying that the LLC isn’t required to submit its own federal income tax return. Rather, the tax responsibilities fall to the owner of the LLC, who must file the return and cover any taxes owed.
The taxation of the owner varies based on their circumstances: individuals are taxed in the same manner as sole proprietorships, while companies are taxed as components of larger corporations.
Multi-Member LLC Taxes
When an LLC is owned by more than one person, it’s taxed as a Partnership. The LLC must file a 1065 Partnership Return and give Schedule K-1 forms to its owners, showing how much profit each one gets. The owners then report this income on their personal tax returns (Form 1040) and pay taxes on it.
Husband and Wife LLC Taxes
In certain states, particularly those that acknowledge community property, spouses co-owning an LLC have the option to elect taxation as a Single-Member LLC (Qualified Joint Venture) instead of as a Multi-Member LLC. This option isn’t accessible in states that don’t recognize community property.
Electing Corporate Taxation
An LLC has the option to be taxed as a Corporation instead of its default classification. To do this, it must submit Form 2553 for S-Corporation status or Form 8832 for C-Corporation status.
Choosing S-Corporation can help save on self-employment taxes for businesses that are well-established, and opting for C-Corporation status can be advantageous for larger companies that offer healthcare fringe benefits to their employees.
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Missouri State Income Tax
For Single-Member LLCs, the owner reports the LLC’s profits or losses on their own state tax return. Multi-member LLCs may have to submit a Partnership tax return at the state level, and then each owner includes their share of profits or losses on their individual returns. Certain types of businesses or industries may be subject to additional business taxes in Missouri.
Local Income Tax
LLC owners might have to submit and pay local income taxes to their city or town. It’s a good idea to hire an accountant for precise tax filing, or you can reach out to your city or town office to find out what they require.
Missouri Sales Tax
If you’re selling products to customers in Missouri, you might need to collect sales tax using a Seller’s Permit from the Missouri Department of Revenue (DOR). This permit is a license to collect sales tax on retail sales.
Missouri LLC Payroll Taxes
If your LLC in Missouri has employees, you need to pay payroll taxes. This covers federal and state income tax withholdings, Social Security and Medicare taxes, along with other deductions. Managing payroll and accurately dealing with payroll taxes can be complicated, usually needing help from a professional.
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Missouri LLC Cost FAQs
Conclusion
Starting an LLC in Missouri involves more than just the initial fee. This process includes getting the necessary paperwork, hiring registered agents, and handling important parts like operating agreements and getting an EIN.
Managing these financial aspects well is very important. That’s where LLC formation services like Northwest Registered Agent prove valuable.
With a clear understanding of the various costs and support from Northwest Registered Agent, people looking to start an LLC in Missouri can do so confidently. This approach not only builds a solid base but also promotes long-term success.
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