How to Start a Business in Missouri

Missouri Business Facts

Missouri, also known as the Show-Me State, is home to the bustling cities of Kansas City and St. Louis as well as several professional sports teams, more than 28 million acres of farmland and some of the best BBQ in the USA. Entrepreneurs seeking a high quality of life for a low cost of living will find it in Missouri along with an abundance of art, culture, family attractions, wineries, breweries and outdoor recreation.

Major Companies Headquartered in Missouri

Missouri is the headquarters of many major companies including Ascension, Emerson, Enterprise Holdings, O’Reilly Auto Parts and Panera Bread.

Startup Environment

With its low tax basis and labor costs, Missouri is an excellent place to start a business. The state also offers numerous programs to stimulate startups and local businesses such as the Missouri Works Program, Missouri IDEA Funds, the Small Business Incubator Network and Missouri Innovation Centers.

Steps on How to Start a Business in Missouri

Before starting a business in Missouri, there are some essential steps you need to complete.

Step 1: Decide on a Business Structure

There are three types of business structures: a Corporation, an LLC, and a DBA. Click here to learn more about business entities.

• A Corporation is a separate entity (provides liability protection to the owners) with a structure that includes shareholders, directors and officers. It’s more complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
• An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity and provides very easy management (doesn’t require directors or officers) and taxation. The LLC has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
• A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.

Step 2: Choose a Business Name

Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but it’s better to have the right name from the start).In Step 3 we’ll show you how to search for the name in Missouri, but we highly recommend you do the following before searching Missouri state databases:

• Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.

• Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).

• Do trademarks search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if you’re name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself. Tip: search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.

• Make sure your company name choice is available by searching the Missouri Business Entity Database. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).

Note: Familiarize yourself with the Missouri naming guidelines. Corporations must contain the word “corporation”, “company”, “incorporated” or “limited” or end with an abbreviation of one of the above words. Missouri LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.

Restrictions on Missouri Business Name & Business Purpose

Any individual or entity that conducts business under a name other than its actual name should register that fictitious name.

Restricted designations: The use of certain words and phrases in corporate names is considered “restricted” in Missouri. These include:

• Bank
• Coop
• Cooperative
• Insurance Company
• Redevelopment Corporation
• Trust Company
• Underwriter

Step 3: Register the Business

Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Missouri.

How to form an LLC in Missouri

• File the “Articles of Organization” with the Missouri Secretary of State.
• Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.

How to Incorporate in Missouri

• File the “Articles of Incorporation” with the Missouri Secretary of State.
• Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
• Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.

NOTE: When registering a new company the Secretary of State can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.

TIP: Check our order form to see how long Missouri is currently taking to process regular and expedited orders.

How to File a DBA in Missouri

• You can register your DBA/Fictitious Name online with the Missouri Secretary of State or you can obtain the registration form to register your Fictitious Name by mail.

Optional Considerations when registering a Missouri business

• Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).

Ready to register a business in Missouri?

• We specialize in registering businesses in Missouri.

Step 4: Obtain your Federal Employer Identification Number (FEIN or “EIN”)

Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, it’s required). However, if you are a DBA and don’t obtain an EIN you will be required to use your Social Security Number on many documents so it’s highly recommended that you obtain the EIN to prevent identity theft. You can apply online with the IRS or via IRS Form SS-4.

TIP: We can obtain your EIN for you if you we form your company.

Step 5: Open Company Accounts: Bank and Credit Cards

To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork b) your EIN c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).

Top 5 Major Banks in Missouri

• UMB Bank
• Commerce Bank
• Bank of America
• U.S. Bank
• Capitol Federal Savings Bank

TIP: Our business formation service includes a free banking resolution for your use.

Step 6: Obtain Business Licenses and Permits

Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).

Not every Missouri business needs a business license. However, some types of Missouri businesses require professional licenses, agricultural permits or environmental certifications. Different licenses and permits are issued by state agencies. You can learn more about Missouri business licenses by visiting the Missouri Business Portal.

TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.

Step 7: Annual and Ongoing Requirements

DBA: Your Missouri Fictitious Business Name is valid for five years (unless you change company name or other information listed on the FBN). Renewals must be made in the six months before the date that the registration expires.

LLC: Missouri does not require LLCs to file an annual report.

Corporation: Missouri corporations are required to file an annual report. The annual report is due each year by the end of the month, 3 months after the corporation was registered/incorporated. The filing fee is $20.

Important Missouri Contacts

Missouri Secretary of State
600 West Main Street
Jefferson City, MO 65101
Main Office: 573-751-4936

Missouri Taxation Departments

• Missouri Department of Revenue

Missouri Labor and Employment Departments

• Missouri Department of Labor and Industrial Relations

Missouri Business Development Program

Missouri Startup Resources

1. Small Business Administration (SBA) Missouri District Offices

• Kansas City District Office
• St. Louis District Office

2. SCORE Missouri

• Lake of the Ozarks
• Southwest Missouri

3. Missouri Legal Statutes

• Missouri Corporations Statutes – includes LLCs and LLPs.

4. Missouri Chambers of Commerce

• Missouri Chamber of Commerce and Industry
• Greater Kansas City Chamber of Commerce

5. Missouri Business Portal

• The 24/7 Missouri provides useful information including lists of support resources and state and federal financial assistance to help you get started.

6. Angel.co Missouri Startups

• A list of Missouri Startups and Missouri angel investors registered with Angel.co.

7. Missouri Business News

• Kansas City Business Journal
• Missouri Business Alert
• Missouri Business Magazine

8. Missouri Department of Economic Development

9. Missouri Small Business Guide

10. Missouri Green Business Program

• Better Green Business Programs
• St. Louis Green Business Challenge
• Business Going Green