Learn How to Form a Missouri LLC or a Corporation
- Missouri Business Facts and Environment
- Step 1: Decide on a Business Structure
- Step 2: Pick a Business Name
- Step 3: Register the Business
- Step 4: Obtain Your Federal Employer Identification Number
- Step 5: Open Company Bank and Credit Accounts
- Step 6: Set-up An Accounting System
- Step 7: Obtain Licenses and Permits
- Step 8: Hire Employees (if applicable)
- Step 9: Obtain Business Insurance
- Step 10: Systemize and Organize
- Step 11: Branding and Marketing
- Step 12: Annual and Ongoing Requirements
- Important Missouri Contacts
Missouri Business Facts and Environment
MO 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 Health, Emerson Electric Co., O’Reilly Automotive, Enterprise Holdings, Edward D Jones & Co. LP, Enterprise Rent-A-Car and Anheuser-Busch.
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 3 basic options: a DBA, a Corporation or an LLC. Click here to learn more about business entities.
- 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.
- A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. 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 but provides very easy management (doesn’t require directors or officers) and taxation. 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.
Step 2: Pick 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.
Ready to Start Now? Let Us Do The Work
Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.
- Learn more about our business formation service
- Read our verified reviews and 100% Satisfaction Guarantee
- Contact our friendly support team if you have any questions
Step 4: Obtain Your Federal Employer Identification Number
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, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.
TIP: We will obtain your EIN for you if you we form your company.
Step 5: Open Company Bank and Credit Accounts
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: Set-up An Accounting System
Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.
Company documents generally are required to be kept for 3 years, including: a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.
Step 7: Obtain 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 8: Hire Employees (if applicable)
If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.
Step 9: Obtain Business Insurance
There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection. Click here to view our preferred provider of business insurance online.
Step 10: Systemize and Organize
Prepare the business as if someone needed to take it over and run it for you. This means have a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.
Step 11: Branding and Marketing
Now that you’ve set-up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.
Step 12: 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 if you file online.
Important Missouri Contacts
Missouri Secretary of State
600 West Main Street
Jefferson City, MO 65101
Main Office: 573-751-4936
Missouri Taxation Departments
Missouri Labor and Employment Departments
Missouri Business Development Program
Missouri Startup Resources
1. Small Business Administration (SBA) Missouri District Offices
3. Missouri Legal Statutes
- Missouri Corporations Statutes – includes LLCs and LLPs.
4. Missouri Chambers 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
8. Missouri Department of Economic Development
9. Missouri Small Business Guide
10. Missouri Green Business Program
