Cost of Starting an LLC in Missouri 2024: A Comprehensive Guide

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Cost of Starting an LLC in Missouri

Embark on your exciting entrepreneurial journey in Missouri with confidence, as our comprehensive guide helps you navigate the LLC world. Discover the costs of starting an LLC in Missouri, and determine if this flexible business structure aligns with your company’s goals and needs.

LLCBase supports you every step of the way, covering everything from initial setup fees to ongoing expenses. Dive into the dynamic world of Missouri LLCs and make informed decisions that make your business successful. Unleash the full potential of your Missouri LLC and soar to new heights!

Let’s explore the costs of starting an LLC in Missouri together! We’ve broken them down into initial costs, annual costs, and any extra expenses you may need to consider. Happy planning!

Initial Costs of Forming an LLC in Missouri

Are you curious about the initial costs of forming an LLC in Missouri? Check out the list below for a breakdown of expenses to get your business up and running!

1. Secretary of State Filing Fee

To form an LLC in Missouri, you must file Articles of Organization with the Missouri Secretary of State. The regular filing fee is $105 (by mail and $50 online); if you need expedited processing, it will cost an additional fee.

Missouri Domestic LLC
  • Online Filing: $105 (by mail and $50 online) + No franchise tax Franchise Tax.
  • Filing Statement of Information within 1 year (within 3 months of anniversary) of registration: $7.
  • By Mail: Complete the application form and mail it to Corporations Unit, James C. Kirkpatrick State Information Center, P.O. Box 778, Jefferson City, MO 65102. This costs $105 (by mail and $50 online) + $25 for counter drop off (non-refundable).
Missouri Foreign LLC
  • Online Filing: $105 (by mail and $50 online) + No franchise tax Franchise Tax.
  • Filing Statement of Information within 1 year (within 3 months of anniversary) of registration: $7.
  • By Mail: Complete the application form and mail it to Corporations Unit, James C. Kirkpatrick State Information Center, P.O. Box 778, Jefferson City, MO 65102. This costs $105 (by mail and $50 online).

2. Name Reservation Fee

If you want to reserve your desired LLC name before filing the Articles of Organization, you can do so for a Not available (online) and $25 (offline) fee. The name reservation is valid for 60 days, giving you ample time to prepare and submit your Articles of Organization. To reserve a name, you must submit a Name Reservation Request form to the Secretary of State by mail or in person, along with the required fee.

3. Registered Agent Fee

Missouri requires all LLCs to have Registered Agent for the service of process. Registered Agent services typically cost between $50 – $150 per year, depending on the provider. Some popular Registered Agent service providers in Missouri include Northwest Registered Agent, LegalZoom, and Incfile. Besides the annual fee, these providers offer additional services such as mail forwarding and compliance notifications.

4. Business Licenses and Permits

Depending on your business type and location, you may need to obtain various licenses and permits in Missouri. The costs for these can vary widely, so it’s essential to research your specific business requirements. To identify the licenses and permits applicable to your business, you can use the Missouri Business Portal (https://openforbiz.mo.gov/) website.

5. Operating Agreement

Although not required by law, having an operating agreement for your Missouri LLC is a good idea. You can draft one yourself or enlist the help of an attorney, which can cost anywhere from $1,000 or more. The operating agreement outlines your LLC’s ownership structure, management, and procedures. It can help prevent member disputes and provide clear decision-making and profit distribution guidelines.

6. Employer Identification Number (EIN)

Most LLCs need an EIN for tax purposes, bank account opening, and hiring employees. You can obtain an EIN in Missouri for free from the Internal Revenue Service (IRS) by submitting an online application or mailing Form SS-4. The online application is the fastest method; you will receive your EIN immediately upon completion. If you choose to mail the form, the processing time can take up to four weeks.

Starting an LLC in Missouri involves certain costs, making selecting the right support for a smooth experience crucial. The best LLC formation services in Missouri offer expert assistance in comprehending, managing, and reducing expenses. Not only do these services simplify the setup process, but they also help identify solutions tailored to your unique needs. Consequently, your new LLC builds a solid foundation, optimally utilizing available resources and budget in Missouri.

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Annual Costs of Maintaining an LLC in Missouri

Wondering about the yearly expenses for sustaining an LLC in Missouri? Peruse the list below to discover the costs of keeping your business compliant and thriving!

1. Annual Franchise Tax

All Missouri LLCs are required to pay an annual franchise tax of No franchise tax, regardless of income or activity. This tax is due on the Not applicable in Missouri. It’s important to note that newly formed LLCs are not exempt from this tax and must pay the No franchise tax fee for their first year of operation. You can pay the franchise tax online through the Missouri Department of Revenue website or by mailing a payment voucher.

2. Annual Report

Missouri LLCs must file an annual report with the Missouri Secretary of State every the end of the month of formation. The filing fee is $7. The Statement of Information is due within 1 year (within 3 months of anniversary) of the initial filing of the Articles of Organization and then every the end of the month of formation during the anniversary month. The Statement of Information form can be submitted online or by mail.

3. Registered Agent Fee

As mentioned earlier, LLCs in Missouri must maintain Registered Agent with an annual fee. This fee typically ranges from $50 – $150 per year, depending on the provider. When choosing Registered Agent, consider additional services offered, reputation, and customer support.

4. Business License and Permit Renewals

Depending on your business and location, you may need to renew licenses and permits periodically, which can incur additional fees. It’s essential to stay up-to-date on the renewal requirements and fees for your specific business licenses and permits to maintain compliance and avoid penalties. You can use resources like the Missouri Business Portal (https://openforbiz.mo.gov/) website and your local city or county government websites for information on renewal requirements and fees.

Recommended: Effortlessly manage your LLC’s annual expenses and obligations in Missouri – choose a reliable LLC Formation Service to simplify the maintenance process. Focus on growing your business today! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online LLC Setup

Additional Costs to Consider for Your Missouri LLC

Ready to explore the extra expenses you may encounter with your Missouri LLC? Browse the list below to be well-prepared, ensuring your business flourishes without surprises!

1. Tax Preparation and Accounting Services

Depending on the complexity of your business finances, you may need to hire a tax professional or accountant, which can cost anywhere from $100 to $1,000 or more per year. The cost of these services typically depends on factors such as the accountant’s experience, the size of your business, and the level of service required. To find a suitable tax professional or accountant, consider seeking recommendations from other business owners or using professional organization directories, such as the American Institute of Certified Public Accountants (AICPA).

2. Legal Services

Enlisting the help of an attorney for legal advice or to draft contracts can add to your LLC’s expenses. Attorney fees can range from $150 to $500 per hour or more, depending on the attorney’s experience and location. To save on legal costs, consider using online legal services, which offer legal document templates and attorney consultations at a fraction of the cost of traditional legal services.

3. Business Insurance

Depending on your industry and business activities, you may need various types of insurance, such as general liability, professional liability, or workers’ compensation. The insurance cost can vary widely based on factors like the size of your business, the amount of coverage needed, and the level of risk associated with your industry. For example, a small consulting business may pay around $500 annually for general liability insurance, while a construction company may pay several thousand dollars annually. To find the best insurance rates, consider getting quotes from multiple insurance providers and working with an insurance agent specializing in your industry.

4. Office Space and Utilities

Depending on your business, you may need to rent office space, which can add to your monthly expenses. The cost of office space in Missouri can vary greatly depending on location, size, and amenities. Remember that in addition to rent, you’ll also need to cover utilities, such as electricity, water, and internet service, which can add several hundred dollars per month to your expenses.

5. Marketing and Advertising

To grow your business, you’ll likely need to invest in marketing and advertising, which can vary widely in cost depending on your strategy. Other marketing expenses may include social media advertising, email marketing, and print materials like business cards and brochures. To maximize your marketing budget, consider researching low-cost or free marketing strategies, such as social media engagement, content marketing, and networking events.

How to Save on Missouri LLC Costs

Looking for ways to save on your Missouri LLC costs? Check out the strategies below to keep expenses in check and ensure your business thrives!

1. Do-It-Yourself (DIY) Formation

You can save on professional fees by handling the LLC formation process yourself. You can file the Articles of Organization, obtain an EIN, and draft an operating agreement by researching the necessary steps and required documents. The Missouri Secretary of State‘s website provides detailed information on forming an LLC, and the IRS website allows you to apply for an EIN online at no cost.

2. Utilize Online Resources

Many free or low-cost resources are available online to help with various aspects of your business, such as drafting an operating agreement or creating a marketing plan. For example, websites like SCORE and the U.S. Small Business Administration (SBA) offer free business templates, guides, and resources. Additionally, you can find low-cost marketing tools and platforms like Canva for designing marketing materials or Mailchimp for email marketing campaigns.

3. Shop For Professional Services

We recommend exploring various providers, including LegalZoom, for services such as Registered Agents and legal assistance to find the best value. By comparing rates and service offerings, you can ensure you obtain the most cost-effective solution for your business needs. Don’t hesitate to negotiate prices or inquire about discounts, as numerous providers are often willing to work with you to win your business.

4. Bundle Services

Some companies offer packages for LLC formation, Registered Agent services, and other business essentials, potentially saving you money. By bundling these services, you may save on individual service costs and streamline setting up and maintaining your Missouri LLC. However, carefully compare bundled packages to ensure they include the services you need and offer true cost savings compared to purchasing services individually.

FAQs

What is the cost of starting an LLC in Missouri?
The cost of starting an LLC in Missouri is $50.
How long does it take to start an LLC in Missouri?
It takes approximately 5-7 business days to start an LLC in Missouri.
What is the filing fee for starting an LLC in Missouri?
The filing fee for starting an LLC in Missouri is $50.
Can I file my LLC paperwork online in Missouri?
Yes, you can file your LLC paperwork online in Missouri through the Secretary of State’s website.
Do I need to hire a lawyer to start an LLC in Missouri?
No, it is not required to hire a lawyer to start an LLC in Missouri, but you may wish to consult with one.
Do I need to publish my LLC in Missouri?
No, publishing is not required for LLCs in Missouri.
Can I opt for a different tax status for my LLC in Missouri?
Yes, you can choose to be taxed as an S corporation or a C corporation in Missouri.
Is a registered agent required for my LLC in Missouri?
Yes, a registered agent is required for LLCs in Missouri.
What is a registered agent in Missouri?
A registered agent in Missouri is a person or business designated to receive legal and official documents on behalf of an LLC.
Can I act as my own registered agent in Missouri?
Yes, you can act as your own registered agent in Missouri.
Can a non-resident be a registered agent in Missouri?
Yes, a non-resident can be a registered agent in Missouri.
How long does a registered agent need to be appointed for in Missouri?
A registered agent needs to be appointed for the lifetime of the LLC in Missouri.
Can I change my registered agent in Missouri?
Yes, you can change your registered agent in Missouri by filing a form with the Secretary of State.
Do I need an operating agreement for my LLC in Missouri?
No, you are not required to have an operating agreement for your LLC in Missouri, but it’s recommended.
Can I have a single-member LLC in Missouri?
Yes, you can have a single-member LLC in Missouri.
Do I need a business license to start an LLC in Missouri?
Depending on your business activities and location, you may need to obtain a business license to start an LLC in Missouri.
Is my LLC name protected in Missouri?
Yes, once your LLC is approved, your name is protected in Missouri.
Can I reserve my LLC name in Missouri?
Yes, you can reserve an LLC name in Missouri for 60 days by filing a name reservation form with the Secretary of State.
Can my LLC name be similar to another business in Missouri?
No, your LLC name cannot be too similar to an existing business name in Missouri.
Does my LLC need to have a principal office address in Missouri?
Yes, your LLC needs to have a principal office address in Missouri.
Can I use a virtual office address as my principal office address in Missouri?
Yes, you can use a virtual office address as your principal office address in Missouri.
How many members can an LLC have in Missouri?
An LLC can have unlimited members in Missouri.
Is there an annual report requirement for LLCs in Missouri?
Yes, LLCs in Missouri are required to file an annual report with the Secretary of State.
When is the annual report due for LLCs in Missouri?
The annual report for LLCs in Missouri is due by April 15th each year.
What is the penalty for late filing of the annual report in Missouri?
The penalty for late filing of the annual report in Missouri is $20.
Do I need to file for a Sales Tax ID in Missouri for my LLC?
Yes, you need to file for a Sales Tax ID in Missouri if you plan to sell goods or services taxable under Missouri law.
Are there any other taxes or fees owed for LLCs in Missouri?
Yes, LLCs in Missouri are subject to state and local taxes, as well as possible Secretary of State fees for certain filings.
Is it possible to expedite the filing of LLC paperwork in Missouri?
Yes, it is possible to request expedited processing for an additional fee in Missouri.
What is an LLC?
An LLC is a limited liability company; it is a business structure that provides personal asset protection for owners from business debts and liabilities.
How much does it cost to form an LLC in Missouri?
The cost to form an LLC in Missouri is $50.
Can I use LegalZoom to form my LLC in Missouri?
Yes, you can use LegalZoom to form your LLC in Missouri.
What are the requirements to form an LLC in Missouri?
To form an LLC in Missouri, you must file Articles of Organization with the Secretary of State and pay the filing fee of $50.
How long does it take to form an LLC in Missouri?
It usually takes 3-7 business days for the Missouri Secretary of State to process an LLC formation.
Do I need to hire a lawyer to form my LLC in Missouri?
No, it is not required to hire a lawyer to form your LLC in Missouri, but consulting with a lawyer can be helpful.
What is the Registered Agent requirement in Missouri for LLCs?
LLCs in Missouri must have a Registered Agent, who is a person or company that acts as the point of contact for official paperwork for the business.
Can I be my LLC’s Registered Agent in Missouri?
Yes, you can be your LLC’s Registered Agent in Missouri.
What is a Missouri LLC Operating Agreement?
A Missouri LLC Operating Agreement is a legal document outlining the ownership and operating procedures of your LLC.
Is an Operating Agreement required to form an LLC in Missouri?
No, it is not required by the state of Missouri to have an Operating Agreement, but it is highly recommended.
How do I get an EIN for my Missouri LLC?
You can apply for an EIN (Employer Identification Number) from the IRS for free online.
What is the sales tax rate in Missouri for an LLC?
The sales tax rate in Missouri varies by city and county, but the state sales tax rate is 4.225%.
What is the Annual report fee for an LLC in Missouri?
The annual report fee for an LLC in Missouri is $0 (zero).
How do I dissolve my Missouri LLC?
To dissolve your Missouri LLC, you must file a Certificate of Termination with the Missouri Secretary of State.
How much does it cost to dissolve my Missouri LLC?
It costs $25 to dissolve your Missouri LLC.
What happens if I do not file the Annual Report for my Missouri LLC?
If you do not file your Missouri LLC’s Annual Report, your business can be administratively dissolved by the state.
Are there any other fees associated with forming my Missouri LLC?
There may be other fees depending on the services you choose, such as hiring a Registered Agent or getting a certificate of Good Standing.
Can I change the name of my Missouri LLC after it has been formed?
Yes, you can change the name of your Missouri LLC by filing a Certificate of Amendment with the Secretary of State and paying a $25 fee.
Can I add members to my Missouri LLC after it has been formed?
Yes, you can add new members to your Missouri LLC at any time.
What is the single member LLC tax rate in Missouri?
Single-member LLCs in Missouri are taxed like sole proprietorships, and the owner pays taxes on their personal income tax return.
What are the initial report fees for a Missouri LLC?
There are no initial report fees for a Missouri LLC.
Do I need to file an annual report for my Missouri LLC?
Yes, Missouri LLCs are required to file an annual report.
Do Missouri LLCs need to obtain business licenses or permits?
It depends on the type of business and region where the LLC is located, but many small businesses do not require licenses or permits in Missouri.
What is the turnaround time to get a Missouri LLC Certificate of Good Standing?
A Missouri LLC Certificate of Good Standing can be obtained online immediately after processing is complete.
What is a Certificate of Good Standing for Missouri LLCs, and why do I need one?
A Missouri Certificate of Good Standing is a legal document showing that your LLC is registered and in good standing with the state. You may need one for certain business transactions, such as a loan or selling your business.
Can I own multiple LLCs in Missouri?
Yes, you can own multiple LLCs in Missouri.
What is the foreign Missouri LLC qualification process?
If your LLC is formed in another state, you can apply for Foreign LLC qualification in Missouri if you plan to transact business there.
Do Missouri LLCs need a Business Identification Number or Missouri tax identification number?
In Missouri, a Business Identification Number (BIN) is used for sales and use tax, and a Missouri tax ID is used to file income taxes or payroll taxes.
Is there a waiting period to form a Missouri LLC?
No, there is no waiting period to form a Missouri LLC.

Also Read

How to Save Money While Starting Your Business LLC in Missouri

One of the simplest ways to save money when starting your business is to create a detailed budget and stick to it. Before making any purchases or investments, take the time to outline all of your expected expenses and create a plan for how you will fund them. By carefully monitoring your spending and prioritizing essential purchases, you can avoid overspending and ensure that your funds are being allocated effectively.

Additionally, it’s important to research and compare prices when making purchases for your business. Whether you’re buying equipment, hiring services, or purchasing inventory, taking the time to shop around and look for the best deals can go a long way in saving money. Consider buying used equipment or finding vendors that offer discounts for bulk purchases to maximize your savings.

Another way to save money when starting your business is to outsource certain tasks instead of hiring full-time employees. While hiring employees can be costly with expenses such as salaries, benefits, and training, outsourcing services on an as-needed basis can help you save money and maintain flexibility in your operations. Look for freelancers, contractors, or virtual assistants who can provide the services you need at a fraction of the cost of hiring full-time staff.

When it comes to office space, consider alternative options such as coworking spaces or shared offices to save money on rent. These options often provide access to essential amenities such as internet, utilities, and meeting rooms at a lower cost compared to traditional office leases. By choosing a cost-effective office space, you can allocate more funds towards growing your business and expanding your operations.

Additionally, take advantage of free or low-cost resources available to entrepreneurs in Missouri. There are many organizations, such as Small Business Development Centers and Chambers of Commerce, that offer mentorship, training, and networking opportunities for new business owners. These resources can help you navigate the challenges of starting a business and connect you with valuable support services without breaking the bank.

As you navigate the process of starting your business LLC in Missouri, it’s important to keep a sharp eye on your finances and look for opportunities to save money at every turn. By creating a detailed budget, researching prices, outsourcing services, choosing cost-effective office space, and leveraging free resources, you can reduce your expenses and set your business up for long-term success. Saving money in the early stages of your business can help you weather any unexpected challenges and position your company for growth and profitability in the future.

Conclusion

Forming and maintaining an LLC in Missouri comes with various costs, from initial filing fees to ongoing franchise taxes and Registered Agent fees. However, you can successfully establish and operate your Missouri LLC by understanding these expenses and finding ways to save on costs. We hope this guide has provided you with the information you need to decide to form an LLC in Missouri. Visit LLCBase for more information about starting an LLC in Missouri. We wish you the best of luck on your entrepreneurial journey.

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