Starting an S Corp in Missouri 2024: Your Ultimate Guide

LLCBase is your go-to place for everything about LLCs, and it's led by Brian Cohan, who's an expert in the field. Brian and our team are here to give you clear and helpful advice on how to set up and manage an LLC. We've been through the process and know the ins and outs. Our articles and guides are based on real experiences, making them practical for you. We're committed to helping you make smart choices for your business. With LLCBase, you're in good hands as you navigate the world of LLCs.

How to Start an S Corp in Missouri

Welcome to the exhilarating world of Missouri entrepreneurship! Ready to start your Missouri S Corporation and enjoy its unique benefits? You’ve come to the right place. Missouri offers ample resources to ensure your business thrives, with added perks like tax savings and liability protection.

Embark on this thrilling journey with LLCBase as your trusty guide. We’ll provide all the info and resources needed for your Missouri S Corp success. Let’s dive into the vibrant journey of The Show-Me State entrepreneurship and make your dream a reality!

What is an S Corp

An S Corp is a type of corporation that offers certain tax advantages and liability protection for its shareholders. Like a traditional corporation, an S Corp is a separate legal entity from its owners, providing them limited liability. However, unlike a traditional corporation, an S Corp is not subject to double taxation. Instead, profits and losses are passed to the shareholders, who report this information on their tax returns.

Why Start an S Corp in Missouri

Missouri’s reputation for being business-friendly is highly attractive to entrepreneurs. The state government has adopted measures and regulations that create a favorable business environment to operate and thrive. Policies are implemented to facilitate ease of doing business, such as simple registration processes, fair tax codes, and access to resources and support systems for businesses.

Added to these is the liability protection accorded to an S Corp. In case of any legal actions or debts, the personal assets of the owners or shareholders are not in danger, thanks to this corporate structure. This means your personal properties are not at risk even in business failure. Moreover, S Corps in Missouri also enjoy various tax benefits. Unlike traditional corporations that face double taxation on income and dividends, S Corps allow for pass-through taxation, ensuring only shareholders are taxed on company profits, not the corporation itself.

Lastly, establishing an S Corp in Missouri offers a sense of professionalism and credibility. An S Corp designation can give customers and potential investors more confidence in your business because it usually indicates a more formal commitment and a higher level of organization and structure. Additionally, the reputation of Missouri as a business-friendly location, combined with the prestige of operating as an S Corp, can significantly enhance your company’s professional image. Consequently, starting an S Corp in Missouri has numerous advantages that can help propel your business to new heights.

Recommended: Transform your business vision into a thriving S Corp in Missouri – count on to the best formation service’s exceptional expertise. Embark on your journey to success today! We recommend –

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

How to Start an S Corp in Missouri: Step-by-Step

If you plan to establish an S Corporation in Missouri, it is essential to adhere to this comprehensive, step-by-step guide:

Step 1: Choose a Name

Selecting a unique and distinguishable name for your S Corp in Missouri is crucial for branding and legal purposes. To ensure that your desired business name is not already in use by another entity in Missouri, you can use the Missouri Secretary of State Business Services database to search for name availability. When choosing a name, consider incorporating words or phrases relevant to your industry that will resonate with your target audience.

Recommended: Discover your dream business name with a business service you can trust. Effortlessly check availability, receiving instant notifications if it’s already taken. In just a few clicks, transform name hunting from daunting to delightful! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online Corporation Setup Sign up with LegalZoom now!

Step 2: Reserve Your Business Name (optional)

If the name you want is available, it’s a good idea to reserve it to ensure that no one else can claim it while you are forming your S Corp. In Missouri, the name reservation is valid for 60 days, with a name reservation fee of Not available through online and $25 through mail. Reservation periods vary by state, so check with your local government agency for specific timeframes and fees.

Recommended: Secure your perfect business name with the best business formation expert. Effortlessly explore name options in just a few clicks, making the reservation process a breeze! We recommend –

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

Step 3: Appoint a Reliable Registered Agent

Registered Agent is responsible for receiving official correspondence and legal documents on behalf of your S Corp. This includes government notices, tax filings, and legal paperwork. The Registered Agent must have a physical address within Missouri and be available during regular business hours. You can act as your Registered Agent or hire the best registered agent service in Missouri to fulfill this role.

LLC Services

Rating & Pricing

Top Features

Learn More

#1 Editor's Choice

$299 Per Year

  • Free LLC Formation

  • RA service in all states

  • Legal consultation

$125 Per Year

  • Flat price for RA service

  • LLC formation package

  • Fast service

Step 4: File Articles of Incorporation

Articles of Incorporation are the legal documents that officially establish your S Corp. They must be filed with the appropriate state agency, usually the Secretary of State’s office. The information required in the Articles of Incorporation typically includes your business name, Registered Agent, the purpose of the business, and the number of authorized shares.

Recommended: Unleash the potential of your S Corp in Missouri – rely on the expertiise of your trusted business service for a smooth state incorporation process. Kickstart your success story today! We recommend –

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

Step 5: Obtain an EIN

An EIN is a unique identification number the Internal Revenue Service (IRS) assigns to your S Corp. It is used for tax filing and reporting, opening a bank account, and conducting other business transactions. You can apply for an EIN in Missouri online through the IRS website, by fax, or by mail.

Recommended: Empower your S Corp in Missouri – trust the best business formation expert for efficient EIN acquisition, paving the way for growth. Set your business up for success today! We recommend –

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

Step 6: Submit Form 2553

To elect S Corp status for your business, you must file Form 2553 with the IRS. This form provides information about your company’s shareholders, including their names and addresses, and confirms that your business meets the eligibility requirements for S Corp status. The form must be completed and submitted within a specific timeframe, typically within 75 days of your company’s formation.

Step 7: Register for Taxes

Depending on the nature of your business and its location within Missouri, you may be required to register for various taxes, such as sales tax, employer tax, and other state-specific taxes. Registering with the Missouri Department of Revenue ensures you comply with all tax regulations and requirements.

Step 8: Obtain Licenses and Permits

To operate your S Corp legally, you may need to obtain specific licenses and permits based on your industry and location. This can include professional licenses, zoning permits, health department permits, and more. Conduct thorough research to identify all necessary Missouri licenses and permits and file the appropriate applications with the relevant agencies.

Recommended: Sail through the business license process with a reliable LLC formation service. Enjoy a stress-free experience with EIN acquisition and business setup! We recommend –

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

Step 9: Set Up a Business Bank Account

To maintain clear financial records and separate your personal finances from your business finances, it’s important to establish a dedicated bank account for your S Corp. This account should be used for all business transactions, including receiving payments, paying expenses, and managing payroll. Proper financial management is essential for maintaining your S Corp’s compliance and ensuring accurate tax reporting. Check the list of the best banks in Missouri and make all your business transactions convenient and efficient.

Fees for Starting an S Corp in Missouri

The fees associated with starting an S Corp in Missouri can vary depending on the specific requirements of your business. Here is a list of common fees you may encounter:

  • Name reservation fee (optional): If you choose to reserve your business name, a name reservation fee of Not available (online) and $25 (mail) may be associated with this service.
  • Articles of Incorporation filing fee: To officially form your S Corp, you must file the Articles of Incorporation with the appropriate state agency. This typically involves a $50 fo filing online, $105 for filing by mail.
  • Registered Agent fee: If you hire a professional Registered Agent service, you may need to pay an annual $50 – $150 for their services. Note that this fee can vary depending on the provider.
  • Employer Identification Number (EIN) application fee: Generally, no fee is associated with obtaining an EIN through the IRS. However, if you use a third-party service to obtain your EIN, they may charge an EIN application fee.
  • State tax registration fee: Registering with the Missouri Department of Revenue may involve a state tax registration fee. This fee can vary depending on the types of taxes you must register for.
  • Licenses and permits fees: The costs for obtaining necessary licenses and permits for your S Corp will depend on your industry and location. Depending on the licenses and permits needed, these fees can range from $50 – $300 or more.
  • Business bank account fees: When setting up a business account, you may encounter various fees, such as a bank account opening fee, monthly maintenance, or transaction fees. These fees can vary depending on the bank and your account type.

Please note that these fees are subject to change and may vary depending on your situation. Researching and confirming the fees associated with starting an S Corp in Missouri is essential to ensure you are prepared for all potential costs.

Advantages of Missouri S Corp

Forming an S Corp in Missouri can provide numerous benefits for business owners, which are explained in detail below:

  • Limited liability protection for shareholders: One of the primary advantages of forming an S Corp in Missouri is the limited liability protection it offers its shareholders. This means that the shareholders’ personal assets, such as their homes, cars, and personal savings, are protected from the debts and liabilities of the business. In the event of a lawsuit or financial loss, shareholders are only liable for the amount they have invested in the company, ensuring their personal assets remain safe.
  • Pass-through taxation, avoiding double taxation: S Corps are unique in avoiding the double taxation issue traditional corporations face. Double taxation occurs when a corporation is taxed on its profits, and then the shareholders are taxed again when they receive dividends. With an S Corp in Missouri, profits and losses are passed to the shareholders, who report this information on their tax returns. This pass-through taxation structure helps to reduce the overall tax burden on the business and its owners.
  • Increased credibility and professionalism: Forming an S Corp in Missouri can increase your business’s credibility and professionalism. Customers, suppliers, and investors often view corporations as more established and legitimate than other business structures, such as sole proprietorships or partnerships. This can attract new business, establish trust in the marketplace, and provide a solid foundation for future growth.
  • Potential state-specific tax benefits or incentives: Depending on the state where you form your S Corp, additional tax benefits or incentives may be available to business owners. These can include reduced tax rates, tax credits, or other financial incentives designed to promote business growth and development within the state. It’s essential to research the specific tax benefits and incentives available in Missouri to determine if forming an S Corp is the best option for your business.

FAQs

What is an S Corp and how is it different from other business structures in Missouri?
An S Corp is a corporation that gets special tax treatment from the IRS. In Missouri, it is different from other business structures because it is considered a separate legal entity from its owners.
What are the benefits of starting an S Corp in Missouri?
Some benefits of starting an S corp in Missouri include personal liability protection, separate entity taxation, and perpetual existence.
Is Missouri a good state for starting an S corp?
Yes, Missouri is a great state for starting an S corp because it has a business-friendly climate, reasonable tax rates, and a strong economy.
Do I need to live in Missouri to start an S Corp there?
No, you do not need to reside in Missouri to start an S corp there, but you must have a registered office address in the state.
How do I choose a name for my Missouri S Corp?
You need to select a unique name for your Missouri S Corp that is not already registered with the Missouri Secretary of State.
What are the requirements for forming an S Corp in Missouri?
The requirements for forming an S Corp in Missouri include filing the Articles of Incorporation with the Missouri Secretary of State, paying a filing fee, and obtaining any necessary licenses and permits.
Can I form an S Corp in Missouri by myself, or do I need an attorney?
It is possible to form an S Corp on your own, but it is recommended to consult with an attorney to ensure you meet all legal requirements and protect your personal assets.
How much does it cost to start an S Corp in Missouri?
The cost of starting an S Corp in Missouri varies depending on factors such as filing fees, legal guidance, and business permits, but generally ranges from $500-$1,500.
How long does it take to form an S Corp in Missouri?
The time it takes to form an S Corp in Missouri may vary depending on how long it takes to file the necessary paperwork and receive approval from the Missouri Secretary of State.
Do I need to obtain any specific permits or licenses to start an S Corp in Missouri?
The necessary permits and licenses may vary depending on the type of S Corp being formed. It is recommended to check with the Missouri Department of Revenue to see what licenses and permits are required.
What are the ongoing compliance requirements for an S Corp in Missouri?
Some ongoing compliance requirements for an S Corp in Missouri include filing an annual report with the Missouri Secretary of State, paying annual franchise taxes, and maintaining proper records.
Can I change my S Corp into a C Corp later on in Missouri?
Yes, it is possible to convert your Missouri S Corp into a C Corp later on, but it depends on the specific circumstances and can have legal consequences.
How much will I need to pay in taxes as an S Corp in Missouri?
S Corps in Missouri are not required to pay income tax at the entity level, but the owners must report their portion of income, losses, and expenses on their individual tax returns.
Do I need to have a board of directors for my Missouri S Corp?
Yes, Missouri law requires all S Corps to have a board of directors, which may consist of one or more individuals.
How many employees do I need to hire for my Missouri S Corp?
There is no specific requirement for how many employees an S Corp in Missouri must hire, but it should be enough to sustain business operations.
Can I elect a different tax year instead of the standard calendar year for my Missouri S Corp?
Yes, it is possible to elect a different tax year for your Missouri S Corp, but it must be approved by the IRS.
Can I change my Missouri S Corp’s name later on?
Yes, it is possible to change your Missouri S Corp’s name later on, but it requires filing paperwork with the Missouri Secretary of State and paying a fee.
Do I need to have any specific documents on hand before forming an S Corp in Missouri?
Some documents you may need before forming an S corp in Missouri include a federal tax ID number, a registered office address, and Articles of Incorporation.
How do I file for a tax ID number for my Missouri S Corp?
You can obtain a tax ID number for your Missouri S Corp by visiting the IRS website and completing the necessary form, or by applying in person at a local IRS office.
Can I be the only shareholder and employee in my Missouri S Corp?
Yes, it is possible to be the only shareholder and employee in your Missouri S Corp, but consider seeking legal guidance to ensure compliance with tax and other regulations.
Do I need to keep a separate bank account for my Missouri S Corp?
Yes, it is recommended to keep a separate bank account for your Missouri S Corp to maintain proper record keeping and compliance with IRS regulations.
How do I file for an S Corp election in Missouri?
You can file for an S Corp election in Missouri by submitting IRS Form 2553, or by electing to form the S Corp through the Articles of Incorporation process.
Can I run multiple businesses under my Missouri S Corp?
Yes, it is possible to run multiple businesses under your Missouri S Corp as long as they are related and consistent with the S Corp’s primary purpose.
Can I terminate my Missouri S Corp later on?
Yes, it is possible to terminate your Missouri S Corp later on, but it requires filing paperwork with the Missouri Secretary of State and may have tax consequences.
Do I need to pay a fee to obtain a business license for my Missouri S Corp?
The fee to obtain a business license for your Missouri S Corp depends on the specific city or county where you are located.
What happens if I don’t meet compliance requirements for my Missouri S Corp?
Failure to meet compliance requirements for your Missouri S Corp can result in penalties, legal consequences, and an increased risk of personal liability.
Can I form an S Corp for a nonprofit organization in Missouri?
No, S corps are designed for-profit organizations, and nonprofits must follow a different legal structure set forth by the IRS.
Do I need to register my S Corp with the Missouri Secretary of State if it is based in another state?
Yes, you need to register your S Corp with the Missouri Secretary of State if it is doing business in the state. This is known as foreign qualification.
What is an S corporation in Missouri?
An S corporation is a corporation that has elected to be taxed as a pass-through entity under Subchapter S of the federal Internal Revenue Code.
What are the benefits of forming an S corp in Missouri?
The main benefits of forming an S corp in Missouri include limited personal liability, pass-through taxation, and access to a wide range of potential funding sources.
How do I form an S corp in Missouri?
You can form an S corp in Missouri by filing articles of incorporation with the Missouri Secretary of State, and meeting other state and federal requirements.
What are the requirements for forming an S corp in Missouri?
To form an S corp in Missouri, you must have at least one shareholder, one director, and a registered agent with a physical address in Missouri.
What are the filing fees for starting an S corp in Missouri?
The filing fee for starting an S corp in Missouri is $50 for online filings and $105 for paper filings.
How long does it take to start an S corp in Missouri?
It typically takes between 7-10 business days to start an S corp in Missouri.
Do I need a business lawyer to start an S corp in Missouri?
It is not legally required to have a lawyer to start an S corp in Missouri, but it is often recommended to ensure compliance with all legal requirements.
How do I get a tax ID number for my Missouri S corp?
You can apply for a tax ID number for your S corp in Missouri by completing a form SS-4 with the IRS.
What is the Missouri Corporate Income Tax rate?
The Missouri Corporate Income Tax rate is currently 6.25%.
Are there any other taxes I need to be aware of when starting an S corp in Missouri?
Depending on your industry and location, there may be additional taxes to be aware of, including local sales tax and use tax.
What is the process for annual filings for an S corp in Missouri?
Every year, your Missouri S corp must file an annual report and pay a fee to the Missouri Secretary of State.
What is the minimum capital requirement for an S corp in Missouri?
There is no minimum capital requirement for an S corp in Missouri.
Can I use an out-of-state registered agent for my Missouri S corp?
No, your Missouri S corp’s registered agent must have a physical address within Missouri.
What ongoing requirements do I need to comply with as a Missouri S corp?
You must file annual reports with the Missouri Secretary of State and file federal tax returns.
Do I need a business bank account for my Missouri S corp?
Yes, it is recommended to have a separate business bank account for your Missouri S corp to keep funds separated and organized.
How many shareholders can an S corp have in Missouri?
There can be up to 100 shareholders in an S corp in Missouri.
How do I dissolve my Missouri S corp?
You must file articles of dissolution with the Missouri Secretary of State to formally dissolve your Missouri S corp.
How is my Missouri S corp taxed?
Your Missouri S corp is taxed as a pass-through entity, meaning the income and losses are reported on individual shareholders’ tax returns.
Can I change my Missouri S corp to a C corp at a later date?
Yes, you can change your Missouri S corp to a C corp, though it may result in different tax treatment.
What is the process for changing the name of my Missouri S corp?
You must file an amendment to your articles of incorporation with the Missouri Secretary of State to change the name of your Missouri S corp.
Can I change the state that my S corp is incorporated in?
Yes, with careful planning and execution, you can move your S corp from one state to another.
Can I start a nonprofit S corp in Missouri?
No, S corporations in Missouri cannot be nonprofits.
Can I file my Missouri S corp documents online?
Yes, you can file your articles of incorporation online with the Missouri Secretary of State.
Are there any industries that are prohibited from forming S corporations in Missouri?
No, any industry can form an S corporation in Missouri.
Are there any residency requirements for Missouri S corp shareholders?
No, there are no residency requirements for Missouri S corp shareholders.
Can I register my Missouri S corp as a foreign corporation in another state?
Yes, you can register your Missouri S corp as a foreign corporation in another state.
How do I find out if my name is available for my Missouri S corp?
You can search the business entity name database on the Missouri Secretary of State website to see if your desired name is available.
Can I convert my LLC to an S corp in Missouri?
Yes, an LLC can be converted into an S corp in Missouri.

Also Read

Why You Should Start Missouri S Corp

First and foremost, the S Corp structure provides limited liability protection to its shareholders. This means that your personal assets are shielded from business debts and liabilities, giving you peace of mind as you navigate the ups and downs of entrepreneurship. By incorporating your business as an S Corp, you can protect your personal assets from being targeted in the event of any unforeseen legal issues or financial struggles.

Moreover, forming an S Corp in Missouri can also help you save money on self-employment taxes. S Corporations are unique in that they offer tax advantages not available to sole proprietorships or partnerships. By electing S Corp status, you can potentially reduce your self-employment tax liability by paying yourself a reasonable salary and taking the remainder of your earnings as distributions, which are not subject to self-employment tax. This tax-saving strategy could result in significant savings over time, allowing you to reinvest your money back into your business or use it for personal financial goals.

Another key benefit of starting a Missouri S Corp is the opportunity for tax deductions. S Corporations can deduct a wide range of business expenses, including employee wages, insurance premiums, and office supplies. By taking advantage of these deductions, you can lower your taxable income and potentially reduce your overall tax burden. This can be particularly advantageous for small business owners who are looking to maximize their deductions and keep more of their hard-earned money in their pockets.

Furthermore, forming an S Corp in Missouri can enhance your credibility and professionalism in the eyes of potential clients, customers, and investors. Many individuals and organizations prefer to do business with corporations due to the perceived level of formality, stability, and legitimacy that they offer. By incorporating your business as an S Corp, you can demonstrate your commitment to long-term success and establish yourself as a reputable entity in your industry.

In conclusion, starting a Missouri S Corp can provide a wide range of benefits for your business, from limited liability protection and tax advantages to enhanced credibility and professionalism. While the process of forming an S Corp may require some upfront effort and expense, the potential rewards far outweigh the costs. If you are serious about growing your business and safeguarding your financial future, consider forming an S Corp in Missouri today. It could be the first step toward a brighter and more secure tomorrow.

Conclusion

Starting an S Corporation in Missouri, also known as The Show-Me State, is an excellent choice for entrepreneurs who want to take advantage of the many benefits that this business structure has to offer. By following the steps outlined in this guide and making sure to comply with all the regulations and requirements specific to Missouri, you will be well on your way to establishing a successful and thriving S Corp. Remember, this journey may have its challenges, but with determination, hard work, and the right support, there’s no limit to what you can achieve in the business world of Missouri.

As you embark on this new chapter as a business owner in Missouri, always remember that you are part of a vibrant and thriving entrepreneurial community. The spirit of The Show-Me State is one of innovation, creativity, and resilience. By choosing to establish an S Corporation in Missouri, you are taking control of your financial future and contributing to the growth and prosperity of the local economy. Visit LLCBase for more valuable insights and resources to help you navigate the process of starting an S Corp in Missouri. Wish you the best of luck in your entrepreneurial endeavors!

Leave a Comment