Missouri – the “Show-Me” state – is the subject of this week’s 50 states of incorporation, but first we want to show you why Missouri is such a great place to start a business. Missouri has long-been an important economic hub because America’s three great rivers – the Missouri, the Mississippi, and the Ohio – all flow through the state. And though shipping has died down and Missouri is no longer the sole Gateway to the West, the state has shown an amazing propensity towards adaptation, and some of the most successful high-tech companies in the world call Missouri home.
Monsanto, one of the world’s biggest bio-technology companies, is based out of Missouri, as is Boeing Defense, Space & Security, a leading aerospace and defense-research firm. But the company that Missouri is most famous for has to be St. Louis’s Anheuser-Busch. It is, in fact, so loved that Busch’s St. Louis brewery was declared a national landmark in 1966.
Missouri knows how important small business is to the state, and the government offers loads of incentives and programs to help small businesses get started properly. Missouri lists many of the public resources that are available, and it is especially supportive of its agricultural industry; Missouri has 108,000 active farms, the second highest amount in the United States.
With such a supportive government, and a growing economy, it makes sense why you would want to form an LLC or incorporate in Missouri. The process for forming a business in Missouri is surprisingly easy, though there are some legal nuances you should be aware of before sending in your paperwork.
- The Secretary of State’s office is your main point of contact for matters involving the state and your business. So if you want to file a DBA, form an LLC, or incorporate in Missouri, you have to go through them. Luckily Missouri’s SoS office has a reputation for speed.
- Missouri has a flat corporate tax rate set at 6.25% of total income, and allows corporations to claim 50% of their federal income tax as a state deduction.
- Currently, the state only allows you to register a Domestic Limited Liability Company online, which means you’ll have to fill out and file physical paperwork if you’d like to register a Foreign LLC or incorporate in Missouri.
- Missouri is one of only seventeen states that allows for the formation of ‘Close Corporations,’ as long as the corporation has fewer than fifty shareholders. Close corporations do not have to have a board of directors, annual meetings, or bylaws, as long as the articles of incorporation state that the business won’t have them. However, a close corporation cannot transfer stock without allowing the other shareholders a right of first refusal.
- The SoS office provides a standard form to businesses looking to incorporate in Missouri. The fee for incorporation is dependent on the value of authorized shares – Missouri charges $50 for the first $30,000 in authorized shares, with the fee increasing by $5 for each additional $10,000.
Does Missouri sound like it holds your Gateway to Success? Are you ready to form your own business in the Show-Me state? Give us a call at 1-(877) 692-6772, or leave a comment below, and we’ll be happy to give you a hand!