Missouri – 50 States of Incorporation, Rebooted

Pack your suitcases because this week we’re heading to the Midwest! While this is not statistically proven yet, there may be a reason why entrepreneurs flock to incorporate in Missouri. This state is ranked as one of the best in the U.S. to start a business.

Missouri is home to 106 cities. Creve Coeur is ranked number one as the best city for entrepreneurs to set up shop. The city is home to over 3,200 businesses and has an average revenue of $5.3 million per business. It is also considered a hub for technology, life science, and bioscience. Many entrepreneurs choose to do business throughout the state due to its fast-growing economy.

According to the U.S. Small Business Administration (SBA), Missouri is home to 523,459 small businesses. The state’s business climate offers a perfect location for all enterprises to succeed with low tax and utility rates. There are also plenty of business-friendly regulations.

Are you thinking about opening up a business in the “Show Me State?” If so, here’s what you’ll need to know about incorporating in Missouri.

1. Pick the legal structure you want to incorporate in Missouri as.

The first step in starting your business is to determine which entity to incorporate in Missouri as. Small business owners may incorporate as domestic and out-of-state entities doing business in Missouri.

We cannot legally advice you on which entity is the best fit for your business. However, we have noticed certain for-profit and nonprofit entities are popular with entrepreneurs.

The state allows for corporation, partnership, and limited liability company formations. Specialized business entities include professional corporations, close corporations, agricultural cooperatives, and mutual associations. In addition, keep in mind that there are certain rules surrounding sole and general partnerships in Missouri. These cannot be formed without the involvement of the Secretary of State for businesses registered under their true name.

2. Secure your business name.

After you’ve chosen an entity to incorporate in Missouri as, it’s time to select and legally secure a name for your business. This may conduct a business entity name search. You may search through the Missouri Secretary of State’s database.

This will allow you to see if your business name is available. If it is, file for a trademark. Doing this will therefore allow you to protect the name of your business. This action keeps it from being used without your permission. It also demonstrates that your ideas are original to your customers and competitors.

3. File for a DBA.

Are you ready to begin accepting payments under your business name? If so, it’s time to file for a DBA. This allows you to do many important things for your business. You will need this information in order to open a business bank account in Missouri.

A DBA is a Doing Business As name. Entrepreneurs sometimes call it a fictitious name. It allows entrepreneurs to operate and receive payments under a name that differs from your legal business name. Several states require DBAs in order to open business bank accounts. They allow you to accept checks and payments under your business name. In addition, you may also use your DBA to gain credibility with customers. This is key above all for businesses that incorporate in Missouri as startups.

4. File for an EIN.

If you plan to hire employees, your next step will be to file an Employer Identification Number (EIN).

Are you unfamiliar with the acronym? An EIN is a number that the IRS issues to businesses. It uniquely identifies employer tax accounts. This number is slightly less sensitive than a Social Security Number (SSN) and many entrepreneurs choose to use it on important paperwork instead.

Even if you don’t plan to hire employees for your business, there’s a lot an EIN can do for you. Most banks require you have an EIN before opening a bank account under your company’s name. Similarly, an EIN helps your small business build and establish its own credit profile.

5. Designate a registered agent.

You may act as your own registered agent or hire a third party. In addition, you will need an RA. A registered agent accepts legal paperwork on behalf of the business. They organize the documents and get the materials over to you in a timely, confidential manner. This is a state requirement. In addition, an RA allows you to avoid unnecessary state penalty fees and maintain your company’s good standing with the state.

Above all, remember you will need to stay up-to-date with Missouri’s fees and charges schedule. These fees may vary depending on the entity you incorporated your business as.

Like and follow the state of Missouri! Follow their Secretary of State on Twitter for all the latest small business updates.