Looking for form an LLC? This type of business structure has become exceedingly popular in the past years because of its simplicity and flexibility. There are various reasons why millions of businesses in America choose to organize their business as LLCs every year. However, you should know that an LLC is a state-specific entity and each state’s requirements are different when forming your business entity as an LLC. Therefore, we will be discussing forming an LLC in the state of Missouri.
What is an LLC?
An LLC, a limited liability company, is a business structure that helps protect someone’s personal assets if the company gets sued. An LLC is an excellent form of protection between your personal assets and the companies financial liabilities.
An LLC can be owned by a single person, known as a single-member LLC, or multiple persons, also known as a multi-member LLC. The LLC is a separate entity, which means it’s separate from its owners; the LLC is responsible for its debts and lawsuits, not the business owners. Furthermore, the LLC has its employer identification number, which functions as a social security number for the company, and it also has pass-through taxation.
Advantages of forming an LLC in Missouri
As mentioned before, an LLC structure is quite flexible and straightforward. There are many advantages to forming a limited liability company in Missouri, but few stand out. These are:
- Separate legal entity – The owner’s personal assets are different from the business assets.
- Limited liability – Forming an LLC helps protect your personal assets from liability for the business’s debts and obligations.
- The corporation has unlimited life – This could be useful where some key contracts or licenses would benefit from continuity between owners.
- Raising investment capital
Disadvantages of forming an LLC in Missouri
There are a few downfalls of forming an LLC in the state of Missouri. Some of these are:
- The cost of filing the LLC.
- Different state laws – Every state has its LLC laws and regulations. Therefore, if you have a Missouri LLC, doing business physically in another state may not be the best entity.
Steps to form a Missouri LLC
There are some steps involved in forming an LLC in Missouri; you can either do it yourself or get guidance from a professional. Here is the relevant information needed:
Step 1 – Download and print the business formation packages.
There are three packages:
- Package one contains a process overview, checklist, and LLC worksheet.
- Package two contains the Missouri instruction sheet, application for reservation of name, articles of organization, and letter of transmittal.
- Package three contains two forms: IRS form SS-4 and 8832 form.
Step 2 – Look through the procedural guides (This is where you will learn about forming and maintaining a limited liability company.)
Step 3 – Read the state instruction sheet (The state instruction sheet provides details on forming and maintaining an LLC in your state.)
Step 4 – Complete the LLC worksheet.
Step 5 – Complete the Articles of Organization. This document outlines where you enter all the necessary information like the:
- Company name
- Business purpose
- Management structure
- Registered agent name as well as an address
- Effective date
- Name and address of organizers
- Name and address to return filed document
- Signature, date, and printed name of each organizer
Step 6 – Put together the letter of transmittal (In the letter of transmittal, you must provide necessary information like your name and mailing address, the company name, and signature.)
Step 7 – Submit all the completed documents, a photocopy of each document, and filing fees to the Missouri Secretary of State. The mailing address is as follows:
James C. Kirkpatrick State Information Center
P.O. Box 778
Jefferson City, MO 65102
The physical address is as follows:
600 W Main St.
Missouri State Information Center, Room 322
Jefferson City, MO 65101-0778
Step 8 – After submission, you will receive a stamped copy of your filed Articles of Organization at the address you stated in the letter of transmittal.
Step 9 – Do the post-formation tasks.
- File federal employer identification number on IRS form SS-4
- An alternative tax filing status on IRS form 8832
- Open a companies bank account
- Outline operation agreements and state membership interests
Step 10 – Complete any ongoing compliance tasks.
Costs to form a Missouri LLC
As seen above, there is a process in forming an LLC in Missouri; you can do it yourself by filing the Articles of Organization or taking the necessary steps and seeking professional assistance. Expect to pay $50 – $150 plus state fees for this service. You can also hire an attorney, which will be a more personalized service but also it may cost a lot more.
Important documents for a new company owner and the corporation’s officers, directors, or managers
There are a couple of essential documents needed to start an LLC. They include:
- The Articles of Organization.
- A basic statement of information outlining your managers for the LLC
- The operating agreement states the rights and obligations of the managers and members, and it also tells you how to conduct the affairs of the LLC.
- The minutes or resolutions, which detail how the LLC will operate in fine print