Missouri LLC in Missouri

With the passing of The Missouri Limited Liability Company Act, entrepreneurship in Missouri has become a simpler and lower risk venture. This noteworthy legislation can be found in Section 347 of the Missouri business statutes and has eased the way for small business development across the state.

Passed in 1993, this law provided an important option for prospective business owners, by allowing entrepreneurs to start a limited liability company in the state of Missouri. LLC status, which is specifically designed for small business, is now the entity of choice for many business owners.

MISSOURI LIMITED LIABILITY COMPANIES REGULATORY OFFICE

Legal business entities, including the formation of limited liability companies, are process and regulated by the Secretary of State, which is located in Jefferson City, Missouri.

LLC ENTITIES ALLOWED BY MISSOURI LLC LAWS

Types of LLCs allowed by the Missouri Limited Liability Act of 1993 include professional, domestic and foreign limited liability companies. The Act also provides for the perpetual life of a business under section 347.039.

Many attorneys assert that section 347.035 of the Missouri laws governing business makes it impossible to form a non-profit LLC within the state. Although the Act does not specifically address non-profits, the law states that a limited liability company must be formed for a lawful business purpose, which by nature is typically divergent from nonprofit purposes.

IMPORTANT MISSOURI LLC LAW PROVISIONS

Missouri law requires that all LLCs have an operating agreement, which is generally not required by other states. One important way the operating agreement comes into play is the admission of a member to an LLC, which is governed under Section 247.113 and requires inclusion in the operating agreement.

This requirement is effective for reducing changes in regards to later misunderstandings or disputes.

While Section 247.065 of the Act puts forth that the default structure for all LLCs in the state of Missouri is member management, LLCs can be transitioned to manager managed structures as well.

TAXATION OF LLCS UNDER MISSOURI LAW

State tax issues are managed by the Missouri Department of Revenue, located in Jefferson City, Missouri. Missouri state tax laws require that Missouri LLC owners pay taxes to the state of Missouri is they are a Missouri resident, or in the case that income resulted from sources within the state of Missouri. As in other states, the LLC business structure most often acts as a pass through where income derived from the LLC is reported on each owner’s personal tax return. Federal tax laws, as governed by the Internal Revenue Code, affect all businesses whether in the state of Missouri or other states.

FORMING AN LLC IN MISSOURI

The Missouri Limited Liability Act of 1993 includes all necessary requirements for LLC formation including provisions regarding management, duration, business purpose, registered agent, name rules, effective date and organizers.

In order to successfully form and manage a Missouri-based limited liability company, it is essential that entrepreneurs and business owners adhere to the legal requirements provided by the Act.