Last Updated on June 13, 2022 by Fair Punishment Team
A limited liability company (which is often abbreviated to LLC) is a type of business model unique to the U.S. that grants the owner tax advantages that other business models do not, while also providing them with liability protection, too.
This makes it a great choice for anyone looking to start a business while protecting their personal assets.
So, with all that being said, if you’d like to start your very own LLC but you’re not sure where to start, rest assured that you’ve clicked on the right article! Below, we are going to be providing you with a six-step guide that will help you to cover all the basics of starting a limited liability company.
Just keep scrolling to discover how to start your very own LLC in the state of Missouri!
1. Name Your Missouri LLC
Without a name, you won’t be able to file for important legal documents or officially register your business, so it only makes sense that the first step to setting up your Missouri LLC is to give it a name.
When it comes to naming your Limited Liability Company, you are going to want to make sure that you are choosing a name that is not only going to provide customers with a clear idea of what it is that your business is going to be selling/offering, but to also to set your LLC apart from the crowd!
Along with making sure that you pick a name that is clear, catchy and concise, you are also going to need to make sure that you are choosing a name that clearly complies with the requirements currently put in place by the state of missouri.
If you do not, then you aren’t going to be able to register your business in the state. The requirements are as follows:
Ensure That You Aren’t Using Restricted Words
The first requirement that you are going to need to ensure you meet is to refrain from using any restricted words that might confuse people into thinking that your business is a government or federal entity, such as bank, law and attorney.
Though this is a general rule implemented by all states across the country, it is important to make sure that you are checking what the restricted words are within Missouri, as they can often vary from state to state.
Include LLC/L.L.C/Limited Liability Company In The Name
Another requirement that you will need to meet when naming your new limited liability company is to ensure that you are including either LLC, L.L.C or Limited Liability Company somewhere in the name along with the title that you have chosen.
Most LLC owners typically decide to include their chosen word at the end of the name.
Do Not Use A Name That Is Already Registered
Last but certainly not least, the final consideration that you will need to make when naming your limited liability company is to ensure that you are not using a name that has already been registered in the state to another LLC.
In order to check whether or not the name that you would like to use for your LLC is available, we recommend that you check via this database provided by the Secretary of State.
As a side note, when deciding what name to give your LLC, we also recommend that you take the time to consider whether or not the name that you would like to give your LLC is available as a URL/domain.
Even if you do not currently have any plans to create an online store for your LLC, chances are that at some point or another you are going to want to take your services online (especially if you want to reach more clients/customers) so we strongly recommend that you choose a name that is also free as a domain name, too.
2. Get A Registered Agent
After you have finished brainstorming and come up with a name for your LLC, you are then going to be ready to appoint something that is known as a registered agent to your company!
If you’re not too sure of what that is, a registered agent will essentially be a person or organization that you will appoint to accept all legal, government and federal correspondence on behalf of your LLC.
It is currently mandatory in the state of Missouri that all business entities have their own registered agent, and you have the freedom to appoint anyone to be your LLCs registered agent, including yourself.
However, it is highly recommended to appoint a third party who will be given the designated authority to receive service of process and other official documents.
According to the state of Missouri, all registered agents should meet the following requirements:
- The appointed registered agent should be a responsible third party with the sole responsibility of receiving service of process and other legal and federal documents.
- The appointed registered agent should be registered and located in the state of Missouri, and not located anywhere else in the country or world.
- The appointed registered agent should be able to receive all service of process and business mail during standard business/working hours in the state of Missouri.
In addition to receiving all of your LLCs business correspondence and service of process, it should also be noted that your registered agent will also act as the first point of contact for any legal disputes or notices that your limited liability company might face over the course of its duration.
So, along with all of the above, your appointed registered agent will also have the responsibility of informing you of any legal disputes your LLC may have, such as if your LLC is being sued etc.
3. File The Articles Of Incorporation
The next step to setting up and establishing your limited liability company is to create and file for the Articles of Incorporation.
The Articles of Incorporation are an important type of business document that will allow you to register and establish your LLC within the state of Missouri so that you can begin operating your business legally within it.
The Articles of Incorporation are mandatory documents to have in Missouri and you will need to file them directly with the Secretary of State.
They are designed to provide the state with all of the necessary information regarding your LLC, while also allowing you to begin operating your business once the document has been approved by the Secretary of State.
To help you understand the Articles of Incorporation a little better, here is a rundown of the basic information that you will need to include in your Articles of Incorporation:
- The name of your LLC, as well as the address that it has been registered to when it was first created.
- The full name and all contact information of the person or company that you have appointed as the registered agent.
- Contact information of all LLC members.
- The duration of the LLC.
- A statement that declares whether or not the members are liable for the LLCs debts.
- An outline of the management structure.
- A signature from the founder.
4. Create An Operating Agreement
Another important business document that you should make sure that you acquire for your limited liability company is an operating agreement.
The operating agreement is a type of document that is designed for internal use within an LLC (as well as other business entities) and will be able to clearly outline the way that the business is going to be run, as well as other important information that will be able to help aid you in the event that there was a dispute or a misunderstanding.
At the time of writing this guide, an operating agreement is not a mandatory requirement in the state of Missouri, although, it is still highly recommended that you create one.
This is because an operating agreement will not only allow you to clearly outline the way your LLC operates, but will also be able to assist you in the event that your LLC received a dispute or notice via any employees that your LLC may have, or even from an external third party such as a customer.
As we have already mentioned, the operating agreement is an optional piece of documentation for LLC owners.
However, if you do not opt to file for and create an operating agreement that can be used by your LLC, it means that if there are any legal disputes, the responsibility for resolving said disputes will be the responsibility of Missouri.
This will mean that state law will be followed to reach a solution/settlement, and this means that any decision made might not actually be in favor of your limited liability company.
In other words, opting to create an operating agreement for your LLC will ensure that you have legal credibility. If you would like to file for your own operating agreement, just click here for the free form relevant to the state of Missouri.
5. Get An EIN Number
After you have taken the time to file for all the important business documents you are going to need to get your limited liability company legally recognized and registered, you will then need to make sure that you have assigned your business with its very own EIN.
If you don’t yet know what that is, an EIN is a unique identifier that is used by the IRS, and it stands for Employer Identification Number.
It is very important that you make sure to file for your LLCs very own Employer Identification Number, as without one, the IRS will have no way of tracking your business’s tax reports. It is very easy to acquire an Employer Identification Number, all you will need to do is apply for one via the IRS website.
It is also very important that you make sure to apply for an Employer Identification Number, as this will enable you to carry out a variety of things that you will likely need to do over the duration of your LLC, including having the ability to hire employees, the ability to take out business loans/financial funding, as well as to be able to apply for a bank account for your business or even to take out a credit card for your LLC.
6. Decide If You Need A BIN
The last step that you are going to need to take to start your LLC is to determine whether or not your LLC is going to need a BIN. Similar to an EIN, a BIN is a unique type of identifier used by the IRS, and it stands for Business Identification Number.
If you are planning to hire employees to work for your Limited Liability Company, you are going to need to make sure that you assign a BIN to your LLC, as this will allow the IRS to be able to track your business for all payroll taxation purposes.
However, if you are planning to run your LLC as a sole proprietorship, then you will not need to get a BIN as it means that you will not be hiring any employees.
In addition to this, if you plan on hiring employees as your limited liability grows, then all you will need to do is make sure that you file for your LLCs unique BIN so for payroll taxation purposes.
Just like the Employer Identification Number, you also have the option of filing for this unique identifier via the IRS website.
Frequently Asked Questions
Do You Need A Business License?
If you’re thinking about becoming a business owner, it seems only natural that you would also be required to take out a business license in order to be able to legally operate in your state.
However, when it comes to limited liability companies, the requirement of a business license often varies from state to state.
So, it’s important to make sure that you are checking whether or not you are going to need to get a business license in the state where you are planning on operating, registering, and locating your LLC in.
When it comes to the state of Missouri, all businesses that are selling tangible goods or services that can be taxed will be required to obtain a special sales tax license.
What Are The Tax Requirements For An LLC?
It’s no secret that tax requirements and regulations for business entities such as LLCs can typically vary from state to state, so it is important to make sure that you are checking what the taxation rules are for your LLC specific to the state that you are going to be registering and locating your LLC in.
At the time of writing this, it is currently a requirement in the state of Missouri for all businesses to obtain a sales tax license so that sales tax can be taken.
In addition, if you are going to be electing your business to be a corporation, then your LLC will also be charged for corporate taxation purposes from the net income of your business.