Learn about the annual report and tax filing obligations for Missouri limited liability companies.
If you wish to establish and operate a Missouri limited liability corporation (LLC), you’ll need to prepare and submit a number of paperwork with the state. This article discusses the most significant Missouri LLC continuing reporting and state tax filing obligations.
Table of Contents
The Annual Report
Missouri, unlike most other states, does not require LLCs to produce an annual report.
State Corporation Tax
Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. Some states charge LLCs a separate tax or fee for the privilege of conducting business in their jurisdiction. Missouri, on the other hand, is not one of those states.
However, in certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Missouri, like almost every other state, has a corporate income tax. The corporation tax in Missouri is 6.25% of Missouri taxable income. This tax must be paid if your LLC is taxed as a corporation. The Missouri Department of Revenue receives the state’s corporate income tax return (Form MO-1120) (DOR).
Employer Taxes in the State
Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Missouri employers, on the other hand, must pay state taxes.
To begin, you must withhold and pay employee income taxes to the DOR. Begin by registering your business with the DOR, either on paper (Form 2643) or online (Form 2643). Once registered, you must submit withholding taxes on a regular basis (usually monthly or quarterly) using some variation of Form MO-941. Each year, you’ll also need to utilize Form MO-W3 to balance your LLC’s tax withholding.
You’ll also need to register to pay state unemployment insurance (UI) taxes. The Missouri Division of Employment Security (DES), which is part of the state’s Department of Labor and Industrial Relations, is in charge of these levies (DOL). Form MODES-2699 may be used to register for these taxes. Then, on a quarterly basis, you must submit Form MODES-4-7 to the DES. Visit the DES website for additional information.
Taxes on Sales and Use
If your LLC sells items to Missouri clients, you must collect and remit sales tax. This implies you’ll need to register with the Department of Revenue and then pay sales tax on products sold. Form 2643A may be used to register. After you register, you will get a sales tax license. Form 53-1 is used to pay yearly sales tax. Visit the DOR website for additional information.
Other States Registration
If you want to do business in states other than Missouri, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.