Capital:
Jefferson CityForm of government:
Federal RepublicArea:
181 533 km2Population:
6 millionCurrency:
DollarBenefits of Doing Business in Missouri
The state of Missouri, located in the center The United States offers unique opportunities for entrepreneurs due to its strategic location, favorable investment climate, and competitive tax system. Its economy is focused on innovation, manufacturing, agriculture, transportation, and logistics, making the state attractive for business. In this article, we will take a detailed look at all aspects of registering and operating a business in Missouri for non-residents, including the benefits, tax system, restrictions and requirements.
Benefits doing business in missouri
- Economic location:The state is one of the main logistics hubs in the United States thanks to its developed infrastructure, including ports on the Mississippi River, rail links, and international airports.
- Low Taxes:Missouri has one of the lowest corporate tax rates in the U.S. at 4% as of 2024 .
- Business incentive programs: Investors can take advantage of numerous grants, tax credits and other incentives if they meet the conditions for local economic development.
- Access to a skilled workforce:Competitive labor costs make the state attractive to companies across a range of industries, including high-tech sectors .
Organizational and legal forms for non-residents
- Limited Liability Company (LLC):
- The most popular form for small and medium businesses.
- Minimum number of founders — 1.
- Liability is limited to the invested capital.
- Possibility of full ownership by non-residents.
- Corporation (C-Corp or S-Corp):
- Suitable for large companies planning to attract investors.
- C-Corpis taxable separately at the company and shareholder level, andS-Corpallows you to avoid double taxation.
- Sole Proprietorship:
- The simplest form, available only to U.S. residents.
- There is no limitation of liability.
- Representative Office:
- Does not allow for commercial activity, but is suitable for market research and negotiations.
Step-by-Step Guide to Registering a Business
- Choosing a Business Form: Most often, non-residents choose an LLC or Corporation.
- Registering a Name: The company name must be unique and meet state requirements.
- Uniqueness:The company name must be different from any other company already registered in the state.
- Word Restrictions:The name cannot contain words that are misleading or that misrepresent the nature of the company’s business.
- Filing Documents:An LLC must file “Articles of Organization” and a Corporation must file “Articles of Incorporation” with the Missouri Secretary of State. The filing fee is $50 (filing electronically for LLCs).
- Appointing a Registered Agent:Every corporation must have a registered agent with an address in Missouri.
- Getting an EIN:A federal Employer Identification Number (EIN) is needed to open a bank account and pay taxes.
- Getting the Necessary Licenses:Some activities require licensing at the federal, state, or local level.
- Opening a bank account: To open an account, the director or authorized person must be present.
Missouri Tax System: Main Types of Taxes
Missouri has a complex tax system that includes several levels of taxation: federal, state, and local. Let’s look at the main taxes related to companies in Missouri.
- Rate:
- The base state rate is 4.225%.
- Additional local taxes can increase the overall rate to 9-10% depending on the county or city.
- Application:
- The tax is levied on the sale of taxable goods and services.
- Reduced rates:
- Reduced rates apply to certain categories of goods, such as food products. Excise Tax
- Application:Excise tax is levied on certain categories of goods, including:
- Alcoholic beverages, tobacco products, fuel, cars.
- Rates:
- Gasoline – $0.22 per gallon.
- For alcoholic beverages, the rate depends on the type of product (beer, wine, hard liquor).
- For tobacco products – $0.17 per pack of cigarettes.
- Capital Gains Tax
- Rate:
- Capital gains are taxed as part of an individual’s or entity’s income at standard income tax rates.
- Federal capital gains tax is up to 20%and state tax is up to 5.4%.
- Use:
- Relates to gains from the sale of assets, such as real estate, securities, or business equipment.
- Employment Tax or Social Security Contributions (Payroll Tax)
- Social Security Contributions:
- Social Security and Medicare contributions are paid by both employers and employees.
- The Social Security rate is 6.2% (up to $160,200 of income per worker in 2024).
- The Medicare rate is 1.45% (without income limit).
- Unemployment Insurance Tax:
- Rates depend on the company’s unemployment history and range from 0.3% to 7%.
- Income Tax or Corporate Tax
- Rate:
- The state corporate tax rate is 4%, one of the lowest in the U.S.
- Federal corporate tax is 21%.
- Application:
- Tax is paid on the company’s net profit.
- If the company has multinational operations, the state applies the rules of proportional distribution of profits.
Benefits and Taxes credits
- Job Creation Tax Credit: Tax credits for companies that create new jobs.
- Missouri Works Program: Benefits for businesses that invest in the local economy.
- Innovation Tax Credit: Encourages investment in research, development, and emerging technologies.
Requirements for Missouri Companies
Directors and Shareholders:
- At least one director or officer, who may be a U.S. resident or non-resident, is required to register an LLC.
- A corporation (C-Corp or S-Corp) requires a minimum of one director, who may also be a non-resident. In the state of Missouri does not require a resident director.
- Registered Agent:
- The company must appoint a registered agent with a permanent address in Missouri to receive official correspondence. The registered agent may be an individual resident of Missouri or a corporation incorporated in the state.
- Accounting and Auditing Requirements
- Financial Statements:
- Small businesses (LLCs or S-Corps) are generally not required to file financial statements with the state.
- Corporations (C-Corps) are required to file annual financial statements for tax purposes, but private companies are not required to have an audit.
- Required Audit:
- Public companies listed on stock exchanges must undergo an annual external audit in accordance with U.S. federal regulations.
- Private companies are not required to undergo an audit unless required by investors, banks, or partners.
- Annual Registration
- All Missouri businesses must file an Annual Report with the Secretary of State.
- The report costs $20 (electronic filing) or $45 (paper filing).
- The annual report includes information about the company’s management, registered agent, and current address.
- Tax Registration
- Employer Identification Number (EIN):
- A company must obtain an EIN from the Internal Revenue Service (IRS) for tax reporting.
Sales Tax Registration:
- A business that sells goods or services subject to sales tax must register with the Missouri Department of Revenue.
- Substance
- Legal Address:
- The business must have a legal address in the state that can be used for official correspondence.
- Although the law does not require a company to have a physical presence (such as an office or employees), in the event of an audit, tax authorities may require proof of actual economic activity.
- Licensing and special requirements
- Licenses:
- Certain types of activities (construction, medical services, finance, etc.) require appropriate licenses. For example, companies selling alcohol or tobacco products must obtain additional permits.
- Employment Permits:
- If a director or employee of a company is a non-resident, he or she must obtain a work visa to work in the United States.
- Missouri businesses are required to file quarterly sales tax and social security tax reports.
- Annual corporate reporting is due by April 15 (or other deadlines for companies with a non-standard tax year).
Reports include financial statements, tax returns, and an annual license renewal fee.
Special Economic Zones (SEZ)
- Enhanced Enterprise Zones (EEZ):
- Benefits include a property tax exemption for up to 10 years.
- Aimed at developing depressed regions.
- Foreign Trade Zones (FTZs):
- Reduced duties for companies operating in the import/export sector.
- The ability to store goods without paying taxes until the moment of sale.
- Missouri Innovation Centers:
- Financial support for startups and technology companies.
Non-Resident Restrictions
- Agricultural Land Ownership:Non-residents may own no more than 1% of the state’s total agricultural land area.
- National Security Activities:Defense and strategic industries may have restrictions.
- Professional Services:Some professions (e.g., legal or medical) require licenses that are available only to residents.
Support from Finance Business Service
We offer a full range of services for registering a business in the state of Missouri, including document preparation, obtaining licenses, tax support and opening a bank account. Our experts will help you optimize costs, take advantage of tax benefits and successfully enter the American market. Contact us for professional advice and support at every stage of your business.