How to Start a Missouri Corporation


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

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Start a Missouri Corporation

When you plan to start a business in Missouri, you must decide on the appropriate structure. Starting a corporation may be more complicated than creating an LLC in Missouri or a sole proprietorship. However, it is not that difficult as well. There are a few guidelines that you should be aware of when it comes to creating Missouri corporation. Starting a corporation involves a legal process, that is, the process of incorporation.

In this article, I will share a step-by-step guide to start a corporation in Missouri. I will also enlighten you on the advantages and disadvantages of having a corporation. Some people consider starting a corporation in Missouri more than other business structures since it has many advantages over other forms.

What is a Corporation in Missouri

In definition, a corporation is a formal organization established by stockholders, shareholders, or other people to make a profit. Like individuals, corporations can undertake contracts, own assets, sue and be sued, pay taxes, limit state and federal taxes, and loan funds from banking institutions.

Common Types of Corporations

Before you start with the process of forming a corporation, you should know what type of corporation you will form. There are several different forms of corporations you can take into consideration, depending on your corporation’s objectives and ownership structure.

  • C-Corporation: C-Corporation is the most known type of incorporation. They have almost all corporate distinguishing characteristics. Profits are distributed to corporate owners who are taxed at an individual level. The corporation is taxed similarly to a business unit.
  • S-Corporation: An S-Corporation is set up similarly to a C-corporation but has different tax implications and owner limits. S-corps have no more than 100 stockholders and are not taxed separately. These business units must also file paperwork with the Internal Revenue Service (IRS) to obtain their status.
  • Non-profit Corporation: Nonprofit businesses are frequently used by religious, educational, and charity institutions to run their operations without making a profit. Thus, a nonprofit corporation is exempt from paying taxes. The nonprofit organization’s gifts, contributions, or cash are reinvested in the company to fund its growth, future endeavors, or operations. Read how to start a nonprofit corp in Missouri to learn about nonprofit corporations.

If you have a small business, it is recommended that you form an LLC instead of a corporation in Missouri. LLCs have more tax benefits than other structures. Besides, LLCs protect your personal assets. However, it is wise to consult a legal expert before you start setting up your business in Missouri.

LLCBuddy Editorial Team

How to Start a Corporation in Missouri

To start a corporation in Missouri, you must follow the below steps that, include forming a corporation name, appointing a board of directors, filing for Articles of Incorporation, drafting corporate bylaws, meeting with the board of directors, issuing stocks, creating a shareholders agreement, requesting for an EIN, and getting a license and permit. All these steps are basic ones. It can be changed depending on the type of corporation you form and the nature of your business.

Step 1: Choose a Corporation Name in Missouri

Naming your business is one of the most crucial activities during the startup phase. Your corporation name serves as the foundation for your brand. Legal procedures should be taken into account when choosing your corporation name. Choose a corporation name that will enable you to develop a strong brand identity without being hampered by irrelevant factors.

If you are forming an LLC, there is a complete guide on Missouri LLC name guidelines for a proper LLC name. Here are some guidelines you must follow while naming your corporation in Missouri-

  • Your business name must contain entity identifiers, such as “Incorporated,” “Limited,” “Corporation,” or “Company,” or an abbreviation, such as “Inc.,” “Co.,” or “Ltd.”
  • Exclude any words in your business name, such as “Trust,” “Bank,” “Credit Union,” or “Trustee,” or words related to a government agency, such as “FBI,” “State Department,” or “Treasury.”

Step 2: Board of Directors Initial Appointment

To form a corporation in Missouri, you must appoint an initial board of directors before making them permanent once the corporation is formed. In Missouri, you may appoint at least Three board of directors. The initial board of directors is in charge of guiding the overall strategy of your business. The structure, responsibilities, and powers given to a board of directors are determined by the bylaws of a company or organization. So, appointing your corporation’s initial board of directors in Missouri is a big step in forming a corporation.

Step 3: Filing the Articles of Incorporation in Missouri

After you appoint the initial board of directors in your Missouri corporation, the next step is to write and file a Articles of Incorporation. In writing, the Missouri Articles of Incorporation, the corporation name, principal place of business, the purpose of business, Missouri Registered Agent contact information, and the names and addresses of incorporators and/or initial board members, should be written.

Filing a Articles of Incorporation in Missouri may be done with two method that is filing online, or by mail. The Articles of Incorporation fee may vary from different states. However, in Missouri, it costs $50 fo filing online, $105 for filing by mail.

  • Online Filing: Create an account/Log in to the SOS site, get the online form, fill it, and submit online
  • Offline filing: Send the form by mail or drop it off in person to Corporations Unit, James C. Kirkpatrick State Information Center, P.O. Box 778, Jefferson City, MO 65102

Step 4: Draft Corporate Bylaws

Now you are done filing a Articles of Incorporation in Missouri, the next step is to draft corporate bylaws. Corporate bylaws are the basic rules that control a corporation. It includes the organization’s structure, processes, laws, and rules. As a result, all personnel, managers, and corporation members must obey the firm’s rules.

In creating corporate bylaws, you should include the following on how the decisions will be made-

  • The responsibilities are given to each officer.
  • How will judgments in business be made?
  • Where and when are the annual shareholder meetings?
  • The minimum number of shareholders required for decision-making.
  • Location and timing of dividend payments.

Step 5: Hold the First Board of Directors’ Meeting

After drafting the corporate bylaws, gather all the board of directors for the first meeting. This meeting will be finalized by appointing directors to manage the company’s daily operations, approve the bylaws, choose the corporation’s accounting year, and approve the stock issue. All board meetings should have minutes taken and stored with the company’s records.

Step 6: Issuing Stock in a Corporation

After starting your Missouri corporation, one of the first official corporate actions is issuing stock to the shareholders. Keep track of the number of shares issued to each shareholder and the purchase price. A corporation in Missouri is managed by its shareholders, who contribute to the business in exchange for ownership shares.

Step 7: Draft and Finalize a Shareholders Agreement

Even though drafting and finalizing a shareholders agreement is unnecessary, I suggest you still comply since it will benefit your corporation and its shareholders. A small business’s shareholders enter into a shareholder agreement contract. It establishes how ownership will be handled in unexpected situations, like a shareholder passes away, retires, becomes disabled, or quits the corporation. Early on in the life of your Missouri corporation, signing a shareholders’ agreement can help maintain corporate continuity and prevent future disputes.

Step 8: Request an EIN in Missouri

After everything is in place, you should get or request an Employer Identification Number (EIN). An EIN will serve as the tax ID for your Missouri corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.

The application of an EIN in Missouri can be through the following:

  • Apply Online- The EIN online application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is 4 weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

After you have your EIN number, you can benefit in a number of ways. It will give your corporation the final advantage necessary to operate at full capacity without encountering legal or judicial issues.

Step 9: Get Licenses and Permits for your Corporation in Missouri

Before your corporation operates in Missouri, you must have a business license. A business license is a document issued by a government agency that permits you to operate your business in the geographic region that that agency governs. To legally operate your corporation, you’ll need a business license. Numerous corporate licenses need to be filed and renewed regularly. Check out how to get business licenses and permits in Missouri to know more.

You must also register a DBA name if you intend to conduct business using a name other than your corporation’s legal name. The DBA name is sometimes known as “doing business as” or a “fictitious business name.” Depending on your location, you may need to register the DBA with your state, city, and county. You can skip this step if your business solely uses your legal company name.

Important Information

Paying your Taxes in Missouri

Even if you have established your corporation in Missouri, pay your taxes and keep everything up to date so you won’t pay any penalty. Unlike an LLC, there is a corporate tax that every corporation in Missouri has to pay. On the other hand, they must pay income taxes based on their business income. Some other types of taxes in Missouri are sales tax, franchise tax (not applicable to all the states), and other state taxes.

Cost of Forming a Corporation in Missouri

A filing and annual fee must be paid to form a corporation in Missouri. Without it, your corporation won’t operate. The initial filing fee for a corporation may vary depending on the state. However, in Missouri, it costs $50 fo filing online, $105 for filing by mail. The corporation in Missouri also has to file an annual report (though it might not be mandatory, it is recommended to file one). Ensure you comply with all the necessary fees and costs so your corporation will run successfully and smoothly. If, in the future, you make any changes to your corporation, you must file the Missouri Amendment. It costs $25 to file an amendment in Missouri.

Advantages of Starting a Corporation in Missouri

  1. Limited Liability: The biggest advantage of setting up a Missouri corporation is that the shareholders are not personally responsible for the debts of the company. As a result, when you incorporate as a corporation, personal assets like homes, vehicles, and other possessions are prohibited. One of the main benefits of setting up a corporation over a general partnership or sole proprietorship business structure is that neither the business nor the owners are held legally responsible for the obligations of the business, even if it means giving up their personal assets.
  1. Limitless Corporation: The fact that a corporation’s existence is independent of its owners is another significant benefit of incorporation. In other words, a corporation has an endless life and will continue operating normally even if the owner dies or decides to sell their ownership.
  1. Advantages in Tax: The deduction of health insurance premium payments made on behalf of an owner-employee is one of the many financial benefits to which corporations are entitled. Corporations also save on self-employment taxes since their revenue is not subject to workers’ compensation, Social Security, or medical taxes. Tax rates on corporate profits are lower than those on individual income.

FAQs

What is required to start a corporation in Missouri?
To form a Missouri corporation, you must file Articles of Incorporation with the Missouri Secretary of State. The Articles must include the corporation’s name, the number of shares it is authorized to issue, and the name and address of the corporation’s registered agent in Missouri.
How much does it cost to start a corporation in Missouri?
The fee to file Articles of Incorporation in Missouri is $105.
How long does it take to form a corporation in Missouri?
It typically takes about 1-2 weeks for the Missouri Secretary of State to process and approve Articles of Incorporation.
What are the advantages of forming a corporation in Missouri?
Missouri offers corporations several tax advantages, including
What are the requirements for a corporate name in Missouri?
All corporate names must include the words “Corporation”, “Incorporated,” or “Limited,” or an abbreviation of one of these words. Additionally, the name must be distinguishable from the names of other entities on file with the Missouri Secretary of State.
Who can serve as the registered agent for a corporation in Missouri?
The registered agent must be an individual resident of Missouri, or a business entity authorized to transact business in Missouri.
What is the purpose of a registered agent in Missouri?
The registered agent is responsible for receiving legal notices and documents on behalf of the corporation.
How do I file annual reports for a corporation in Missouri?
The Missouri Secretary of State requires corporations to file an annual report each year. The report must be filed online, and the filing fee is $50.
Does Missouri require corporations to hold annual meetings?
Yes. All corporations must hold an annual meeting of shareholders, at which the board of directors must be elected and certain other corporate business must be conducted.
How do I dissolve a corporation in Missouri?
To dissolve a Missouri corporation, you must file a Certificate of Dissolution with the Missouri Secretary of State. The filing fee is $50.
What are the requirements to start a corporation in Missouri?
To form a corporation in Missouri, you must file Articles of Incorporation with the Missouri Secretary of State, pay the applicable filing fee, and appoint a registered agent who is located in Missouri.
What type of documents do I need to form a corporation in Missouri?
To form a corporation in Missouri, you must file Articles of Incorporation with the Missouri Secretary of State.
What information do I need to provide to form a corporation in Missouri?
You must provide the following information to form a corporation in Missouri
What are the regulations for naming a corporation in Missouri?
The name of a corporation in Missouri must include the word “corporation,” “incorporated,” “company,” or “limited,” or the abbreviation “Corp.,” “Inc.,” “Co.,” or “Ltd.” It must also be distinguishable from any other name on file with the Missouri Secretary of State.
What is the role of a registered agent in Missouri?
A registered agent in Missouri is a person or business entity that is designated to receive important documents on behalf of the corporation, such as service of process and tax forms. The registered agent must maintain a physical address in Missouri.
Are there any other requirements to form a corporation in Missouri?
Yes, corporations in Missouri must also hold an initial organizational meeting, issue shares of stock, and prepare corporate bylaws.
What tax obligations does a corporation in Missouri need to fulfill?
Corporations in Missouri must pay taxes on their income, as well as any applicable sales or use taxes. They must also file annual reports with the Missouri Secretary of State.
What are the disadvantages of forming a corporation in Missouri?
The main disadvantages of forming a corporation in Missouri are the cost and complexity of the process, as well as the requirement to pay taxes on corporate income.
What is the best way to get started with forming a corporation in Missouri?
The best way to get started with forming a corporation in Missouri is to consult with a qualified attorney to ensure you understand all the requirements and to ensure that you comply with all applicable laws.
What paperwork is required to form a Missouri corporation?
The paperwork required to form a Missouri corporation is the Articles of Incorporation. The Articles must include the name of the corporation, its purpose, the name and address of the corporation’s registered agent, the number of shares of stock it is authorized to issue, and the name and address of each incorporator.
How much does it cost to incorporate in Missouri?
The filing fee to incorporate in Missouri is $50.
What is the process for forming a Missouri corporation?
The process for forming a Missouri corporation is to file Articles of Incorporation with the Missouri Secretary of State’s office. The Articles must include the name of the corporation, its purpose, the name and address of the corporation’s registered agent, the number of shares of stock it is authorized to issue, and the name and address of each incorporator.
What is the filing fee for a Missouri corporation?
The filing fee for a Missouri corporation is $50.
Is a registered agent required for a Missouri corporation?
Yes, a registered agent is required for a Missouri corporation. The registered agent must have a physical address in Missouri and must be available to accept legal documents on behalf of the corporation.
Are there any special taxes for a Missouri corporation?
Yes, there are special taxes for a Missouri corporation. Missouri imposes a corporate income tax, as well as franchise taxes, sales taxes, and other taxes.
Does a Missouri corporation need to file an annual report?
Yes, a Missouri corporation must file an annual report with the Missouri Secretary of State’s office. The report must include the name and address of the corporation, the name of the registered agent, the number of shares of stock issued, and the name and address of each incorporator.
What is the deadline for filing an annual report for a Missouri corporation?
The deadline for filing an annual report for a Missouri corporation is the 15th day of the fourth month after the end of the corporation’s fiscal year.
Are there any restrictions on the types of business activities a Missouri corporation can engage in?
Yes, there are restrictions on the types of business activities a Missouri corporation can engage in. The corporation may not engage in any activity not permitted by its Articles of Incorporation or by Missouri law.
What is the procedure for amending the Articles of Incorporation of a Missouri corporation?
The procedure for amending the Articles of Incorporation of a Missouri corporation is to file an Amendment with the Missouri Secretary of State’s office. The Amendment must include the changes being made and must be signed by at least one incorporator.
What is the process for dissolving a Missouri corporation?
The process for dissolving a Missouri corporation is to file Articles of Dissolution with the Missouri Secretary of State’s office. The Articles must include the name of the corporation, the date of dissolution, and the name and address of the registered agent.
Are there any special rules regarding shareholders of a Missouri corporation?
Yes, there are special rules regarding shareholders of a Missouri corporation. The corporation must issue stock certificates to its shareholders, and shareholders may be liable for unpaid corporate debts.

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Why Missouri Corporation is So Important

One of the most important aspects of Missouri Corporation is its contribution to job creation and economic growth. As a major employer in the state, Missouri Corporation provides hundreds, if not thousands, of jobs to residents, helping to bolster the local economy and provide opportunities for individuals and families. These jobs not only provide financial stability for employees and their families, but also contribute to the overall wellbeing and prosperity of the community.

In addition to job creation, Missouri Corporation plays a crucial role in supporting small businesses and entrepreneurs in the state. Through partnerships, collaborations, and investments, Missouri Corporation helps to nurture and develop the next generation of businesses in Missouri, driving innovation, growth, and competitiveness in the local economy. By supporting small businesses and entrepreneurs, Missouri Corporation is helping to build a strong and vibrant business ecosystem that benefits everyone in the community.

Furthermore, Missouri Corporation is committed to giving back to the community in a variety of ways. From charitable donations and sponsorships to volunteer programs and community initiatives, Missouri Corporation is dedicated to making a positive impact on the lives of others. Whether it’s supporting local schools, charities, or non-profit organizations, Missouri Corporation is known for its philanthropic efforts and dedication to helping those in need.

Moreover, Missouri Corporation is a strong advocate for sustainable and responsible business practices. With a focus on environmental stewardship, social responsibility, and ethical business conduct, Missouri Corporation sets an example for other businesses to follow. By prioritizing sustainability and corporate social responsibility, Missouri Corporation is not only looking out for the best interests of the environment and the community, but also demonstrating its commitment to being a good corporate citizen.

Overall, Missouri Corporation is a vital and irreplaceable part of the state’s economy and community. Its contributions to job creation, economic growth, small business development, community engagement, and sustainable business practices make it a key player in shaping the future of Missouri. As we look towards a brighter and more prosperous future for the state, it is clear that Missouri Corporation will continue to play a crucial role in driving progress, innovation, and positive change.

Conclusion

When determining which corporate form is best for you, be selective. You must know which business structure is bet-fitted for your product/service in Missouri. Consult a legal professional before you take the first step while setting up your business. Finding the ideal ratio of corporate advantages and legal protection that meets your unique needs is very important. In forming a corporation in Missouri, you need to ensure that every detail is well-formed so that your corporation will be successful. And if you have any questions, share them in the comment section below.

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