What You Need To Know About Missouri Taxes And An LLC
There are a number of steps that one must take when filing annual taxes in the state of Missouri.
The legal structure in which your business is built, whether it be a sole proprietorship, partnership, or corporation is going to determine how it is taxed.
If one is taxed as a sole proprietorship, income from the business will be attributed to the owner.
For example, in a sole proprietorship, when an owner receives payment from an LLC, they will need to pay a self-employment tax.
An LLC that will be taxed as a corporation will be income taxed to the business first and any payments that are made to shareholders will become taxable income.
All corporate income taxes and self-employment taxes should be estimated and reported on a quarterly basis to the IRS. It is at the end of the fiscal year that all taxes will be reconciled.
It is possible for an LLC to be treated as a corporation. This can be done by filling Form 2553 with the IRS.
For an LLC that is electing to be taxed as a corporation in Missouri, Form MO-1120 must be filed.
A single-member LLC that has been disregarded for federal tax purposes will need to report expenses and income that have been accrued by the LLC on the member’s tax return.
A state tax identification number will be required in the state of Missouri. You may use Form 2643, which is a Missouri Tax Registration Application.
Additionally, you will need to obtain an EIN or Employer Identification Number from the IRS to pay federal taxes.
The state also requires an MITS/MO identification number, which must be included when any forms are submitted to the Department of Revenue in Missouri.
Withholding taxes are to be reported on a monthly or quarterly basis with form MO-941.
Form MO-W3 is to be used to reconcile an LLC’s tax withholding.
In order to register to pay state unemployment taxes, use the form MODES-2699.
Quarterly taxes can be filled with Form MODES-4-& from the DES or Division of Employment Security.
For LLC’s that sell goods to customers, it is important to pay and collect sales taxes.
Missouri requires that a bond be posted with the Department of Revenue.
If you are concerned or have questions about filing taxes in Missouri, it is best to consult with your attorney.
What You Need To Know About Filling Missouri Taxes
Missouri is known as having one of the best tax structures to be found in the nation.
There are a number of states that charge additional fees just to do business in their state. There are no additional fees or taxes in Missouri.
You should consider that an LLC is a “pass-through” tax entity. When federal taxes are paid through an LLC they become the responsibility of the various individual LLC members.
If an LLC decides to forego the default pass-through process, they will be taxed as a corporation and a separate tax return will need to be filed for the LLC.
The Department of Revenue in Missouri accesses corporate taxes. This tax goes against any income that is earned by a registered company in Missouri.
The Missouri Depart of Revenue follows the same basic procedures as the IRS, which means that an LLC may be taxed as a corporation, partnership or even disregarded should the LLC be a single-member entity.
The overall corporate tax bill for a company doing business in the state of Missouri is typically lower than the national average.
Missouri sets the corporate income tax rate by using a percentage of the overall net taxable income that have been earned by various Missouri based companies.
Missouri also uses a franchise tax on a number of assets. At the time of this writing, it is set to 1/30th of one percent of the base of the asset for an asset totaling more than one million dollars.
Where may I get more information about forms and general fees?
You may contact the Secretary of State Corporations Division Located at 600 West Main Street, Jefferson City, Missouri 65101. You may also get in touch by calling 1-866-223-6535.
When is an annual report filed with Missouri?
Typically, an LLC registered in Missouri should file by April 15th of every year. At this time, the cost is $250.00, which is payable to the Secretary of State.
What is the Missouri corporate tax rate?
At this time it is a flat rate of 6.25 for any taxable income.