You don’t need to form an LLC to run your business in Missouri, especially if you are a single owner of a low-profit and low-risk venture. However, as soon as your business gets up steam and you start earning a higher profit, LLC formation becomes a necessity to ensure legal protections not only for your business but also for your personal assets and savings.
At some point, business needs to be separated and “live its own life”. An LLC is by far the easiest way and a sort of springboard that will help you make the first step to the world of big business. Have decided to form an LLC, yet have no clue how to do that? In our article, you’ll find brief but comprehensive info on LLC incorporation, as well as figure out whether you need the assistance of LLC formation services and will be able to cope with the task on your own and how to create an LLC for your franchise.
Missouri LLC Formation Steps: At a Glance
The main reasons to start an LLC in this state or switch from an unincorporated business form to the LLC formation are to protect yourself from business liabilities, benefit from a flexible taxation system, optimize your tax payments, and boost your company credibility to make many things easier in the future. And there are only a few business formation steps keeping you away from your goal.
1. Pick a Name for Your Future Company
Unlike sole proprietorships named after their owners or functioning as DBA, LLC companies should have unique names – this applies to all states, not just Missouri.. Unique here stands for different from any other LLC names already registered in the state of formation. On the other hand, this name should be somehow associated with your business activity and the industry you operate in.
To check if the desired business name is available for use, you need to perform a name search. Normally, it’s available for free on governmental and state websites as well as on the platforms of the best LLC services.
2. Find a Registered Agent
It’s yet another must-have for any LLC in Missouri. LLC incorporation is impossible without appointing a registered agent that will serve as an official contact point between your business and state authorities. LLC law varies by state, so it’s essential to have an agent physically located in the state of registration. Under US legislation, any adult individual above 18 years old can be your registered agent as well as a legal person.
You can even serve as a registered agent for yourself. In practice, though, many entrepreneurs prefer appointing their accountants, financial consultants, lawyers, or attorneys to be registered agents for their LLC companies, which is a reasonable choice given their professional background.
In the case of legal entities, registered agent services provided by most LLC formation services are hands down the best alternative since for a reasonable price, you’ll get a registered agent for a whole year and save your peace of mind about catching up with the state regulations.
3. File Your Formation Docs
Nowadays LLC formation in Missouri doesn’t require tons of paperwork, which is definitely good news. The only formation document you need to register your LLC company with the state is the Articles of Organization. This paper is typical, and you can find free templates on LLC websites and other legal platforms.
It’s quite a generic document covering basic info about the company such as the names and addresses of the LLC owners, managers, and a registered agent, their signature samples, the purpose of your LLC, and its duration period.
Once you file the Articles of Organization with the Secretary of State, the formal part of the LLC incorporation process is over. However, there are some other steps to complete to duly run your newly formed LLC company and maintain it in good standing with the state.
4. Make up an Operating Agreement
The document is an essential corporate by-law that will make the whole business structure clearer and strictly distribute the owners’ rights, responsibilities, and liabilities. This doc is a necessity for LLC formations in Missouri with multiple owners where it will help avoid conflicts, misunderstanding, and disagreement between the members.
Besides, an Operating Agreement is required when opening a business bank account and obtaining credits or signing the funding agreements. It’s a sort of warranty for the company’s creditors, sponsors, and investors ensuring your business credibility and trustworthiness.
5. Acquire an EIN
EIN is a business identifier for LLC companies needed for tax and business purposes. You can get it for free by filing an application with the Internal Revenue Service.
Incorporation Services for LLC Formation in Missouri
Standing on the verge of LLC formation, you have two routes to follow. The first one is a DIY route where you can follow the above-described steps and tackle business incorporation on your own. This method is quite feasible since LLCs are pretty easy to file and require no tricky paperwork. However, get ready to spend some time on routine tasks and contacting state authorities and regulatory organizations.
The other method is seeking professional help. We bet you think about attorneys and how expensive they are. But we recommend turning your eyes to LLC formation services. They offer the ease of online LLC formation without costing you a fortune.
The benefits you’ll get with the best LLC services include:
- Risk-free formation process, with professionals taking care of all your docs making sure they’ll be free from errors;
- Access to added tools and services most incorporation companies offer in numbers;
- Registered agent service normally provided for a year at a pretty reasonable fee;
- Customer support to answer all your ongoing questions;
- Saving time and effort to focus on more important business issues;
- Peace of mind without the need to worry about any trifles and minor things.
How to Choose an LLC Service in Missouri?
If you’ve decided to delegate all the LLC formation formalities to an LLC service, you can face yet another issue, which is choosing the best LLC service among multiple incorporation companies available on the modern market. What is your optimal choice?
The right LLC service is the one that offers entire business formation, comes up with affordable pricing, and has a solid reputation. So, we advise you to compare business formation websites and check their track records and customer reviews before making a final choice. Top formation companies are normally one-stop shops where you can obtain a full range of LLC formation services and set up your business in close to no time.
To better understand which service is good for your business needs, check unprejudiced client comments and reviews available on trusted websites like Yelp, Trustpilot, etc.
If you ask for our recommendation, we consider ZenBusiness, LegalZoom, Rocketlawyers, and MyCompanyWorks presumably the best LLC services, for now, each of them excelling in a certain aspect.
Also read: 10 Reasons to Digitize Your Company
