Last updated: February 25, 2026
Missouri is one of the most affordable states to start a business. You can form an LLC online for just $50 through the Secretary of State, and Missouri is one of the few states that does not require LLCs to file annual reports – saving you hundreds of dollars every year compared to most states. A DBA filing is only $7. The state’s 4.225% sales tax rate is moderate, though local taxes can push the combined rate to 8-10% in cities like Kansas City and St. Louis.
The regulatory landscape has some important details to understand. Workers’ compensation kicks in at five or more employees (but just one employee for construction businesses). Missouri’s top individual income tax rate is 4.7%, and the state eliminated capital gains tax for individuals as of 2025. St. Louis and Kansas City levy a 1% local earnings tax. This guide covers every requirement using official Missouri government sources.
How to Start a Business in Missouri (Step by Step)
Step 1: Choose Your Business Structure
Your business structure determines your personal liability, tax treatment, and ongoing paperwork. The most common options in Missouri:
- Sole Proprietorship – Simplest to start, no state filing required. You’re personally liable for all business debts. File a fictitious name registration ($7) if using a DBA.
- LLC (Limited Liability Company) – Most popular choice for small businesses. Protects personal assets, flexible tax treatment, and Missouri’s LLC costs are among the lowest in the nation ($50 online, no annual report).
- Corporation (S-Corp or C-Corp) – More formal structure with shareholders and directors. C-Corps pay a 4.0% Missouri corporate income tax. S-Corps enjoy pass-through taxation. Annual report required ($20 online).
- Partnership – For businesses with two or more owners. Options include general partnership (GP), limited partnership (LP), or limited liability partnership (LLP).
For most small businesses, an LLC is the right choice. Missouri’s $50 online filing fee and zero annual report requirement make it one of the cheapest states in the country to maintain an LLC.
Step 2: Register Your Business with the State
LLC Formation via Secretary of State
Missouri business entities are registered through the Secretary of State, Business Services Division at sos.mo.gov/business. Online filings are handled through the Business Services Division portal.
| Item | Cost |
|---|---|
| Articles of Organization (online) | $50 |
| Articles of Organization (by mail) | $105 |
| Name Reservation (optional) | $25 (holds name 60 days) |
| Fictitious Name / DBA Registration | $7 (valid 5 years) |
| Annual Report (LLCs) | Not required |
| Annual Report (Corporations, online) | $20 |
How to file:
- Go to the Secretary of State online portal and create an account
- File Articles of Organization online ($50) – choose a name that includes “LLC,” “L.L.C.,” or “Limited Liability Company”
- Check name availability through the business entity search
- Designate a registered agent with a physical Missouri street address – this can be yourself, another Missouri resident, or a professional registered agent service
- Pay the $50 filing fee by credit card – online filings are typically processed in 3-5 business days
No Annual Report for LLCs
Missouri is one of the few states that does not require LLCs to file annual reports. This is a significant cost advantage – many states charge $50-$300 per year for annual reports. Corporations do file annual reports ($20 online, due by the end of the anniversary month), but LLCs are exempt.
Operating Agreement
Missouri law does not require an LLC operating agreement, but having one is strongly recommended. It outlines member rights, profit/loss sharing, management structure, and what happens if a member leaves. Keep it with your business records.
Fictitious Name (DBA)
If you operate under a name different from your LLC’s legal name, file a Fictitious Name Registration with the Secretary of State ($7 filing fee). Unlike many states that require county-level DBA filing, Missouri handles this at the state level. The registration is valid for 5 years and can be renewed for $7. File online through the Business Services Division portal or by mail using Form Corp 56.
Federal EIN (Employer Identification Number)
After forming your LLC, apply for a free EIN from the IRS at IRS.gov. You’ll receive it immediately when applying online. You need an EIN to open a business bank account, hire employees, and file taxes.
Step 3: Get Required Licenses & Permits
No Statewide General Business License
Missouri does not have a single statewide general business license. Business licensing happens at the city and county level. Most cities require a local business license before you can operate. Fees vary significantly:
- Kansas City: $25-$100 (graduated by gross receipts)
- St. Louis City: $200-$1,500+ (Graduated Business License, based on number of employees)
- Springfield: Varies by business category
- Columbia, St. Charles, Independence: Contact local city hall for fees
Industry-Specific Licenses
Many industries require state-level licenses or certifications. The Board of Cosmetology and Barber Examiners handles salon and cosmetology licenses. The DESE Office of Childhood licenses daycare facilities. The Board of Private Investigator Examiners licenses PIs. The Department of Agriculture certifies pesticide applicators. HVAC licensing is handled at the city level (Kansas City, St. Louis, etc.), not the state level. See our industry-specific guides below for detailed requirements.
Step 4: Register for State Taxes
Missouri State Income Tax
Missouri has a graduated state income tax with rates from 2.0% to 4.7%. The first $1,313 of taxable income is exempt (0% bracket). As of 2025, individual capital gains are fully exempt from Missouri income tax.
| Taxable Income | Rate |
|---|---|
| $0 – $1,313 | 0% |
| $1,313 – $2,626 | 2.0% |
| $2,626 – $3,939 | 2.5% |
| $3,939 – $5,252 | 3.0% |
| $5,252 – $6,565 | 3.5% |
| $6,565 – $7,878 | 4.0% |
| $7,878 – $9,191 | 4.5% |
| Over $9,191 | 4.7% |
Local Earnings Tax
Kansas City and St. Louis City each impose a 1% local earnings tax on income earned within city limits. This applies to both residents and non-residents who work in these cities.
Corporate Income Tax
Missouri corporations pay a flat 4.0% corporate income tax. S-Corps and LLCs taxed as pass-through entities avoid this – income flows through to the owners’ individual returns at the rates above.
Missouri Sales Tax
If your business sells taxable goods or services, register for a sales tax license with the Missouri Department of Revenue.
- State sales tax rate: 4.225%
- Average combined rate (state + local): ~8.41%
- Combined rate range: 5.225% to 12.238% depending on location
- Registration: Free through MyTax Missouri
- Rate lookup: 2026 rate tables
Employer Taxes (If Hiring Employees)
If you hire employees, register for employer tax accounts through MyTax Missouri:
- Unemployment Insurance (UI) Tax: New employers start at 2.376% on the first $9,000 of each employee’s wages (2026 taxable wage base). Experience-rated range: 0%-6%. Register with the Division of Employment Security.
- Withholding Tax: Register via MyTax Missouri. Use the 2026 Employer’s Tax Guide for withholding tables.
Report new hires to the Missouri New Hire Reporting Center within 20 days of the hire date.
Step 5: Get Business Insurance
Workers’ Compensation Insurance
Missouri requires workers’ compensation insurance for employers with five or more employees. The construction industry has a stricter threshold – just one or more employees.
| Status | Requirement |
|---|---|
| 5 or more employees (non-construction) | Workers’ comp is mandatory |
| 1 or more employees (construction) | Workers’ comp is mandatory |
| Sole proprietor with no employees | Not required (may opt in voluntarily) |
| Partners with no employees | Not required for partners themselves |
| Agricultural/farm labor | Exempt |
| Domestic servants in a private home | Exempt |
Penalties for non-compliance: Class A misdemeanor, fines up to 3x the annual premium or $50,000. Employers without coverage lose the usual tort defenses and face full civil liability from injured workers. Coverage is available through private carriers. Learn more at the Missouri Division of Workers’ Compensation.
General Liability Insurance
While not legally mandated in most cases, general liability insurance is practically essential. Many clients, landlords, and government contracts require proof of coverage. Industry standard: $1 million per occurrence / $2 million aggregate.
Missouri Business Guides by Industry
Every industry has different licensing, permit, and insurance requirements. Choose your business type for a detailed breakdown of everything you need in Missouri:
- How to Start a Cleaning Service in Missouri – No state license needed, sales tax rules, insurance, bonding, and city-level business licenses
- How to Start a Food Truck in Missouri – Health permits, fire suppression, commissary requirements, and city-by-city vendor permits
- How to Start a Daycare in Missouri – DESE Office of Childhood licensing, background checks, staff ratios, and no licensing fees
- How to Start an HVAC Business in Missouri – No state license (city-level only), EPA 608 certification, KC and STL requirements, and bonding
- How to Start a Hair Salon in Missouri – Board of Cosmetology licensing, 1,500 training hours, exam, establishment license, and booth rental rules
- How to Start a Landscaping Business in Missouri – Pesticide applicator certification, nursery dealer license, construction-level workers’ comp, and costs
- How to Start a Private Investigation Business in Missouri – Board licensing, $500 application fee, experience requirements, one-party consent recording, and armed PI rules
Missouri Business Resources & Official Links
| Resource | What It’s For |
|---|---|
| Missouri Secretary of State – Business Services | LLC/Corp formation, entity search, fictitious names |
| Business Services Division Online Portal | Online business filings and entity registration |
| Missouri Department of Revenue – Business Tax | Sales tax, income tax, withholding tax |
| MyTax Missouri | Register for and manage Missouri tax accounts online |
| Division of Employment Security | Unemployment insurance registration and tax rates |
| Division of Workers’ Compensation | Workers’ comp requirements and employer resources |
| Missouri New Hire Reporting Center | Report new employees within 20 days |
| Missouri Startup Guide | Secretary of State’s official business startup guide |
| 2026 Sales Tax Rate Tables | Look up combined sales tax rates by location |
| IRS EIN Application | Free federal tax ID number |
Frequently Asked Questions
How much does it cost to start an LLC in Missouri?
The filing fee for Articles of Organization is just $50 online ($105 by mail). Missouri does not require annual reports for LLCs, so there are no ongoing state fees. A fictitious name (DBA) is $7 for 5 years. Combined with a free federal EIN, your total first-year LLC cost is as low as $50-$60 – one of the cheapest in the nation.
Does Missouri have a state income tax?
Yes. Missouri has a graduated income tax with rates from 2.0% to 4.7%. The first $1,313 of taxable income is exempt. As of 2025, individual capital gains are fully exempt from Missouri income tax. Corporations pay a flat 4.0% rate. Kansas City and St. Louis City also levy a 1% local earnings tax.
What is the sales tax rate in Missouri?
The state sales tax rate is 4.225%, but local taxes from cities, counties, and special districts push the combined rate to an average of 8.41%. Rates vary significantly by location – from 5.225% to over 12% in some areas. Use the DOR rate tables to find your exact rate.
Is workers’ compensation required in Missouri?
Workers’ comp is required for businesses with 5 or more employees. Construction businesses face a stricter threshold – just 1 or more employees. Sole proprietors and partners can opt in voluntarily. Non-compliance penalties include fines up to 3x the annual premium or $50,000.
Do I need an annual report for a Missouri LLC?
No. Missouri is one of the few states that does not require LLCs to file annual reports with the Secretary of State. This is a major cost advantage – states like Maryland charge $300/year and California charges $800/year for similar filings. Missouri corporations do file annual reports ($20 online), but LLCs are exempt.
Do I need a business license in Missouri?
Missouri does not have a statewide general business license. However, most cities and counties require a local business license. Kansas City charges $25-$100 (graduated). St. Louis City charges $200+ (Graduated Business License based on employees). Many industries also require state-level professional licenses. Contact your local city hall for specific requirements.
Business Guides for All States
Browse LLC formation, licenses, and permit requirements for every U.S. state.
