Starting a Business in Missouri: Licenses, Permits & Requirements (2026)

Last updated: October 3, 2026

Before starting a Missouri business, decide how you will own it, check local and industry permissions, and register the tax accounts your activities require. This checklist brings those steps together with official filing routes and optional services.

Missouri Business Requirements at a Glance

Build the setup around your work and location. An LLC filing does not replace a local license, tax registration or insurance. Start with the applicable requirement, then choose whether you want help completing it.

Affiliate links may earn us a commission. Paid providers are optional; official filing routes are included.

Setup step	When it applies & what to budget	Your next step
Choose your business structureChoose first	An LLC is one option for separating business liabilities from personal assets; it is not required for every business. Missouri charges $50 to form a domestic LLC online or $105 on paper, before payment or optional provider fees. Compare ownership, liability and recordkeeping needs before choosing a structure.	Understand Missouri LLC costs and filing, or use the official state filing route. If an LLC fits your business, ZenBusiness can help prepare and submit the formation filing. Starter begins at $0 plus state filing fees. Review optional services and renewal terms before ordering; licenses and ongoing business obligations are separate. Form an LLC with ZenBusinessAffiliate · Optional provider
Check licenses & your locationDepends on your work	Check city and county business licensing, zoning and occupancy, then the state approvals for your profession or industry. Contractors, food operators and personal-care businesses can face different rules. Confirm requirements for the actual location and services before opening.	Find your Missouri industry guide. Check the city or county for the location where you plan to operate.
Register a trading nameIf using an assumed name	Register a fictitious name with the Secretary of State when operating under a name that requires that filing. It is separate from forming an LLC and does not create exclusive rights to the name. Missouri fictitious-name registrations generally run for five years before renewal.	Check the name-registration route for your structure.
Get your federal tax IDIf an EIN is needed	An employer identification number (EIN) identifies your business for federal tax purposes. Whether you need one depends on your structure and activities. It is free from the IRS. If forming an LLC or corporation, form it before applying.	Check eligibility and get an EIN free. You do not need to buy an EIN service.
Register for sales taxIf making taxable sales	Register applicable sales, use and withholding accounts with the Department of Revenue. Determine whether your products or services are taxable and which state and local rates apply. Use the registration guidance before collecting tax, and retain the account information for future filings.	Check tax registration and filing requirements.
Arrange business insuranceRequired coverage varies	Missouri generally requires workers’ compensation with five or more employees; construction employers generally need it with one or more. Exceptions and employee-counting rules apply. General liability serves a separate purpose, so review the risks and contract requirements for your work before comparing coverage.	Check Missouri workers’ compensation rules. Optional quote service: Simply Business can help you explore business insurance. Coverage and availability depend on your trade and underwriting. Get business insurance quotesAffiliate · Optional provider
Separate money & keep recordsPractical setup	Choose how you will separate business receipts and expenses, reconcile transactions and save tax records. Compare account fees, cash-deposit access and bookkeeping needs. Account-opening documents depend on the provider and business structure.	Prepare your formation or trading-name documents and tax ID, then compare business accounts. Set up a recordkeeping routine before your first payment.
Put customer agreements in writingDepends on your service	Agree on the work, price, payment dates, exclusions and cancellation terms before starting. A general service-agreement template may help with routine work; regulated or complex jobs can need specific contract terms or legal review.	Optional document service: use LawDepot to customize a service agreement, then check that it fits your work. Create a service agreementAffiliate · Optional provider
Set up invoices & paymentsChoose your payment method	Decide how customers will pay and when invoices are due. Compare transaction fees, hardware costs and payout timing. Buying a particular payment service is not a state requirement.	Optional payment service: explore Square for accepting customer payments and compare its fees with your expected sales. Explore Square paymentsAffiliate · Optional provider
Plan startup costs & cash reservesBorrowing is optional	Add filing costs, equipment, insurance and operating expenses before deciding whether to borrow. Financing options depend on revenue, time in business, credit and lender criteria. A new, pre-revenue business may not qualify.	Optional comparison service: SuperMoney Business Financing lets you explore funding options, subject to eligibility. Compare total repayment cost and payment frequency. Compare business financingAffiliate · Optional provider
Prepare for employeesIf hiring	Set up withholding and check unemployment-tax liability before hiring. Use UInteract for the applicable unemployment account and wage reports, arrange required workers’ compensation, and report new hires. Confirm current wage rules and keep worker-classification and payroll records.	Missouri employer responsibilities UInteract registration guidance
Calendar reports & renewalsFor your entity and licenses	Missouri LLCs do not file an annual report with the Secretary of State. That does not remove tax, registered-agent, local-license or professional obligations. Calendar those deadlines and any fictitious-name renewal. Corporations have separate registration-report requirements.	Check the official reporting and renewal guidance. Paid filing help is optional and may cost extra.

Need the detailed instructions? Continue below for state filings, employer obligations and links to the licensing agencies.

How to Start a Business in Missouri (Step by Step)

Step 1: Choose Your Structure and Register It

An LLC is one option, not a requirement for every business. Compare ownership, liability and ongoing obligations before choosing. If an LLC fits your plans, the filing instructions below apply; our Missouri LLC guide explains the costs and options.

File Articles of Organization online through the Missouri Secretary of State business portal. Cost: $50 online or $105 by mail. Online filings post the same business day in most cases; paper filings take 5-7 business days. Your LLC name must include “LLC,” “L.L.C.,” “Limited Liability Company,” “Limited Company,” or “LC” and must be distinguishable from existing entity names in the SOS database.

Registered agent: Your LLC must have a registered agent with a physical street address in Missouri (P.O. boxes not accepted). You can serve as your own registered agent if you have a Missouri physical address, or hire a third-party registered agent service.

No annual report. No annual fee. This is one of Missouri’s biggest small-business advantages. After your LLC is formed, you owe nothing to the Secretary of State unless you change your registered agent, members, or business purpose. Missouri is one of only four states (with Arizona, New Mexico, and Ohio) that does not require an annual or biennial LLC report. There is no $25/year, $250/year, or $500/year recurring obligation. Compare this to California ($800 minimum franchise tax), Delaware ($300/year franchise tax), or even neighboring Illinois ($75/year). For a sole-proprietor cleaning service or food truck, this saves $25-$300 every year compared to most states.

Fictitious Name (DBA): If you operate under a name different from your LLC’s legal name, file a Registration of Fictitious Name with the Secretary of State for $7. Valid for 5 years; renewal $7.

Get your free federal EIN immediately at IRS.gov.

Step 2: Register for Missouri State Taxes

Missouri Sales and Use Tax

Missouri’s state sales tax rate is 4.225%, but the real complexity is local. Cities, counties, special districts, and Transportation Development Districts can add up to 5.375% in local sales tax on top of the state rate. Combined rates vary widely:

• Kansas City (Jackson County): ~9.975% combined (4.225% state + 5.75% local) – one of the highest in the state
• St. Louis City: ~9.68% combined
• Saint Ann (St. Louis County): 12.238% – the highest combined rate in Missouri
• Springfield (Greene County): ~8.1% combined
• Columbia (Boone County): ~7.975% combined
• Branson (Taney County): ~10.6% combined (includes Branson Tourism Tax)

Register for a sales/use tax license with the Missouri Department of Revenue through MyTax Missouri before collecting tax. The Department may require a bond based on your projected sales volume. Most personal services in Missouri are not subject to state sales tax – this includes residential cleaning, salon hair services, PI work, and food truck sales (food sales are taxable; the labor of preparing it is not separately taxed). Janitorial services and landscaping have specific carve-outs – see the dedicated industry guides.

Missouri Income Tax

Missouri uses an 8-bracket graduated individual income tax that runs from 0% on the first $1,313 of taxable income to a top rate of 4.7% on income above $9,191. The top rate dropped from 4.8% to 4.7% on January 1, 2025, after SB 3 of 2022’s revenue triggers were met. Future trigger-based reductions (down to a possible 4.5% floor) are still possible but require specific net general revenue thresholds to be hit in future fiscal years.

Taxable Income Bracket (2025 tax year, filed in 2026)	Tax Rate
$0 – $1,313	0.0%
$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%

The same brackets apply to all filing statuses; only the standard deduction differs. The 2025 standard deduction is $15,750 single, $31,500 married filing jointly, and $23,625 head of household – matching the federal amounts. Pass-through income from your LLC, S-corp, or partnership flows to your personal Missouri return at the rates above.

Missouri’s 100% capital-gains deduction (effective January 1, 2025) is the most distinctive feature of the state’s individual income tax. The entire amount of capital gains reported for federal income tax purposes is subtracted from Missouri adjusted gross income. Missouri became the first state to fully exempt capital gains from state individual income tax. If you eventually sell your Missouri-formed LLC, your business assets, or appreciated investment property, the federal capital gains tax still applies but the state portion is zero. This makes Missouri an unusually attractive state to hold appreciated business assets.

Missouri corporate income tax is a flat 4% on net income attributable to Missouri operations under RSMo Section 143.071. C-corporations file Form MO-1120; S-corporations are pass-through entities and do not pay entity-level Missouri tax. Missouri does not have a franchise tax, gross receipts tax, or commercial activity tax.

Step 3: Set Up Payroll, UI, and Workers’ Compensation

Missouri Minimum Wage and Tipped Wage

The Missouri minimum wage for 2026 is $15.00 per hour, the final scheduled step under Proposition A of 2024. Tipped employees must be paid at least 50% of the minimum wage = $7.50 per hour in direct wages, with employer makeup if tips do not bring total compensation to $15.00/hour. Following the repeal of Prop A’s CPI indexing under HB 567 (effective August 28, 2025), Missouri’s minimum wage will remain at $15.00/hour for 2027 and beyond unless the legislature passes a new increase. The federal $7.25 minimum wage is preempted in Missouri because the state minimum is higher.

Earned Paid Sick Time – Repealed

Missouri’s earned paid sick time law (1 hour earned per 30 hours worked, 40-hour cap for small employers, 56-hour cap for 15+ employees) took effect May 1, 2025 under Proposition A but was fully repealed by HB 567 effective August 28, 2025. As of 2026, Missouri has no statutory paid sick leave requirement. Employers may still voluntarily offer paid sick leave but are no longer required to do so. Note: a 2026 ballot initiative is being circulated to add paid sick leave to the state constitution; if it qualifies and passes, the protections would return in a form much harder to repeal.

Unemployment Insurance

Register with the Missouri Division of Employment Security (DES) for a UI tax account. The 2026 taxable wage base is $9,000 per employee per year, down from $9,500 in 2025 (Missouri’s wage base floats with the trust fund balance, between a $7,000 floor and a $13,000 ceiling). The 2026 new employer rate is 2.376% (1.0% for nonprofit organizations). After three years of experience rating, your rate will adjust up or down based on your benefit charges.

Workers’ Compensation

Missouri requires workers’ compensation coverage at the following thresholds under RSMo Section 287.030:

Industry	Threshold	Notes
Construction	1 or more employees	Includes general contractors, electricians, plumbers, HVAC installers, roofers, landscapers performing installation
All other industries	5 or more employees	Cleaning services, food trucks, daycares, salons, PI agencies, retail
Sole proprietor, no employees	Optional	Owner may elect coverage
True independent contractors	Not required	Misclassification audited heavily

Purchase from any licensed private insurer; Missouri has a fully competitive WC market with no monopolistic state fund (unlike Ohio, North Dakota, Washington, and Wyoming). Coverage is regulated by the Missouri Division of Workers’ Compensation within the Department of Labor and Industrial Relations (DOLIR). Penalties for operating without required coverage include fines up to triple the cost of the unpaid premium, and personal liability for the full cost of any workplace injury claim. Construction businesses in particular need to confirm coverage from day one – the 1-employee threshold catches many first-time contractors who assume the 5-employee general rule applies.

New Hire Reporting

Report all new hires within 20 days of hire through the Missouri Employer New Hire Reporting Center. Missouri uses new hire data for child support enforcement and unemployment fraud prevention. Penalty for failure to report: $25 per violation; $350 per violation for conspiracy with the employee to avoid reporting.

No State Paid Family and Medical Leave

Missouri has no state-level paid family leave program. Federal FMLA applies for employers with 50+ employees within a 75-mile radius. Unlike Colorado (FAMLI), California (CA-PFL), New York (PFL), Washington (PFML), or Massachusetts (PFML), Missouri employers carry no state PFML payroll tax burden.

Step 4: Get Local City and County Business Licenses

Missouri has no statewide general business license. Local licensing varies by jurisdiction: See how Missouri compares in our 51-state business license requirements table.

• Kansas City: KCMO requires a business license through the Revenue Division for any business operating in the city. Fees are graduated by gross receipts and business class. Some industries (HVAC contractors, mobile food vendors, security guards) require an additional Certificate of Qualification through the Department of City Planning & Development. Apply through CompassKC at kcmo.gov.
• St. Louis (independent city): The City of St. Louis is constitutionally separate from St. Louis County since the “Great Divorce” of 1876 – it is the only U.S. city outside Virginia that is not part of any county. Business licenses are issued by the St. Louis License Collector, with fees graduated by gross receipts. The City also imposes a 1% Earnings Tax on residents and on income earned in the city by nonresidents (the same 1% tax applies in Kansas City).
• St. Louis County: 88 separate municipalities ring the city, each with its own business licensing rules. Operating across the county can require multiple municipal licenses. Always verify which municipality your physical location falls under.
• Springfield (Greene County): Business license through the Springfield Finance Department; certain industries (food, daycare) regulated through the Springfield-Greene County Health Department.
• Columbia (Boone County): Business license through the Columbia Finance Department; University of Missouri (MU) drives a steady seasonal economy.
• Independence, Lee’s Summit, O’Fallon, St. Charles, Joplin: Each requires its own city business license.

St. Louis and Kansas City Earnings Tax

If you live in or earn business income in the cities of St. Louis or Kansas City, a 1% local earnings tax applies to wages and self-employment net profits. The tax is collected directly by each city’s Earnings Tax Division. Both cities periodically reauthorize the tax through voter approval; both have consistently passed reauthorization. If you are a sole-proprietor in either city, this is an additional local payroll tax obligation beyond the state income tax.

Step 5: Get State Professional Licenses

Missouri Division of Professional Registration (DPR)

Most state-level occupational licensing in Missouri runs through the Division of Professional Registration (DPR), an umbrella agency within the Missouri Department of Commerce and Insurance (DCI). Industries licensed through DPR include:

• State Board of Cosmetology and Barber Examiners – cosmetologists, barbers, manicurists, estheticians, instructors, and salon establishments
• Board of Private Investigator and Private Fire Investigator Examiners – PI agencies and individual investigators
• Real estate agents (Real Estate Commission)
• Accountants (State Board of Accountancy)
• Architects, engineers, and land surveyors
• Healthcare professionals (medical, nursing, dental, pharmacy boards)
• Many other licensed trades

Department of Elementary and Secondary Education (DESE) – Office of Childhood

Child care licensing is one of the more notable recent agency moves in Missouri: in 2022, oversight of licensed child care transferred from the Department of Health and Senior Services (DHSS) to the DESE Office of Childhood, consolidating early childhood programs (Head Start, Pre-K, child care subsidy, and licensing) under one roof. DESE now licenses approximately 2,700 child care providers across Missouri under RSMo Chapter 210 and 5 CSR 25-500.

Department of Health and Senior Services (DHSS)

Food licensing is largely delegated to local health departments (KCMO Health Department, St. Louis Department of Health, Springfield-Greene County Health Department, and most county-level departments). DHSS retains oversight of statewide food code and inspections in jurisdictions without delegated programs.

HVAC and Trades

Missouri has no statewide HVAC contractor license. The “Statewide Mechanical Contractor Licensing Act” has been introduced repeatedly since 2018 (SB 11, SB 31, SB 80, SB 559, SB 867, SB 1116, SB 1487, SB 523) but has not passed as of May 2026. Municipal licensing fills the gap: KCMO, St. Louis, St. Louis County, St. Charles County, and Springfield each require local mechanical or HVAC contractor credentials. See the dedicated Missouri HVAC guide for jurisdiction-specific details.

Missouri’s Distinctive Tax and Regulatory Environment

1. The “no annual report” advantage compounds over time. Missouri is one of four U.S. states (with Arizona, New Mexico, and Ohio) that requires no annual or biennial LLC report or fee. Over a 10-year LLC lifespan, this saves $250-$3,000 versus states with $25-$300 annual fees. For a one-person service business that may not generate substantial revenue in years 1-2, this means your LLC cannot be administratively dissolved for non-filing – a meaningful protection.

2. Right-to-Work was rejected by Missouri voters in August 2018. Senate Bill 19 (2017) would have made Missouri a right-to-work state, but voters repealed it through Proposition A by a 67%-33% margin in the August 7, 2018 referendum. This makes Missouri unusual among Republican-leaning states – most surrounding states (Iowa, Kansas, Nebraska, Oklahoma, Arkansas, Tennessee) are right-to-work, but Missouri is not. Practically, this means private-sector union shops can require dues from non-members in unionized workplaces. For most small businesses (cleaning, food truck, salon, daycare) the issue rarely surfaces, but it can affect labor costs in unionized HVAC, electrical, and plumbing trades, particularly in the St. Louis area.

3. Missouri has the country’s only fully exempt capital gains income tax treatment. Effective January 1, 2025, the state subtracts 100% of federal capital gains from Missouri adjusted gross income. If you build your small business and eventually sell it for a gain, the federal long-term capital gains rate (15%-20%) still applies, but Missouri’s 4.7% layer is zero. For a $1M business sale, this saves approximately $47,000 versus a state with no exemption.

4. Independent contractor classification is governed by common-law right-to-control plus the IRS 20-factor test. Missouri does not use California’s strict ABC test. RSMo Section 287.041 (workers’ comp), Section 288.034 (UI), and DES regulations all apply variations of the common-law test. Missouri is more lenient than ABC-test states (CA, MA, NJ, IL for some purposes), but DES audits are active – particularly for cleaning, salon booth-rental, and food-delivery businesses.

5. Missouri 811 (Call Before You Dig) requires 3 working days notice under RSMo Section 319.030. Excavation includes any trenching, boring, or grading more than 12 inches deep. The Public Service Commission enforces violations. This applies to landscape installations, septic work, fence post-hole drilling, and HVAC condenser pad excavations.

Missouri Market Context: Where the Demand Is

Missouri’s economy is anchored by two distinct major metros plus several mid-sized university towns and a tourism powerhouse:

• St. Louis metro (~2.8 million population including the Illinois side): Anheuser-Busch InBev (world’s largest brewer), Boeing Defense, BJC HealthCare, Mercy Health, Edward Jones, Wells Fargo Advisors, Emerson, Bunge North America, Express Scripts, Centene, Monsanto/Bayer Crop Science. Strong demand for commercial cleaning, daycare (suburban St. Louis County has high household density and dual-income families), and HVAC across the 88 incorporated municipalities of St. Louis County plus the independent City of St. Louis.
• Kansas City metro (~2.4 million bi-state population): Federal Reserve Bank of Kansas City, Hallmark Cards, Cerner (now Oracle Health), H&R Block, AMC Theatres, DST Systems, Sprint (now T-Mobile), Burns & McDonnell, Garmin. Substantial logistics and warehousing footprint along I-435, I-29, and I-70 corridors. Cross-border traffic with Kansas City, Kansas (Wyandotte County) creates two-state operating complexity for service businesses with customers on both sides of State Line Road.
• Springfield (Greene County, ~475,000 metro): Bass Pro Shops world headquarters, CoxHealth, Mercy Springfield Communities, Missouri State University, O’Reilly Auto Parts headquarters. SW Missouri’s economic hub.
• Columbia (Boone County, ~210,000 metro): University of Missouri (MU), Stephens College, Columbia College, MU Health Care, State Farm regional. Stable university-town economy.
• Branson (Taney County, ~85,000 metro): Country/family entertainment tourism corridor, Silver Dollar City theme park, ~9 million visitors per year. Highly seasonal demand for cleaning, food trucks, and landscaping at resort properties.
• St. Joseph, Joplin, Cape Girardeau, Jefferson City (capital): Mid-sized markets with stable government, healthcare, and university-driven employment.
• Climate: Missouri is in USDA hardiness zones 5b-7a with hot, humid summers (90+ degrees common) and cold, sometimes snowy winters. This drives full-year HVAC demand (both heating and cooling), seasonal landscaping (April-October prime mowing season), and year-round cleaning. Tornadoes are a recurring risk – Joplin’s May 22, 2011 EF5 tornado that killed 158 people remains the costliest single tornado in U.S. history.

Missouri Business Guides by Industry

Missouri plumbing business guide — local plumbing licensing, insurance and startup steps for plumbing companies.

Missouri electrical business guide — optional statewide versus local licensing, liability coverage and permits.

Every industry has different licensing, permit, and insurance requirements in Missouri. Select your business type:

• How to Start a Cleaning Service in Missouri – sales tax treatment of janitorial services (mostly non-taxable for residential services), workers’ comp at 5 employees, KCMO and St. Louis local licensing
• How to Start a Food Truck in Missouri – local health department licensing (KCMO Health Dept, St. Louis Dept of Health, Springfield-Greene County), commissary requirement, 13 permit categories in KCMO
• How to Start a Daycare in Missouri – DESE Office of Childhood (transferred from DHSS in 2022), RSMo Chapter 210, Show Me Quality QRIS, child care subsidy
• How to Start an HVAC Business in Missouri – no state license, KCMO Certificate of Qualification, St. Louis Master Mechanical, Springfield trade registration, EPA 608, A2L refrigerant transition
• How to Start a Hair Salon in Missouri – State Board of Cosmetology and Barber Examiners (DPR), 1,500-hour cosmetologist program, separate establishment license, biennial renewal
• How to Start a Landscaping Business in Missouri – no state landscape license, MDA Pesticide Applicator certification (3-year cycle), Missouri 811 (3 working days notice), workers comp at 1 employee for installation work
• How to Start a Private Investigation Business in Missouri – Board of Private Investigator and Private Fire Investigator Examiners (DPR), $500 application fee, $250K liability insurance, 16-hour CE every 2 years, RSMo Section 542.402 one-party consent recording
• How to Get a Missouri Dealer License – $50,000 bond ($100,000 if delivering before title transfer), eight sales a year required to renew, six-inch sign, and a Form 5748 inspection that a sheriff may not sign
• How to Get a Missouri Liquor License – $300 a year for retail by the drink and $100 for package, but Sunday sales are a separate $200 license and no state bartender permit exists
• How to Get a Missouri Massage License – Board of Therapeutic Massage: 500 supervised hours, and the massage BUSINESS is licensed separately at $125 on top of the $100 therapist renewal
• Do You Need an Arborist License in Missouri? – No arborist license – a commercial applicator license is NOT VALID without a current insurance certificate, $50,000 per occurrence, kept at the business location

Key Missouri Business Resources

Resource	What It Covers
Missouri Secretary of State – Business Services	LLC formation, name searches, fictitious name (DBA), trademarks
Missouri Department of Revenue	Sales/use tax, individual and corporate income tax, MyTax Missouri portal
Missouri DOLIR	Unemployment insurance, workers comp, minimum wage enforcement
Division of Professional Registration (DPR)	Cosmetology, PI, real estate, accounting, healthcare professional licensing
DESE Office of Childhood	Child care licensing, Show Me Quality, child care subsidy
Missouri DHSS	Statewide food safety, public health programs
MDA Bureau of Pesticide Control	Commercial pesticide applicator certification
Missouri 811	Call Before You Dig – 3 working days notice required
Missouri New Hire Reporting	Required within 20 days of hire

How Long Do New Businesses Last in Missouri?

The Bureau of Labor Statistics follows every private-sector establishment in Missouri from the year it opens. Of the businesses opened in March 2024, 74.1% were still operating one year later. Among those opened in March 2020, 42.9% reached the five-year mark — 8.5 points below the national 51.4% — and 29.7% of the March 2015 cohort made it to ten years.

Two things keep those numbers from reading as grimly as they look. A closed establishment is not always a failed one: the BLS count includes owners who sold, merged, moved, or retired. And the businesses that last, grow — nationally, establishments reaching age ten average 11.7 employees, up from 4.4 when they opened. Rates for every state and 19 industries: business survival rates by state.

Frequently Asked Questions

How much does it cost to start an LLC in Missouri?

The Articles of Organization filing fee with the Missouri Secretary of State is $50 online (or $105 by mail). Missouri does not require an annual report or annual fee for LLCs – one of only four states (with Arizona, New Mexico, and Ohio) without ongoing SOS LLC fees. Optional costs: Fictitious Name (DBA) registration at $7 valid 5 years, and registered agent service if you use a third-party provider. Compared to neighbors, Missouri’s $50 one-time fee with no recurring obligation is one of the cheapest LLC structures in the country.

What is Missouri’s minimum wage in 2026?

The Missouri minimum wage is $15.00 per hour effective January 1, 2026 – the final scheduled step under Proposition A of 2024. Tipped employees must be paid at least 50% of the minimum wage = $7.50/hour in direct wages, with the employer required to make up any shortfall if tips do not bring the employee to $15.00/hour. Following the repeal of Prop A’s CPI indexing under HB 567 (signed July 10, 2025, effective August 28, 2025), the rate will remain at $15.00/hour for 2027 and beyond unless the legislature acts again. The federal $7.25 minimum is preempted because Missouri’s state minimum is higher.

Does Missouri require workers’ compensation for small businesses?

It depends on your industry. Under RSMo Section 287.030, construction businesses must carry workers’ compensation at 1 or more employees. All other industries (cleaning, food truck, daycare, salon, PI, retail) require coverage at 5 or more employees. Sole proprietors with no employees are not required to carry coverage but may elect to do so. Missouri has a fully competitive WC market – purchase from any licensed private insurer. Missouri does not have a monopolistic state fund (unlike Ohio, North Dakota, Washington, and Wyoming). Penalties for operating without required coverage include triple-premium fines and personal liability for the full cost of any workplace injury claim.

Does Missouri have a paid sick leave or paid family leave law?

No – both have been repealed or never enacted as of 2026. Proposition A’s earned paid sick time provision (1 hour earned per 30 hours worked) took effect May 1, 2025 but was fully repealed by HB 567 effective August 28, 2025. Missouri has never enacted a state paid family and medical leave program (no equivalent to CO FAMLI, CA-PFL, NY PFL, WA PFML, or MA PFML). Federal FMLA still applies to employers with 50+ employees within a 75-mile radius. A constitutional amendment to restore paid sick leave is being prepared for the November 2026 ballot – watch for it. Until and unless that passes, Missouri employers carry no statutory paid leave obligations and no state PFML payroll tax.

What is Missouri’s income tax rate for small businesses?

Missouri uses an 8-bracket graduated individual income tax with rates from 0% on the first $1,313 of taxable income to a top rate of 4.7% on income above $9,191. The top rate dropped from 4.8% to 4.7% on January 1, 2025 after SB 3 of 2022’s revenue triggers were met. Missouri also has a flat 4% corporate income tax on net income. The most distinctive feature: effective January 1, 2025, Missouri became the first state to fully exempt federal capital gains from state individual income tax – 100% of capital gains are subtracted from Missouri AGI. LLCs and S-corps are pass-through; income flows to owners’ personal Missouri returns at the graduated rates.

Why is Missouri’s sales tax complicated?

The state sales tax rate is 4.225% – relatively low – but local options can add up to 5.375%, putting combined rates as high as 12.238% (Saint Ann in St. Louis County). Major metros: Kansas City 9.975% combined, St. Louis City 9.68%, Springfield ~8.1%, Columbia ~7.975%, Branson ~10.6% (includes Branson Tourism Tax). Cities, counties, transportation development districts (TDDs), and community improvement districts (CIDs) can each layer separate local options. Most personal services (residential cleaning, salon hair services, PI work) are not subject to Missouri sales tax, but tangible goods sales are. Janitorial, landscaping, and certain commercial cleaning have specific carve-outs – see the industry-specific guides for details.

Does Missouri have a general business license?

Missouri has no statewide general business license. However, you must register for a sales/use tax license with the Missouri Department of Revenue if you sell taxable goods or certain services, and most cities require local registration. Kansas City, St. Louis (an independent city, not part of any county), Springfield, Columbia, and most other municipalities each have separate business license processes. Some industries also require state professional licenses through the DPR (cosmetology, PI, real estate, accounting), and child care providers are licensed through DESE Office of Childhood under RSMo Chapter 210.