5 Steps to Selecting a Great LLC Name
Selecting your LLC name is probably the most exciting part of starting your LLC. Most people spend a fair amount of time on this process, (more…)
Starting your Missouri LLC (limited liability company) involves more than selecting a name. Before you form your Missouri LLC, you need to decide, among many other (more…)
Don’t overlook your local government when starting up your limited liability company. Most local governments require businesses operating in their jurisdiction (more…)
“Winding down” your LLC can be complicated, especially if you have been actively operating the business. The winding down process usually involves four general steps: filing with the Missouri Secretary of State a “notice of winding up”, providing statutory notice to the creditors of the LLC that the LLC is going out of business (this is technical, and you should have an attorney handle this for you), taking all of the steps of termination required by the LLC operating agreement, and filing articles of termination with the Missouri Secretary of State.
You should speak with a CPA about the tax consequences of operating your business as an LLC. Generally, a single member LLC is taxed by the U.S. Internal Revenue Service (IRS) as a “disregarded entity”, meaning that the LLC files no tax return, and the profits and losses of the LLC are instead passed through to the member’s individual tax return. The members of a multi-member LLC are taxed under the U.S. partnership tax laws and regulations. However, both a single member LLC and a multi-member LLC may elect to be taxed as a corporation by making an election with the IRS to be taxed as an S-Corp. The typical benefit of an S-Corp election is the avoidance of having to pay a portion of the FICA tax. However, there are many other consequences to making an S-Corp election, many of which may be disadvantageous to your tax situation. Therefore, you should carefully consult with us and with a CPA to determine the optimal tax structure for your LLC.
When you form your LLC, you must decide how long it will last. You can choose for your LLC to end after a certain period of time, or it can last until you take the steps necessary to terminate it.
Missouri imposes no annual tax or fee on LLCs formed in Missouri. However, other states where you operate your Missouri LLC may charge an annual tax or fee on your Missouri LLC. Additionally, the local government where your business is located may impose an annual license fee.
A written contract between the members of the LLC describing the rights, duties and obligations of the members as related to the LLC. Even a single member LLC is required under Missouri law to have an operating agreement, signed by the member, which describes the conduct of the business and affairs of the LLC.
A document filed with the secretary of state that forms the LLC. However, an LLC is not fully formed in Missouri until all of its members have entered into an operating agreement.
This depends on whether the LLC is single-member or multi-member. The amount of information needed to form a single member LLC is significantly less than the information needed to properly form a multi-member LLC. Therefore, in many cases we can form a single member LLC in one to two days and a multi-member LLC in typically take 5-7 business days.
