Don’t Overlook Your Local Government
Don’t overlook your local government when starting up your limited liability company. Most local governments require businesses operating in their jurisdictionto register the business with city hall and to obtain certain licenses, certificates and/or permits. Failing to timely comply with such requirements can result in fines and penalties. Worse, the local government might order you to stop operating your LLC until it has fully complied with the local requirements.
If you will operate your LLC in St. Louis County, then you must file with the Office of the St. Louis County Assessor, located at 41 South Central Avenue, Clayton, Missouri 63105, the Business Personal Property Registration form, which you can obtain at the assessor’s office or on the website of the St. Louis County Assessor. Additionally, if your LLC owns tangible personal property (for example: computers, communications equipment, POS equipment, officer furniture, fixtures, tools, machinery, and vehicles) on January 1st of any year of its operation, then by March 1st of that year you must deliver to the office of the assessor a completed Business and Manufacturing Equipment Personal Property form, also available on the assessor’s website, itemizing the personal property owned by the LLC. The St. Louis County Assessor’s office will then provide to you a statement of the amount of tax owed by the LLC on that equipment.
If your LLC will operate in St. Louis County as a merchant or manufacturing company, then the LLC must apply for a merchant/manufacturer license. (The application for this license is included in the Business Personal Property Registration form.) Missouri law defines a “merchant” as any business dealing “in the selling of goods, wares and merchandise at any store, stand or place occupied for that purpose.” Missouri law defines a “manufacturer” as any business that holds or purchases personal property “for the purpose of adding to the value thereof by any process of manufacturing, refining, or by the combination of different materials”. Contact the St. Louis County Assessor if you are not sure about whether your business qualifies as a “merchant” or “manufacturer”.
Additionally, if your business will operate in a municipality within St. Louis County, then contact the city hall of that municipality to see what permits and licenses you need in order to operate your business there, even if you will operate the business from your home. If the municipality is located within St. Louis County, and if the municipality requires your business to obtain an occupancy permit, then you must obtain that permit from the municipality and provide it to the St. Louis County Assessor along with Business Personal Property Registration form. If your business is located in an unincorporated area of St. Louis County, then you must obtain your occupancy permit from the St. Louis County Public Works Department. Check with the St. Louis County Assessor’s office for more details.
Additionally, your LLC will need to comply with the local zoning ordinances. Therefore, before purchasing or leasing real estate for your business, make sure the area in which you intend to operate the business is zoned for the type of business you intend to operate. Once you secure a location for the operation of your business, you will of course likely need to obtain permits from the local government prior to performing any work on the property.
Finally, make sure that the local government(s) where your business will operate knows about all of the real estate owned by your business that is located in the jurisdiction of the local government and that you timely pay the taxes owed on that real estate. Failing to timely pay these taxes will result in fines and penalties. In extreme circumstances the Missouri county or city where the property is located will sell at auction real estate on which taxes are unpaid for three years.
Complying with the local business requirements can be somewhat complex and time consuming. However, failing to comply with these requirements can result in unpleasant surprises. Avoid these headaches by contacting early on the local government(s) where your business will operate, and make sure you fully understand what is required of your LLC in order to fully meet all of the local business requirements.
The information provided in this article is for general purposes only and is not intended as legal advice. Your circumstances may be unique, and you should therefore consult an attorney for advice regarding any of the issues discussed in this article.
Michael Sewell, MBA, JD, is the principal owner of Sewell Law, LC, d/b/a Sewell Law, which provides affordable legal services to small business owners.
You can reach Michael at 314.261.7528, Michael@StLouisLLCAttorney.com, and www.StLouisLLCAttorney.com.
