Starting an LLC in Missouri
Rolla attorneys for limited liability company formation
Selecting the right business entity is an important decision if you’re launching a new venture, and numerous entrepreneurs have chosen to create limited liability companies (LLCs). Williams, Robinson, Rigler & Buschjost, P.C. in Rolla has the information you need about creating an LLC as well as the other options you have if you’re forming a new business or nonprofit organization.
Is an LLC the right business entity to form?
Though LLCs have become a popular option for many business owners, we can outline the other types of legal entities so that you can make the decision that best suits your needs. Larger organizations frequently form corporations, which are independent legal entities that shield owners from personal liability. Smaller businesses can establish S Corporations, under which company profits are taxed on an individual basis. Missouri law also authorizes limited and general partnerships. A general partner and the managing partner of a limited partnership do face potential legal exposure for business debts.
Benefits of starting an LLC in Missouri
By creating a Missouri LLC, you can take advantage of several benefits that this type of entity offers, such as:
- Shielding of personal assets — You might be wary of starting a sole proprietorship or partnership, because your personal assets could be at risk if your business incurs debt or loses a legal decision arising from a business dispute. However, an LLC is a separate entity that allows you to take bold steps without threatening the property you own outside of the business.
- Reduced paperwork — Creating an LLC is relatively simple. To get started, you file articles of organization with the Corporations Division of the Missouri Secretary of State. Corporations require additional paperwork and compliance with various rules while the entity remains active.
- “Pass through” taxation — In most cases, income generated by an LLC is realized as personal income for the individual members. This differs from a C Corporation which is subject to business taxes.
After reviewing your situation, we’ll detail the specific advantages and possible drawbacks of choosing an LLC as your business entity.
Steps to setting up an LLC in Missouri
When you start an LLC in Missouri, you must choose a unique name that includes a specific reference (spelled out or abbreviated) to the fact that it is a limited liability company. You have to appoint an agent to receive service in the event the company is sued and file articles of organization. The law also mandates the creation of a written operating agreement, but this does not have to be submitted to the state. Unlike other states, Missouri does not require LLCs to file annual reports.
How long does it take to form an LLC in Missouri?
Launching an LLC online through the Secretary of State’s website is a quick process as long as the information you have is complete and correct. Processing of mailed-in applications usually takes a few weeks. A problem that sometimes arises is that an applicant files with a name that is being used by another business. Our Rolla business law attorneys can perform a name check and help you avoid unnecessary delays.
How an attorney can help start a Missouri LLC
Whether your new venture is a startup or an extension of an existing business, we will guide you through every step of the LLC formation process. This includes making sure than an LLC is the right entity for you, advising you regarding personal liability, preparing the required filings and identifying any relevant regulatory issues and licensing requirements.
Contact an insightful Missouri business lawyer if you’re looking to create an LLC
Williams, Robinson, Rigler & Buschjost, P.C. assists Missouri clients seeking to create limited liability companies and other types of legal business entities. For a consultation with a proven attorney, please call 573-458-9481 or contact us online. Our office is in Rolla.