With the passing of The Missouri Limited Liability Company Act, entrepreneurship in Missouri has become a simpler and lower risk venture. This noteworthy legislation can be found in Section 347 of the Missouri business statutes and has eased the way for small business development across the state.
Missouri lawmakers passed this Act in 1993. Since then, many choose an LLC in Missouri for operating their business. This is because the limited liability company was designed for small business.
REGULATING BODY FOR MISSOURI LIMITED LIABILITY COMPANIES
Legal business entities, including the formation of LLC Missouri limited liability companies, are process and regulated by the Secretary of State, which is located in Jefferson City, Missouri.
LLC ENTITIES ALLOWED BY MISSOURI LLC LAWS
Types of LLCs allowed by the Missouri Limited Liability Act of 1993 include professional, domestic and foreign limited liability companies. The Act also provides for the perpetual life of a business under section 347.039.
Non-profit LLCs are not addressed by the Act. Many lawyers reason that a non-profit company could not be formed as an LLC in Missouri because Section 347.035 requires a limited liability company be setup for a business purpose. Nonprofit purposes are generally considered contrary to business purposes.
IMPORTANT MISSOURI LLC LAW PROVISIONS
The way members are admitted into an LLC in Missouri is governed under Section 247.113 of the law. This law states that admission occurs when it has been correctly evidenced in the company's LLC Operating Agreement. The state of Missouri demands that each LLC have an operating agreement, a practice not common to other states.
This requirement is effective for reducing changes in regards to later misunderstandings or disputes.
Under Section 247.065, the Missouri Act stipulates that each Missouri LLC is managed by its members automatically. Changes can be made to this management structure if desired.
MISSOURI STATE TAXATION
Every business is subject to federal taxation under the Internal Revenue Code. Generally, income of a Missouri LLC is passed through to the owners and reported on their personal tax returns. Under Missouri state tax laws, an owner must pay Missouri state taxes if (i) such person or entity is a resident of Missouri or (ii) the income was derived from Missouri sources. The Missouri Department of Revenue, also located in Jefferson City, MO, handles state tax matters.
FORMATION OF A MISSOURI LLC
The Missouri Limited Liability Act of 1993 includes all necessary requirements for LLC formation including provisions regarding management, duration, business purpose, registered agent, name rules, effective date and organizers.
In order to successfully form and manage a Missouri-based limited liability company, it is essential that entrepreneurs and business owners adhere to the legal requirements provided by the Act. - 15266
Missouri lawmakers passed this Act in 1993. Since then, many choose an LLC in Missouri for operating their business. This is because the limited liability company was designed for small business.
REGULATING BODY FOR MISSOURI LIMITED LIABILITY COMPANIES
Legal business entities, including the formation of LLC Missouri limited liability companies, are process and regulated by the Secretary of State, which is located in Jefferson City, Missouri.
LLC ENTITIES ALLOWED BY MISSOURI LLC LAWS
Types of LLCs allowed by the Missouri Limited Liability Act of 1993 include professional, domestic and foreign limited liability companies. The Act also provides for the perpetual life of a business under section 347.039.
Non-profit LLCs are not addressed by the Act. Many lawyers reason that a non-profit company could not be formed as an LLC in Missouri because Section 347.035 requires a limited liability company be setup for a business purpose. Nonprofit purposes are generally considered contrary to business purposes.
IMPORTANT MISSOURI LLC LAW PROVISIONS
The way members are admitted into an LLC in Missouri is governed under Section 247.113 of the law. This law states that admission occurs when it has been correctly evidenced in the company's LLC Operating Agreement. The state of Missouri demands that each LLC have an operating agreement, a practice not common to other states.
This requirement is effective for reducing changes in regards to later misunderstandings or disputes.
Under Section 247.065, the Missouri Act stipulates that each Missouri LLC is managed by its members automatically. Changes can be made to this management structure if desired.
MISSOURI STATE TAXATION
Every business is subject to federal taxation under the Internal Revenue Code. Generally, income of a Missouri LLC is passed through to the owners and reported on their personal tax returns. Under Missouri state tax laws, an owner must pay Missouri state taxes if (i) such person or entity is a resident of Missouri or (ii) the income was derived from Missouri sources. The Missouri Department of Revenue, also located in Jefferson City, MO, handles state tax matters.
FORMATION OF A MISSOURI LLC
The Missouri Limited Liability Act of 1993 includes all necessary requirements for LLC formation including provisions regarding management, duration, business purpose, registered agent, name rules, effective date and organizers.
In order to successfully form and manage a Missouri-based limited liability company, it is essential that entrepreneurs and business owners adhere to the legal requirements provided by the Act. - 15266
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