Selecting a legal structure for your business is one of the first steps you must take if you intend to launch a business in Missouri. The Limited Liability Company (LLC) is a well-liked choice for small businesses. But what does it cost in Missouri to set up an LLC?
In Missouri, creating an LLC costs $50. This amount covers the cost of submitting the Articles of Organization, which establish your LLC formally. Articles of Organization can be submitted by mail or online through the website of the Missouri Secretary of State.
You might also have additional costs, such an operating agreement, business licenses, and permits, in addition to the filing charge. Depending on the region and sector of your firm, these prices may change.
Make sure your selected business name is available in Missouri before you file for your LLC. By performing a search in the Missouri Secretary of State’s online database, you can determine whether a business name is available. You will need to choose an alternative name for your company if the one you like is already used.
You can register a fake name, commonly known as a DBA (Doing Business As), if you want to use a name for your business that differs from your legal name or the name of your LLC. Sole proprietorships and partnerships frequently utilize a DBA to conduct business under a different name. You can register a DBA in Missouri with the county where your company is situated.
Which is better, an LLC or a DBA? The response is based on the objectives and needs of your company. Compared to an LLC, a DBA is easier and less expensive to set up, but it doesn’t provide the same level of liability protection. While an LLC may give tax advantages and offer limited liability protection for the owners, it also necessitates extra paperwork and continuous management.
To sum up, it costs $50 to incorporate an LLC in Missouri, plus additional expenditures for operating agreements, licenses, and permits. Make sure your selected company name is accessible in Missouri before creating your LLC, otherwise you may want to think about registering a DBA. In the end, the requirements and objectives of your company will determine whether to choose an LLC or DBA.
DBA (Doing Business As) does not have its own tax filing status because it is not a distinct legal company. Instead, the person or organization who owns the DBA is responsible for paying the taxes. The owner’s personal tax return is used to declare and pay taxes on income received through a DBA.
A DBA (Doing Business As) typically doesn’t require a separate bank account. Opening a separate bank account for your DBA might aid in organization and spending tracking as it is advised to keep business and personal finances separate. Furthermore, some banks could need a separate account for a DBA or might provide particular business banking choices. It is best to inquire about your bank’s specific guidelines and criteria.