If you are an LLC owner, you might be wondering whether you must file a tax return for your company. The type of LLC you have and how much money it makes will determine the answer. While all LLCs are generally required to submit a federal tax return, the state tax obligations differ depending on the state where the LLC is registered.
The IRS views a single-member LLC as a “disregarded entity” for purposes of federal taxation. This means that all income and expenses are reported on the owner’s personal tax return and that the LLC is not taxed separately from its owner. The LLC is regarded as a partnership and is required to submit a separate tax return if it has more than one member.
You must submit a federal tax return if your company made more than $1,000 in revenue during the tax year, regardless of the form of LLC you have. You are not required to file a tax return if your LLC generated no revenue or outlays throughout the tax year.
Each state has its unique laws regarding LLCs in terms of state tax needs. If an LLC has any income from sources within the state of Missouri, they must file a state tax return. The corporate state tax rate in Missouri is 6.25%.
In Missouri, the procedure to create an LLC usually takes 5 to 10 business days. Articles of Organization must be submitted to the Missouri Secretary of State along with a $50 filing fee. A Certificate of Organization will be given to you once your LLC has been approved.
For certain licensed professionals, such as attorneys and accountants, Missouri does offer a Professional Limited Liability Company (PLLC) option. A PLLC is comparable to an LLC, but it offers additional liability protection for professionals who are solely liable for their own misconduct.
And last, a company could be a shareholder in another company. It is referred to as a subsidiary. A subsidiary has its own tax ID number, financial statements, and is treated legally independently from the parent firm. However, the debts and obligations of a subsidiary are normally borne by the main business.
To sum up, all LLCs are required to file a federal tax return, but the state tax obligations differ depending on the state where the LLC is registered. In Missouri, the state tax rate for companies is 6.25%, and LLCs are required to file a state tax return if any of their revenue is earned from sources within the state. Missouri does offer a PLLC option for certain licensed professions, and the procedure to create an LLC there normally takes 5–10 business days. A company can also own another company by using a subsidiary arrangement.