Sole Proprietorship in Missouri: Do You Need to Register with the State?

You might be asking if you have to register your business with the state of Missouri as a sole proprietor. It depends, is the response. You must register with the Missouri Secretary of State’s office if you intend to use a fake name, also referred to as a DBA or “doing business as” name. On the other hand, you are not need to register if you want to operate under your own name.

You must submit a registration statement to the Missouri Secretary of State’s office if you intend to operate your business under a fake name. To safeguard customers from dishonest businesses, this is mandated under Missouri law. Your business name, contact information, and the type of business you operate must all be included in the registration statement. A certificate of registration will be given to you once your registration statement has been submitted, and this certificate needs to be displayed at your place of business.

– State income tax: The current corporate income tax rate in Missouri is 4%, but sole proprietors are only required to report their personal income tax return in order to pay taxes on their business revenue.

– Sales tax: You must collect and send sales tax to the state of Missouri if you sell products or services there.

– Self-employment tax: As a sole proprietor, you are liable for both the employer and employee components of Social Security and Medicare taxes since you are deemed to be an independent contractor.

Let’s now discuss the distinction between an LLC and a DBA. While an LLC is a legal framework that offers liability protection for your personal assets, a DBA is a fictional name you employ for your business. In other words, if you run your firm as a sole proprietor with a DBA, you are legally and personally liable for any debts or problems that happen. Your personal assets are, however, shielded from any corporate liabilities if you establish an LLC.

And finally, you could be considering whether you should trademark your company name. The quick answer is no, yet it might be advantageous. By registering your company name as a trademark, you can protect your brand legally and stop others from using it. Additionally, it grants you the sole right to utilize your company name in your sector.

The United States Patent and Trademark Office (USPTO) is the place to go if you desire to trademark your company name. To make sure your selected name is not already in use, you must first perform a trademark search. Then, you must submit a trademark application to the USPTO.

In conclusion, if you plan to use a fictitious name as a sole proprietor in Missouri, you might need to register your firm with the state. A number of state and federal taxes, including as income tax, sales tax, and self-employment tax, will also apply to you. An LLC offers liability protection, whereas a DBA does not. Finally, although it is not required, trademarking your company name can give you legal security and exclusivity inside your sector.