Starting Out on the Right Foot: An Overview of Business Entity Selection in Missouri

 

 

 

Method of

Formation

 

 

Protection from Personal Liability?

 

 

Taxation

 

 

Administration

 

Flexibility  to make Changes

 

 

Naming

 

Personal Name

 

 

 

None

 

No protection

 

 

Owner taxed personally

 

 

None

Very Flexible

ABC Company

 

 

LLC

 

(1) Register with SoS

(2) $50 registration fee

(3) Operating Agreement

 

Protection

 

(1) Income passed through to member(s)

(2) Taxes based on percentage of ownership

 

(1) No annual meeting

(2) Follow Operating Agreement

(3) No annual fees

Flexible

ABC Company, LLC

 

S-Corp

 

(1) File Articles of Incorporation

(2) Filing fee based on number and value of shares ($50 minimum)

 

Protection

 

(1) Income passed through to member(s)

(2) Taxes based on ownership of shares

 

(1) Annual meetings

(2) Annual report

(3) Board of Directors meeting

(4) Stockholders meeting

(5) $45 annual fee

Less Flexible

ABC Company, Inc.

 

 

C-Corp

 

(1) File Articles of Incorporation

(2) Filing fee based on number and value of shares ($50 minimum)

 

Protection

 

“Double Taxation”: Corporate Level Tax + Personal Income Tax

 

 

 

(1) Annual Meetings Required

(2) $45 annual fee

Less Flexible

ABC Company, Inc.