Missouri LLC Taxes

Missouri’s low cost of living and temperate climate make it an inviting place in which to live and start a business. As more business owners choose to launch new ventures within this state, though, many may find it challenging to understand the business taxes involved. 

Regardless of the size of your business, if you operate a limited liability company (LLC) in Missouri, you’ll need to stay up to date on your finances and pay federal, state, and local taxes. Our guide will help you understand which taxes you must pay for your Missouri LLC.

Recommended: Schedule a free consultation with an accountant to stay on top of your taxes. 

Missouri LLC Taxes Owed

LLCs benefit from pass-through taxation, which means the business’s profits pass through to its members’ individual tax returns. As a result, your LLC itself doesn’t pay taxes to the federal government or the state of Missouri. Instead, LLC owners must pay taxes on their portion of the income generated by the LLC. 

In Missouri, LLC owners can expect to pay the following taxes:

Federal Taxes

Regardless of where your business is located, if you have an LLC within the United States, you will have to pay federal income taxes and federal self-employment taxes. These taxes are reported on your Form 1040.

Federal Self-Employment Taxes

It doesn’t matter if your LLC is a single-member LLC or a multi-member LLC; all LLC members must pay self-employment taxes on their share of the LLC’s profits. The self-employment tax rate is 15.3%. 

Federal Income Taxes

Your federal income taxes will depend on your tax bracket, and the cutoffs for individual tax brackets, as well as the percent owed, will change each year. 

Missouri State Taxes

All states have their own laws that dictate how they tax individuals and businesses. Below you’ll find an overview of the state-level taxes most likely to affect your Missouri LLC.

Missouri Income Taxes

Missouri’s state income tax rate is 5.4%. Compared to other states that tax income on the state level, 5.4% is on the low end. This is certainly one advantage of running your business in Missouri.

Missouri Sales and Use Tax

Missouri has a state sales tax rate of 4.225%. While this is quite low, Missouri counties and cities can impose their own local sales taxes on top of the state rate. With an average local sales tax rate of 4.06%, the average combined sales tax rate in Missouri is 8.29%. Make sure to check if your area has its own local sales tax rate.

Register for the Missouri Business Tax

If your business sells taxable goods or services, it must register for the Missouri business tax. You can find more information about this tax and the forms you’ll need to complete on the Missouri Department of Revenue website.

Additional State Taxes

The Missouri Department of Revenue oversees the collection of various state-specific taxes businesses may have to pay, depending on their location, industry, and number of employees. Some examples of these additional taxes include:

  • Cigarette Tax
  • Motor Fuel Tax
  • Tire Fee
  • Lead Battery Fee
  • Marijuana Tax

The Business Tax page of the Missouri Department of Revenue website offers more information on these and other taxes.

Missouri Local Taxes

Local laws in one Missouri county or city likely will differ from those in another part of the state. No matter where you live in Missouri, check with your local jurisdiction to ensure your business obtains the proper local permits and follows any local regulations that may impact its operations.

Missouri LLC Compliance

If you want to run a business in Missouri, you’ll need to keep it in good standing with the state and comply with all applicable rules and regulations. While LLCs technically don’t file taxes with the state, Missouri businesses must still file their federal taxes and other Missouri business taxes.

Missouri Certificate of Good Standing

Unlike many other states, Missouri doesn’t require LLCs to file an annual report in order to remain in operation. However, LLCs should obtain a Certificate of Good Standing from the Missouri Secretary of State. This enables the Missouri Corporations Division to manage questions and approvals if someone investigates your business or wants to verify it for loans or other purposes.

For more information, check out our Certificate of Good Standing Missouri guide.

LLC taxes are complex. While our guide can provide you with important information, we recommend you schedule a free consultation with an accountant to ensure you handle your business taxes correctly.