Missouri LLC Taxes

If you’re forming a Missouri limited liability company (LLC), you should know that your tax responsibilities will be determined by the type of taxation you elect for your LLC, your exact location within the state, and the nature of your business activities.

This guide offers an overview of the Missouri LLC Taxes that you may need to file at a local, state, and federal level, as well as the steps you’ll need to take in order to submit your returns properly and maintain your LLC’s compliance.

Recommended: Schedule a free consultation with 1-800Accountant to stay on top of your taxes. 

How Is an LLC Taxed in Missouri?

Taxation in Missouri isn’t applied in the same way to all LLCs – instead, it varies depending on a number of factors, such as an LLC’s nature, locality, and tax election.

While LLCs typically benefit from pass-through taxation by default, they can elect to be taxed as one of the following:

• C Corporations: The LLC is treated as a separate entity to its owners, paying corporate income tax rates on its total profit while the owners also pay personal income taxes on any distributions they take.
• S Corporations: In return for paying owners a “reasonable salary,” the LLC’s remaining profits are distributed among members without a need to pay self-employment tax or FICA tax on them.

The following sections go into the various tax responsibilities of your LLC at local, state, and federal levels in Missouri to help you ensure your LLC navigates them effectively.

Missouri Local Taxes

Tax laws and regulations can differ significantly depending on where your LLC is located within Missouri. Below, we’ve broken down the most common taxes for new LLC owners in the state. 

Local Sales and Use Taxes

Counties, cities, and even certain districts in Missouri can impose additional sales and use taxes on top of the state rate of 4.225%. These can vary depending on your location. 

For example, a business located in Southeast Springfield is subject to Greene County’s 1.75% sales tax plus Springfield’s 2.125% city tax, for a combined total of 8.1% sales tax. Then, as the county does not levy any additional use taxes, the combined use tax total for this business is 6.35%.

Note: You can find the applicable sales and use tax rates for your district, city, and county using the Department of Revenue’s Sales Tax Map.

Property Taxes

Missouri property taxes are levied on the assessed value of real estate and personal property owned by businesses and individuals. Rates vary based on location and property type, set by local taxing authorities like counties, cities, and school districts. 

For instance, St. Charles County has an average rate of 1.2%, so a $200,000 property would incur $2,400 yearly in taxes. 

Contact your county assessor's office (find details on the State Tax Commission website) to file your property tax.

Recommended Service: Schedule a free consultation with 1-800Accountant to ensure your business remains legally compliant. 

Missouri State Taxes

Every state has its own regulations and rules that dictate how it taxes individuals and businesses. Below is a list of the most relevant state-level taxes for LLCs in Missouri. 

Individual Income Tax

The Missouri state income tax applies to residents and non-residents. The current rates range from 0% to 4.95%, depending on the taxable income and filing status in question. 

Since LLCs are pass-through entities by default, members pay individual income tax on their portion of the company's profits.

Missouri personal tax returns can be filed via Form MO-1040 and are due by April 15 of each year. 

Corporate Income Tax 

LLCs taxed as C corps in Missouri are subject to Missouri's corporate income tax and are required to file Form MO-1120 with the Missouri Department of Revenue.

The corporate income tax rate for the 2024 calendar year is 3.75% – down from 4% in 2023 – and is currently expected to reduce in increments of 0.5% starting in 2025 until it reaches 2.25%.

Employer Withholding Tax

In Missouri, LLCs with employees must collect and submit employee taxes (withholding, employment, or payroll taxes) to the Department of Revenue.

Missouri's employer withholding tax depends on the employee's filing status and income level. Currently, the rate ranges from 0% to 4.95%, but is set to decrease to 4.8% within 2024. 

Note: To figure out how much to withhold from your employees' pay in Missouri, use the Department of Revenue's withholding tables and instructions. 

Pass-Through Entity Tax

S corporations and partnerships can opt for the new pass-through entity tax (Form MO-PTE), deducting state income tax from their federal taxes and potentially saving money.

The current pass-through entity tax rate is equal to the highest individual income tax rate of 4.95%. The owner(s) of the LLC can claim a credit for their share of the pass-through entity tax paid by the LLC on their individual income tax returns.

Note: For more details check the Missouri Department of Revenue's pass-through entity tax instructions. 

State Sales and Use Taxes

If you’re planning to sell physical goods or certain services in Missouri, you'll be responsible for collecting and paying sales tax. The current rate is 4.225%.

In order to pay sales and use taxes, you’ll need to:

• Register for a sales tax license with the Missouri Department of Revenue. This will determine your filing frequency (monthly, quarterly, or annually).
• Collect sales tax on all taxable items during each transaction.
• File your sales tax returns and pay the collected tax according to your assigned schedule.

Note: Businesses with three or more locations in Missouri must file electronically. All registered businesses, regardless of location or sales activity, must file returns each tax period.

State Excise Taxes

Missouri imposes excise taxes on various items:

• Alcoholic Beverages Tax: These taxes are paid by the licensee who registers the product with the state. Rates include: 
• Liquor: $2 per gallon
• Wine: $0.42 per gallon
• Beer Products: $0.06 per gallon
• Cigarette Tax: Paid by cigarette distributors, the tax rate is $0.17 per pack.
• Marijuana Tax: The state imposes a tax rate of 6% of the retail price. 
• Motor Fuel Tax: The tax rate is $0.245 per gallon for gasoline and diesel. 
• Tire and Lead Battery Tax: The tax rate is $0.50 per tire and $1 per battery.
• Tobacco Tax: The tax rate is 10% of the manufacturer’s invoice price.

Federal Taxes

Regardless of where your business is located, if you run an LLC in the US, there are a number of federal taxes you’ll need to pay. Below are some of the main types your LLC may be required to pay for federal tax purposes:

Income Tax

By default, the Internal Revenue Service (IRS) will not treat single and multi-member LLCs as separate entities from you for tax purposes. What this means is that you’ll need to report your share of your LLC’s profits on your individual tax returns and pay federal income tax on them at the personal rate of your tax bracket.

Having said that, keep in mind that LLCs can also elect to be taxed as C corps or S corps, which changes how these taxes are levied in different ways.

Self-Employment Tax

In addition to income tax, members of single- and multi-member LLCs will need to pay federal self-employment taxes on the share of the business’s profits that they report on their personal tax return at the end of the year.

This tax is levied at a flat rate of 15.3% against businesses with net earnings that exceed $400, though it is applied slightly differently to LLCs that have elected to be taxed as S corps or C corps.

Employer Taxes

If your LLC hires any employees, it will need to withhold a portion of their salaries to cover various types of taxes on your employees’ behalf – including Social Security, Medicare (FICA), and payroll taxes.

Furthermore, the members of any LLCs that have elected to be taxed as an S corp will be required to pay employment taxes on their salaries. However, in return for this, the remainder of the business’s profit after these salaries have been distributed will be safe from both self-employment and FICA taxes.

Excise Tax

If your LLC engages in certain types of business (such as the sale of alcohol and tobacco or operating a heavy highway vehicle, among others), it may need to pay federal excise taxes in order to do so legally. Each excise tax comes with its own set of rules, rates, and filing obligations you’ll need to be aware of.

Understanding and fulfilling these federal tax obligations is crucial for keeping your LLC compliant and avoiding unnecessary financial penalties and/or fines.

How to File LLC Taxes in Missouri

Below, we’ve outlined the general process an LLC in Missouri will need to follow in order to file their tax return correctly. Note that the specificities of each step will vary slightly depending on how your LLC is organized and the specific locality it’s based in. 

Step 1: Gather Your Documentation

To ensure accurate tax filing, thorough record-keeping is essential. Begin by collecting your personal information, including:

• You and your partner’s Social Security number, date of birth, and residential address
• The previous year’s tax returns
• Your LLC’s Federal Tax Identification Number or Employer Identification Number (EIN)

Then, you’ll need to gather all documentation related to your business’s income, such as:

• Invoices you’ve issued
• Sales transaction logs
• Electronic payment reports from services like PayPal or Stripe

Lastly, assemble all records pertaining to your business expenses, which should cover:

• Lease receipts for your business premises
• Bills for utilities
• Records of office supplies purchases
• Documentation of business-related travel
• Payroll records for employees

Note: Depending on how your LLC is organized and its tax election, you may need different information for your tax return. 

Step 2: Find The Right Tax Forms

Once you've gathered all necessary documents, the next step is to select the correct tax forms for your LLC based on its organization:

• Single-Member LLCs: The business’s total income and expenses are reported on a Schedule C form, which is attached to the owner’s personal tax return and due by April 15 or the following business day if it lands on a weekend or holiday.
• Multi-Member LLCs: File an information return using Form 1065. Members must fill out a Schedule K-1 showing their individual earnings or losses by March 15 or the next business day.
• C Corporations: File a corporate tax return using Form 1120 by the April 15 deadline or on the next business day if it's a weekend or holiday.
• S Corporations: Use Form 1120-S for the corporate tax return and distribute Schedule K-1 forms to shareholders for reporting their shares of profits or losses. The deadline for filing taxes using 1120-S is March 15 or the following business day.

Since state and local taxes will have their own individual forms and requirements, we recommend contacting your municipality or hiring an accountant for guidance.

With the appropriate documentation gathered and the correct tax forms for your business entity on hand, you’ll be ready to fill them out and submit them.

Step 3: File Your Taxes

The majority of businesses choose electronic filing for its speed, enhanced security, and reliability compared to paper filing, which can be slower and more prone to errors. Here’s how it works:

• Federal Tax Returns: The IRS provides two electronic services for tax submission: Free File for businesses with an AGI below $72,000 and Free Fillable Forms for those above the threshold.
• Local and State Tax Returns: You can file your LLC’s local and state business taxes through the MyTax Missouri portal. Keep in mind that property taxes are collected by local governments and so you will need to contact your county assessor for the specific filing requirements you’ll need to satisfy. 

Note: These electronic filing tools are best suited for those who are already confident in handling their LLC taxes as if filling out a paper form. 

For new business owners, we recommend opting for the expertise of a tax professional in order to ensure both accuracy and compliance in your tax filings. 

Recommended: Schedule a free consultation with 1-800Accountant to stay on top of your taxes. 

Keep Your Missouri LLC Compliant

While LLCs are generally easier to maintain than corporations, there are certain state and local formalities your LLC must satisfy in order to remain compliant. 

Missouri LLC Annual or Biennial Registration Report

LLCs taxed as corporations must file an annual or biennial registration report with the Secretary of State. There is no Missouri LLC annual report for disregarded entities for partnerships.

Annual reports cost $20 when filed online and $45 if filed by mail, while biennial reports cost $40 online and $90 by mail. Failure to file may result in administrative dissolution.

Licensure and Tax Requirements

In Missouri, almost all businesses are required to obtain various licenses and permits at the local, state, and federal levels. Below, we’ve broken down three of the most common types your LLC may need:

• Sales Tax Licenses: If your LLC is selling taxable goods and services, obtain a sales tax license from the Missouri Department of Revenue. 
• Professional Licenses: If your LLC engages in certain professional activities, like accounting, law, engineering, real estate, or health care, obtain a professional license from the appropriate state board or agency.
• Environmental Permits: If your LLC uses or disposes of hazardous substances, such as chemicals, waste, or emissions, obtain environmental permits, certifications, registrations, and licenses from the Missouri Department of Natural Resources.

Note: See the Division of Professional Regulation’s website for a listing of all professional licenses.

Missouri LLC Taxes FAQs