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Doing business in

Missouri

Navigate Missouri’s business landscape with ease—whether you’re incorporating, expanding, or managing tax compliance. Commenda helps you stay ahead with automated solutions for incorporation, compliance, and tax filings.
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missouri

Business Overview

Missouri features diverse economic sectors including manufacturing, agriculture, financial services, and healthcare. The state’s central location, transportation networks, and competitive business costs support logistics operations. Programs targeting innovation and entrepreneurship help drive economic growth.

Key Facts & Figures

Category Details
Capital Jefferson City
Major Cities Kansas City, St. Louis, Springfield, Columbia, Independence
State Sales Tax Rate 4.23%
Local Sales Tax Rate Up to 5.625% additional local taxes
Corporate Income Tax Progressive from 3% to 5%
Physical Nexus Threshold Physical presence through employees, offices, or inventory
Economic Nexus Threshold $100,000 in annual sales

Did you know?

Missouri is home to major corporations like Anheuser-Busch, Express Scripts, and Square, representing a diverse business landscape.

Setup & Compliance

Missouri provides streamlined business registration with moderate regulatory requirements.

Starting a Business in Missouri:

  1. Select Your Business Structure: Consider Missouri’s tax environment for different entity types.
  2. Register Your Business: File formation documents with the Missouri Secretary of State.
  3. Register for Tax Accounts: Register with the Department of Revenue for sales tax and withholding.
  4. Obtain Required Licenses: Research and secure necessary state and local business licenses.
  5. Register as an Employer: Register with the Department of Labor if hiring employees.

Key Compliance Considerations:

  • Annual Registration Reports: Missouri entities must file annual registration reports with the Secretary of State.
  • Sales Tax Collection: Collect and remit 4.225% state sales tax plus applicable local taxes.
  • Corporate Income Tax: Corporations pay 4% corporate income tax.
  • Employment Taxes: Employers must register for unemployment insurance and workers’ compensation.
  • Local Requirements: Counties and municipalities may impose additional licensing and regulatory requirements.

Hiring & Payroll

Missouri provides a balanced approach to employment regulation with moderate worker protections.

Missouri Payroll Requirements:

  • Unemployment Insurance: Rates from 0% to 9% on first $11,000 of wages.
  • State Income Tax Withholding: Required based on MO W-4 form with rates from 0% to 5.4%.
  • Workers’ Compensation: Required for employers with 5+ employees (mandatory for construction employers with 1+ employees).

Missouri Employment Laws:

  • Minimum Wage: $12.30 per hour (indexed annually for inflation).
  • No state-mandated paid sick or family leave.
  • E-Verify: Required for public employers and businesses with government contracts.
  • Final Paychecks: Due on next regular payday.
  • Missouri is a right-to-work state.

State Incentives

Missouri offers comprehensive economic incentives to support business development.

Key Business Incentives:

  • Missouri Works Program: Tax credits for job creation and retention.
  • Quality Jobs Program: Incentives for businesses creating high-quality jobs.
  • Research and Development Tax Credit: Supports innovative company development.

Small Business & Startup Support:

  • Missouri Small Business Development Center: Comprehensive business consulting.
  • Minority and Women-Owned Business Certification Program.
  • Opportunity Zones: Tax benefits for investments in designated areas.

Regulatory Considerations

Missouri provides a balanced regulatory environment supporting business growth.

Key Business Regulations:

  • Data Privacy: Laws protecting consumer and business information.
  • Environmental Compliance: Regulations for manufacturing and agricultural industries.
  • Professional Licensing: Mandatory for various service professions.

Additional Regulatory Areas:

  • Agricultural and Manufacturing Compliance.
  • Transportation and Logistics Regulations.

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