If you are thinking about starting a business of your own, you are on the right track to something very meaningful in your life. In addition to being a way to pursue something you really enjoy, you are also moving toward financial independence.
However, starting any new Missouri business is not without risks. One method for significantly reducing those risks to you personally is to form a Missouri LLC as the operating entity for your venture.
The laws that allow for a MO LLC is one of the most business friendly laws available. The major benefit is liability protection for business owners but the lawmakers went even further to encourage small business by providing other benefits.
CREATE AN LLC IN MISSOURI FOR PERSONAL LIABILITY PROTECTION
The MO LLC is first and foremost about protection. If you run a business without the benefit of a limited liability entity, you are a sole proprietor. A Sole proprietor business places everything that an owner owns or much acquire later at risk for loss due to business liability and problems. Given the current lawsuit epidemic, this is a huge risk.
Any business requires that you interact with other persons or businesses. You may need to hire employees or retain contractors. Other examples include the need to deal with suppliers, banks, governments, professionals and other businesses.
Every time you conduct business activity with another party, it gives rise to a situation which may later result in a possible conflict or dispute. Before the MO LLC was offered in Missouri, many small business owners accepted this risk of liability because the costs and complexity of using a corporation was just too much to accept.
But, when the Missouri Limited Liability Company Act was passed, entrepreneurs finally received a workable solution. When you create an LLC in Missouri, this Act prevents you and other owners from being personally liable merely because you are owners. So, with this passage, there really is no need to run as a sole proprietor.
The success of the MO LLC is evident by looking at the number of formations that have taken place. The limited liability company is now the entity of choice for Missouri small business not only because of its protection but because of other attractive features.
AN LLC in MISSOURI IS SIMPLE TO RUN AND OFFERS FLEXIBILITY
Unlike a corporation, owners of a Missouri LLC are not subjected to unnecessary or complex legal compliance matters. As a result, the MO LLC does not have associated with it, the kind of legal mandates that come with a corporation. With a MO LLC, there is no required board of directors and members are not legally obligated to hold annual meetings.
Now, another benefit is that if a business requires some complex structuring to accommodate business ownership or other goals, the Missouri limited liability company is allowed to create its own ownership and management structure as it sees fit.
Basically, the way the LLC laws work allow a company to operate the way it wants or needs to be managed without having to fit into any irrelevant legal structures.
FILING AND REGISTRATION FEES ARE MINIMAL
Missouri has also agreed to keep filing and registration fees low for a MO LLC. Presently, the filing fee is $105 for a standard filing. As you can see, these costs are minimal compared to the huge protection benefits you get. You protect your home, savings and other things you own from being lost due to business ownership with just a few hundred dollars.
OTHER BENEFITS OF A MO LLC
An LLC in Missouri also offers business owners with other features that can help when starting a Missouri business. First, it is an official legal entity and it has been proven that customers and the public prefer to do business with legal entity businesses as they convey more credibility and trust.
The LLC in Missouri also qualifies for the several tax structures including automatically qualifying for the favored single layer of taxation. Under this default structure, profits are passed through to the owners and taxed only once so this avoids the double tax consequences of the C corporation tax structure.
But, the LLC has the option to elect corporation tax structures under the Internal Revenue Code. In a small number of business situations, a corporate tax structure may offer more tax deductions but this is usually with larger and more complex businesses. If you want to compare choices for your business, always consult with an accountant as tax rules can be complex.
In summary, those who choose to create an LLC in Missouri are making a smart move that will not only allow their businesses to be more profitable and more successful but will provide more protection which reduces the risk of ever losing what you work so hard for due to potential business problems.
However, starting any new Missouri business is not without risks. One method for significantly reducing those risks to you personally is to form a Missouri LLC as the operating entity for your venture.
The laws that allow for a MO LLC is one of the most business friendly laws available. The major benefit is liability protection for business owners but the lawmakers went even further to encourage small business by providing other benefits.
CREATE AN LLC IN MISSOURI FOR PERSONAL LIABILITY PROTECTION
The MO LLC is first and foremost about protection. If you run a business without the benefit of a limited liability entity, you are a sole proprietor. A Sole proprietor business places everything that an owner owns or much acquire later at risk for loss due to business liability and problems. Given the current lawsuit epidemic, this is a huge risk.
Any business requires that you interact with other persons or businesses. You may need to hire employees or retain contractors. Other examples include the need to deal with suppliers, banks, governments, professionals and other businesses.
Every time you conduct business activity with another party, it gives rise to a situation which may later result in a possible conflict or dispute. Before the MO LLC was offered in Missouri, many small business owners accepted this risk of liability because the costs and complexity of using a corporation was just too much to accept.
But, when the Missouri Limited Liability Company Act was passed, entrepreneurs finally received a workable solution. When you create an LLC in Missouri, this Act prevents you and other owners from being personally liable merely because you are owners. So, with this passage, there really is no need to run as a sole proprietor.
The success of the MO LLC is evident by looking at the number of formations that have taken place. The limited liability company is now the entity of choice for Missouri small business not only because of its protection but because of other attractive features.
AN LLC in MISSOURI IS SIMPLE TO RUN AND OFFERS FLEXIBILITY
Unlike a corporation, owners of a Missouri LLC are not subjected to unnecessary or complex legal compliance matters. As a result, the MO LLC does not have associated with it, the kind of legal mandates that come with a corporation. With a MO LLC, there is no required board of directors and members are not legally obligated to hold annual meetings.
Now, another benefit is that if a business requires some complex structuring to accommodate business ownership or other goals, the Missouri limited liability company is allowed to create its own ownership and management structure as it sees fit.
Basically, the way the LLC laws work allow a company to operate the way it wants or needs to be managed without having to fit into any irrelevant legal structures.
FILING AND REGISTRATION FEES ARE MINIMAL
Missouri has also agreed to keep filing and registration fees low for a MO LLC. Presently, the filing fee is $105 for a standard filing. As you can see, these costs are minimal compared to the huge protection benefits you get. You protect your home, savings and other things you own from being lost due to business ownership with just a few hundred dollars.
OTHER BENEFITS OF A MO LLC
An LLC in Missouri also offers business owners with other features that can help when starting a Missouri business. First, it is an official legal entity and it has been proven that customers and the public prefer to do business with legal entity businesses as they convey more credibility and trust.
The LLC in Missouri also qualifies for the several tax structures including automatically qualifying for the favored single layer of taxation. Under this default structure, profits are passed through to the owners and taxed only once so this avoids the double tax consequences of the C corporation tax structure.
But, the LLC has the option to elect corporation tax structures under the Internal Revenue Code. In a small number of business situations, a corporate tax structure may offer more tax deductions but this is usually with larger and more complex businesses. If you want to compare choices for your business, always consult with an accountant as tax rules can be complex.
In summary, those who choose to create an LLC in Missouri are making a smart move that will not only allow their businesses to be more profitable and more successful but will provide more protection which reduces the risk of ever losing what you work so hard for due to potential business problems.
About the Author:
CLICK HERE for a FREE Guide about an LLC in Missouri and a FREE Name Search from Missouri Business Formation, provider of a Three Day LLC Formation backed by a compliance guarantee: http://www.MissouriBusinessFormation.com
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