Missouri adopted a Limited Liability Company act in 1993 after the IRS agreed in 1988 to give LLCs partnership tax classification upon election by the members of the Limited Liability Company.
The primary benefit to doing business as an LLC is the limitation of liability -- hence the name. The owners (or members) of Limited Liability Companies are protected from liability in the same way as shareholders of a corporation. LLCs offer the same liability protection as traditional C or S corporations without the burdensome paperwork and annual filing requirements.
Typically a Limited Liability Company only requires the initial filing of documents organizing the entity with the Missouri Secretary of State's Office. However in order to with stand scrutiny, additional documents must also be created, including an Operating Agreement or Declaration.
For most businesses to begin operating as an LLC, they will need not only Articles of Organization filed with the Secretary of State's office, but the Operating Agreement/Declaration and an EIN (Employer Identification Number) from the IRS. With these documents the LLC can then open bank accounts and conduct business as an LLC.
Limited Liability Companies can also offer significant tax benefits.
Most people engaged in business file multiple LLCs over time in order to not only insulate themselves from liability but to separate various business activities from one another. For example, it is not unusual for Real Estate investors for have an individual LLC for each piece or group of properties, thereby "quarantining" each property's potential liability from the others.
Because of the demand and frequency of LLC formation of our clients, we have created an online system to quickly and inexpensively form Limited Liability Companies for our clients.
Our LLC Creation System is available by clicking here.
If you have questions feel free to email me or call 417-863-9455 for more information.
