5 Simple Steps to Legally Establish a Business in Missouri
Did you know that Missouri is a regular when it comes to the US's top states to start a business? In a 2017 ranking, for instance, the Show-Me State placed sixth among all 50 states. After all, MO's cost of living is lower than other states, and it also has a thriving small business community.
With that said, we've curated this guide on how to establish a business in Missouri. Read on to learn the basic steps you'd need to take to become a full-fledged MO business owner.
1. Speak to Legal and Financial Experts
Before you even register a business in MO, you should first talk to a lawyer and a financial adviser. A business attorney can give you all the guidance you need about setting up a business in the Show-Me State. These include, among many others, business formation, registration, and licensure.
You should also speak to a financial adviser about the soundness of your business plan. Just so you know, four in 10 businesses have failed due to a lack of market demand for their products or services. Many others closed due to not having a sound and realistic business plan.
2. Determine the Legal Structure of Your Business
There are at least 10 types of business structures or entities under Missouri law. However, the limited liability company (LLC) kind remains the most common. Sole proprietorships and partnerships are also popular.
With the immense number of options you have, it's best to speak with a business attorney first. This way, you can determine which structure is most appropriate for your startup. Your attorney can also advise you on the best methods to deal with or avoid business litigation.
3. Establish a Business Address
According to the Bureau of Labor Statistics data, 25% of new businesses make it past their 15th year. By contrast, 20% of startups fail during their first couple of years in operation.
Aside from inadequate market research, a bad location is another reason for failure.
As such, it would be in your best interest to seek real estate advice when choosing a location for your business. This way, you will have a better idea of which areas in MO have plenty of vehicle and foot traffic.
4. Obtain All Necessary Licenses and Permits
At the very least, you would need to obtain a federal Employer Identification Number (EIN) from the IRS. You may also need to register with the Missouri Department of Revenue (DOR). Other permits you may need include those for health, safety, environment, and building.
If you hire a business attorney, you don't have to worry about missing any of these documents. Your attorney will make sure your business satisfies all state and local requirements.
5. Purchase All Necessary Insurance Coverages
Almost all businesses in the Show-Me State need liability insurance. You may also have to obtain workers' compensation coverage. Workers' comp is mandatory for non-construction businesses with at least five employees.
Again, an attorney who practices business law in MO can help you figure out what insurance you need.
Celebrate Many Years of Business With Proper Planning and Establishment
As you can see, it may only take you five steps to establish a business in Missouri. However, you'd need to make thousands of decisions to make sure it becomes profitable. That's why it's best to seek the advice of professionals even before you register a business in MO.
With that said, please know that TdD Attorneys at Law LLC can help you set your business up for success. We can provide you all the legal guidance you need to establish a startup in MO. Please feel free to get in touch with us now so we can help you curate a better business plan.