Thu 24 Mar 2016 | By:

Everything You Need to Know about Missouri Business Taxes

Small Business Taxes

Missouri business taxes are a part of registering a business in Missouri, and as an entrepreneur, it is your responsibility to take care of your tax obligations while your business is in operations. One thing that you should keep in mind when it comes to Missouri business tax compliance is that you must face this task head on.

Ignoring it nor forgetting about it won’t make it go away. You can’t feign ignorance either because this is not a valid excuse. The key to completing tax obligations is to gain knowledge on how the tax system works and what necessary requirements you must complete.

Missouri business taxes vary for each business and its structure and type. Tax obligations range from the federal, state, and county and city levels, so it is good to be prepared. The following business taxes are just a few of the obligations you must meet.


Missouri Business Income Tax

Missouri Business Income Tax is implemented on the income of traditional corporations in the state. A flat rate of 6.25% is currently imposed, due on the fourth month’s 15th day after the closing of the tax year. Aside from this, a Corporation Franchise Tax is also in effect for traditional and S corporations based on its net worth.

In addition to these tax types, any business income that personally goes through you will also be subjected to tax on your personal tax return.


Missouri Federal Tax Forms and Publications

For standard Missouri Federal Tax Forms and Publications, you should only refer to the Missouri Department of Revenue. All standard forms and other paperwork required to comply with various tax obligations are available at their website for download.


Unemployment Insurance Tax

Missouri employers are liable to pay for the Missouri Unemployment Insurance Tax when they meet any of the criteria for liability. This insurance benefit and tax program is used by the state to subsidize workers who temporarily are unemployed through no fault of their own. This benefit is provided while they are still looking for a job.


Missouri Sales and Use Tax

The Missouri Sales and Use Tax is both implemented in the state. These tax types both complement each other; where the other tax does not apply, then the other takes its place. A Sales Tax is imposed for all sales of tangible property inside the state of Missouri unless otherwise specified to be exempted.

For further information on the coverage of Sales Tax and what you must complete, refer to this section of the Missouri Department of Revenue. In lieu of the Sales Tax, the Use Tax is implemented. A Use Tax is in effect on any tangible property that is used, consumed, or stored in Missouri. This tax type is applicable for any sales made outside of the state and then shipped into Missouri.


Powerful Tools that Make Your Delaware Business Tax Life Easier

Startup Tools and ResourcesJust as with any phase of the startup process where you can benefit most with the use of startup resources, there are also proven tools that can help with small business accounting tasks. These tools are not only efficient for the short term, but it can be used for the long-term operations of your business.

The tools below are just examples of the small business accounting tools that automate manual tasks such as tracking expenses, creating accounting reports, generating employees’ payroll, and more.

Small Business Accounting Software

Small accounting software such as FreshBooksQuickBooks and Xero are effective small business accounting tools that immensely help in simplifying manual tasks.

These powerful applications help keep track of your finances and expenses, generates accurate business and tax reports, and automate otherwise manual and tedious processes that take up so much time when running your Missouri startup. Each of the tools outlined above has special features that you can apply to your business so it is crucial that you identify which of those enumerated above best fits your requirements.

Please be cautioned that this guide on Missouri business taxes is just an informational article and should not be considered as a legal advice or document. For details on Missouri business taxes or starting a new business in Missouri, you should always seek the expert advice of a professional business lawyer.

About Ryan James

Half hardworking hermit, half avid adventurer, Ryan founded Startup Savant to simplify entrepreneurship and pay it forward by donating a portion of all revenue to support children's education via