Complete Guide to Missouri LLC Taxes in 2025
Missouri offers one of the most favorable environments in the Midwest for LLC owners. The Show-Me State features a top income tax rate of just 4.80%, no annual report filing fee, and no entity-level tax on pass-through LLCs. Combined with a moderate cost of living and central geographic location, Missouri provides an attractive base for small business owners. This comprehensive guide covers everything you need to know about Missouri LLC taxation.
How Missouri Taxes LLCs
Missouri treats LLCs as pass-through entities for state tax purposes. The LLC itself does not pay Missouri income tax. Instead, profits and losses pass through to individual members, who report their share on their personal Missouri income tax returns (Form MO-1040).
For a single-member LLC, income flows to Schedule C of the federal return and then to Missouri Form MO-1040. For a multi-member LLC, the LLC files Missouri Form MO-1065 (Partnership Return) as an informational return, with each member receiving a Schedule K-1.
Missouri does not impose a franchise tax, entity-level tax, or gross receipts tax on LLCs. This is a significant advantage over states like California ($800 minimum franchise tax), Texas (margins tax), or Mississippi (franchise tax on capital).
Key Point: Missouri's top income tax rate dropped to 4.80% in 2024, continuing a series of rate reductions enacted by the legislature. The rate applies to taxable income over approximately $8,449. Missouri also does not require an annual report for LLCs, eliminating a common recurring compliance cost.
Missouri Income Tax Brackets (2025)
| Taxable Income | Rate | Notes |
|---|---|---|
| $0 - $1,207 | 2.00% | Lowest bracket |
| $1,208 - $2,414 | 2.50% | |
| $2,415 - $3,621 | 3.00% | |
| $3,622 - $4,828 | 3.50% | |
| $4,829 - $6,035 | 4.00% | |
| $6,036 - $7,242 | 4.50% | |
| $7,243 - $8,449 | 5.00% | |
| Over $8,449 | 4.80% | Top rate (reduced in 2024) |
Missouri LLC Annual Filing Requirements
Missouri is one of the few states that does not require an annual report for LLCs. This eliminates a common compliance cost and administrative burden.
- Annual Report: Not required -- no filing, no fee
- State Tax Returns: Form MO-1040 (individual) or Form MO-1065 (partnership)
- Estimated Tax Payments: Required if expecting to owe $100 or more
- Sales Tax Filing: File with the Department of Revenue on assigned schedule
- Employer withholding: Required if LLC has employees
Cost Advantage: Missouri's combination of no annual report fee and no entity-level tax makes it one of the cheapest states for ongoing LLC compliance. Your only recurring state obligation is filing income tax returns and paying applicable taxes.
Missouri Sales Tax
Missouri has a 4.225% state sales tax with significant local additions. Combined rates can reach approximately 10.85% in some jurisdictions:
- State rate: 4.225% (one of the lower state base rates)
- Local additions: Cities and counties add their own taxes, often 3-5% additional
- Kansas City: Combined rate approximately 9.975%
- St. Louis City: Combined rate approximately 10.70%
- Food: Grocery items taxed at reduced 1.225% state rate
- Services: Most services are not taxable
Missouri LLC vs. Other States
| State | Income Tax | Annual Fee | Key Feature |
|---|---|---|---|
| Missouri | 2-4.80% | $0 | No annual report, low top rate |
| Kansas | 3.1-5.7% | $55 | Higher rates, annual fee |
| Illinois | 4.95% flat | $75 | Higher flat rate |
| Oklahoma | 4.75% flat | $25 | Similar rate, small annual fee |
| Arkansas | 2-4.4% | $150 | Lower top rate, higher annual fee |
| Tennessee | 0% | $300 min | No income tax, franchise/excise tax |
Missouri Estimated Tax Schedule
- Q1: April 15, 2025
- Q2: June 15, 2025
- Q3: September 15, 2025
- Q4: January 15, 2026
Missouri requires estimated payments if you expect to owe $100 or more -- one of the lowest thresholds in the country.
Missouri LLC Formation Costs
- Articles of Organization: $50 online ($105 by mail) with the Secretary of State
- Operating Agreement: Not required by law but recommended
- Registered Agent: Required; member or professional service ($50-200/year)
- EIN: Free from the IRS
- Annual Report: $0 -- not required
Tax Deductions for Missouri LLC Owners
- Standard deduction: Missouri conforms to the federal standard deduction ($13,850 single, $27,700 MFJ for 2025)
- Half of SE tax: Deductible on Missouri return
- QBI deduction: Missouri conforms to the federal 20% QBI deduction -- a notable advantage over states that do not
- Health insurance: Self-employed deduction allowed
- Retirement contributions: Fully deductible
Advantage: Missouri conforms to the federal Qualified Business Income (QBI) deduction, unlike many states. This means you get the full 20% QBI deduction on both your federal and Missouri returns, providing significant tax savings for qualifying LLC income.
Common Missouri LLC Tax Mistakes
- Underestimating local sales tax: Combined rates can exceed 10% in metro areas
- Missing the $100 estimated tax threshold: Much lower than most states
- Assuming no filings needed: While there's no annual report, tax returns are still required
- Ignoring Kansas City earnings tax: KC imposes a 1% earnings tax on income earned within city limits
- Not claiming QBI deduction: Missouri allows it -- don't leave money on the table
Missouri Resources
- Missouri Department of Revenue: dor.mo.gov -- tax forms, payments, guidance
- Secretary of State: sos.mo.gov -- business filings, formation
- Revenue Customer Service: (573) 751-3505