Article of Incorporation is a legal document used to form a corporation. Different requirements depend on the type of company being formed. For example, a domestic LLC requires only 3 signatures, whereas a foreign LLC needs 7 signatures.
Incorporating a company is a complex process involving filling out forms, signing various documents, and submitting them to the appropriate authorities. Here’s a step-by-step guide to incorporating a company in Missouri.
Choose a Name
You’ll need to choose a name for your company. This may seem trivial, but choosing a name that reflects your company’s purpose, mission statement, or brand identity is critical.
For example, if you’re starting a consulting firm, you might want to pick a name like “Consulting With Purpose.” On the other hand, if you’re creating an eCommerce site selling organic food products, you might want to go with something like “Organic Food Emporium.”
Once you’ve chosen a name, make sure it doesn’t conflict with another existing trademark. Also, avoid names that contain vulgarities or offensive language.
Select a Business Entity Type
After selecting a name, you’ll need to decide which entity type best fits your business. Depending on the state where you plan to incorporate, you’ll have several options.
For example, in Missouri, you can select from four entity types: Domestic LLC, Foreign LLC, S Corporation, or C Corporation. Each type has its advantages and disadvantages.
Domestic LLCs require fewer filings and costs, but they also impose restrictions on ownership and liability. Foreign LLCs are similar to domestic LLCs, except that they allow unlimited memberships. Both types of LLCs are taxed differently.
S Corporations are tax-exempt entities owned by shareholders. They are commonly used for small businesses with under $50 million annual revenues. Finally, C Corporations are taxed like regular corporations, but they must distribute profits to shareholders annually.
Determine Whether to Form a Domestic or Foreign Company
Depending on the state where you’re forming your company, you’ll have to decide between a domestic or foreign company.
A domestic company is incorporated in the same state as its principal place of business. For example, if you’re planning to operate your business from California, you’d likely want to set up a domestic company.
On the other hand, a foreign company is incorporated in a different state than its principal place of business so that it can offer some benefits over domestic companies. For example, foreign companies aren’t required to maintain a physical presence in their home states.
Foreign companies also have the option of operating as Subchapter S Corporations, allowing shareholders to pass income taxes to investors. However, foreign companies are subject to double taxation, meaning that all corporate earnings are taxed twice.
Requirements for filing articles of incorporation in State of Missouri
Article of Incorporation is a legal document filed by individuals, corporations, partnerships, LLCs, etc. when forming a corporation. Article of Incorporation is also known as Articles of Incorporation, Certificate of Incorporation, Articles of Organization, and Business License.
Incorporating a company requires filling out certain forms and submitting them to the state government. These documents must be filled out correctly before the state will accept the application.
Below are some requirements for filing articles of incorporation:
1. Name of Corporation
You must provide the name of the corporation. The name must be written exactly as it appears on the articles of incorporation. There is no provision for abbreviations or misspellings.
2. Address of Corporate Headquarters
The address of corporate headquarters must be provided. The address must be located within the state of Missouri.
3. State of Incorporation
The state of incorporation must be stated. The state may be specified as “Missouri” or “USA.”
4. Date of Incorporation
This date must be provided. The date must be entered in the format YYYYMMDD.
5. Place of Incorporation
Place of Incorporation must be provided. The place of incorporation must be located within the United States.
6. Number of Shares Issued
Several shares issued must be provided. The number of shares issued must be entered in whole numbers.
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Article of Incorporation – When to File Articles of Incorporation in Missouri
Incorporating a company is a complex process that involves filing documents with the Secretary of State and registering with the IRS. There are several reasons why you may choose to incorporate a business instead of operating as a sole proprietorship or partnership. Here are some of the main benefits of incorporating a business:
Filing Articles of Incorporation allows you to claim certain tax deductions and credits. For instance, when incorporated, you can deduct all business losses incurred during the taxable year. Additionally, you can write off the cost of goods sold, depreciation, interest expense, and taxes paid.
Limited Liability Protection
An individual owner of a corporation is personally liable for its debts. However, shareholders of a corporation are generally protected from personal liability for corporate obligations. As a result, you can avoid having to worry about being sued for a debt owed by your company.
Protection Against Personal Bankruptcy
Individual owners of corporations cannot declare bankruptcy under Chapter 7 of the U.S. Bankruptcy Code. Corporations must file for bankruptcy under Chapter 11.
Ease of Administration
Corporate officers typically serve as directors of the corporation. They also manage the day-to-day operations of the business. Because of these responsibilities, it is easier to administer a corporation than run a small business.
Reduced Tax Burden
You can reduce your overall tax burden by forming a corporation rather than operating as a sole proprietor or partner. Sole proprietorships and partnerships are taxed as individuals. Corporations are taxed like businesses.
There are several benefits to incorporating a business in Missouri.
After the initial paperwork is completed, the newly incorporated company receives a Certificate of Incorporation. This document serves as proof of incorporation and allows the company to operate legally within the state.
Other benefits of incorporating a business in Missouri include:
• Tax advantages
• Protection from lawsuits
• Ability to raise capital
• Access to bank financing
• Easier access to insurance coverage
• Increased personal liability protection
• Reduced risk of bankruptcy
• More flexibility in setting up employee benefit plans
• Better control over intellectual property rights
Frequently Asked Questions
How much does it cost to start a nonprofit in Missouri?
The Articles of Incorporation are one of the most important documents you’ll ever file. They set up the structure of your organization, define how it operates, and protect the people behind it. But filing those papers can put a big dent in your budget. In fact, according to the National Center for Charitable Statistics, the average cost of incorporating a 501(c)(3) nonprofit in Missouri is $25.
That number includes fees such as the annual renewal fee ($10), the initial filing fee ($20), and the filing fee ($5). You’ll also pay a yearly membership fee ($100) to keep your incorporation status current. And don’t forget about the tax forms you’ll need to submit annually to the IRS. Those add up quickly.
But there’s good news. A quick look around the internet reveals plenty of free resources to help you navigate the process. For example, the Missouri Secretary of State offers a guide to creating a nonprofit corporation. And the Better Business Bureau provides information on filing articles online. If you’re looking for more guidance, check out our post on choosing a nonprofit name.
How to form a nonprofit corporation in Missouri
Here are the steps to form a 501(c)(3) nonprofit corporation in Missouri.
are 501(c)(3) organizations, which means they are formed for religious, charitable, scientific, literary, or educational purposes and are eligible for federal and state tax exemptions. To create a 501(c)(3) tax-exempt organization, first, you need to form a Missouri nonprofit corporation. Then you apply for tax-exempt status from the IRS and the state of Missouri. Here are the details.
Choose directors for your nonprofit.
Choose a name for your nonprofit. Appoint a registered agent. File Missouri nonprofit Articles of Incorporation. Prepare nonprofit bylaws. Hold a meeting of your board of directors. Obtain an employer identification number (EIN). Obtain business licenses. File annual report. File Form 1023 for federal tax exemption. Apply for Missouri tax exemptions. Complete other state reporting and registration requirements.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.