Registration requirements in Missouri
All S corporations, partnerships, and LLCs in Missouri are required to register with both the Missouri Secretary of State. Below is a link for more information on registering with the Secretary of State. Per Missouri statute 351.120 “Corporations formed on or after July 1, 2003, shall file a corporate registration report within thirty days of the date of incorporation or qualification and every year thereafter”
In addition to registering with the Secretary of State, Missouri businesses will need to register with the Missouri Department of Revenue and obtain a Missouri Tax Number. Businesses register by filing form 2643, which is linked below.
S-Corporation Income Tax
Missouri recognizes the federal S-election, and Missouri S corporations are not required to pay income tax to the state. However, individual S corporation shareholders will owe state tax on their share of the company’s income. Missouri S corporations use form MO-1120S to file.
LLC/Partnership Income Tax
Not required to pay income tax to Missouri. Business income is passed to partners who pay Missouri income tax on their personal return. Partnerships and LLCs that are taxed as a partnership use form MO-1065 to file.
Qualified “Nonresident Partners” for both S corporations and partnerships may elect to have the business report and pay a “composite income tax” on behalf of the taxpayer. Composite tax returns are completed by filing MO-1040 and checking the composite return box. Composite estimated payments can be made on the individual estimated payment form which is linked below.
Individual Income Tax
Missouri generally conforms to the Internal Revenue Code on a rolling basis, and therefore it adopts most federal provisions, unless otherwise modified.
The starting point for computing Missouri personal income tax liability is the federal adjusted gross income.
Personal and dependency exemptions are not offered but they do allow for a standard or itemized deduction. The standard deduction is equal to the federal standard deduction for 2020:
Single - $12,400
Married Filing Combined - $24,800
Married Filing Separate - $12,400
Head of Household - $18,650
Qualified Widow(er) - $24,800
You are only able to itemize on your Missouri return but only if you itemized on your federal return.
Missouri does not conform to the Internal Revenue Code (IRC) Section 199A, also known as the QBI deduction.
Individual Income Tax rates in Missouri vary from 1.5% to 6%, depending on income and filing status. Individual income is reported on Missouri form MO-1040. Below is a tax table for the Missouri Individual Income Tax rate.
CARES Act Guidance
Rolling conformity states generally adopt changes to the IRC as they are enacted at the federal level, unless otherwise modified. However, Missouri specifically decouples from the IRC Section 172 of the CARES Act regarding business net operating loss (NOL) provisions. Instead, Missouri will retain its treatment of business NOLs, allowing a 2-year carryback and allowing a 20-year carryforward.
Return Due Dates
Individual and business returns operating on a calendar year are due on or before April 15th. Fiscal year filer returns are due on the 15th day of the 4th month after the end of the taxable year. If the due date falls on a weekend or holiday, the return is due the following business day.
If an individual is expected to have a tax liability of $100 or more, they must declare and make estimated payments. Estimated payments are due April 15th, June 15, September 15th during the tax year, and January 15th of the following tax year.
The estimated payment form and instructions can be found at the following link:
Failure to file by the due date is penalized at 5% per month penalty, not to exceed 25% of the unpaid balance. Failure to pay by the due date is penalized at 5% of the unpaid balance. Interest is also applied to any balance of unpaid tax not paid by the due date. Interest rates in vary by quarter. For the most up to date rates, check the Missouri Department of Revenue website linked below.
Filing an Extension
Businesses requesting an extension to file in Missouri will be automatically granted an extension if one has been granted federally. S corporations will need to check the appropriate box indicating that the business has been approved for federal extension. All businesses must attach a copy of the approved federal extension form 7004.
Missouri automatically grants an extension of time to file for individual returns that have a federal extension attached to them. Missouri also has form MO-60 which can be used to request an extension. The MO-60 can be found by clicking the following link
An extension to file late does not extend the due date for payment. Any late payments may be subject to penalty and interest described above.
If your business was formed or is located in another state, but generates income in Missouri, it may be subject to Missouri taxes. The rules for taxation of multistate businesses, including what constitutes nexus with a state for the purpose of various taxes, are complicated. If you run such a business, you should consult with a tax professional.