What ownership type will your business be?

Review the legal formation of types of ownerships to determine which type is best suited for you.

  • Sole Proprietorship is a business owned by a single individual.
  • Partnership is one or more individuals, corporations or other entities under a partnership agreement joining together to operate/own a business. Acceptable title is partner.
  • Corporation is an association of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members. General; Subchapter S; Foreign (non Missouri); or Close. Acceptable titles are President, Vice President, Treasurer, Secretary, Director, Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Accounting Officer.
  • Limited Liability Companies (LLC) can be structured different ways, for example, disregarded entity, partnership, or a corporation. Consult your lawyer or tax accountant to determine which one best fits your needs.Acceptable title is member or manager.
  • Non profit- any social, civic, religious, political subdivision or educational organization may apply for a sales tax exemption by completing Form 1746, Missouri Sales Tax Exemption Application. Read More…

What are the individual income tax responsibilities of an owner?

Click here to learn more about the income tax responsibilities of owners.

Buying an existing business or corporation?

Buyer Beware - BEFORE you purchase an existing business, be sure that you obtain a Certificate of No Tax Due from the previous owner of the business. If you are purchasing a corporation, you will need a Tax Clearance Form 943 from the previous owners of the corporation. Without this document (both issued by the Missouri Department of Revenue), you may also be purchasing existing sales tax, withholding tax and/or corporate tax obligations.

What do I need before I register with the Department?

If you have not created your business entity, you can use the Register my Business page to help you.

  • Federal Employer Identification Number (FEIN), if applicable issued by the Internal Revenue Service (IRS) Click here to find out if you need a FEIN.
  • Legal Business/Owner name and number issued to you when registering with the Missouri Secretary of State’s office. Click here for more information.
  • Tax Clearance or Certificate of No Tax Due - BEFORE you purchase an existing business, be sure that you obtain a Certificate of No Tax Due from the previous owner of the business. If you are purchasing a corporation, you will need a Tax Clearance Form 943 from the previous owners of the corporation. Without this document (both issued by the Missouri Department of Revenue), you may also be purchasing existing sales tax, withholding tax and/or corporate tax obligations.
  • A Certificate of No Tax Due (issued by the Missouri Department of Revenue) is necessary if you will be
    1. Selling Liquor - (you will also need to register with the Division of Alcohol & Tobacco Control AFTER you complete your registration with us)
    2. Selling Fireworks -  (you will also need to register with the Division of Fire Safety AFTER you complete your registration with us)
    3. Obtain or renew your business license with the city/county where your business is located (if you make retail sales).

What tax types do I need to register for with the Department of Revenue?

Businesses Located Inside Missouri

  • Corporate Income Tax and Corporate Franchise Tax -
    • If you are a Limited Liability Company (taxed as a corporation with the Internal Revenue Service (IRS), register for Corporation Income tax only.
    • If you are a corporation required to file Missouri Corporation Income tax but not Corporation Franchise tax, register for Corporation Income tax only.
    • If you are a corporation not required to file Missouri Corporation Income but meet the requirements for franchise tax, register for franchise tax only.
    • If you are a corporation that meets the requirements for both income and franchise tax, register for both.
      • Corporation Franchise tax is a tax based on assets that corporations pay in advance for engaging in business with Missouri.
      • Corporate Income tax is a tax based on the income made by the corporation.
  • Retail Sales Tax - Do you make retail sales of tangible personal property and/or taxable services? If yes, you will need to register for retail sales tax and post a bond (an agreement between you, the Department and the bonding company, if applicable, that, in the event you would become delinquent in sales or vendors use taxes, the Department will pull the applicable amount of bond to apply towards your unpaid taxes as stated on the bond form.)
    • What is a bond used for? The Department will apply your bond amount to any delinquency in the event you become delinquent in your sales/ vendors use tax.
    • How do you figure your bond?  The bond is required to cover three times your monthly tax liability - Bond calculator
    • What Bond types are acceptable by the Department? Bond instructions NOTE: Be sure to use the most recently revised form available to you on the Departments web site
      • Cash Bond Form 332 is the simplest and most common bond used for small businesses. All you need is a cashiers check or money order along with the completed Cash Bond Form.
        • Most common mistakes;
          • Sending a personal or business check instead of a cashiers check or money order.
          • Forgetting to send Cash bond form with the cashiers check or money order.
          • Incorrect owner name. Must be exactly what is listed as owner on the application, (for example, Murphy LLC.  Not Murphy’s LLC)
          • Signature. Needs to be signed by the owner/ officer/ member/partner on the application.
      • Surety Bond Form 331 is issued by an insurance company, licensed for bonding with the Department of Insurance, who agrees to be responsible for your sales or vendors use tax debt should you default in your tax obligations.
        • Most common mistakes;
          • Incorrect owner name. Must be exactly what is listed as owner on the application, (for example, Murphy LLC. Not Murphy’s LLC)
          • Signature. Needs to be signed by the owner/ officer/ member/partner listed on the application.
          • Not notarized. The form needs to be notarized (notary can not notarize their own signature)
          • Surety company name needs to be exactly the same throughout the surety bond.
      • Irrevocable Letter of Credit (ILC) Form 2879 is issued by a United States banking institution who agrees to be responsible for your sales or vendors use tax debt should you default in your tax obligations.
        • Most common mistakes;
          • Incorrect owner name. Must be exactly what is listed as owner on the application, (for example, Murphy LLC. Not Murphy’s LLC)
          • Signature. Needs to be signed by the owner/ officer/ member/partner listed on the application.
          • The Authorization for Release of Confidentiality information section of the ILC bond form is not completed.
          • No date is entered in the authorization section.
      • Certificate of Deposit (CD) Form 4172 and Release of Certificate of Deposit Form 4102 is a “time-deposit” issued by a banking institution in the name of the Missouri Department of Revenue and the owner of the business (as identified during initial registration).
        • Most common mistakes for a CD;
          • Incorrect owner name. Must be exactly what is listed as owner on the application, (for example, Murphy LLC. Not Murphy’s LLC)
          • Signature. Needs to be signed by the owner/ officer/ member/partner listed on the application.
          • Paper CD not in the owner’s name AND Missouri Department of Revenue.
          • Paper CD not endorsed or accompanied by a signed withdrawal slip
          • Assignment of CD not marked Paper or Paperless
          • The notary can NOT notarize their own signature. Sometimes the Bank official notarizes their own signature.
      • How can you get the bond refunded?
        • Close your sales/vendors use tax account, and it is fully filed and fully paid. Or
        • After 2 years of filing and paying your taxes in full when due, you can request your bond to be refunded/released. Bond refund request
    • Consumer’s Use Tax - If your Missouri business stores, uses or consumes tangible personal property that is purchased from a seller who does not collect tax, you are responsible for remitting the use tax to Missouri. Use tax does not apply if the purchase is from a Missouri retailer because this transaction would be subject to Missouri sales tax.
    • Employer Withholding tax If you will have employees physically working in Missouri you will need to register to withholding state income tax from their wages. If you have a Missouri resident working in a state that does not have an income tax, you will also be required to register and withholding Missouri income tax from their wages. Additional requirements for employer withholding tax can be found on page four of the Employer’s Tax Guide.

    Outside of Missouri?

    • Vendor's Use Tax is applicable on sales made by out-of-state vendors where goods are shipped into Missouri and where title passes to the final consumer within the state of Missouri. If the out-of-state vendor uses an out-of-state third party supplier and that supplier drop ships the goods into Missouri, the transaction is subject to sales tax.
    • Transient Employer is an out of state employer who is temporarily transacting business in Missouri and making payment of wages taxable in Missouri. You will need to post a bond (an agreement between you, the Department and the bonding company, if applicable, that in the event you would become delinquent in withholding taxes, the Department will pull the applicable amount of bond to apply towards your unpaid taxes as stated on the bond form.)
    • Export Sale - If you are making sales to a final consumer who is located outside of Missouri, you will need to contact the Department of Revenue for the state in which applicable taxes are due.

Special events and one time sales

Special event - Any person or company that is selling goods to a final consumer is required to collect and remit Missouri sales tax and must register for retail sales tax by completing a Missouri Tax Registration Application Form 2643.

One time sale - If you already have a sales tax license, file and pay on the preprinted forms and you make a one time sale at a different location, you can add that location on your preprinted form and indicate “one time sale”.

Who can access my account information?

  • The owner(s) listed on your account from your initial registration application and any additions that have occurred since then can access your account information.
  • Persons / companies who the owner(s) have completed a Missouri Power of Attorney Form 2827 for can access the information/years that are specified on the Power of Attorney.
  • Checking the authorization box on a return will allow that person to discuss that particular return only with the Department.
  • Confidentiality - Missouri Statute 32.057, RSMo ensures that your tax records are protected and confidential - the Department will not release tax information to anyone who is not listed on the Department's records as owner, partner, member, or officer for your business. If the owner(s) of your business changes, you must notify the Department to update your account information.

Registration common mistakes

Common mistakes made when registering a business with the Department -

  • Applying for a tax number after starting a business. You must register with the Department prior to operating your business.
  • When completing the registration application, the following fields/sections contain common mistakes;
    • Missouri tax id number field - This field is used only if you have ever been issued a Missouri Department of Revenue tax identification number for this specific owner/entity. If you have never been issued a number for this owner/entity, this field will be left blank.
    • Check all tax types for which you are applying section - be sure to check the corresponding box for ALL of the tax types that you are applying for.
      • For every tax type you check, you must complete the section of the application that corresponds with that tax type and be sure to include the "begin date" for every tax type even if they are the same date.
      • If you are applying for sales or vendor’s use tax, you must submit a sales/use tax bond .
  • Describe business activity field - This is a required field for all businesses. In your own words, describe your business. For example, used automobile sales and service, and selling auto parts.
  • Ownership type section - You must provide the type of ownership of your business in Missouri. If the type of ownership that is checked has a corresponding "number" field to complete, you must include your owner/entity's number (issued by the Secretary of State's office) If your entity is exempt from registering with the Secretary of State's office, write "exempt" in the number field.
  • Owner name and address section - Enter the legal name of your Missouri business. For example, if you are a sole proprietor, your legal name should be listed as owner. If you are operating as a corporation, the corporate name should be listed. If you are operating as a Limited Liability Company, the name of the Limited Liability should be entered. Do not enter the name of an officer or member.
  • Officers, partners, members, or spouse (of sole owner) section - Complete ALL of the fields, including the social security number, date of birth for an individual and the federal employer identification number if the owner is an entity. Include all members of Limited Liability Company.
  • The application and bond forms must be signed by someone listed as the owner/officer/member/partner on the application.

Ready to register now?

You can register with the Department using one of the following avenues:

  • Online - you can apply online with both the Missouri Department of Revenue and the Missouri Department of Labor. Online application NOTE: if registering for retail sales / vendor’s use, you will need to submit your bond via mail.
  • Paper application -
    • Download the Missouri Tax Registration Application Form 2643 and complete it online, print it off and mail it to Missouri Department of Revenue, P.O. Box 357, Jefferson City, MO 65105-0357
    • Have the Missouri Tax Registration Application Form 2643 mailed to you call 1-800-877-6881, complete and mail it to Missouri Department of Revenue, P.O. Box 357, Jefferson City, MO 65105-0357

License No Tax Due Requirement

Businesses making retail sales must obtain a statement of no tax due from the Department to receive or renew a any city or county occupation license or any state license required for conducting any business. You can access the Department’s Online No Tax Due System to obtain a no tax due.