Missouri offers a vibrant environment for business with nearly 550,000 small businesses, employing about 43% of the state’s workforce. Whether you’re an established business owner or planning to start a new venture, understanding the tax landscape in Missouri is crucial. This guide provides an overview of the various taxes small businesses in Missouri must navigate, including tax rates, filing requirements, and deadlines.
Types of Business Taxes in Missouri
Business owners in Missouri may be subject to various taxes depending on their business structure, activities, and revenue. Here’s a breakdown of the main types of taxes:
- Corporate Income Tax
- Applicable Entities: C corporations, LLCs with C corp elections
- Tax Rate: 4%
- Filing Requirements: File Form MO-1120 by the 15th day of the fourth month after the tax year ends.
- Estimated Payments: Required if liability is at least $250. Payments are due quarterly by the 15th day of the fourth, sixth, ninth, and 12th months of the tax year.
- Pass-Through Entity (PTE) Tax
- Applicable Entities: S corporations, partnerships, LLCs treated as S corporations or partnerships
- Tax Rate: At the time of writing, the rate is listed as 4.95%, which is the same as the 2023 rate. Check the Missouri Department of Labor website for any updates.
- Filing Requirements: File Form MO-PTE by the 15th day of the fourth month after the tax year ends.
- Sales and Use Tax
- Withholding Tax
- Applicable Entities: Employers with employees
- Tax Rate: Depends on the filing status indicated on the employee’s Form MO W-4
- Filing Requirements: File Form MO-941 quarterly, monthly, or annually, depending on the amount withheld.
- Unemployment Insurance Tax
- Applicable Entities: Employers with employees
- Tax Rate: Varies based on business’s experience rating
- Wage Base: $10,000 per employee per year
- Filing Requirements: File quarterly reports by the last day of the month following the end of each calendar quarter.
- Personal Property Tax
- Applicable Entities: Businesses using personal property
- Tax Rate: Based on property type and value
- Filing Requirements: Report annually to the county assessor by March 1.
- Nonresident Withholding Tax
- Applicable Entities: Pass-through entities with nonresident members
- Tax Rate: 4.95% is the current rate listed on distributive share income. However, this is the same as the 2023 rate. Check the Missouri Department of Labor website for any updates.
- Filing Requirements: File Form MO-1NR by the 15th day of the fourth month following the close of the tax year.
How to File and Pay Missouri Business Taxes
Business taxes in Missouri can be filed and paid through various methods:
- Online Filing and Payment: Use MyTax Missouri for electronic submissions and payments.
- Mail: Send forms and payments to the address on the form (where applicable).
Important Deadlines
Keep track of these critical dates to avoid penalties:
- Corporate Income Tax Returns: Due by the 15th day of the fourth month after the tax year ends.
- Estimated Tax Payments: Due quarterly by the 15th day of the tax year’s fourth, sixth, ninth, and 12th months.
- Sales and Use Tax Returns: Monthly, quarterly, or annual filing based on sales volume.
- Withholding Tax Returns: Due quarterly, monthly, or annually depending on amount withheld.
- Unemployment Insurance Reports: Due quarterly by the last day of the month following the end of each calendar quarter.
Tax Credits and Incentives
Missouri offers several tax credits and incentives for small businesses, including:
- New Markets Tax Credit: Open to “qualified community development entities” certified by the federal New Markets Tax Credit program. The credits are intended to attract private investment in distressed areas.
- Missouri Works program: Helps eligible businesses access capital through withholdings or tax credits to expand facilities, purchase equipment to maintain facilities, or create new jobs in Missouri.
- Qualified Research Expense Tax Credit: A credit against the corporate income tax equal to 15% of a taxpayer’s “additional qualified research expenses” or 20% if the expenses relate to research conducted in conjunction with a public or private Missouri college or university.
Missouri business tax breakdown by business type
Business taxes can get complicated, so we’ve included a chart (below) that breaks down which taxes different business structures usually pay.
Keep in mind that pass-through entities don’t pay federal income taxes themselves—the obligation is passed on to their business owners or shareholders, who pay them through their personal income tax returns.
Business type | Personal income tax | PTE tax | Corporate income tax | Sales and use tax | Withholding tax | Unemployment tax | Federal income taxes |
C corporation | No | No | Yes | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes |
S corporation | Yes (pass-through), if not making the SALT Parity Act election | Yes, if it makes the election | No | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
LLC | Yes (pass-through), if not making the SALT Parity Act election | Depends on how it’s structured | Depends on how it’s structured | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
Partnership | Yes (pass-through), if not making the SALT Parity Act election | Yes, if it makes the election | No | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
Sole proprietorship | Yes (pass-through) | No | No | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes, by way of individual income tax |
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Missouri Small Business Taxes: The Employer’s 2023 Guide
Widely known as a tax-friendly state, Missouri attracts many aspiring entrepreneurs. However, a great business environment alone isn’t enough to jumpstart a successful venture. You’ll need to understand your financial and compliance obligations as well.
So, let’s look at what state business taxes you’d be responsible for if you open up shop in Missouri, including:
What business taxes do you pay in Missouri?
Most new business owners expect to pay income taxes when they start their business, but there are additional taxes you should account for in your finances.
Other taxes Missouri business owners should budget for include sales tax, withholding tax, unemployment tax, and any local or industry-related taxes that might apply specifically to their business. Unlike many other states, however, Missouri doesn’t charge corporations a franchise tax.
Let’s look at what businesses are responsible for paying what taxes, as well as how to file and pay each one.
Missouri personal income tax
Many small businesses start out as pass-through entities—like sole proprietors, partnerships, or limited liability companies (LLCs). These businesses don’t pay income taxes themselves. Instead, the taxes are passed on to the personal tax returns of their owners or members.
The state of Missouri’s individual income tax rate ranges from 2% to 4.95% of a taxpayer’s earned income.
How to file and pay
Personal tax returns (Form MO-1040) are due by the 15th day of the fourth month after the end of the fiscal year. If your business follows the calendar year, your deadline is April 15.
Missouri allows taxpayers to file and pay their personal income taxes through the MyTax Missouri online portal or one of the other methods listed on their website. If you prefer to file your tax return by mail, send your return to the appropriate address listed on the MO-1040 tax form.
Missouri taxpayers are also responsible for paying quarterly estimated taxes if their annual tax liability is expected to be $100 or more. Estimated taxes are due on April 15, June 15, September 15, and January 15. Submit your tax payments online through the Department of Revenue (DOR), or mail in your tax payments along with payment voucher Form MO-1040ES to the address below:
Missouri Department of Revenue
P.O. Box 555
Jefferson City, MO 65105-0555
In addition to the individual income tax returns filed by their owners, many partnerships, S corporations, and LLCs that are taxed as partnerships or S corps are required to file a separate tax return (Form MO-1065 or Form MO-1120S). These returns are due by the 15th day of the fourth month after the end of the fiscal year (or April 15 if your business follows the calendar year). They can be filed via the IRS Modernized eFile (MeF) system or by mail using the address listed on the tax form.
For more information on Missouri’s individual income tax or the partnership tax return, visit the Department of Revenue website.
Missouri pass-through entity tax
The state of Missouri recently implemented the pass-through entity tax, a tax election that allows partnerships and S corporations to file and pay income taxes as a single entity (rather than having their partners or shareholders pay taxes through their personal tax returns).
Companies that make this election pay a tax rate of 5.3%.
How to file and pay
To make the pass-through entity tax election, businesses must file Form MO-PTE by the 15th day of the fourth month after the end of the fiscal year. The company will use the same MO-PTE form to report their income for the tax year. The return can only be filed by mail, so you must send the tax form to the following address:
Missouri Department of Revenue
P.O. Box 3080
Jefferson City, MO 65105-3080
Pass-through entity tax payments can only be submitted by mail as well. Send your payments along with payment voucher MO-PTEV or MO-PTEAP, depending on the situation, to the address above.
Keep in mind that, even after making this election, partnerships and S corporations must still file Form MO-1065 and MO-1120S, respectively.
To learn more about the Missouri pass-through entity tax, take a look at the tax form instructions or this list of frequently asked questions.
Missouri corporate tax
Corporations that incorporate or do business in Missouri pay a corporate income tax to the Department of Revenue.
In 2023, the state tax rate for corporations is 4%.
How to file and pay
Before you can file Missouri corporate taxes, you need to register your business with the state through the MyTax Missouri system.
Missouri corporate tax returns (Form MO-1120) are due by the 15th day of the fourth month following the end of the fiscal year. For corporations following the calendar year, this deadline is April 15.
File your return electronically through the IRS MeF system or by mail. If you decide to file your taxes by mail, send your return to the appropriate address listed on the tax form.
Missouri corporations that expect to owe $250 or more in income taxes annually must pay quarterly estimated taxes by the 15th day of the fourth, sixth, ninth, and 12th months of the fiscal year. Make payments online through the Department of Revenue website or send them by mail (along with payment voucher MO-1120ES) to the address below:
Missouri Department of Revenue
PO Box 3020
Jefferson City, MO 65105-3020
You can find more information on Missouri’s corporate income tax by visiting the Department of Revenue website.
Sales and use tax
Most businesses that sell physical products or certain taxable services are required to collect and pay state sales tax, while some companies might also pay a use tax for storing, using, or consuming personal property in the state.
Missouri’s sales and use tax rate is 4.225% in 2023.
Note that not all Missouri businesses are required to pay sales and use tax, so check with your tax professional or with the Department of Revenue to see if your business is one of them.
How to file and pay
Companies must register for a sales tax license via MyTax Missouri before they can collect and pay sales tax. Once you receive your permit, you’ll be assigned a sales tax filing frequency. Sales tax returns are filed on a monthly, quarterly, or yearly basis.
Look at the chart below to determine what your filing frequency and filing deadlines might look like.
Filing frequency | Sales and use tax liability | Filing deadline |
Monthly | $500 or more per month | 20th day of the following month |
Quarterly | $500 or less per month | Last day of the month following the end of the quarter |
Yearly | Less than $200 per quarter | January 31 of the following year |
File and pay sales and use taxes through the MyTax Missouri online portal, or mail your returns to the address below:
Taxation Division
PO Box 840
Jefferson City, MO 65105-0840
Note that companies with three or more business locations are required to file electronically. Additionally, all registered businesses must file returns each tax period, even if there is no sales tax to report.
For more information on the Missouri sales tax, go to the Department of Revenue website.
Withholding tax
Employers that do business in Missouri are required to withhold income from each employee’s wages and pay them to the Department of Revenue. These taxes are known as withholding taxes or employment taxes.
The tax rate for each employee depends on factors like how much and how often they get paid, but in 2023, the withholding rate ranges from 0% to 4.95%. You can use the withholding tax calculator provided by the DOR to estimate your withholding tax liability.
How to file and pay
If you haven’t done so already, you’ll need to create a tax account on MyTax Missouri to file and pay withholding taxes. Once you’ve registered your business, you’ll be assigned a yearly, quarterly, monthly, or quarter-monthly (weekly) filing frequency based on your estimated tax withholding amount.
Missouri employers are required to file withholding tax returns (Form MO-941) and pay any tax due through MyTax Missouri. Registered employers must file their returns each tax period, even if they have no employees to report.
Additionally, all employers should file copies of all their withholding statements and information returns for the year, along with Form MO W-3, by January 31 (electronic filers) or the last day of February (paper filers).
For details on due dates and tax thresholds for each filing frequency, review the Missouri employer’s tax guide. Or, you can visit the Department of Revenue website to learn more about Missouri withholding taxes in general.
Unemployment tax
Missouri employers are also required to pay state unemployment insurance taxes to the Department of Labor and Industrial Relations. These taxes fund unemployment benefits for eligible employees who no longer work at the business.
In 2023, most new employers pay a 2.511% tax rate on the first $10,500 of each employee’s wages. New nonprofits pay a 1% tax rate. Employers eligible for an experience rate pay between 0% and 6% in unemployment taxes.
How to file and pay
Employers are required to file quarterly wage and contribution reports by the last day of the month following the end of each calendar quarter. The Department of Labor encourages businesses to file these reports via UInteract. So, make sure to register your business with the UInteract online system if you haven’t done so yet.
Businesses that prefer to submit these reports and payments by mail can send them to the address below:
Division of Employment Security
PO Box 888
Jefferson City, MO 65102-0888
To learn more about Missouri unemployment taxes, review this guide to employers’ rights and responsibilities from the Department of Labor and Industrial Relations.
Other industry-related and local taxes
Some municipalities choose to levy their own taxes on businesses in their jurisdictions, so it’s important to check with your local tax authorities to make sure you’re meeting all your tax obligations. For instance, the state of Missouri implements a maximum sales tax rate of 5.763%, resulting in an average combined state and local sales tax rate of 8.29%.
Additionally, Missouri charges taxes on certain products and services. Some of these taxes include:
- Alcoholic Beverages Tax
- Cigarette Tax
- Marijuana Tax
- Motor Fuel Tax
- Tire and Lead Battery Tax
- Tobacco Tax
Review this comprehensive list of Missouri taxes to learn which ones your business may be responsible for, then talk with your tax advisor or accountant to ensure you’re not missing anything.
Missouri business tax breakdown by business type
Easily keep track of your business tax obligations with this breakdown of state and federal taxes by business entity. Remember that pass-through entities pay income taxes through the personal tax returns of their owners, partners, and members.
Business type | Individual income tax | Pass-through entity tax | Corporate income tax | Sales and use tax | Withholding tax | Unemployment tax | Federal income taxes |
C corporation | No | No | Yes | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes |
S corporation | Depends if it takes the PTE election | Yes, if it takes the election | No | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
LLC | Depends on how it’s structured and if it takes the PTE election | Depends on how it’s structured and if it takes the election | Depends on how it’s structured | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
Partnership | Depends if it takes the PTE election | Yes, if it takes the election | No | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
Sole proprietorship | Yes | No | No | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes, by way of individual income tax |
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