How to start a business in Missouri in 14 steps (2025 guide)

Starting your own business brings an unmistakable energy — that mix of excitement and purpose that comes with building something from the ground up. Whether you've been planning for years or recently discovered your path to entrepreneurship, there's something special about watching your vision take shape. And if you want to launch your business in Missouri, we’ve got you covered. This guide provides the essential steps to launching your business in the Show-Me state: from state registration and funding opportunities to tax incentives and location choices, we'll help you navigate the path to entrepreneurial success.

Why start a business in Missouri in 2025?

From the beautiful rolling hills of the Ozarks to charming towns like Branson and Eureka Springs to metropolitan areas like Kansas City, Missouri offers a supportive environment for entrepreneurs. Thanks to a pro-business climate, strong infrastructure, and robust state resources, the Show-Me State is a great place to take the leap into business ownership.

Missouri is experiencing a surge in employment and job growth, leading the nation with a 2.4% increase in 2024. This growth is being driven by sectors including healthcare, construction, and leisure, reflecting the state’s diverse economy and business-friendly policies. Ranked #5 in the nation for workforce training by Business Facilities, Missouri's strong focus on workforce development and infrastructure investment continues to make it a prime location for entrepreneurs.

Here are the topics we’ll cover in this step-by-step guide: 

• 14 steps to starting a business in Missouri
• Step 1: Decide what type of industry is best for your business
• Step 2: Conduct industry research
• Step 3: Create a business plan
• Step 4: Choose your business entity
• Step 5: Secure funds: Missouri small business funding, loans, and grants
• Step 6: Choose your Missouri business name and fictitious name 
• Step 7: Pick a business location in Missouri
• Step 8: Find an Missouri registered agent 
• Step 9: Get an Missouri EIN and file your tax and employer identification documents 
• Step 10: Register as a small business in Missouri 
• Step 11: Register for your business license and permits in Missouri
• Step 12: Secure insurance for your Missouri small business 
• Step 13: Prepare to pay taxes on your business in Missouri
• Step 14: Set up your business bank account
• Additional resources to get your business started
• Frequently asked questions 

14 steps to starting a business in Missouri

Launching a business is an exciting journey filled with opportunities to learn and create something meaningful. In this guide, we break down the key steps involved, from helping you come up with an initial idea to registering your business and beyond. With small business resources and insights specially tailored to Missouri businesses, you'll have the knowledge you need to turn your entrepreneurial vision into reality.

Step 1: Decide what type of industry is best for your business 

Choosing your business and industry should start with an assessment of your skills, background, and expertise. Consider what you're passionate about and where your experience lies—this will help narrow your focus and increase your chances of success.

For example, Missouri has a thriving healthcare sector, with major hospital systems. If you have a background in healthcare administration or a related field, you might consider offering consulting services, helping them optimize their operations and improve patient care. Aligning your idea with your strengths positions you for growth and allows you to offer real value to your clients or customers.

Not sure where to start? Begin by exploring a variety of small business ideas to spark inspiration.

Step 2: Conduct research in your industry

Before diving headfirst into your business venture, take the time to thoroughly research your target market and competitive landscape. Identify unmet needs, assess industry trends, conduct a competitive analysis, and pinpoint your unique selling proposition. Connect with your local chamber of commerce for valuable insights and guidance. This research will lay the foundation for a successful business strategy.

Step 3: Create a business plan

Write a business plan that will act as your roadmap. It should detail your concept, outline your next steps, make financial projections, and establish goals. This is an important document that can also help you secure funding. 

A well-rounded business plan generally contains these essential sections:

• Executive summary: Provide a concise overview of the key ideas from the other sections.
• Company description: Give a comprehensive overview of your company's mission, history, and objectives.
• Market research and potential: Analyze your target market and industry trends.
• Competitive analysis: Evaluate your competitors and identify your unique competitive advantages.
• Products and services: Clearly describe your products and services, highlighting their key benefits and features.
• Marketing and sales: Outline your strategies for attracting and retaining customers, including your marketing channels and sales approach.
• Business financials: Develop detailed financial projections, including projected income statements, cash flow forecasts, and balance sheets.
• Management and leadership: Share an overview of your team's expertise and experience.
• Funding request: Outline your funding needs. Be realistic and provide a range of figures if you're unsure of the exact amount.
• Appendix: Include supporting documents, such as licenses, certifications, patents, and industry associations and memberships. 

Take the time to develop a well-structured business plan. It will provide clarity on your goals, attract potential investors, and lay the foundation for your company’s success. A free business plan template can help you get started. Your local Missouri Small Business Development Center is also a good resource for no-cost business plan guidance and support.

Step 4: Choose your business entity: Types of business entities in Missouri 

When starting your Missouri small business, you’ll need to choose a business structure. The entity you select will determine your personal liability, tax burdens, and how you access capital. These include: 

Sole Proprietorship

A sole proprietorship is the simplest business structure, where the business is owned and run by one person, and there is no legal distinction between the owner and the business.

Partnerships

Partnerships involve two or more individuals who agree to share in the profits or losses of a business, with variations like limited partnerships (LPs) and limited liability partnerships (LLPs) offering different levels of liability protection.

Limited Liability Company (LLC)

An LLC combines the simplicity of a partnership with the limited liability protection of a corporation, offering a flexible structure for businesses of all sizes.

Corporations

Corporations are more complex legal entities that are separate from their owners, offering liability protection but requiring more stringent compliance and reporting requirements. They include various types, such as C corps, professional corporations, and nonprofits.

Step 5: Secure funds: Missouri small business funding, loans, and grants 

Consider how you will fund your business. Starting a business in Missouri, or anywhere, costs money, whether you’re simply paying license and registration fees or purchasing equipment and buildings. 

Costs to start a business will vary depending on the type of business and industry, required permits and licenses, and other factors. In general, you’ll want to plan for a minimum of $500. But realistically, that number will vary depending on office space, inventory, equipment, and other variables. To determine your startup costs, you’ll have to look at your business complexity, needs, and other fees involved. 

Here are some common funding options for small businesses:

In addition to the above, consider these Missouri-specific funding resources:

• Missouri Small Business Grant Program: Offers funding for minority and women-owned businesses that meet the criteria. 
• The Amber Grant: Awards $10,000 monthly to a woman-owned business. At the end of the year, one of the recipients is chosen for an additional $25,000 grant. This program supports women entrepreneurs in achieving their business dreams.
• Missouri Building Entrepreneurial Capacity (MOBEC) Grant Program: Supports entrepreneurs and fosters innovation by funding initiatives that help commercialize new technologies and grow the state's innovation economy. It is a key strategy to boost Missouri's high-tech business landscape.
• Physical Infrastructure Grant Program: Provides entrepreneurs with the physical resources needed to start and grow their businesses across Missouri.

Step 6: Choose your Missouri business name and fictitious name 

Choose a name for your business that’s unique and accurately reflects the products or services you plan to provide. In Missouri, your name also must be distinguishable from any other names registered. Conduct a business entity search through the Missouri Secretary of State to determine if your name is usable. 

If you plan to operate your business under any name that’s not your legal name, you must file a DBA, or fictitious name. A DBA, or “Doing Business As,” means you can legally operate under an assumed name to better represent your business. 

Reserve your business name

Once you’ve ensured availability, you can reserve your business name through the Secretary of State’s office. Submit a $25.00 for each business entity except Limited Liability Partnerships, which is a $30 fee.

Filing a fictitious business name

To file a fictitious, or DBA, name in Missouri, you’ll fill out a form via the Business Registration Portal or mail your fictitious name form. Learn more about DBAs and the pros and cons about getting one.

Step 7: Pick a business location in Missouri 

Location plays a critical role when establishing your business in Missouri, influencing factors like accessibility to your target customers, the specific licenses and permits you’ll need, and the taxes you’ll be required to pay. For example, if you’re opening a boutique in Kansas City’s bustling Crossroads Arts District, you’ll need to ensure your business complies with zoning regulations and obtains the proper retail and signage permits.

Depending on your type of business, you may also opt to run it from your home, which could be more cost-effective. 

Here are a few considerations if you plan to locate your Missouri small business in one of the state’s larger cities: 

Kansas City 

• Financial services, law, and government offices are big businesses here. The area has also seen growth in technology and creative sectors, such as advertising and design. In addition, Kansas City is heavily influenced by logistics and transportation, given its location as a major transportation hub.
• Downtown areas can have much higher operating costs, including rent and utilities, compared to suburban locations. Traffic congestion and limited parking can be challenges for employees and customers.
• Ongoing revitalization efforts in Kansas City have led to improved infrastructure, amenities, arts, and entertainment options.

St. Louis 

• The city of St. Louis is well-known for its long history in manufacturing and its central location provides excellent access to major transportation routes and a large consumer market.
• Major industries include health care, professional services, logistics, tech, bioscience, and financial services. 

Springfield 

• Compared to larger cities, Springfield offers a more affordable business environment.
• This smaller city is a regional healthcare hub with several hospitals and medical facilities. Given its proximity to the Ozarks, it also has a growing tourism industry supporting retail, hospitality, and outdoor recreation businesses.

Jefferson City

• Jefferson City, Missouri's capital, is a government, healthcare, education, manufacturing, and retail hub. 
• Home to Lincoln University, the city benefits from its educational and workforce contributions. 
• With a lower cost of living and business operations, Jefferson City offers an affordable, stable environment for businesses and residents, along with easy access to other major cities in the state.

Step 8: Find a Missouri registered agent

If you’re an LLC, LP, LLP, or any type of corporation, you must have a registered agent in Missouri. This individual or service acts on behalf of your business to accept legal documents and government notices. You can hire a professional service, appoint a trusted adviser, or register as your own agent. Registered agents must: 

• Be a Missouri resident or a company authorized to do business in Missouri. If the registered agent is an individual, they must be over 18 years old.
• Have a physical address; P.O. boxes, UPS mailboxes, or other rented mailboxes are not allowed.
• Be available at their registered office address during regular business hours

If the registered agent moves, they must update their address with the Missouri Secretary of State.

Step 9: Get a Missouri EIN and file your tax and employer identification documents

An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify your business for tax purposes. Although Missouri doesn't require a state EIN, you'll need one to file payroll taxes and federal tax returns, open a business bank account, and apply for loans. You can apply for a free EIN through the IRS website.

Step 10: Register as a small business in Missouri

Next, you’ll likely need to register your Missouri small business with the Missouri Secretary of State’s office and pay a filing fee, which can vary depending on the entity and will be found on each registration document. 

The Missouri Secretary of State website provides specific forms and fee information for each entity type, which can vary. For the most recent information, check the current forms and fees directly on the official website, as they may be subject to change.

Step 11: Register for your business license and permits in Missouri

Depending on your industry and profession, you may need to apply for certain permits and licenses to legally operate within Missouri. 

For example, bars and restaurants must apply to the Missouri Department of Public Safety's Alcohol and Tobacco Control (ATC) to obtain a license to sell alcohol. While not an inclusive list of professionals requiring licenses, hairdressers, dietitians, embalmers, geologists, and pharmacists must ensure they have the proper state licenses. Visit the Missouri Division of Professional Registration for a comprehensive list of requirements. 

Do you need a business license in Missouri?

No statewide business license exists in Missouri, but you may need to acquire professional licenses depending on your industry and profession. Specific municipalities or police jurisdictions may also have additional license and permit requirements.

Other business Missouri licenses

• A sales tax permit is required to collect and remit state sales tax. Visit the Missouri Department of Revenue for the form and to submit it online. 
• A sales tax exemption certificate is required if you want to avoid taxes on items being resold. 
• A county merchant’s license is up to the discretion of each county. Some require this license to operate a business within their jurisdiction. Check with your local clerk. 

Regulatory permits

In addition to regulatory permits for alcohol and tobacco products, you may need permitting for your industry. For example, those operating farms will need to secure the proper permitting through the Missouri Department of Agriculture.

Step 12: Secure insurance for your Missouri small business

Secure business insurance for your company. It can safeguard your company in the event of an accident, lawsuit, theft, other property damage, or employee injuries. Work with your insurance agent to determine the exact types of coverage your Missouri establishment will need. 

Types of small business insurance in Missouri

Here are the common types of coverage Missouri small business owners need: 

Step 13: Prepare to pay taxes on your business in Missouri 

Missouri boasts a favorable tax system with a corporate income tax rate of 4%. In 2024, the Tax Foundation ranked Missouri No. 12 in terms of states with the most favorable corporate tax rates. Regardless, you’ll need to be prepared to pay certain taxes, depending on whether or not you have employees and your business entity. 

Corporate income tax 

If you operate a corporation, your business will be subject to corporate income taxes. As stated above it is 4%.

State personal income tax

If you're a sole proprietorship or a small LLC, you’ll likely report your business income on your personal tax returns. Personal income tax rates range from 2.00 to 4.95%. General and limited partnerships are also pass-through entities, meaning you can also report them on your personal returns. Some LLCs may choose to be taxed as corporations, in which case they would file corporate tax returns.

Sale and use tax

Businesses that sell tangible personal property must collect and remit sales tax to the state. This includes retail stores, online retailers, and even service-based businesses that sell tangible products. 

Employment taxes 

In Missouri, employers are required to withhold state income tax from their employees' wages and remit it to the state.

This withholding is based on each employee's earnings and W-4 form, which indicates their tax filing status and allowances. The Missouri Department of Revenue provides resources and forms to help employers calculate and withhold the correct amount of state income tax.

Federal taxes

In addition to state and local taxes, all businesses must pay applicable federal taxes, including:

• Federal income tax
• Self-employment tax (for sole proprietors and partners)
• Employment taxes (if you have employees), including the Federal Unemployment Tax Act (FUTA tax)
• Excise taxes (for certain industries)

To ensure you understand your federal tax obligations, check out these IRS resources: Publication 334, Tax Guide for Small Business and Publication 583, Taxpayers Starting a Business and Keeping Records

Tax credits and incentives for Missouri employers

Missouri offers various tax credits and incentives to encourage business growth and investment. These are just a few: 

• Enhanced Enterprise Zone (EEZ) Program: The EEZ Program provides benefits to businesses that help revitalize facilities in economically disadvantaged areas of the state. 
• Youth internship tax credits: These credits may apply to businesses that provide internships or apprenticeships to Missouri youth. 
• Missouri Works: This program helps businesses access capital through withholdings or tax credits to embark on facility expansions and create jobs. This program can also help businesses purchase equipment to maintain its facility in Missouri.
• Business Facility Headquarters Tax Credit Program: Missouri companies looking to locate or expand their headquarters in the state may be able to access incentives based on the number of new jobs and investments associated with the project.
• Amateur Sporting Contribution Tax Credit: A program that helps provide funding to local organizations, such as convention and visitors bureaus, to help attract sporting events to this state.

Search the Missouri Department of Economic Development’s website to find more tax incentives applicable to your industry. 

There are also federal tax credits available, including:

• Work Opportunity Tax Credit: The Work Opportunity Tax Credit (WOTC) is a federal tax incentive that offers businesses credits of up to $2,400 per eligible employee hired from specific target groups. The credit can be higher for certain categories, particularly some veterans.
• Disability Access Credit: This federal tax credit is based on expenses to allow disabled individuals to access a business. Businesses with no more than 30 employees or income not greater than $1 million can claim it for eligible expenses. The Disability Access Credit can be used for various expenses, including removing barriers, providing interpreters, and modifying equipment for individuals with disabilities.
• Barrier Removal Tax Deduction. Businesses can claim a tax deduction of up to $15,000 per year for expenses related to removing architectural and transportation barriers for people with disabilities and the elderly. This deduction can be used in conjunction with the Disabled Tax Credit, and it's claimed as a separate expense on the business's income tax return.

For a list of other federal tax credits and deductions for businesses, visit the IRS website.

Step 14: Set up your business bank account

Whether you’re starting a sole proprietorship in St. Louis or a small LLC in Reed Springs, you’ll need to separate business and personal finances. Here’s how: 

1. Collect all your business paperwork, including your EIN, business formation documents, registrations, permits, and licenses to open your small business bank account. 
2. Choose a bank or credit union that offers products and services you need, whether loan offerings, checking, or high-yield savings accounts. 
3. Establish business credit using a bank credit card for business-related purchases and expenses. 
4. Set up your financial records by selecting the right accounting software for your organization. 
5. Hire a professional accountant well-versed in local tax codes and your industry to help with financial and other bookkeeping services.

Additional resources to get your business started 

There are several state and federal resources that can support your business with guidance, training, potential funding and more. 

State resources

Missouri Small Business Development Centers (SBDC): The Missouri SBDC provides free consulting, training, and resources to help entrepreneurs and small business owners start, manage, and grow their businesses. It offers assistance in areas like business planning, market research, funding, and scaling operations.

Missouri Department of Economic Development (DED): The DED helps support small businesses in Missouri by offering grants, tax credits, and other financial assistance programs. It also provides resources for workforce development and site selection, helping small businesses understand state regulations and growth opportunities.

Missouri Secretary of State – Business Services Division: This office handles business registrations, filings, and renewals for small businesses in Missouri. It also features information on starting a business, complying with state laws, and maintaining a business entity in good standing.

Missouri Department of Revenue (DOR) – Business Taxation: The Missouri DOR provides guidance on state tax obligations for small businesses, including sales tax, corporate income tax, and withholding tax. It offers online tools for business registration, filing, and paying taxes, as well as resources to help small businesses understand their tax responsibilities.

Federal resources 

Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.

Grants.gov: This centralized platform simplifies the process of searching for and applying for federal grants across various sectors. It also provides grant writing tips and has a Grants Learning Center featuring the basics of grants, eligibility, and more. 

Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR): SBIR and STTR programs provide research and development funding to innovative tech companies. 

SCORE: SCORE is a national nonprofit organization that partners with the U.S. Small Business Administration (SBA) to provide free mentoring and educational resources to entrepreneurs and small business owners. While not a direct federal agency, SCORE is an independent organization with a network of volunteer business mentors across the United States.   

U.S. Department of Agriculture (USDA): The USDA website lists grants, loans, and other programs and resources for farmers and other businesses serving rural America.

Frequently asked questions

How long does it take to start a small business in Missouri?

Anywhere from a few weeks to a few months, depending on needed licenses, permits, and other startup must-haves for your profession. 

How long does it take to get a business license in Missouri?

It depends on where you’re applying for a business license. If it’s in Jefferson City, for example, you can expect to wait anywhere from 7 to 10 days. If you’re applying for a license in Branson, you may only have to wait 3 to 5 days. 

What licenses do I need if I operate an online home-based business in Missouri?

While there is no general statewide business license If you operate an online business in Missouri, you will need to register for a sales tax license if you sell taxable goods or services to Missouri customers. Also, check with your local city or county government for any specific local business license or zoning requirements and ensure you have any necessary professional licenses if your business involves regulated activities. Obtaining an Employer Identification Number (EIN) from the IRS is also recommended.

Disclaimer: 

This content is for information purposes only and information provided should not be considered legal, accounting, or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does it have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. cannot warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.