Protect Your Business.
We can assist in contract negotiation, sales of businesses and joint ventures as well as a variety of other business transactions.
When you start a small business in Missouri, the legal structure you choose for it depends on the type of entity it is. There are two major types of business entities in Missouri under which are several distinct types of legal structures:
- Non-Statutory Entities—These kinds of businesses don’t require registration with the Missouri state government. They are the most basic business structures.
- Sole Proprietorships—A business with a single owner who directly manages its operation, makes all decisions, benefits from all of the profits and accepts full liabilities and responsibilities. Missouri law doesn’t recognize a separation between the business and its owner.
- General Partnerships—Similar to a sole proprietorship except that two or more partners share in the responsibilities, liabilities, management and profits. Like a sole proprietorship, each partner is taxed individually and enjoy flow-through taxation.
- Statutory Entities—These kinds of businesses required registration with the state because their legal and tax organization is more complex than those of non-statutory entities. Where non-statutory entities enjoy tax benefits, statutory entities enjoy liability protection.
- Limited Partnerships—One or more general partners share the business’s liabilities while limited partners enjoy liability protection. Both types of partners enjoy flow-through taxation. While limited partners are sometimes barred from participating in the management of business operations in many states, Missouri permits limited partners to do so while still enjoying liability protections.
- Limited Liability Partnerships (LLP)—Similar to general partnerships but every partner enjoys the same liability protections offered to limited partners in limited partnerships. However, every partner is still accountable for personal liability in business matters.
- Limited Liability Limited Partnerships (LLLP)—Similar to a limited partnership, but both general partners and limited partners gain the liability protection offered in LLPs (with the same personal liability caveat, though).
- Corporations—A business that is owned by shareholders, is operated by directors and exists as its own liable entity separate from its shareholders. Shareholders are shielded from liability but are subject to double taxation since the corporation is itself a taxable entity. There are different types of corporations, each with unique taxation, liability and organization structures.