|
|
|
STARTING AND OPERATING A BUSINESS IN MISSOURI Copyright © 2000, Michael D. Jenkins
CONTENTS OF THIS CHAPTER:
I. INTRODUCTION I. INTRODUCTION Missouri has a fairly typical tax and legal structure under which businesses must operate. Like most states, Missouri imposes an income tax, a franchise tax on corporations, a sales and use tax, various excise taxes, with property taxes imposed at the local level. The state has also adopted a limited liability company (LLC) law, and a limited liability partnership (LLP) law, so that businesses operating in Missouri in LLC or LLP form may obtain the advantages of limited liability, without incorporating or becoming subject to corporate taxation, generally. Tax rates are relatively low, and only five states in the U.S. have a lower per capita tax burden than Missouri. Located virtually in the center of the lower 48 states, and with approximately 1,000 miles of navigable waters on the Mississippi and Missouri rivers, Missouri is very strategically situated in the heartland of America. At present, the state's economy is quite robust, in terms of the level of unemployment and other economic measures. For example, in May, 2000, the state's unemployment rate was only 2.8%, down from 3.7% a year earlier. This compares favorably to a national unemployment rate of 4.1% for the same month. To view the latest federal Bureau of Labor Statistics unemployment rate data for Missouri or any other state, visit the BLS website. II. LEGAL ENTITIES -- FILING FEES AND REPORTING REQUIREMENTS. (a) In General. A business that operates in Missouri can operate as a sole proprietorship, a general or limited partnership, a corporation, or a limited liability company. In addition, like the federal tax law, the state income tax law also recognizes S corporations, for income tax purposes, and generally allows the income or losses of an S corporation to "flow through" and be taxed or deducted at the shareholder level, rather than taxing the corporation itself as an entity. Missouri also provides for limited liability partnerships, in which no partner is liable for certain debts of the partnership, somewhat like a corporation or LLC, but with fewer legal formalities than are required for either a corporation or an LLC. Each of the above entities is discussed below, along with the basic requirements for forming such an entity and any general ongoing (non-tax) reporting requirements that are applicable to it. The tax treatment of each form of legal entity is discussed in Section IV below. (b) Sole Proprietorships. In general, sole proprietorships in Missouri can be formed with no formalities. However, as discussed in Section IV(b), it will generally be necessary to obtain one or more local business licenses from cities or counties in which you operate and, in some cases, state licenses, as well. No separate tax form filing is required, generally, for a sole proprietorship, under the Missouri income tax law. Instead, as with the Schedule C on your federal Form 1040, you simply report the net income or loss from your sole proprietorship on your state personal income tax return. See Section IV(c) for information on the Missouri income tax and filing requirements for individuals. (c) Partnerships. As a rule, general partnerships in Missouri can be formed with no formalities, although it is highly advisable to have a written partnership agreement. However, as discussed in Section IV(b), it will generally be necessary to obtain one or more local business licenses from cities or counties in which you operate and, in some cases, state licenses, for any type of partnership, including general or limited partnerships, or limited liability partnerships. A limited partnership, in which there is at least one general partner (who is liable for partnership debts) and at least one limited partner (who is not liable for partnership debts), may also be formed under Missouri law. Unlike a general partnership, a limited partnership must generally have a written partnership agreement, and must file a certificate of limited partnership, Form LP41, with the secretary of state, together with a filing fee of $105. Foreign limited partnerships must also register before being allowed to do business in Missouri, and must pay a registration fee of $105. For information on limited partnership filing requirements, see the contact information for the Corporations Division of the Missouri Secretary of State, listed in Section VI(a). Limited liability partnerships (LLPs) are a new form of partnership permitted under the laws of Missouri. Like an LLC, an LLP provides limited liability for its owners, while retaining the tax advantages of a partnership for federal and Missouri state income tax purposes. However, unlike an LLC, an LLP typically operates like a regular partnership, and is not required to file articles of organization. To form an LLP in Missouri, a domestic partnership must file a registration form with the secretary of state, and pay a fee of $25 per partner, not to exceed $100, plus an additional $5 filing fee, to the secretary of state. To remain effective, the registration must be renewed each year, with a fee of $100 plus an additional $50 for each partner added, but the total renewal fee cannot exceed $200 plus a $5 filing fee. Foreign LLPs, those created under the laws of another state, must register with the secretary of state and pay the same fees as a domestic LLP. There is an additional $5 technology fund fee added to any fee charged to an LLP by the Missouri Secretary of State. For more information on LLP registration and reporting requirements, see the contact information for the offices of the secretary of state, listed in Section VI(a). Note that one potential drawback of LLPs, if you will do business in other states besides Missouri, is that you may not enjoy limited liability with regard to creditors of the LLP if you do business in some such states. Some states, like California and New York, only recognize certain types of professional partnerships as LLPs. Such other states may simply treat your LLP like an ordinary general partnership, with no limitation of liability. A partnership agreement, for any type of partnership, should spell out in considerable detail such matters as the following:
Partnerships, as entities, are not subject to state income tax in Missouri. Instead, the income or losses of the partnership, as allocated among the partners, must be reported on the personal income tax returns of the individual partners (or on the corporate tax returns of any corporate partners). Partnerships are required to file an annual tax information return with the state. For details on Missouri partnership tax return filing requirements, see Section IV(c). (d) Corporations. To form a corporation in Missouri, you must file articles of incorporation with the Missouri Secretary of State and pay a fee of $50 for the first $30,000 par value of capital stock, plus $5 for each additional $10,000 of capital stock. No par stock is assumed to have a par value of $1 per share. There is also an additional filing fee of $8. A foreign corporation (one formed under the laws of another state or a foreign country), must obtain a certificate of authority before it may legally conduct business in Missouri, by filing an application for a certificate of authority and paying a filing fee of $155. For more information on filing articles of incorporation or applying for a certificate of authority to do business in Missouri, see the contact information for the offices of the secretary of state, listed in Section VI(a). In addition, once your corporation is formed, it will be required to file annual reports and a filing fee of $45 and corporation franchise tax, as described below (payable to the Department of Revenue), with the secretary of state each year. Failure to file this report on a timely basis can result in the dissolution of your corporation's charter by the state. Under 2002 legislation, corporations must now file annual corporate reports even if they are not required to file franchise tax reports. In addition to paying federal income taxes on its income, a corporation that does business in Missouri must also file corporate income tax returns with the state. See Section IV(c) for a discussion of state corporate income tax rates and tax return filing requirements. Corporations that do business in Missouri are also subject to an annual corporate franchise tax, which is equal to 1/20th of 1% of the value of the corporation's capital stock and surplus and borrowed capital, which essentially means the "book value" of its total assets. No franchise tax is imposed if the amount of such capital or assets is less than $200,000. Effective on and after January 1, 2000, the franchise tax is reduced to 1/30th of 1% of the corporation's capital, as described above, and applies only if its capital exceeds $1 million. Administration of the franchise tax was transferred from the Missouri Secretary of State to the Department of Revenue on and after January 1, 2000. For tax forms and more information on corporate income and franchise taxes in Missouri, see the contact information for the offices of Missouri Secretary of State and the Missouri Department of Revenue, listed in Section VI(a). (e) S Corporations. An S corporation is simply a regular corporation that has elected, for federal or state income tax purposes, or for both, to be taxed somewhat like a partnership, with its income, losses and tax credits flowing through to its owners, who report such income, losses, or credits on their individual tax returns. Missouri recognizes S corporations for income tax purposes, and treats them in a manner similar to the federal tax treatment. No separate state S corporation election is required. (f) Limited Liability Companies. Missouri, like every other state in the U.S., has adopted a limited liability company (LLC) law. Thus, in addition to the traditional choices of a sole proprietorship, partnership, or corporation, a business that operates in Missouri may also choose to operate in the form of an LLC. LLCs are very attractive entities for many small businesses, in that they offer the same protection as a corporation from creditors for debts of the business, while offering much of the flexibility plus the flow-through tax treatment of a partnership for federal tax purposes, and in most states. See Section IV(c) for a discussion of the income tax treatment of LLCs under Missouri tax laws. To form an LLC under the laws of Missouri, one or more persons, who need not be members, may file articles of organization with the secretary of state, which must be accompanied by filing fees of $105. Missouri state law was amended in 1997 to recognize the validity of 1-member LLCs, in recognition of the fact that federal tax regulations have been modified and now allow 1-member LLCs to be treated as sole proprietorships for federal tax purposes, beginning in 1997. Foreign LLCs, those formed under the laws of another state, must obtain a certificate of authority to do business in Missouri, by filing an application for a certificate of authority with the secretary of state and paying a filing fee of $105. For more information on filing articles of organization for an LLC, see the contact information for the offices of the secretary of state, listed in Section VI(a). III. BUSINESS ACQUISITIONS (a) In General. When acquiring an existing business, there are a number of state legal and tax issues you or, preferably, your business attorney, should attend to before closing the purchase. These include matters such as doing a title search for any real property that is being acquired, checking for any recorded security interests on personal property items, and thoroughly researching county, state, and federal records for any judgment liens, tax liens, or other liens, before property is acquired. You will also benefit from consulting a tax advisor before the agreement of sale is negotiated, in order to seek a structuring of the agreement so that the purchase price is allocated among the assets in a way that favors you. You may be able to obtain considerable tax savings if the purchase price is allocated in a way that gives you the best possible tax results under federal and state income tax laws, and other state tax laws, such as sales/use tax or property tax laws. Depending upon the state (or states) in which the seller's assets are located, you may also have to comply with state bulk sale or bulk transfer laws. You should also obtain tax releases from various state taxing agencies, as discussed below. (b) Bulk Sale Laws. Typical bulk sale laws require either publication of legal notices to all creditors in advance of the sale and recording of such notices in some cases, or maintenance of detailed lists of the property to be transferred, for inspection by the public. All these requirements make the transfer of a business a more arduous and expensive process. Missouri still has a bulk sale law, however, and you will need to comply with this law when you purchase assets of an existing business. Failure to do so will expose you to liability to any creditors of the seller who do not get paid off when the sale of the business occurs. Missouri's bulk sale law closely follows the bulk transfer provisions of the Uniform Commercial Code. The basic requirements, when purchasing the assets of business in a bulk sale transaction, are as follows:
Compliance with the bulk sales law should be handled by a competent business attorney, as its requirements are quite specific and very technical in nature. Handling the legal aspects of a business purchase is one area where we do not recommend a do-it-yourself approach. Representing yourself in a business acquisition is, in our view, the legal equivalent of do-it-yourself brain surgery. (c) Tax Releases. When you acquire an existing business, you will want to make sure that you do not unwittingly become liable for any unpaid taxes owed by the seller. Typically, to protect yourself, you will need to receive a tax release or releases from various state taxing agencies, for such taxes as sales and use tax, income tax withholding, and state unemployment taxes, in each state in which the seller does business. If you fail to obtain such a release or written statement from the tax agency that the seller is not delinquent on any tax payments, you will be held responsible for such tax if it is not withheld from the purchase price proceeds and paid to the state at the time the sale of the business transpires. In Missouri, you should obtain tax releases for unemployment taxes, withholding taxes, and sales and use taxes. For the unemployment taxes of the seller, you should require that the seller obtain and provide you an unemployment tax release from the Division of Employment Security of the Missouri Department of Labor and Industrial Relations. For state income tax withholding and sales and use taxes, the seller should obtain a "certificate of no tax due" from the Department of Revenue. Under Department of Revenue regulations on successor liability, any purchaser of a business is generally liable for the seller's sales tax liability unless the seller provides the purchaser the certificate of no tax due from the Department of Revenue. Without such a certificate, the seller should withhold enough money from the purchase price to pay the seller's sales tax liability, if any. (d) Unemployment Tax Rating of Seller. In addition to obtaining tax releases, you may find it advantageous to succeed to the seller's unemployment tax experience rating, if the seller has a tax rate lower than you would otherwise obtain as a new business. For information on how you can obtain the seller's favorable experience rating as a successor employer, contact the Department of Revenue. IV. MISSOURI TAXES AND OTHER GENERAL REQUIREMENTS. (b) State and Local Licensing. Nearly any business, operated anywhere in the United States, will have to have at least one government license of some kind. In most cases, this will be a local license, issued by your city or county. Before you open your business, contact your local city or county hall and find out if your particular business needs one or more local licenses. Most kinds of local business licenses are granted upon payment of a fee, with no further requirements, except possibly for annual or other periodic renewal fees. However, if you are engaging in any kind of food business, you will usually need to also obtain a health department permit and show that you are in compliance with health department food-handling requirements. In addition, be sure to check with an attorney or local government zoning or planning department officials to determine if your business will be in compliance with all local zoning and planning restrictions. If you own or rent any type of facility, you will generally need fire department permits, showing that you meet fire safety codes and, of course, any construction or improvements to an existing structure will almost always require a building permit. Even if you intend to simply operate your business from your home, you may be in violation of local zoning requirements, but this is less likely to be a concern if you don't have clients, customers, suppliers, or employees coming to your house on business, on a regular basis. State governments have also traditionally required special licenses for many kinds of professionals, such as physicians, dentists, lawyers, and accountants. To further protect consumers, Missouri has expanded the list of occupations that must be licensed by the state to include many other occupations. Most state licenses not only require payment of fees, but are only issued for a given profession or occupation upon showing that you have completed certain educational or experience requirements, or passed certain tests, or some combination of the foregoing. For information on state licensing and business registration requirements in Missouri, see the contact information for the offices of the Missouri Business Assistance Center, operated by the Missouri Department of Economic Development, as listed in Section VI(a). (c) Income and Franchise Taxes. Missouri has both an individual income tax and a corporate income tax, as well as a franchise tax on corporations. The Missouri individual income tax is imposed at a maximum tax rate of 6%, which applies to taxable income over $9,000. Individual taxpayers generally pay state income tax on their business earnings from a sole proprietorship, or on their share of the earnings of a pass-through entity, such as a partnership, S corporation, or LLC. The Missouri personal income tax return, Form MO-1040, must be filed with the Missouri Department of Revenue by April 15th for the preceding calendar year. Partnerships, or entities taxable as partnerships, such as LLCs, are not subject to state income taxation in Missouri, but must file an information return with the Department of Revenue each year, showing each partner's share of taxable income, losses, and credits, on Form 65. The partnership information return is due by April 15th of the following year, in the case of a calendar year partnership. Individual taxpayers doing business as sole proprietors, or who are partners in partnerships, or members of LLCs, are required to make payments of estimated Missouri individual income taxes, on Form MO 1040ES, if their net tax liability (not covered by withholding) exceeds $100. Estimated tax payments are due in four installments, on the 15th day of the 4th, 6th, and 9th months of the taxable year, and the 15th day of the first month of the following year. To avoid penalties for underpayment of estimated tax, you must either pay in 90% of the current year's tax, or 100% of the previous year's tax. The Missouri corporate income tax rate, on corporations other than S corporations, is imposed at a flat rate of 6.25%, except on banks and other financial corporations, which may be subject to a 7% rate. However, since, unlike most other states, Missouri allows a corporation to deduct half of its federal income tax in computing taxable income, the effective state tax rate is actually significantly less than the nominal rate of 6.25% in most cases. The state corporation income tax return, Form MO-1120, must be filed with Department of Revenue by the 15th day of the fourth month following the end of the taxable year, or by April 15th in the case of a corporation whose taxable year is the calendar year. Corporations are required to make estimated tax payments of their state corporate income tax in advance, if their tax liability for the year equals or exceeds $250. Estimated tax payments are due in advance, in four equal installments on the 15th day of the 4th, 6th, 9th, and 12th months of the taxable year. The total estimated tax that must be paid in is usually equal to 90% of the actual tax liability for the year. However, if the preceding year was a full year of 12 months, the current year payments need only be equal to 100% of the prior year's tax liability, if less. Other exceptions may also apply, to relieve a corporation of underpayment penalties. Penalties will be imposed for failure to make the required estimated tax payments on a timely basis. Missouri also imposes a franchise tax on the capital of corporations, which is described in Section II(d). In Missouri, a limited liability company (LLC) is taxed in the same manner as a partnership, thus avoiding the possible double taxation of income that can occur with a corporation. Note that under IRS regulations, effective since 1997, an LLC is now able to elect to be treated as a partnership if it has more than one owner, or as a sole proprietorship if it does not, for federal tax purposes. Under 1997 legislation, Missouri law now recognizes the validity of a one-owner LLC. (d) Sales and Use Tax. Missouri imposes a general sales tax on retail sales of tangible personal property and certain types of services at the statewide rate of 4.225%. In addition, local governments are allowed to adopt local sales taxes, at varying tax rates. Sellers are required to obtain a seller's permit and to collect and pay over the state and local sales and use taxes to the Missouri Department of Revenue. There are numerous exemptions from the sales tax, the most important of which is the resale exemption. If you are a wholesaler or retailer who purchases goods that you will resell, your purchase of such goods may qualify as an exempt sale for resale. Similarly, if you sell goods to wholesalers or retailers for resale by them, your sale may also qualify as an exempt sale for resale. In any such transaction, the exemption is ordinarily available only if the purchaser gives the seller a valid resale certificate, certifying that the items are being purchased for resale, and not for use or consumption by the buyer. A shadow tax, the use tax, is also imposed at the same rate as the sales tax. It is primarily intended to tax property that is acquired from sources outside of the state, in transactions not subject to sales tax, when such property is used or consumed within Missouri. Use tax may also apply to items purchased on an exempt basis, such as for resale, if such items end up being used or consumed, instead of being resold. The use tax rate is 5.725% where the the combined state and local sales tax rate is that rate or higher; otherwise, the use tax is reduced to 4.225%. Before making any taxable sales, you will need to register with the Department of Revenue on Form 2643, Missouri Tax Registration Application, and post a bond equal to three months' estimated sales and use tax liability, in order to obtain your Missouri Retail Sales License. For more details and information on Missouri sales and use tax registration and compliance, see contact information for the offices of the Department of Revenue in Section VI(a). (e) Real and Personal Property Taxes. In Missouri, as in every other state, any business real estate you own will be subject to real property taxes. In general, there is little that you must do, unless you wish to challenge your assessed valuation, since the assessor will bill you for each year's property taxes as they come due. Missouri also imposes personal property taxes on tangible personal property. However, certain business personal property, such as business inventories, are exempt from personal property tax in Missouri. Businesses are generally required to file a list of their taxable personal property each year with county and city tax assessors. While Missouri generally taxes tangible personal property, it does not impose a property tax on intangible personal property, such as stocks, bonds, promissory notes, and other such paper assets. (f) Other Business Taxes. Missouri imposes a number of other taxes on businesses, including:
(g) Trade Names. A trade name, also known as a fictitious or assumed name, is any name used in the course of business that does not include the actual legal names of all the owners of the business. Thus, if your business goes by any name other than your own real name, it is operating under a trade name. The same is true of a corporation, if it operates under a name other than its legal name. A trade name might also be one that suggests the existence of additional owners, by using such words as "company," "associates," or "group." In most states where you do business, it will be necessary to register a trade, fictitious, or assumed name, so that people who do business with you can find out who the actual owners of your business are. You may also want to register any such trade name, as a means of protecting against other companies usurping that particular trade name. All businesses, whether or not incorporated, which conduct business in Missouri under a fictitious name are required to register such name with the Missouri Secretary of State, paying a $7 fee. V. EMPLOYER REQUIREMENTS IF YOU HAVE EMPLOYEES (a) Employer Registration and Withholding. Once you hire the first employee in your business, your life becomes a great deal more complicated. Federal and state laws pile a long laundry list of responsibilities on the back of anyone who hires employees. One of the first things you will need to be concerned about as a new employer is withholding personal income taxes from the wages of your employees. As an employer, you are responsible for withholding the taxes and paying them over to the state government on behalf of the employee. If you have any employees, you will already be withholding federal income tax and FICA taxes from their wages. Since Missouri imposes a state income tax on the income of individuals, you will need to also withhold Missouri income tax from the wages of your employees. Before you begin to pay wages, you must register as an employer with the Department of Revenue on Form 2643, Missouri Tax Registration Application, which can also be used to register for sales and use taxes. For more information on Missouri income tax withholding and registration requirements for employers, see the contact information for the offices of the Department of Revenue, listed in Section VI(a), and request a copy of their publication, the Employer's Tax Guide. (b) Unemployment and Other State Payroll Taxes. If your business employs one or more individuals in each of 20 weeks during any calendar year or if your payroll amounts to $1,500 in any calendar quarter, you, as an employer will be required to pay state unemployment tax based on the amount of such wages paid. Employers subject to the Missouri unemployment tax are required to register with the Division of Employment Security of the Missouri Department of Labor and Industrial Relations on their form entitled Report to Determine Liability Status. New employers are required to pay tax at a rate of 2.511% in 2000 on the first $7,500 of wages paid to each employee. After you have had employees for a while, you will develop an unemployment tax experience rating. This rating is based on the number of employees you terminate who then claim unemployment benefits and the amount of such benefits paid to those former employees, under complex formulas. The state will inform you when they have assigned you an individual tax rate based on your firm's experience rating. That rate may be higher or, if you have had relatively few benefit claims charged to your account, lower than the standard new employer tax rate you initially were paying. All state unemployment taxes are imposed upon you as the employer, and, under Missouri law, cannot be charged to your employees or withheld from their wages. For more information on your Missouri unemployment tax obligations as an employer, see the contact information for the offices of Division of Employment Security, listed in Section VI(a). (c) Workers' Compensation. Workers' compensation insurance is a state-mandated insurance requirement for most employers, in almost every state. States that require workers' compensation coverage also generally allow some companies that can demonstrate sufficient financial resources to self-insure, in lieu of purchasing such insurance from state-operated or private insurers. However, as a practical matter, most small businesses with employees will have to obtain workers' compensation insurance coverage, as few, if any, small firms will have the financial wherewithal to obtain state permission to self-insure. In Missouri, virtually all businesses with five or more employees are required by law to have workers' compensation insurance, except those able to self-insure. Note, however, that a sole proprietor or a partner in a partnership is generally not considered an employee, but may voluntarily elect to be covered by workers' compensation. Similarly, a member (co-owner) of a limited liability company is not required to be covered for workers' compensation purposes, if he or she rejects such coverage, after January 1, 1997. Workers' compensation provides wage loss and medical benefits to employees injured on the job and it protects you, as an employer, from legal action for damages for injuries or job-related illnesses suffered by your employees. In effect, it is a "no-fault" insurance system for work-related injuries or illnesses. Thus, if you fail to obtain required workers' compensation insurance, and an employee is injured on the job, you will have opened yourself to unlimited liability and severe legal consequences, so it is very important to obtain workers' compensation insurance for your employees. Be aware that neither general liability nor health and accident insurance can properly substitute for workers' compensation insurance. As an employer, you must notify injured employees of their benefits and post a notice in the workplace informing your employees of their workers' compensation coverage. For more detailed information regarding your obligations as an employer under the Missouri workers' compensation laws, contact your insurance carrier or see the contact information for the offices of the Division of Workers' Compensation of the Missouri Department of Labor and Industrial Relations, listed in Section VI(a). (d) State Wage and Hour Laws. Some employees of certain small firms not engaged in interstate commerce are not covered by the federal minimum wage and overtime laws. However, even if few or none of your employees are covered by the federal wage-hour laws, if, for example, because your firm does less than $500,000 a year in gross sales and the employees in question are not deemed to "...engage in (interstate) commerce...," they will still generally be subject to the Missouri wage-hour laws, which provide for a state minimum hourly wage that is the same as the federal minimum, currently $5.15 per hour. State law, like federal, generally requires payment of time-and-half for overtime hours where a person works more than 40 hours in a week. However, some workers in the recreation or amusement industries who are not covered by the federal wage and hour laws must work 52 hours a week before they must be paid overtime premium. Note that, as under federal wage-hour laws, certain classes of executive, administrative, and professional employees are exempted from the Missouri wage-hour rules. Besides the federal wage-hour posters that you must display in the workplace, you must also display a state wage-hour poster, which you can obtain from the Division of Labor Standards of the Missouri Department of Labor and Industrial Relations. In addition to wage-hour laws, most businesses are subject to federal child labor laws, which put numerous restrictions on the working hours and kinds of work in which minors under the age of 18 may engage. Your business must also be cognizant of similar state child labor laws, in Missouri, which generally prohibits hiring of children under the age of 14, and sharply restricts employment of minors between the ages of 14 and 16. However, Missouri's child labor laws define a "child" as a person under the age of 16, rather than 18, as under the federal law. State law generally requires a work permit to be obtained in order to employ a child under the age of 16, when school is in session. (e) State Occupational Safety and Health Laws. Employers in Missouri must comply with federal job safety laws designed to prevent injuries resulting from unsafe or unhealthy conditions in the workplace. The state of Missouri has not established an OSHA enforcement agency, so that OSHA requirements are enforced by the federal Occupational Safety and Health Administration (OSHA) in this state. Note that while you may obtain a free safety consultation from federal OSHA experts, they must and will cite you for any violations they discover at your workplace. This is not the case with state safety inspections. If you request a safety consultation from the Missouri Safety and Health Consultation Service of the Department of Labor and Industrial Relations and they detect violations, they will not cite you if you promptly correct the unsafe conditions. For information on your job safety and health obligations as an employer, required posters, and possible on-site safety consultations, see the contact information for the St. Louis offices of the U.S. Department of Labor/OSHA, listed in Section VI(a). (f) Other Miscellaneous State Labor Laws. Other Missouri labor laws you need to be aware of, as an employer, include the following: (1) Wage payments to terminated employees. Missouri state law generally requires that all wages owed to an employee who is discharged or fired be paid by the employer on the same day as employment is terminated. (2) Right-to-work laws. About half the states have enacted "right-to-work" laws, which guarantee that no person may be denied employment for refusing to join a union or for not paying union dues, thus banning either "union shop" or "agency shop" agreements, or both. In a union shop, an employee not belonging to a union may be hired but then must join the union, usually within 30 days. In an agency shop, an employee need not join the union but, to remain employed, must pay union dues. Missouri does not have such a right-to-work law and allows union shop or agency shop contracts between an employer and a union. (3) State anti-discrimination laws. In addition to complying with federal anti-discrimination laws, employers must also be aware of and comply with state civil rights laws in Missouri, and display a poster informing employees of their rights. You can obtain this poster from the Jefferson City office of the Missouri Commission on Human Rights, at the address listed in Section VI(a). (4) Reporting new hires. Under new federal welfare reform laws, employers in all states are now required to report newly-hired (or rehired) employees to a designated state agency (the Department of Revenue for Missouri employers) within 20 days after the date of hire. See the contact information for reporting new hires in Section VI(a) and the Division of Child Support Enforcement web page address listed in Section VI(c) for information on electronic filing of new hire reports. VI. STATE SOURCES OF HELP AND INFORMATION (a) Key State Agencies Contact Information. Missouri, as many states have done in recent years, has set up a "one-stop" center to help your new or existing businesses to obtain all necessary state licenses and permits from a single office, without your having to go from agency to agency to meet all the legal and regulatory licensing requirements. This agency is the Missouri Business Assistance Center (MBAC), which is part of the Department of Economic Development. The MBAC specialists have created a large database of approximately 400 types of business licenses, and can analyze your business situation and assemble a packet of information, forms and license and permit information that is appropriate for your specific type of business. Contact the MBAC at the following address:
Addresses and other contact information for other key Missouri state government agencies mentioned in this book are listed below for your convenience. SECRETARY OF STATE. Contact the office of the secretary of state for information on:
STATE SALES TAX. To obtain your Missouri Retail Sales License or obtain information on the Missouri sales and use tax law, contact the Department of Revenue, at the address listed above for that agency. STATE UNEMPLOYMENT TAX. Contact the following state agency to determine whether you are an employer subject to payment of state unemployment taxes, and for registration as an employer if you are subject.
NEW HIRE REPORTING. Employers must report newly hired employees within 20 days to the Missouri Department of Revenue at the following address:
STATE OSHA PROGRAM. There is no state OSHA program in Missouri. The federal government provides federal OSHA enforcement instead. For required posters and information on federal occupational safety and health laws that affect you as an employer in Missouri, contact:
STATE ANTI-DISCRIMINATION LAWS. Contact the following state agency for more detailed information on Missouri civil rights laws that may apply to your business, and to obtain anti-discrimination notices you are required to post in the workplace:
(b) Small Business Development Centers. A number of Small Business Development Centers (SBDCs) are located throughout Missouri to assist you. These centers, usually located on college campuses, provide a wealth of start-up information and sponsor frequent business-oriented seminars. Contact the lead office below for information, or for the location of other SBDCs nearer to you.
(c) Internet Sites. If you have access to the Internet, there is a wealth of state and even local business information provided by state and local governments. All states now have a state government Web page, and most major state agencies also have sites on the Internet where you can obtain useful small business information on matters such as state taxes, financing sources, or the addresses and phone numbers (or e-mail addresses) of various state and federal agencies' offices in Missouri. Since new sites are appearing constantly, you might also want to search for other Missouri government Web sites by using one of the popular Internet search engines, such as Excite! or Yahoo. To start your Internet search for Missouri government information, you may want to begin with the following Internet sites: Missouri State Government Web site: Missouri Secretary of State home page: Missouri Business Assistance Center (which can help you through the maze of state permits and licenses): Missouri Department of Revenue home page:Download Department of Revenue's Missouri Tax Registration Application and other state tax forms at: Missouri Department of Labor and Industrial Relations (wage and hour laws, workers' compensation, unemployment insurance, job safety and health consultations, state civil rights laws): New Hire Reporting information (Department of Social Services, Division of Child Support Enforcement): (d) Financing Sources. For information and help on locating financing for your small business, contact the nearest U.S. Small Business Administration office in Missouri, or contact the following agency, which provides one-stop financing assistance for small businesses in the Kansas-Missouri area:
|
Copyright © 2000 Michael D. Jenkins
|