Are there any tax implications for different business formations?

Yes, there are tax implications for different business formations in Missouri. Generally, business owners have to pay income taxes on the money they make through their business and they have to pay employment taxes on their employee wages. Depending on the type of business formation, business owners may also be subject to additional taxes. For example, owners of sole proprietorships are subject to self-employment taxes, while owners of partnerships may be subject to state and federal partnership taxes. Similarly, owners of Limited Liability Companies (LLC’s) may have to pay state and federal taxes on their LLC profits, and may be subject to additional taxes if their LLCs are registered as a corporation. Finally, owners of corporations may be subject to federal and state corporate income taxes. In addition, business owners may be subject to other taxes depending on the type of business formation, such as payroll taxes, sales taxes, or excise taxes. It is important to contact an accountant or lawyer when deciding what type of business formation to use to ensure that all necessary taxes are accounted for.

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