At a glance
- Corporate tax
- 4% flat
- Tax on wages
- 0%–4.7%
- Sales tax
- 4.225% + local
- Economic nexus
- $100,000 in taxable sales
- Minimum wage
- $15.00/hr
- UI wage base
- $9,000
- New-employer UI rate
- 2.376%
- Paid leave program
- None
- Annual report
- Qualification month, $20 online
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Qualify the corporation
Before doing business in Missouri — usually the first hire or officeFile an Application for Certificate of Authority with the Secretary of State ($155) with a Delaware good-standing certificate, and appoint a Missouri registered agent.
Register with the Department of Revenue
Before the first Missouri payrollForm 2643, the Missouri Tax Registration Application, opens the withholding account and, if needed, the sales/use tax account in one filing.
Register for unemployment insurance
When the first Missouri employee is hiredOpen an unemployment account with the Division of Employment Security; 2026 new employers pay 2.376% on the first $9,000.
Report new hires
Within 20 days of the hire dateReport each new employee through the state’s new hire portal.
Register with Kansas City or St. Louis
If any employee lives or works in either cityKansas City and St. Louis require earnings tax withholding accounts (and a business license if the company operates in the city). St. Louis adds the 0.5% payroll expense tax.
Buy workers’ compensation insurance
At the fifth employeeRequired once the company has five or more employees, counting part-time workers and corporate officers; construction employers from the first employee.
Register for sales/use tax
If and when nexus is reachedOnly if taxable sales into Missouri exceed $100,000 or the company has physical presence and sells taxable goods.
The six areas
- AccountingAccounting and state tax in MissouriMissouri taxes corporations at a flat 4% on income apportioned by a single sales factor, with services sourced to the customer. There is no franchise tax.Corporate income tax rate4%
- ReceivablesReceivables and sales tax in MissouriMissouri’s economic nexus is $100,000 in taxable sales with no transaction test, and by regulation SaaS is not taxable. The state rate is 4.225% before local taxes.State sales/use tax rate4.225%
- PayablesPayables and contractors in MissouriMissouri wants its own copy of 1099s for Missouri-source payments of $1,200 or more, by February 28, filed directly with the DOR.Missouri 1099 threshold$1,200
- PayrollPayroll taxes and employer rules in MissouriMissouri’s 2026 minimum wage is $15.00 with no inflation indexing after HB 567, and the Prop A sick leave mandate is gone. Kansas City and St. Louis add a 1% earnings tax.Minimum wage$15.00/hr
- ComplianceCompliance and filings in MissouriQualify with the Secretary of State for $155, file a $20 online annual report in the qualification month each year, and file the MO-1120 by the 15th day of the fourth month.Certificate of authority$155
- AdvisoryAdvisory: credits and decisions in MissouriMissouri’s research credit is capped and allocated by the Department of Economic Development. Since 2025, individuals pay no Missouri tax on capital gains.R&D credit15%
Who you register with
- Missouri Department of Revenue (DOR)Corporate income tax, withholding and sales/use tax registration (Form 2643)
- Missouri Division of Employment Security (DES)Unemployment insurance account, quarterly contribution and wage reports
- Missouri Secretary of State — Corporations DivisionCertificate of authority and annual registration report
- Missouri Department of Social Services — New Hire ReportingNew-hire reporting within 20 days
- City of Kansas City and City of St. Louis revenue divisions1% earnings tax withholding; St. Louis 0.5% payroll expense tax
- Missouri State Treasurer — Unclaimed PropertyAnnual unclaimed property report
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are Missouri’s neighbors.
- IAIowaFlat 3.8% wage tax, SaaS exempt for business buyers, and a 15-day new-hire clock
- ILIllinoisA 9.5% combined corporate rate, plus Chicago’s own wage, leave and 15% cloud tax
- KYKentuckySimple state rates, local occupational taxes on wages and profits, and SaaS is taxed.
- TNTennesseeNo wage tax, but franchise, excise and gross-receipts taxes on the entity, and taxed SaaS.
- ARArkansas4.3% top corporate rate, an annual franchise tax, and an $11.00 minimum wage
- OKOklahomaFlat 4% corporate tax, no franchise tax since 2024, but three-factor apportionment
- KSKansas3.5% plus surtax, single sales factor from 2027, and a transferable R&D credit
- NENebraskaFlat 4.55% corporate tax, a $15 minimum wage, and sick time from the 11th employee
Common questions
Does a federal extension extend the Missouri return?
Yes, automatically, if the IRS has granted a federal extension: check the federal-extension box on the MO-1120 and attach a copy of Form 7004. The extension is to file, not to pay — any tax expected to be owed is paid by the original due date, with Form MO-7004. A corporation that has not filed and paid within 90 days of the due date (or the extended due date) can forfeit its Missouri charter.
Do I charge Missouri sales tax on SaaS?
No. The Department’s software regulation, 12 CSR 10-109.050, says the sale of software as a service is not subject to tax, and its letter rulings apply that to out-of-state SaaS vendors with Missouri customers. Canned software delivered on a tangible medium is taxable, while the same software downloaded is not. A company that also sells hardware or ships physical goods into Missouri needs to look again.
Do I file 1099-NEC forms with Missouri?
Yes, if the 1099 payments were from a Missouri source and totaled $1,200 or more. The Department’s 1099 guidelines say Missouri was not part of the IRS Combined Federal/State Filing program for tax year 2025, so the federal filing does not reach Missouri on its own.
Do Missouri employers still have to give paid sick leave?
No. Voters passed Proposition A in November 2024, which set the minimum wage path and required one hour of paid sick leave per 30 hours worked. HB 567, signed July 10, 2025, repealed the sick leave sections effective August 28, 2025. Employers may still offer sick leave; they are no longer required to.
When is the Missouri annual report due?
Missouri ties the annual registration report to the month the corporation incorporated or qualified, not a single statewide date, and it is due in that month each year. A corporation can move the month by naming a new one on a report and paying an extra $20. The Secretary of State charges $20 online, late filing adds $15 for every 30-day period, and a report more than 90 days late lets the Secretary of State start administrative proceedings against the corporation’s standing. A corporation can instead file a biennial report covering two years.
Does Missouri tax a founder’s gain when the company is sold?
From tax year 2025, Missouri lets individuals subtract 100% of the capital gains on their federal return, short- and long-term. A Missouri-resident founder selling shares pays no Missouri income tax on the gain whether or not it qualifies as QSBS under IRC §1202. Corporations do not get the same treatment until Missouri’s top individual rate falls to 4.5%.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- Missouri Department of Revenue — Corporate Income Tax
- Missouri Department of Revenue — Employer’s Tax Guide (Form 4282, rev. 03-2026)
- Missouri Department of Revenue — Remote Seller and Marketplace Facilitator FAQs
- Missouri Department of Revenue — Use Tax FAQs
- Missouri Department of Revenue — 1099 Filing Guidelines
- Missouri Department of Revenue — Reporting Miscellaneous Income
- Missouri Department of Revenue — Capital gains subtraction (HB 594) announcement
- Missouri Division of Employment Security — Employer Tax Rates
- Missouri Department of Labor — Minimum Wage
- Missouri House — HB 567 (2025)
- Missouri Department of Social Services — New Hire Reporting
- Missouri Secretary of State — Schedule of Fees and Charges
- Missouri Secretary of State — Application for Certificate of Authority (Foreign For-Profit Corporation)
- Missouri Secretary of State — Other Filings Required of General Business Corporations
- Revised Statutes of Missouri — Section 620.1039 (qualified research expense credit)
- City of Kansas City, Missouri — Tax Form Descriptions
- City of St. Louis Collector of Revenue — Employer Withholding and Payroll Expense Tax
- Missouri State Treasurer — Unclaimed Property (holder reporting)
- NAUPA — Missouri reporting profile
- Missouri Department of Revenue — Form MO-1120 General Instructions (2025)
- Missouri Department of Revenue — Letter Ruling LR 8250 (software as a service, 12 CSR 10-109.050)
- Missouri Department of Revenue — Maintain Sales/Use Tax (filing frequency)
- Revised Statutes of Missouri — Section 144.605 (vendor’s use tax, economic nexus)
- Revised Statutes of Missouri — Section 144.655 (use tax returns; $2,000 filing threshold)
- Revised Statutes of Missouri — Section 351.120 (corporate registration report)
- Revised Statutes of Missouri — Section 351.125 (registration report fees and late fees)
- Revised Statutes of Missouri — Section 351.122 (biennial registration report option)
- Missouri Division of Workers’ Compensation — Insurance requirements for employers
- Office of Missouri Governor — Amendments placed on the August 4, 2026 primary ballot
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.