Missouri · LLC tax election
Missouri LLC: S corp or C corp?
Missouri's flat 4% corporate rate is low enough that the S versus C question is narrower than in most states.
See Missouri at a glanceShort answer
Missouri's C corporation income tax is a flat 4%. An S corporation is not subject to Missouri's corporation income tax, and it files Form MO-1120S while its shareholders pay Missouri tax on their share. So the S election skips the 4% layer.
Last checked .Missouri at a glance
What is different about Missouri?
Missouri sets one corporate rate: 4% for tax years beginning on or after January 1, 2020, applied to federal taxable income. That is a low number, so a C corporation here does not carry the hit it would in a state with a rate near 9%. The comparison that matters is the second layer. A C corporation pays 4% at the company, and the dividend you take out is taxed again on your Missouri return. An S corporation is not subject to Missouri's corporation income tax, so the profit goes straight to your return. The S return, Form MO-1120S, is due on the 15th day of the fourth month after the tax year ends.
Does Missouri recognize a federal S corp election?
Missouri follows the federal S election. By statute an S corporation is not subject to Missouri's corporation income tax. It files Form MO-1120S, with a copy of its federal Form 1120S and the Schedule K-1s, if it has a Missouri-resident shareholder or any Missouri-source income. There is no separate Missouri election form. The return is due on the 15th day of the fourth month after the tax year ends.
Does my LLC need a separate Missouri election or form?
Missouri has no separate S election; an S corporation that files a federal Form 1120S files Form MO-1120S if it has a Missouri-resident shareholder or Missouri-source income.2
What does Missouri tax an S corp or LLC at the entity level?
- Missouri does not tax an S corporation at the entity level.3
Is a Missouri LLC taxed as a C corp ever better?
A Missouri C corporation pays a flat 4% on income starting from federal taxable income, for tax years beginning on or after January 1, 2020. There are no brackets and we verified no minimum tax. Dividends are taxed again on your personal return.
Run your Missouri numbers
The S election pays in Missouri when you want to skip the 4% company layer and the second tax on dividends. The corporate rate is low, so the saving is smaller than in states with higher rates.
Result
How much would a Missouri LLC owner save as an S corp?
| Taxed as | At $80,000 profit | At $150,000 profit |
|---|---|---|
| Default LLC | $11,304self-employment tax $11,304 | $21,194self-employment tax $21,194 |
| S corp | $9,344payroll tax $7,344 + Missouri S corp tax $0 + $2,000 payroll and prep | $15,770payroll tax $13,770 + Missouri S corp tax $0 + $2,000 payroll and prep |
| C corp | $17,075payroll tax $7,344 + Missouri tax $1,280 + federal $6,451 + $2,000 payroll and prep | $30,266payroll tax $13,770 + Missouri tax $2,400 + federal $12,096 + $2,000 payroll and prep |
Assumes a 60% salary7 and a single filer. Income tax is left out. C corp dividends are taxed again. We could not confirm on an official Missouri source whether a default LLC pays an entity-level tax, so none is shown.
When is the Form 2553 deadline for a Missouri LLC, and what if I miss it?
Late relief: federal steps, deadline guide.
What to do next
How to start one, or have us form it from $123.75.
Registered agent $74.25/yr, annual report.
LLC vs S corp guide, election deadline, Form 2553 filed for $165.
More on Missouri: How to start a Missouri LLC · How to start a Missouri corporation · Missouri LLC cost · Missouri annual report · Annual report late fees by state
File the S-Corp Election for your Missouri LLC
We file Form 2553 for a flat $165.
Get the S-Corp ElectionCommon questions
What is the Missouri corporate income tax rate?
4%, flat, for tax years beginning on or after January 1, 2020. It starts with federal taxable income and is applied with no brackets.
Does Missouri tax S corporation income?
Not at the company level. The statute says an S corporation is not subject to Missouri's corporation income tax. The profit is taxed on the shareholders' Missouri returns.
What form does a Missouri S corporation file?
Form MO-1120S, if it files a federal Form 1120S and has a Missouri-resident shareholder or Missouri-source income. Attach the federal return and all Schedule K-1s.
Should my Missouri LLC choose C corporation status?
Probably only if you plan to keep profit in the company. A C corporation pays 4%, and any dividend is taxed again to you. If you take profit out each year, the pass-through route avoids the company layer.
Sources 8 links, checked Nov 6, 2026
- Missouri follows the federal S election: an S corporation is not subject to Missouri's corporation income tax, and its shareholders are taxed instead. revisor.mo.gov, checked Nov 6, 2026
- Missouri has no separate S election; an S corporation that files a federal Form 1120S files Form MO-1120S if it has a Missouri-resident shareholder or Missouri-source income. dor.mo.gov, checked Nov 6, 2026
- Missouri does not tax an S corporation at the entity level. revisor.mo.gov, checked Nov 6, 2026
- Missouri taxes C corporation income at a flat 4%, starting from federal taxable income. dor.mo.gov, checked Nov 6, 2026
- Missouri taxes the income of its residents, so S corporation profit is taxed on the owner's Missouri return. revisor.mo.gov, checked Nov 6, 2026
- IRS: Form 1120 instructions, C corp rate irs.gov, checked Nov 6, 2026
- IRS: S corp reasonable compensation irs.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 6, 2026.
This page explains the rules; it is not tax advice. Run your numbers with a CPA or enrolled agent before you elect.
Last verified Nov 6, 2026.