Frequently Asked Questions
+
Corporations
+
Incorporators
+
Who may serve as an incorporator for a corporation?
A corporation may have one or more incorporators who must be a "natural person"
and at least 18 years old. The incorporator or incorporators sign and
deliver the articles of incorporation to the Secretary of State.
+
Is the incorporator the owner of the corporation?
Not necessarily. An incorporator does not have to be a shareholder
of the corporation being incorporated, nor is the incorporator required
to become a shareholder in the future.
+
Can I amend the incorporator?
No. An amendment to the articles of incorporation may not change or modify
the incorporator or the incorporator's address; that information is maintained
forever and reflects the historical facts concerning who created the entity.
+
Who signs the articles of incorporation?
The incorporators sign the articles of incorporation; the incorporators do
not have to be owners or shareholders.
+
Shares/Shareholders
+
How many shares should my corporation issue?
The numbers of authorized shares a corporation will have to issue is left
to the discretion of the incorporators; 30,000 shares are the most that
may be authorized for the minimum incorporation fee of $58. If a
corporation discovers that it needs to issue more shares of stock than
are authorized, it may amend its articles to authorize additional shares.
+
What are "classes" of stock?
A corporation may issue its stock in one or more classes, and each class
will have distinct characteristics. Some corporations have preferred
stock, which traditionally means that holders of such stock have a
preference or priority in respect to dividends over holders of common
stock. Classes of stock enable a corporation to give certain benefits
to certain shareholders which are different than those afforded others.
+
Can the Secretary of State tell me who the shareholders are of a corporation are?
No. The Secretary of State does not maintain or have the authority to
require disclosure of information on the identity or holdings of shareholders
of any corporation.
+
May a corporation have only one shareholder?
Yes. A single-shareholder corporation is permissible under Missouri law.
+
May a corporation have only one shareholder?
Yes. A single-shareholder corporation is permissible under Missouri law.
+
General
+
What should I list as my corporation's duration?
A corporation's duration is by default perpetual, though incorporators may
choose a certain numbers of years for which it is to continue. If a
corporation's duration is set to expire after a certain number of years,
the Secretary of State may dissolve the corporation after the expiration
date; upon dissolution the corporation may no longer carry on its
regular business.
+
What should I list as my corporation's purpose in the articles of incorporation?
Most corporations list the specific business or activity in which they
will engage to make a profit. For instance, a corporation which
will make and sell lemonade might list as its purpose "to produce,
market and sell lemonade." In addition, many corporations also
add a general or catchall purpose so that they may expand or alter
their activities; such a general purpose might state "The corporation
is formed to conduct and transact all lawful business activities allowed
under the laws of the State of Missouri." A specific purpose, a
general purpose, or a combination of the two is acceptable.
+
Should I file my corporation's bylaws, minutes and/or stock certificates
with the Secretary of State?
No. The articles of incorporation are the only creation document filed
with the Secretary of State. Bylaws, copies of minutes of any meetings,
stock certificates, shareholders' agreements, and other internal corporate
documents are not filed with, and will not be accepted by, the Secretary
of State.
+
Can I change the due date for my corporation's annual report?
No. Missouri law states that an annual report is due in the
month in which a corporation incorporated or qualified to do
business. In the past, corporations were allowed to change their
annual report due date, but laws passed by the Missouri legislature in
2004 eliminated that option.
+
Can I change the due date for my corporation's annual report?
No. Missouri law states that an annual report is due in the
month in which a corporation incorporated or qualified to do
business. In the past, corporations were allowed to change their
annual report due date, but laws passed by the Missouri legislature in
2004 eliminated that option.
+
Dissolution
+
What is administrative dissolution?
When a corporation fails to timely file an annual report, fails to
maintain a registered agent, its duration expires or in several other
situations, the Secretary of State may administratively dissolve that
corporation. The Secretary's authority to do so is granted by
statute, and upon dissolution, a corporation may no longer carry on its
business other than to wind up, liquidate and pay off its
creditors. A corporation may apply to have an administrative
dissolution rescinded, and become reinstated, by requesting a "rescission
packet" from the Secretary of State and complying with the requirements set
forth in the packet.
+
Can an administrative dissolution be repealed or undone?
Yes. A corporation can have an administrative dissolution rescinded, and
become reinstated, by filing an application, submitting a tax clearance letter
and paying fees and penalties. You may place an order to have reinstatement
forms mailed to you. The request needs to include the name of the
corporation, its charter number and a return address. If you want the
forms express mailed back to you, you must include your express mail account
number, a telephone number and a physical address. You can e-mail a
request to rescissions@sos.mo.gov;
fax a request to (573) 751-5841; or mail a request to Corporations Division,
PO Box 778, Jefferson City, MO 65102.
+
Do I need a tax clearance letter to be reinstated after
an administrative dissolution, and where do I get one?
Yes. A tax clearance letter from the Department of Revenue is required to
be submitted to the Secretary of State in order to be reinstated after administrative
dissolution. The tax clearance letter from the Department of Revenue must
state that the corporation has no taxes due and owing. To obtain a tax clearance
letter, you should complete a Department of Revenue Form 943 Request for Tax Clearance
Letter and submit it to the Department of Revenue as indicated on the form. An
application for reinstatement should not be submitted to the Secretary of State
unless it is accompanied by a valid tax clearance letter.
+
Close Corporations
+
What is a close corporation?
A statutory close corporation is characterized by its traditionally small size,
its consolidated management structure, and the statutory restrictions on the
transfer of its shares. There are approximately 6,000 close corporations
currently existing in Missouri. A statutory close corporation's shareholders
generally may not transfer their shares of stock without allowing the corporation's
other shareholders a right of first refusal and the corporation may operate without
a board of directors and in some instances without bylaws. The close corporation
election is made in the entity's articles of incorporation.
+
Professional Corporations
+
What is a professional corporation?
A professional corporation is organized to carryout one or more professional
services, and the shareholders of the professional corporation must be
licensed or authorized to practice a certain profession, which includes
accountants, architects, engineers, attorneys, dentists, physicians,
veterinarians, real estate salespeople and registered nurses. The
articles of incorporation filed to form a professional corporation must be
accompanied by a certificate of the licensing authority of the subject
profession. Professional corporations are managed in a manner similar
to general corporations, though all directors and officers of a professional
corporation, other than the secretary, must be qualified persons with respect
to the underlying profession of the entity. The shares of a professional
corporation may only be owned by similarly qualified persons, or by
partnerships, other professional corporations or limited liability companies,
which are wholly owned by other licensed individuals.
+
Nonprofit Corporations
+
Do nonprofit corporations have shareholders?
No. Nonprofit corporations do not have shareholders. No one "owns" a
nonprofit corporation and the law prohibits distributions of the nonprofit
corporation's assets or income to individuals.
+
What are "members" of a nonprofit corporation?
A nonprofit corporation may, but is not required to, have members.
"Member," as defined by law, means any person who has the right to vote
upon the election of directors of a nonprofit corporation. If a nonprofit
corporation is to have members such feature must be mentioned in the
corporation's bylaws or articles. Members do not personally own the
nonprofit corporation or have a financial stake therein, and the
corporation's income cannot be distributed to the members.
+
What is a distribution clause in a nonprofit corporation's articles of incorporation?
A distribution clause is the section in nonprofit articles of incorporation
that describes how the corporation's assets will be distributed upon
dissolution. A nonprofit corporation will often identify another nonprofit
corporation as the recipient of its assets upon dissolution.
+
Limited Liability Companies
+
What should I list as my company's "purpose" in the articles of organization?
You may list a specific purpose directly related to your company's
business or endeavor, and you may supplement that with, or solely state,
that the company's business is to transact any or all lawful business for
which a limited liability company may be organized under the laws of
the State of Missouri.
+
Should my limited liability company be managed by a manager or a member?
All limited liability companies must indicate in their articles of
organization whether the entity will be manager-managed or
member-managed. This election determines who will manage the affairs
of the company, and who will have the authority to bind the company.
If a limited liability company is to be member-managed, each member has
the authority to be involved in management, and to bind the company.
The company's operating agreement may restrict or place conditions on
such management in any manner the members desire. If a limited liability
company is manager-managed, the authority to manage the company and
create obligations for it is vested in one or more managers, who are
appointed by the members or designated in the operating agreement.
+
Must a manager be a member?
No. Missouri law does not require a manager to also be a member of
the limited liability company.
+
What should I state as the duration of my limited liability company?
A limited liability company may exist as long as the organizers desire,
and may exist perpetually. The organizers may determine to limit
a limited liability company's existence by providing for its dissolution
upon a certain date or after a certain number of years. The organizers
may also determine to provide for a limited liability company's dissolution
upon the occurrence of a certain event.
+
Who can be an organizer?
Any person, whether or not they are or will be a member or manager,
may serve as an organizer and sign and file articles of organization
with the Secretary of State.
+
Should I file my limited liability company's operating agreement
with the Secretary of State?
No. The articles of organization document is the only creation
document filed with the Secretary of State, and the Secretary of
State will not accept an operating agreement for filing.
+
Who may sign amendments or other documents filed with the Secretary of
State after a limited liability company is organized?
Limited liability company documents filed with Secretary of State are
generally to be signed by an "authorized person," which is the manager
of the limited liability company or, if member-managed, by a member.
