The Show Me State has a GDP (gross domestic product) of $287.66 billion and a per capita personal income of $30,810. Some of the state’s high-earning industries include aerospace, transportation equipment, food processing, chemicals, printing/publishing, electrical equipment, light manufacturing, financial services, and beer.
The largest beer-producing plant in the country, owned by Anheuser-Busch, is located in Missouri. The three large Fortune 500 corporations also headquartered in the state are manufacturer Emerson Electric, pharmaceutical distributor Express Scripts Holding, and health care insurer, Centene.
Missouri also has a vibrant entrepreneurial scene. Small business (SMB) owners in Missouri cite the low cost of living, ample networking opportunities, and a business-friendly environment as advantages of doing business in the state. Even obstacles like a low unemployment rate (3.2% in 2019) are indicators of a healthy economy.
Here are some fascinating statistics about small businesses in the Cave State:
- There are 530,380 small businesses in Missouri that account for 99.4% of all businesses in the state.
- From 2015 to 2019, new and young businesses with fewer than 20 employees created 196,808 jobs, accounting for 80% of all new jobs in the state.
- The state’s average salary is lower than $40,000, but the average wage at technology start-ups eclipses $84,000 in year one and gets to $94,000 by year five.
- According to Sperling’s Best Places cost of living index, Missouri ranks 85.9 out of a US average of 100. This means that the costs of living and housing are lower than the US average. Cheaper housing translates to lower employee compensation and, therefore, business owners can save on overhead costs.
- There are 5,283 small business exporters in Missouri that account for 25.5% of the state’s $13.7 billion worth of export revenue.
- Small businesses sign off the checks for a total of 1.2 million employees who represent 46.2% of Missouri’s workforce.
- Missouri had 5.9% more applications filed to start new businesses in the first 40 weeks of 2020 than it had in 2019’s first 40 weeks, according to the US Census Bureau.
- State law requires that every new Missouri LLC designate a Missouri registered agent that will be available during regular business hours at a physical address within the state.
- According to data from womply.com, the number of small businesses in Missouri that were open for business by late September 2020 was 19.5% lower than January 2020.
- To form an LLC (limited liability company) in Missouri, you need to file your Articles of Incorporation with the Secretary of State’s office. The filing fee is $50 for online filing and $105 when filing by mail.
- Self-employed individuals running their own incorporated businesses have an average median income of $47,000, which is $21,000 more than those who run unincorporated businesses.
- Corporations in Missouri are subject to a flat corporate income tax of 6.25%.
- To form a corporation, you are required to file Articles of Incorporation with the Secretary of State. The filing fee is $58, provided $30,000 or less in authorized capital.
- LLCs are not subject to income tax to either the federal or the state government. However, the income from the LLC is passed down to individual shareholders who are then taxed on state and federal levels.
- Three industries have the highest number of small businesses:
- Other services (except public administration)—80,127
- Construction—64,172
- Professional, scientific, and technical services—60,043
Sources:
- US SBA – State Small Business Profiles
- Missouri Department of Economic Development – 2018 Business Formations
- University of Missouri
- Nolo
- MO Sourcelink
