Starting a business in Missouri offers exciting opportunities—but one of the most critical decisions you’ll make early on is selecting the right type of business entity. The structure you choose will affect your liability, taxes, and how your business operates day to day. At The Law Offices of Lance Loewenstein, P.C., we guide Kansas City entrepreneurs through the legal complexities of this choice, helping you set a solid foundation for long-term success.

Types of Business Entities in Missouri



Sole Proprietorship

A sole proprietorship is the simplest business structure. It requires no formal filing with the Missouri Secretary of State and is easy to manage. However, the owner is personally liable for all business debts and obligations.

Best for: Low-risk businesses with a single owner who wants minimal formalities.

General Partnership

In a general partnership, two or more individuals share profits, losses, and liabilities. Like a sole proprietorship, there’s no requirement to file formation documents, though a partnership agreement is highly recommended.

Best for: Joint ventures with clear, mutual trust and aligned responsibilities.

Limited Liability Company (LLC)

An LLC offers liability protection similar to a corporation but with more flexibility and fewer formal requirements. Missouri LLCs can be formed by filing Articles of Organization and drafting an Operating Agreement.

Best for: Small to medium-sized businesses seeking liability protection and pass-through taxation.

Corporation (C Corp or S Corp)

Corporations provide the strongest liability protection. A C Corporation is taxed separately from its owners, while an S Corporation allows profits and losses to pass through to shareholders’ personal tax returns. Both require Articles of Incorporation and compliance with corporate formalities.

Best for: Businesses looking to raise capital or grow significantly, especially those planning to attract investors.

Limited Partnership (LP) & Limited Liability Partnership (LLP)

These are less common but offer tailored solutions. An LP includes general and limited partners, while an LLP shields all partners from liability. Both require registration with the state.

Best for: Professional services or investment projects with uneven partner roles.

Factors to Consider When Choosing a Business Entity

• Liability Protection: How much personal risk are you willing to accept?
• Tax Treatment: Do you want pass-through taxation or corporate taxation?
• Management Structure: Will you run the business alone or with partners?
• Compliance Requirements: Are you prepared for the paperwork and regulatory requirements of corporations?
• Future Goals: Do you plan to raise money, expand nationally, or stay small?

Get Legal Guidance Tailored to Your Business

Every entrepreneur’s needs are different. At The Law Offices of Lance Loewenstein, P.C., we help Missouri business owners choose the right entity based on legal risk, tax implications, and future goals. Serving the Kansas City area, we’re here to guide you from start-up through long-term growth.