State guide · Missouri · 2026 rules

S corporation in Missouri: what the election changes

Missouri puts no state tax on an S corporation. The state adds unemployment tax on your salary, and Kansas City and St. Louis tax the corporation itself.

Updated October 24, 202617 official sources

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You’ll need: last year’s Schedule C (line 31) and the W-2 from any job you also hold. Everything else starts at a typical value you can change.

State where the business is Each state treats the election differently. The check shows only the questions that matter there.

Net profit for the year, before paying yourself Your business's profit after expenses. Money you take out for yourself does not lower it.

Where do I find this?

Schedule C, line 31 (“Net profit or (loss)”) on last year’s return.

For this year: sales minus business expenses so far, scaled to a full year. Owner draws are not an expense.

Salary you would pay yourself as an S corporation What you would pay yourself through payroll. The IRS expects a reasonable salary for the work you do.

Where do I find this?

No form shows this yet: you choose it. It should be about what you would pay someone else to do your work.

The salary finder just below shows what employees in your job earn in your state or metro area. What the IRS looks at.

Salary finder: what people in your job earn (BLS)

Your job Pick the job closest to what you do most of the week.

Area Pick your metro area if it is listed. Pay varies by area.

Another job I also earn W-2 wages from a job outside this business

Typical values: change them if you know yours

Payroll service, per year typical value Published one-person prices: $492 to $684 a year (October 2026).

Where do I find this?

Your payroll provider’s price page or quote, for one employee: you. Published prices compared.

Extra tax-prep cost for the S-corp return typical value A survey average: the fee for Form 1120-S minus the fee for Schedule C (2020 fees).

Where do I find this?

Ask your preparer what a Form 1120-S (the S corporation’s own return) would cost, then subtract what you pay now for Schedule C.

Your top federal income tax rate Not sure? Keep 22%. It changes line 5 only.

Where do I find this?

Your taxable income is on Form 1040, line 15. Find the rate for that income and your filing status in the IRS rates and brackets table.

Filing status Changes the result only above $200,000 of earnings ($250,000 if married filing jointly, $125,000 if married filing separately).

Where do I find this?

The box checked under Filing Status at the top of your Form 1040.

Choose a state and enter your profit and salary to see the comparison.

The state

Missouri follows the federal S election; there is no separate state form. An S corporation pays no Missouri income tax and files Form MO-1120S. Missouri’s corporate franchise tax ended for tax years beginning on or after January 1, 2016.

You pay Missouri individual income tax on the business income either way; the top rate is 4.7% for 2026. An LLC that elects stays an LLC, so the election changes no Secretary of State filing.

Unemployment tax on your salary

Unemployment insurance: 2.376% for a new employer on the first $9,000 of wages in 2026. Missouri has no exclusion for corporate officers, and an S corporation officer’s wages are covered.

Kansas City

Today you pay the 1% profits tax on the business’s net profit. Kansas City does not treat an S corporation as a pass-through. After the election the S corporation files its own profits return and pays 1% on its net profit after your salary. Your salary pays the 1% earnings tax through withholding. The total changes little; the filings and withholding change.

St. Louis (City)

Today you file an E-2 return and pay 1% of the business’s earnings. After the election the S corporation files an E-4 return and pays 1% of its earnings, and withholds the 1% earnings tax from your salary.

The S corporation also pays the 0.5% payroll expense tax on your salary earned in the city. The tax has no small-employer exemption, and a sole proprietor with no employees owes none, so it is a new cost.

The optional pass-through entity tax

An S corporation can elect Missouri’s pass-through entity tax at the top individual rate, 4.7%, on Form MO-PTE. You take a credit for your share of the tax. The calculator leaves it out.

Worked examples

A single-member LLC owner, single filer, 22% federal bracket, default payroll and return costs. The figure is total tax and added costs as an S corporation compared with staying as you are.

Profit / salary	No local tax	Kansas City	St. Louis (City)
$80,000 / $45,000	$759 lower	$862 lower	$678 lower
$120,000 / $60,000	$3,160 lower	$3,316 lower	$3,072 lower
$200,000 / $90,000	$7,940 lower	$8,204 lower	$7,837 lower

Starting payroll in Missouri

Register for state income tax withholding and unemployment insurance in one online process with the Missouri Department of Revenue and Division of Employment Security. In Kansas City and St. Louis you also withhold the 1% earnings tax.

New hire paperwork for Missouri

Other states

All state guides and the map

Sources

Federal figures: IRS Publication 15 (2026), Schedule SE and Form 2553 instructions. Every figure was read on an official page and checked a second time. Checked October 24, 2026. How we check facts.

An estimate from public rules, not tax advice.

Ready to elect? See the Form 2553 steps.

Electing S corp status