Making money is easier in Missouri, because taxes in Missouri and business costs don’t eat up all the profits.
Take taxes, for example: Missouri is the only state that allows companies to choose their own income allocation formula (three-factor or single-factor), whichever results in the lesser corporate income tax liability. In short, Missouri will not penalize you for locating within its borders!
This welcome also extends to the income tax rate. At 6.25 percent, Missouri’s rate is already competitive. But, by allowing 50 percent of federal income tax to be deducted from taxable income, Missouri is able to offer companies an effective tax rate of 5.2 percent.
The franchise tax is another example of Missouri’s business friendly environment. The tax was completely eliminated in 2016.