Foreign Entity & Remote Worker Guide

What is a Certificate of Good Standing?

A Certificate of Good Standing, also known as a Certificate of Existence or a Certificate of Authorization, is a document issued by a state government. It confirms that a business entity is legally registered with the state, has paid all its state taxes and fees, and is authorized to do business within the state.

How can I obtain a Certificate of Good Standing from my home state?

The process to obtain a certificate of good standing will vary depending on which state is the home state for your business. Here are some generic instructions that are likely to apply.

1. Verify Your Business is in Good Standing: Before you can apply for a Certificate of Good Standing, your business must meet all its statutory requirements. This includes being up-to-date on all state filings, fees, and taxes. Ensure you're compliant with any annual report filings, franchise taxes, or other obligations to the state.
2. Contact Your State's Business Department: Each state has its own department that handles business filings and certificates, usually the Secretary of State's office, the Department of State, or the Department of Commerce. You may find this information on the state government's website. Some states allow online, mail, or in-person requests.
3. Fill Out the Application: You will need to provide basic business information, such as the business name, business entity (e.g., LLC, Corporation, Nonprofit), and sometimes the date of incorporation and the state-assigned entity or ID number. Some states might require additional information.
4. Submit the Application: After filling out the application form, submit it according to the instructions provided. This could be through mail, online, or in person, depending on your state.
5. Pay the Fee: There is typically a fee for obtaining a Certificate of Good Standing. The cost varies from state to state, but it's typically between $5 and $50. Ensure the fee is paid in full for your request to be processed.
6. Wait for the Certificate: After your request is processed, your state's business department will issue a Certificate of Good Standing. The delivery method will depend on how you applied and the options available in your state. Some states offer a digital copy that you can download and print, while others will mail you a physical certificate.

What is an Employer Identification Number?

An Employer Identification Number, or EIN, is like a Social Security Number, but for your business. You might also see an EIN referred to as a Federal Tax Identification Number, FTIN or TIN. It helps both you and those you do business with identify your business as a unique entity.

Why does my business need an EIN?

US businesses require an EIN for a variety of reasons. An EIN helps the Internal Revenue Service, or IRS, identify your business quickly and easily. If you want to do business with the City or any other governmental agency, you will need an EIN to complete various forms and applications.

How do I obtain an EIN?

EINs are easy to obtain and entirely free. They are issued by the IRS. The application to obtain an EIN can be completed online. Simply visit the IRS Website - Employer ID Numbers and click “Apply for an EIN Online."

You can also apply for an EIN via fax, mail or phone, but the process will generally take a little longer. The directions for each of these methods can be found on this page.

How long does it take to obtain an EIN?

The online application to obtain an EIN takes a matter of minutes. After you have completed the application successfully, an EIN will be issued to you right away. However, please note that the online EIN service is only available on weekdays between 6 AM and 9 PM Central Time.

Applying for an EIN via fax takes about a week, while applying by mail takes between four to five weeks.

If I already have an EIN number, where can I find it?

To obtain an IRS EIN Number, follow these steps:

1. Call 1-800-829-4933, the IRS helpline for EIN Number requests.
2. The first prompt will ask about your preferred language. Select the appropriate option.
3. At the second prompt, choose option #3 to speak to a representative directly.
4. Inform the representative that you need to obtain an EIN Number and provide the necessary details and updates for your business.
5. The representative will assist you with the process and can either fax a copy of your EIN number directly or mail it to you.

Disclaimer: You should treat your EIN like you treat your social security number, i.e., securely. Only provide your EIN to trusted sources like government agencies, banks, etc, and only when necessary. 

What does it mean to register my business?

Registering with the Missouri Secretary of State is an important step for certain types of businesses. Sole proprietorships operating under their legal personal name can skip this step unless your business is operating under a fictitious name. You will need to do this if you choose to work with the State of Missouri.

Why do I need to register my business?

Missouri law requires any person or business entity that transacts business in the state under a name other than their own “true name” to register with the Secretary of State. If your business structure operates under anything other than your legal personal name, you will need to register with the Missouri Secretary of State.

Registration exception for out-of-state businesses. If a foreign entity will be doing business in the State of Missouri for less than 30 days, there is no requirement to register as a foreign entity with the Secretary of State.

How do I register my business?

The Missouri Secretary of State allows most types of businesses to register online through their website. The following steps outline the basic process to register online:

1. Login or create an account with the Business Registration Online Portal.
2. Begin a "Foreign Entity Registration"
3. Complete the require forms online and upload a copy of your home-state Certificate of Good Standing.
4. Submit your application and await confirmation of your registration.

Disclaimer: After you register with the Secretary of State, for-profit Document Service companies may attempt to contact you and offer to print your documents for a substantial fee. This step is not necessary.

How long will the process take?

Online Foreign Entity registration typically takes around 2 weeks to process. If you prefer a quicker processing time, there are two options:

1. Submit your registration in person at the MO Secretary of State Office's Kansas City Satellite Office located at 615 E 13th St. #513.
2. Alternatively, you can submit your registration online and follow up in person at the satellite office. This is likely to result in same-day processing.

What is Form RD-100?

Form RD-100 is a business registration application required for all new businesses operating within Kansas City, Missouri. This form is also used to update the city about any changes in business, such as contact information, business type, or business activities.

What is Form RD-105?

Form RD-105 is an annual business license application form required by businesses operating in Kansas City, Missouri. It's mandatory to file this form electronically, and it must be renewed annually to keep the business license active. Failure to file this form can lead to penalties.

How do I complete and file Form RD-100 and Form RD-105?

1. Obtain necessary clearances: Businesses located in Kansas City, Missouri must first obtain a Zoning Clearance prior to the issuance of a business license. Other clearances may also be required depending on the business type.
   Zoning Clearance not required for remote workers without a physical location.

   If the foreign entity is setting up a physical office or location in Kansas City, MO, then a zoning clearance is required to file Form RD-100. If the business is simply employing a remote worker, they may use their home-state corporate address on form RD-100.

2. Complete Form RD-100: New or first-time Business License filers must complete and submit Form RD-100, Registration Application.
3. Complete page 2 of Form RD-105: New or first-time businesses should complete page 2 of Form RD-105, Business License Tax Estimation, within 60 days of the company's start date.
4. File Online: Forms RD-100 and RD-105 may be filed online at kcmo.gov/quicktax for quick and accurate processing. Remember to attach all required clearances to Form RD-105 and to avoid errors and omissions that may delay the issuance of your business license.
5. Payment and Penalties: Ensure the amount due is paid and be aware of penalty and interest provisions for late filing and payment.

What is an Employer Withholding Account?

Employer Withholding Registration refers to the process an employer undergoes to register with a state department, in this case, Missouri, in order to withhold taxes from an employee's wages. It involves either electronically submitting information via an online portal or completing a paper form (Missouri Tax Registration Application, Form 2643).

Why do I need to Register for an Employer Withholding Account?

Employer Withholding Registration is required because every employer that pays wages to an employee working in Missouri is mandated by law to register with the Department. It allows for the appropriate tracking and deduction of state income taxes from employees' wages, ensuring compliance with tax laws.

How do I register for an Employer Withholding Account?

An employer can register for a withholding account by either registering electronically at mytax.mo.gov/rptp/portal/business/register-new-business or by completing a paper Missouri Tax Registration Application (Form 2643). Once registered, a permanent registration number will be assigned that should be used in all reports and correspondences concerning Missouri income tax withholding. In case of any change in ownership or ownership type, a new application is required, and a new Missouri Tax I.D. Number will be assigned.

What is a Sales Tax License?

A Sales Tax License is a necessary document for any business involved in selling tangible personal property or taxable services such as telephone service and fees paid into places of amusement (including, but not limited to, yoga and fitness centers). Also, a Sales Tax License is required if you're a corporation responsible for filing and paying corporate tax, or if your business has employees and is required to remit withholding tax.

Why does my business need a Sales Tax License?

Your business requires a Sales Tax License to comply with the MO Department of Revenue's regulations. The license is crucial for official identification and for processing various forms and applications necessary for your business operation.

How do I obtain a Sales Tax License?

Obtaining a Sales Tax License is straightforward and can be done online or by mail. To register your business, use the online registration system or submit a Missouri Tax Registration Application (Form 2643).

What if I need help during the application process?

If you have additional questions or concerns regarding the process, you can get in touch with Business Tax Registration. You can contact them by email at businesstaxregister@dor.mo.gov or by phone at 573-751-5860.

What is Form RD-105?

Form RD-105 is an annual business license application form required by businesses operating in Kansas City, Missouri. It's mandatory to file this form electronically, and it must be renewed annually to keep the business license active. Failure to file this form can lead to penalties.

What is Form RD-108?

Form RD-108/108B is a tax return used by a sole proprietor, corporation, partnership, K-1 recipient or other fiduciary to file and pay the earnings tax of one percent due on net profits. Forms RD-108 and RD-108B are required to be filed even if there is a loss.

How do I re-file Forms RD-105 and RD-108?

1. Complete both pages of Form RD-105 in subsequent years: In subsequent tax years, complete and submit both pages of Form RD-105 prior to March 1 of each year the business is in operation. Reconciliation on page 1 is completed first, followed by the Business License Tax Estimation on page 2.
2. File RD-108 annually by April 15 (or file extension) and pay 1% earnings tax on net profits of business.
3. File Online: Forms RD-105 and RD-108 may be filed online at kcmo.gov/quicktax for quick and accurate processing. Remember to attach all required clearances to Form RD-105 and to avoid errors and omissions that may delay the issuance of your business license.
4. Payment and Penalties: Ensure the amount due is paid and be aware of penalty and interest provisions for late filing and payment.