HCSHB2157--BUSINESSENTITIESREGISTEREDINMO
SPONSOR: Falkner
COMMITTEEACTION:Voted"DoPasswithHCS"bytheStanding
CommitteeonGeneralLawsbyavoteof12to0.
ThefollowingisasummaryoftheHouseCommitteeSubstituteforHB
2157.
Thisbillprovidesanylimitedliabilitycompany(LLC)registered
underthelawsofthestatethathasnotelectedtobeclassified
asacorporationunderthefederaltaxcodeandanyScorporation
maymakecontributionstoanycommittee,providedsuchLLCorS
corporationhasbeeninexistenceforatleastoneyearpriorto
thecontribution(Section130.029,RSMo).
ThebillprovidesaresidentSshareholdershallbeeligibleforan
incometaxcreditinanamountequaltotheshareholder'sprorata
shareofanyincometaximposedpursuanttoChapter143onincome
fromsourcesofanotherstateandwhichissubjecttothetax
pursuanttoChapter143butisnotsubjecttotaxintheother
state(Section143.081).
Thisbillestablishesthe"SALTParityAct".
Currently,inlieuofacorporateincometaxonapass-through
entity,shareholdersofsuchpass-throughentityshallpayincome
taxontheshareholder'sproratashareoftheentity'sincome
attributabletoMissouri. Fortaxyearsbeginningonorafter
January1,2023,thisbillallowsthepass-throughentitytoelect
topaythetax,asdescribedinthebill.Thetaxshallbeequal
tothesumofeachmember'sincomeandlossitems,asdescribedin
federallaw,reducedbyadeductionallowedforqualifiedbusiness
income,asdescribedinfederallaw,andmodifiedbycurrent
provisionsofstatelawrelatingtothetaxationofpass-through
entities,withsuchsummultipliedbythehighestrateoftaxin
effectforthestatepersonalincometax
Anonresidentwhoisamember,asdefinedinthebill,shallnotbe
requiredtofileataxreturnforataxyearif,forsuchtaxyear,
theonlyincomederivedfromthisstateforsuchmemberisfromone
ormoreaffectedbusinessentities,asdefinedinthebill,that
haselectedtopaythetaximposedunderthisbill.
EachpartnershipandScorporationshallreporttoeachofits
members,foreachtaxyear,themember'sproratashareofthetax
imposedbythisbill. Eachtaxpayer,includingpart-yearresidents,thatissubjectto
thestatepersonalincometaxshallbeallowedataxcreditifsuch
taxpayerisamemberofanaffectedbusinessentitythatelectsto
paythetaximposedbythisbill.Thetaxcreditshallbeequalto
95%ofthetaxpayer'sproratashareofthetaxpaidunderthis
bill.Suchtaxcreditshallbenonrefundable, butmaybecarried
forwardtosubsequenttaxyears,exceptthatataxcredit
authorizedfortaxespaidtootherstatesshallnotbecarried
forward.
Eachcorporationthatissubjecttothestatecorporateincometax
shallbeallowedataxcreditifsuchcorporationisamemberofan
affectedbusinessentitythatelectstopaythetaximposedbythis
bill.Thetaxcreditshallbeequaltothecorporation'sprorata
shareofthetaxpaidunderthisbill.Suchtaxcreditshallbe
nonrefundable, butmaybecarriedforwardtosubsequenttaxyears.
PartnershipsandScorporationsmayelecttopaythetaximposed
underthisbillbysubmittingaformtobeprovidedbythe
DepartmentofRevenue. Aseparateelectionshallbemadeforeach
taxyear.Suchelectionshallbesignedeitherbyeachmemberof
theelectingentity,orbyanyofficer,manager,ormemberofthe
electingentitywhoisauthorizedtomakesuchelectionandwho
atteststohavingsuchauthorizationunderpenaltyofperjury.
Anaffectedbusinessentityshalldesignateanaffectedbusiness
entityrepresentative forthetaxyeartobillonbehalfofthe
affectedbusinessentityinanyactionrequiredorpermittedtobe
takenbyanaffectedbusinessentitypursuanttothisbill,a
proceedingtoprotesttaxes,anappealtotheAdministrative
HearingCommission,orreviewbythejudiciarywithrespecttosuch
action,andtheaffectedbusinessentity'smembersshallbebound
bythoseactions(Section143.436).
Thebillestablishesrequirementsforeverylimitedliability
company(LLC)organizedorregisteredinthisstate,specifically
relatedtotheinformationstatementthatmustbefiledwiththe
SecretaryofStatebyeachLLC.Thebillallowsforfeestofile
informationstatements,andthefeesvarydependingonwhetherthe
statementsarefiledinpersonoronline.Currently,theSecretary
ofStatechargesandcollects$100forfilingoriginalarticlesof
organizationand$45forfilingoriginalarticlesoforganization
online.Thisbillreducesthoseamountsto$95and$25,
respectively. Thebillalsoallowsfora$10feetoamendand
reinstatearticlesoforganizationonlineortofilearticlesof
terminationoranoticeofwindinguponline.
Thebillestablishesprovisionsforwhenthereispowerto
administratively cancelarticlesoforganizationforanLLCorthe registrationofaforeignLLC,aswellasrecourseforaforeign
LLCthathaditsregistrationcanceled. Thebillalsoestablishes
procedurestorescindanadministrative cancellationandreinstate
theregistrationofaforeignLLC.Thebillalsoincludes
procedurestoreinstateaLLCthaterroneouslyoraccidentally
filedanoticeofwindingupornoticeoftermination(Sections
347.020,347.044,347.179,347.183,347.186,358.460,and358.470).
Thefollowingisasummaryofthepublictestimonyfromthe
committeehearing. Thetestimonywasbasedontheintroduced
versionofthebill.
PROPONENTS: Supporterssaycurrently800,000entitieswithinthe
statearelicensedasLLCs.Thisbillwillensurethecleanupof
manyregisteredbutinactiveLLCswithinthestate.
TestifyingforthebillwereRepresentative Falkner;ArnieC.
Dienoff;andScottR.Clark,OfficeofTheSecretaryofState.
OPPONENTS: Therewasnooppositionvoicedtothecommittee.
Writtentestimonyhasbeensubmittedforthisbill.Thefull
writtentestimonycanbefoundunderTestimonyonthebillpageon
theHousewebsite.