Setting Up a Manufacturing Relationship in Missouri

In Missouri, you can choose from several business structures including sole proprietorship, partnership, limited liability company (LLC), or corporation. Most manufacturing businesses opt for an LLC or corporation due to liability protection. Missouri requires registration with the Secretary of State for LLCs and corporations, with filing fees ranging from $50-105. Consider consulting with a business attorney to determine which structure best suits your specific manufacturing operation, tax situation, and growth plans.

Manufacturing businesses in Missouri typically require several permits and licenses, including: 1) Business license from your local city/county, 2) Missouri Department of Revenue sales tax license if selling products, 3) Environmental permits from Missouri Department of Natural Resources if your operations involve emissions, waste disposal, or water discharge, 4) Specialized permits depending on your product (e.g., food manufacturing requires Department of Health permits), and 5) Federal permits for certain regulated industries. Contact the Missouri Department of Economic Development for guidance specific to your manufacturing type.

Missouri manufacturers must comply with state environmental regulations administered by the Missouri Department of Natural Resources (MDNR). These include air quality permits for operations that emit pollutants, wastewater discharge permits, hazardous waste management requirements, and solid waste disposal regulations. Missouri follows federal EPA guidelines but may have additional state-specific requirements. New manufacturers should conduct an environmental impact assessment before beginning operations and may need to implement specific control technologies. Non-compliance can result in significant fines and potential shutdown of operations.

Missouri's labor laws require manufacturers to pay at least the state minimum wage ($12.30/hour in 2023), provide workers' compensation insurance, and comply with workplace safety regulations. Missouri is a 'right-to-work' state, meaning employees cannot be required to join a union as a condition of employment. The state follows federal FLSA overtime requirements (time-and-a-half for hours worked beyond 40 per week). Manufacturers must also comply with OSHA safety standards and conduct regular safety training. For businesses with 50+ employees, federal FMLA requirements for unpaid leave also apply.

Missouri offers several tax incentives for manufacturers, including: 1) Missouri Works Program, providing withholding tax credits for job creation, 2) Manufacturing Infrastructure Investment tax credits for expanding or improving facilities, 3) Sales tax exemptions on machinery and equipment used in manufacturing, 4) Chapter 100 Industrial Development Bonds allowing property tax abatement, 5) Enhanced Enterprise Zone tax credits for businesses in designated areas, and 6) Customized job training programs. Contact the Missouri Department of Economic Development to determine eligibility and application procedures for these incentives.

To protect intellectual property in a Missouri manufacturing relationship: 1) Use comprehensive written contracts with confidentiality provisions, non-disclosure agreements, and non-compete clauses (enforceable in Missouri if reasonable in scope), 2) Register patents, trademarks, and copyrights at the federal level through the USPTO and Copyright Office, 3) Implement physical security measures at manufacturing facilities, 4) Limit access to proprietary information on a need-to-know basis, and 5) Consider trade secret protection under Missouri's Uniform Trade Secrets Act. Have all contracts reviewed by an attorney familiar with Missouri intellectual property law.

A comprehensive Missouri manufacturing agreement should include: 1) Detailed product specifications and quality standards, 2) Production timelines and delivery schedules, 3) Pricing terms and payment conditions, 4) Intellectual property ownership and confidentiality provisions, 5) Warranties and indemnification clauses, 6) Termination conditions and notice requirements, 7) Dispute resolution procedures (Missouri courts generally enforce arbitration clauses), 8) Compliance with applicable Missouri and federal laws, 9) Insurance requirements, and 10) Force majeure provisions. Have the agreement reviewed by a Missouri-licensed attorney familiar with manufacturing law to ensure it's enforceable under state law.

Missouri product liability laws hold manufacturers responsible for injuries caused by defective products under theories of strict liability, negligence, and breach of warranty. Missouri follows a comparative fault system, meaning damages may be reduced by the percentage of fault attributed to the plaintiff. The state has a 5-year statute of limitations for product liability claims and recognizes the 'state of the art' defense, which can protect manufacturers who used the best available technology at the time of production. To minimize liability, implement rigorous quality control, maintain detailed production records, and carry adequate product liability insurance.

Manufacturing businesses in Missouri typically need: 1) General liability insurance to cover third-party injuries and property damage, 2) Workers' compensation insurance (mandatory in Missouri for businesses with five or more employees), 3) Property insurance for buildings, equipment, and inventory, 4) Product liability insurance to protect against claims from defective products, 5) Business interruption insurance, 6) Commercial auto insurance for company vehicles, and 7) Cyber liability insurance if you store sensitive data. Work with an insurance broker familiar with Missouri manufacturing to ensure adequate coverage levels and compliance with state requirements.