How to Start an LLC in Mississippi: If you’re interested in setting up an LLC in Mississippi, you’ve come to the right place. Having an LLC not only protects your personal assets but also is less complicated than other business structures. Mississippi laws make it easy to establish your LLC in Mississippi. On this page, You’ll find all the steps that must be taken to ensure that your Mississippi LLC has been correctly established. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Mississippi
- After Starting Your Mississippi LLC
- Mississippi Foreign LLC
- Mississippi LLC Formation Review
How to Start an LLC in Mississippi
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection.
If you wish to start an LLC in Mississippi, you mainly have to file your Certificate of Formation with the State and pay a filing fee of $50. There are some more steps to follow to get your LLC established in Mississippi. The following steps explain everything you need to create your LLC in Mississippi in 2022. Let’s get started! It is always recommended to hire a professional LLC formation service in Mississippi to set up your LLC.
Step 1: Decide a Name for Your Mississippi LLC
The very first step while forming an LLC in Mississippi is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.
Mississippi LLC Naming Guidelines
There are a few specific requirements all the LLCs in Mississippi have to follow while naming their Company. Some of the most important requirements are as follows:
- Your business name should be available and no other existing business in Mississippi can have the same name. Perform a name search from the below-mentioned source to be sure your name isn’t taken already.
- “Limited Liability Company”, “LLC”, and “L.L.C.” – any one of these has to be used as a suffix in your business name.
- You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
- Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Mississippi State Government are fulfilled.
- (Optional) It’s better to name your business something for which your desired domain is available.
|Important Links –|
|Mississippi Business Entity Search – Online Search|
Name Reservation Form – Online
Name Availability Standards – Guidelines
Mississippi LLC Name Search – Instructions
Reserve Business Name for Future
If you do not wish to file your LLC right now but want to hold the name you have decided, then you can reserve your LLC name for 180 days. To keep the name, you have to file a name reservation application and pay $25 to reserve your name with the Mississippi Secretary of State.
Doing Business As (DBA) or Trade Name
Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Mississippi Secretary of State by submitting an Application for Fictitious Business Name Registration in Mississippi along with the filing fee of $25.
Recommended: You can do name search, get company logo, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
TailorBrands offer DIY website templates and incredible logo designs. If you plan to get a website then it is wise to have a “.com” domain for your business but these days you can also use other TLDs like “.company”, “.xyz” etc. With TailorBrands, you can get everything you need at an affordable price.
It is not legally mandatory to use the word LLC in your domain name or email. If you want you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
Step 2: Assign a Registered Agent in Mississippi
The second step to forming a Mississippi LLC is to appoint a Registered Agent. A registered agent is a person or business entity that will act or work on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Mississippi. Hence, hiring a competent Mississippi Registered Agent for your LLC is necessary.
Make sure your registered agent is a resident of Mississippi or has a physical street address. Their business address or the principal address should be in Mississippi. Most LLC formation companies also provide registered agent services. Below are two great LLC setup services, even if you buy their cheapest plan (normally $49/year) you also get registered agent service and other services at a reasonable price.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in Mississippi. Some LLC formation services offer standalone Mississippi registered agent services. You can purchase only Registered Agent services from them without purchasing any other LLC formation services.
A person who is above 18 years of age and has a physical address in the state of Mississippi can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One who is responsible for handling all the legal documents.
Yes, you can be your own registered agent if you are a resident of the state of Mississippi and you are above 18 years of age. To become a registered agent you must have the authority to conduct any type of business in Mississippi.
Registered Agent Consent Application
In Mississippi, there is no separate Consent Letter to be produced to the Secretary of State. At the time of change of Registered Agent (or the name or address), the new Registered Agent has to sign the consent letter. It comes with the Application form to Change the Registered Agent. The filing fee of $10 should be paid for it. For more information on the same, read our guide on Mississippi Registered Agent.
Step 3: File Certificate of Formation in Mississippi
The third and most important step in forming a Mississippi LLC is to file the Certificate of Formation. This Mississippi Certificate of Formation is a legal document needed to officially register your business with the Secretary of State. It costs $50 to file your formation certificate in Mississippi. (Read more on LLC cost in Mississippi).
The Certificate of Formation includes details like the name of the LLC, registered agent’s name, address, employees’ details, and structure of the company (member-managed or manager-managed). Before hiring employees in Mississippi LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) to Mississippi, then you need to register as a Mississippi Foreign LLC.
How to File Online
Go to the Secretary of State Online Service. You will get the online service page. If you are already a subscriber, then click on the “log in to Filer Account” option and log in with your credentials. If you’re not subscribed, then you can directly start filing your LLC by clicking on the “Online Filing” button below. Read more about the Mississippi Certificate of Formation for online registration.
Processing Time: You will get LLC in Mississippi immediately if you file it online. For the mail filing, it takes 3-5 business days to get an LLC. By paying an additional fee, it can be expedited.
Recommended: Online LLC Formation service can provide all these documents within 6-8 days with lifetime customer support and 100% accuracy. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Step 4: Create Your Mississippi LLC Operating Agreement
Moving on to the fourth step, filing your operating agreement. An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to filing a Mississippi LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation. Like Mississippi, there are other states that do not have a mandatory rule to file operating agreements. But, this document would be useful if you decide to dissolve Mississippi LLC later. Hence, having an operating agreement may not be necessary but it is definitely ideal.
Recommended: You can get operating agreement templates at only $29 with TailorBrands. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Step 5: Filing a Mississippi LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business for that matter.
EIN is needed when the LLC hires employees. Hiring employees in Mississippi LLC requires following specific rules and regulations. On the other side, EIN for Mississippi foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally complete the form and send it to the address given. You can also get an EIN Assistant who can help you with the process.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
TailorBrands – ($49 + State Fees) Online LLC Setup
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
Congratulation, you are now done with all the necessary steps to form your Mississippi LLC. If you do it yourself, it should take you a long time to properly understand and do all the steps.
However, if you use TailorBrands, it should be way faster. You will always have a live chat option as well as phone support with experts for any help you need. Their worry-free service will make things easier for you.
After Starting Your Mississippi LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File Mississippi business permits & licenses
- Get general liability insurance and professional liability insurance with coverage for employees
- File a Mississippi LLC annual report or biennial report
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings, to make sure your LLC is up-to-date.
Cost of Mississippi LLC
Forming an LLC in Mississippi is no doubt more cost-effective than other structures of a business. There are some fees and charges one has to bear to form a Mississippi LLC. LLCs have pass-through taxation. Hence, your Mississippi LLC won’t bring you a massive tax burden. Here are some of the fees and taxes are needed to be paid while forming an LLC in Mississippi,
|Fees/Tax||Amount to be Paid|
|Name Reservation Fee (online)||$25|
|Certificate of Formation Fee||$50|
|LLC Annual Fee||$0|
In Mississippi, an LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then you can do that online. Your LLC name will be reserved for 180 days without registering your LLC. It can be renewed by paying $25. However, you cannot renew the name for the next 60 days once the 180-day span is over.
In Mississippi, an Annual Report has to be produced every year. It costs $0. Also, the State of Mississippi requires to pay a Sales Tax of 7%. Read our guide on LLC costs in Mississippi for more information.
Mississippi Foreign LLC
If you are interested in forming a Foreign LLC in Mississippi, then you need to file the Certificate of Foreign LLC to the Mississippi Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Mississippi SOS to form your foreign LLC in Mississippi. To know more in detail, check out our guide on Mississippi Foreign LLC.
Reasons to Start an LLC in Mississippi
Starting a Mississippi Limited Liability Company has benefits that most of the other states may not be offering. The state has a strong transportation base and is well connected with other states that leverage the state number in the list of preferred states for starting an LLC. Other than that, entrepreneurs get diverse business funding options in the state. For example, a woman-owned business gets some reductions in tax liabilities in Mississippi. Read more on Mississippi’s classification of LLC tax.
It is easy to run a successful business in Mississippi. LLCs can earn an extra profit as other than personal taxes, no major federal taxes need to be paid by the LLCs. Along with that, it is considered a very nice developed state from the point of view of tourism.
Rural Economic Development Credit (RED)
When a new LLC in Mississippi is registered with the government, they give credit to the LLC for bringing some sources of development with them. Only some business people are given this credit, like manufacturing units, technology enterprises, or telecommunication industries. Now when all of them apply for this credit, the government checks whether they are using the revenue bonds for their industry or not. The Mississippi Business Finance Corporation issues these bonds.
Tourism Tax Rebates
In Mississippi, tourism-related businesses get a huge tax rebate. It is not surprising that LLCs with this type of business is more interested in Mississippi than others. Around 80% of the total sales tax LLCs have to pay while registration is returned to them as the tax rebate. Tourism businesses looking forward to starting theme parks, water parks, or some other places of attraction in Mississippi can enjoy this tax benefit.
Health Care Incentive Program
Start-up companies who are thinking of starting an LLC in Mississippi will get an extra incentive if they are somehow related to the healthcare field. Such businesses will enjoy a direct deduction for 10 years in the state income tax they are about to pay. Moreover, the taxes they pay on sales are also less than other businesses in the state.
Loan programs for LLC
Funding is the main reason why many LLCs are unable to establish their business. But in the state of Mississippi, this issue is not faced by many LLCs. The state has started many programs to ensure that none of the LLCs gets scarce. The same funding program for which businesses with unique idea can enroll is the Agribusiness Enterprise Loan program and Minority Enterprise Loan program. They are sunning to help LLCs rise and establish.
Top Businesses of Mississippi State
Before you form an LLC in Mississippi, you should gain complete knowledge regarding the pre-established industries. It helps in understanding the business much better, and you can start your journey quickly.
Broad Agricultural Sector
The agricultural sector of the Mississippi state is extensive. If you look at the total figure, the state generates around $6.2 billion per year for the state. The categories in the agricultural sectors of the state are:-
- The poultry field of the state is very diverse and has produced around 747 million chicken broilers.
- The state’s cotton farming is ranked the top in the country producing around 1.48 million bales of cotton every year worth $623 million.
- The wheat of around $12 million is produced in the state alone.
- The cattle business of around $305 million was done in the year 2018.
- Various fishes are also famous that are available only in Mississippi state.
Gambling is also made legal in Mississippi state, which has helped in the growth of the tourism industry. The revenue generated by the state’s gambling activities is around $42.25 billion, which has increased year by year. Due to these entertainment casinos, the tourism of the state is very well established. People visit the state, spend their time in the local restaurants and beautiful spots, and bet money in the casinos.
For balancing such a substantial agricultural industry, there are various manufacturing units have been established. Packaging and processing of food is the primary industry of the state that works in the packaging of regular food and non-vegetarian products exported in massive amounts. Moreover, other goods like automobile factories, lighting equipment, and vehicles are also produced in the state. The biggest industries are Nissan Automotive plants and the Toyota plant in Blue Springs.
Businesses that are established well into the state with low investment values are:-
- Cat Fish Farming
- Auto Repairing workshop
- Opening up a liquor store or a bar
Mississippi LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Mississippi. Click on the steps in this list to read the full detail.
- Name your Mississippi LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Mississippi, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming an LLC in Mississippi. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Mississippi but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
How Fast Can I Form an LLC in Mississippi
The online process of filing for Mississippi LLC is about 2 business days. Filings through mail are not applicable in the state of Mississippi.
Creating an LLC in Mississippi is quite simple. You can file online, mail your paperwork in, or get help from a service. If you choose to get help, remember that it’s important to follow the deadlines and pay the proper fees.
The first step to creating an LLC in Mississippi is to select a business name. A good name can make your business easier to identify. You can find a free name search tool online to check for name availability. You should also ensure that your name isn’t misleading. The name cannot include words like “trust,” “bank,” or “certified.” These words are considered illegal in the state. If you have any questions about the legality of a business name, you can contact the Secretary of State.
The next step is to get an EIN. You can get one for free on the IRS website. EINs are used by the IRS to track your tax reporting. This can be especially useful for filing taxes.
You can also choose to open a business bank account. This will help you separate your business funds from your personal funds. This also makes it easier to show that your business is an independent entity. This can also help you with liability protection.
You will also need a registered agent. Your registered agent will be the person who receives legal mail and official government correspondence for your LLC. You can hire a service or find a friend or family member who is willing to serve as your registered agent. This person will be assigned on your Certificate of Formation when you file. Your registered agent must be available to accept legal mail at his or her address during normal business hours.
You’ll also need to file an annual report. You can file this online between January 1 and April 15. If you fail to file this, you can lose your business. You may also be liable for a fine. In Mississippi, your business will pay a corporate income tax of 5% on profits. In addition, you may be required to pay sales tax that is slightly above the national average. You may also be able to claim a state tax credit.
Once you’ve registered your LLC, you’ll need to prepare an operating agreement. This agreement will be the road map for your business’s operations. An operating agreement covers how profits will be distributed, who will be able to vote for members, and how dissolution options will be handled. You’ll also need to include a percentage of ownership for each member. A good operating agreement can also reduce future conflicts.
Once you’ve created an LLC in Mississippi, you’ll have to pay a filing fee. The state charges $50 for filing your Certificate of Formation. You can pay online, mail your paperwork in, or get an expedited service to speed up the process. If you choose to pay an expedited service, you can expect to receive approval in a few days.
If you are a resident of Mississippi, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $50 (domestic LLC) and $250 (foreign LLC), LLC costs in Mississippi $0 for Annual Reports every year. LLCs are liable to pay sales tax of 7% every year.
You will get LLC in Mississippi immediately if you file it online. For the mail filing, it takes 3-5 business days to get an LLC. If you hire a professional LLC service, then it might take less than that. We recommend TailorBrands, which has an impeccable turnaround time.
Every year all the LLCs have to submit an Annual Report to the Mississippi Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for LLCs, it is a default tax structure. Once you obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Mississippi Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups, can easily start an LLC in Mississippi at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.