Perhaps you are hoping to form an LLC in Mississippi. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Mississippi.
On this page, you’ll learn about the following:
Mississippi LLC Cost of Filing
Here are the costs involved in forming an LLC in Mississippi.
Cost of Filing Formation Certificates
The Mississippi Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Mississippi Secretary of State.
Mississippi Domestic LLC
- Online Filing costs $50
- Annual Report filing costs $0
- Name Reservation Fee costs $25
- By mail filing: Not Available
Mississippi Foreign LLC
- Online Filing costs $250
- Annual Report filing costs $250
- Name Reservation Fee costs $25
- By mail filing: Not available
Visit the Business Documents Filing Fees by Mississippi Business Corporations to learn more about the forms and fees requirements of business LLCs in Mississippi.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so. Besides, Mississippi only allows online filing to date.
Mississippi LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Mississippi, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Mississippi Department of Revenue for regulatory boards or agencies requiring licensing.
Mississippi LLC taxes to be Paid
Though the annual report filing in the State of Mississippi is free of cost, the LLCs in the State are subject to different State Tax filing obligations. Though the taxes vary from county to county.
Mississippi State Income Tax
This is the State Tax levied on any income you pay to yourself. The tax rate varies between 3.0% to 5.0%, depending on the total amount of taxable income.
Mississippi Sales Tax
The standard rate of sales tax applicable is at the rate of 7.00% and the maximum local or county rate that applies additionally is 1.00%.
Mississippi Federal Self-Employment Tax
Any profit that Mississippi LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Mississippi Employer Payroll Tax Withholding
If you hire employees in Mississippi, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Cost Comparison among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Mississippi, read the table below:
|State||Filing Fee||Annual Fee/Biennial Fee||Sales Tax|
|Tennessee LLC||$300||$300 (Annual)||7.00%|
|Alabama LLC||$200||$100 (Annual)||4.00%|
|Louisiana LLC||$100||$35 (Annual)||4.45%|
|Arkansas LLC||$45||$150 (Annual)||6.50%|
Mississippi’s economy has witnessed a forward-looking forecast with a significant rise in its GDP. Manufacturing, trade, real estate, health, and education have been the major contributing sectors to the State’s rising economy.
- Mississippi Name Reservation: $25 for online fillings
- Doing Business As (DBA): $50 for online filling
- Certified Document Copies: $45
- Certified of Good Standing: $14
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Mississippi LLC: $50
How Much Does It Cost to Maintain an LLC in Mississippi
To maintain an LLC in Mississippi you do not need to pay an annual fee. However, state income tax at 3% to 5%, sales tax at 7% and federal taxes are levied.
Whether you’re thinking about starting a Mississippi LLC or you already have one, it’s important to know what you’re going to need to do. Fortunately, the process is relatively straightforward and relatively inexpensive. The main costs you’ll need to pay are the Certificate of Formation and the annual report. You can also opt for a commercial registered agent service that costs $50 to $150 per year. Depending on the number of employees you have and the type of tax you’re paying, the costs can vary considerably.
The Certificate of Formation is a formal legal document that establishes your LLC. It is a good idea to get it right the first time, as it will save you time in the long run. You can find out more about the process at the Mississippi Secretary of State’s website. You can also pay the $50 fee online.
The annual report is an important part of maintaining your Mississippi LLC. It keeps the state up-to-date with the latest information about your business. It includes the name of the LLC’s registered agent, the purpose of the LLC, and other important information. You can file your report online or by mail. You can also order certified copies of your documents through the Mississippi Secretary of State’s website.
If you’re wondering how much it costs to maintain an LLC in Mississippi, you’ll need to decide if you’re going to go the route of an LLC formation service or if you’re going to handle the registration yourself. If you do decide to use a formation service, they’ll handle the rest of the process for you. This will save you time and money, and you’ll know you’re in good hands.
If you’re looking to form a Mississippi LLC, you’ll need to select a unique and recognizable business name. You can use a search tool on the Mississippi Secretary of State’s website to find available names. You can also reserve a name if you’d like. If you reserve a name, it will last for 180 days. You can choose from a variety of options, including trade names, which are simpler and easier to pronounce. However, if you choose a trade name, you’ll need to pay for a trade name registration fee.
You’ll also need to get your company’s EIN. The IRS uses this number to track your taxes. If you have employees, you’ll need to pay unemployment and withholding tax. You’ll also need to pay sales tax on your merchandise.
You’ll need to set up a bank account. Although this isn’t mandatory, it will make your business more efficient and will make it easier to file taxes. If you don’t have one, you can open one for just $50.
You’ll also need to register for a business services account with the Secretary of State. This will allow you to pay your state taxes and other fees. You can also use your Business Services account to file your documents. If you’re unsure of what you need to do to establish an LLC, the Mississippi Secretary of State will be happy to answer any questions you may have.
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
The cost of Mississippi is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.