LLC Cost in Mississippi – How Much to Pay for an LLC


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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.

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.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

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:

StateFiling FeeAnnual Fee/Biennial FeeSales Tax
Mississippi LLC$50$07.00%
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.

Other Costs

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.

Starting an LLC is a wonderful way to begin your business venture. It is easy to set up and does not involve complicated regulations and tax implications. Many entrepreneurs choose this business structure because it is quick to setup and does not require any complicated paperwork. Mississippi is a great place to start because you can form an LLC yourself and pay the Secretary of State online. While most states require an attorney to form an LLC, you can also self-form a business with the Secretary of State.

Whether you decide to incorporate a corporation or form an LLC, one thing you need to consider is the ongoing costs of operating your business. In Mississippi, an LLC will almost certainly have to pay business taxes. Sales taxes and employment taxes are necessary if your business sells products or hires employees. There may be other taxes that are due as well, including unemployment insurance taxes. Keeping your financial information private will protect your business, your employees, and yourself.

Annual reports are another ongoing expense for an LLC in Mississippi. These reports will update the state’s records about your business. They include the name and address of your LLC, your registered agent’s information, and more. Remember that failure to file an annual report can result in the dissolution of your LLC in Mississippi. Filing an annual report in Mississippi is fast and easy. To do so, create an account with an online service like Incfile and follow the steps. The annual reports will cost you $25.

To register your LLC in Mississippi, you’ll have to pay an initial filing fee. This fee covers the filing of your Certificate of Formation. In addition to the application fee, you’ll also need to pay a registration fee for a business’s registered agent. The Secretary of State will process your Certificate of Formation within three weeks. There are no expedited services for this fee. Moreover, you must pay a small fee when you register a foreign LLC in Mississippi.

An LLC is required to use a unique business name. If the name you choose is already taken by another business in Mississippi, you can use a different one. This way, your LLC will stand out from the rest. The Secretary of State’s website has a database where you can find available names. Once you’ve registered a name, you’ll need to maintain it by filing an annual report.

To form an LLC in Mississippi, you must name a registered agent, who will receive all business correspondence. The cost of hiring a registered agent varies depending on the type of business you are running and where you’re located. While you can search for a registered agent on your own, you’ll end up spending between $50 and $100. However, there are some services that charge a flat fee for this service. One such service is ZenBusiness, which offers a registered agent service for a small fee. You’ll have to pay a small state filing fee when you use this service.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

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.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

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.

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