How to Start an LLC in Mississippi (Step-by-Step Guide)

If you’re considering forming a Mississippi LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, and file a Mississippi LLC Certificate of Formation.

But there’s more.

Filing your LLC Certificate of Formation in Mississippi costs about $50, and it takes about one to two business days to be approved if you file online.

This guide compiles all the information you need to start an LLC in Mississippi today.

What Are the Steps to Start an LLC in Mississippi?

To start an LLC in Mississippi, you need to:

• Step 1. Choose and search for a unique name
• Step 2. Designate a Mississippi registered agent
• Step 3. File Mississippi LLC Certificate of Formation with the state
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI Report
• Step 7. File annual reports

Step 1: Choose a Unique Name for Your Mississippi LLC

Choosing a unique name for your LLC is an essential first step. Your business name must follow specific rules set by the state.

Your LLC name must include one of these phrases:

• Limited Liability Company
• LLC
• L.L.C.

Before you settle on a name, check the Mississippi business entity search to ensure it’s not already in use. This will help you avoid headaches later.

If you find a name you like, consider reserving it. You can apply with the Secretary of State for $25. You can pay online or send a check, but mailing will take longer.

The Secretary of State will hold your name for 180 days. If you do not register your LLC within that time frame, you must wait 60 days to reserve the same name.

If you want to operate under a different name than your LLC, you can file for a DBA (Doing Business As). Registering a DBA involves filing a Fictitious Business Name Registration at the Mississippi Secretary of State’s website. This can be helpful for branding and marketing your business.

Step 2: Select a Mississippi Registered Agent for Your LLC

Choosing a registered agent is essential when starting your LLC in Mississippi. A registered agent is responsible for receiving legal documents and official notices for your business. This includes paperwork for lawsuits, tax forms, and other government communications.

Keep your registered agent information updated. If any changes occur, you must notify the Mississippi Secretary of State. This step will help ensure you receive all necessary documents without any issues.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in Mississippi:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for Mississippi Registered Agents

Mississippi law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Mississippi?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: File Mississippi LLC Certificate of Formation

Filing the Mississippi LLC Certificate of Formation is crucial in starting your business. This document is also called the Articles of Organization in many states. You can file it online through the Secretary of State’s website or print it out and mail it.

Step #1: File Online: You can only file your Certificate of Formation online through the Mississippi Secretary of State website.

When completing the certificate, you’ll need to provide specific information, including:

• Your business name: Ensure it is still available if you haven’t reserved it.
• Your email address: This helps the state contact you.
• Effective date: Decide if you want your registration to start immediately or later within 90 days.
• NAICS code: This code classifies your business type and is found on the U.S. Census website.
• Registered agent’s details: Include their name and address.
• Organizer’s name: Name at least one organizer for your LLC.

Step #2: Pay the Filing Fee: The filing fee is $50.

After you submit your payment online, your Mississippi LLC will be approved in 1-2 business days. The state will email you a stamped and approved copy of your Certificate of Formation, an official Certificate, and a receipt.

Your stamped and approved copy will contain your LLC’s Business ID Number. Keep this number safe, as you will use this when you file your Annual Report each year.

Step 4: Prepare Your LLC Operating Agreement

An LLC operating agreement is an internal document that outlines how your business will run. It sets the rules for ownership and management.

While it is not legally required in Mississippi, having one is highly recommended. It helps prevent misunderstandings among members, especially in disputes.

Here are some key components to include in your operating agreement if you choose to prepare one:

• Ownership Structure: Listing all members and their ownership percentages.
• Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
• Voting Rights: Define how decisions will be made. Will all members have equal votes?
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

Creating an operating agreement may feel complex, but it’s essential for clarity.

It serves as your LLC’s rulebook, guiding operations and avoiding conflicts down the line. Keeping everyone on the same page is even more vital if you have partners.

Creating an operating agreement can also enhance your LLC’s credibility. It shows that you take your business seriously and helps maintain your limited liability status.

Step 5: Obtain an EIN for Your LLC

An Employer Identification Number (EIN) is a unique identifier for your business, similar to a Social Security Number for individuals. You need an EIN for various reasons, including:

• Opening a business banking account
• Taking out a business line of credit
• Applying for certain permits
• Making contracts with wholesale vendors

In Mississippi, obtaining an EIN is necessary for forming an LLC. It helps with tax filing and identification purposes.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

Step 6: File a BOI Report

As part of starting your LLC in Mississippi, you must file a Beneficial Ownership Information (BOI) report. This is a requirement under the Corporate Transparency Act.

You must submit this report to FinCEN within 90 days of forming your LLC. Filing is free and can be done online at the FinCEN website.

The BOI report is meant to increase transparency and reduce financial crime. Here are the key points you should know:

• Who needs to file? All LLCs, corporations, and similar business structures must file this report.
• Information required: You’ll need to provide details about the owners and individuals with significant control over the entity.

Filing this report is mandatory. Failure to do so can result in fines or other penalties. Keep records of your submission for future reference.

Completing the BOI report is essential for maintaining compliance with federal regulations. It ensures transparency about who owns and controls your LLC. Take the time to do this correctly to avoid any potential penalties.

Step 7: File Annual Report for your Mississippi LLC

All Mississippi LLCs operating within the state must file an Annual Report each year to remain compliant and in good standing with the Mississippi Secretary of State.

The Annual Report can only be submitted online through the state’s official portal. Unfortunately, there is no option to file by mail.

There is no fee for filing the report, but it must still be submitted annually.

The report is due by April 15th every year.

For LLCs formed within the current year, the first report will be due by April 15th of the following year. For instance, if your LLC was created on February 10, 2024, the first Annual Report must be filed by April 15, 2025.

You can file the Annual Report as early as January 1st of the reporting year.

If your report is not submitted by April 15th, it will be considered late. The state will then issue a warning letter urging you to file immediately. Continued failure to submit could lead to the state sending a formal notice of intent to dissolve your LLC, ultimately leading to its administrative dissolution.

To help prevent missed filings, the state sends email reminders 1-3 months before the deadline. These reminders will go to the email address provided during the LLC formation process.

What are the Different Methods To Start a Mississippi LLC?

There are several methods you can use to start your LLC in Mississippi. Each method has its advantages and potential drawbacks. Here are the main approaches to consider.

DIY LLC Formation in Mississippi

Forming an LLC by yourself is a straightforward option. You will fill out and submit the Mississippi Certificate of Formation and pay the required filing fee.

All by yourself, no third party!

Pros:

• Cost-Effective: You save money by not hiring anyone.
• Control: You have complete oversight of each step.
• Learning Opportunity: You gain knowledge about the process.

Cons:

• Time-Consuming: It may take longer if you are unfamiliar with the process.
• Complexity: You must ensure all forms are correctly filled out.
• Privacy issue: If you serve as your registered agent, you risk having your address out there.
• Lack of Guidance: You might miss the necessary steps.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.

Pros:

• Expertise: An attorney knows the legal requirements and can avoid pitfalls.
• Customization: Your LLC can be tailored to your specific business needs.
• Support with Complex Situations: Ideal for businesses with unique circumstances.

Cons:

• Higher Costs: Legal fees can be expensive.
• Dependence on Others: You may rely heavily on the attorney’s schedule.
• Potential Delays: The process may take longer due to attorney workloads.

What is The Cheapest Alternative Way to Form an LLC in Mississippi?

If you want to start an LLC in Mississippi on a budget, the most affordable option is to do it online. By filing the Certificate of Formation directly with the Mississippi Secretary of State, you only pay the required filing fee of $50.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Mississippi?

There are a myriad of Mississippi LLC services from which to choose. Choosing the wrong one can affect your Mississippi LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Mississippi LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for 1 year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent is the best option for forming an LLC in Mississippi. They excel in customer service, transparency, and compliance, and their ability to keep your address private is crucial for many entrepreneurs.

How Much Does It Cost To Form an LLC in Mississippi?

Starting an LLC in Mississippi involves several fees. The main cost is the state filing fee. You will pay $50 to file the Certificate of Formation with the Mississippi Secretary of State.

Here is a breakdown of the entire Mississippi LLC costs:

Requirement	Cost
New LLC Filing Fee (Certificate of Formation)	$50
Name Reservation Fee (optional)	$25
LLC Formation Service (optional)	$39 (via Northwest)
Registered Agent Fee (optional)	$0 (via Northwest)
Annual Report	Free
Total Estimated Cost	$50 – $115

When forming a new company in Mississippi, budgeting about $50-$110 for the first year is ideal. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

That said, the most significant (and essential) expense for every Mississippi business owner is filing the Certificate of Formation, which costs $50.

Pros and Cons of Forming an LLC in Mississippi

7 Important Things To Do After Creating Your Mississippi LLC

After establishing your LLC in Mississippi, there are crucial steps to take. These actions help you stay compliant and lay the groundwork for a successful business. Here’s what you should focus on.

1. Research the Best Licenses and Permits for Your Business

Before you start operating, check which licenses and permits your business needs.

You must check for state and local Mississippi business license requirements, such as those for LLCs providing legal, medical, or other licensed services.

Mississippi provides a complete list of regulatory boards you may need to register with. The requirements vary based on your industry and location.

You might need:

• Business Licenses: A general business license is often required.
• Occupational Licenses: Specific licenses might be needed for certain trades.
• Sales Tax Permit: You may need this to collect sales tax if you sell goods.

Visit the Mississippi Secretary of State’s website for guidance. Local governments may also have specific regulations. Be thorough to avoid penalties.

2. Create Business Accounts for Your Mississippi LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds. This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding Mississippi Tax Requirements and Managing Your Taxes

Tax compliance is critical for your LLC. In Mississippi, you’ll need to be aware of several tax types.

After setting up your LLC, you must choose your tax classification:

• Pass-Through Entity: With this setup, your LLC’s income and losses pass through to your tax return. You pay taxes on your share of the LLC’s profits at the individual level. This benefits Mississippi because there is no state income tax, so you avoid additional state-level taxation.
• S-Corporation: An S-Corp also passes income through to members but splits income between salary and dividends. This can potentially lower your overall tax liability by reducing the amount of self-employment tax.
• C-Corporation: Opting for C-Corp status means paying a 5.5% corporate income tax in Mississippi and federal taxes. While this involves more complex filing, it allows for various tax reduction strategies, such as deducting wages paid to members classified as employees.

4. File Your Mississippi Annual Report

Your LLC must file an annual report with the Mississippi Secretary of State every year. This report keeps your business information current.

The good news is that filing your Annual Report costs $0. There are no fees associated with this process.

Using the state-issued business identification number you received when you filed your certificate of formation, you’ll file the free annual report on the secretary of state’s website each year by April 15.

Timely filing prevents penalties. You can usually file online, making it easier to manage your compliance.

5. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions. Assessing your business needs helps you choose the appropriate coverage to protect your LLC.

6. Set Up Your Business Online Presence (optional)

In today’s digital age, online presence can significantly benefit your business. Start by creating a professional website. This platform allows you to showcase your services and connect with customers.

Consider using social media to engage your audience. Platforms like Facebook, Instagram, and LinkedIn can enhance your visibility.

Make sure your online information matches your business registration. This consistency helps with legal compliance and customer trust.

7. Recordkeeping

Mississippi LLC laws require that certain vital documents be maintained at your principal place of business.

These include:

• The name and address of each LLC member and manager.
• A copy of the Certificate of Formation and any related powers of attorney (POA).
• A copy of any current operating agreement.
• Records detailing the amount of cash or property contributed by each member and the timing of any additional contributions, if not already specified in the formation documents.
• A written statement outlining the events or conditions that would lead to the dissolution of the LLC if this is not included in the formation documents.

In addition to these legal requirements, your business must also keep tax records and other important documentation. It’s advisable to consult with an accountant regularly to ensure you’re maintaining all necessary information.

They can provide guidance on what records need to be kept and help avoid the accidental disposal of critical documents. A systematic approach to record-keeping will help you stay compliant with state regulations and tax obligations.

Mississippi LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

When starting a business in Mississippi, you can choose from several structures. Each has its benefits and drawbacks.

Choosing the proper structure depends on your business goals, how much liability you want to take on, and tax implications. Each option has unique features that may fit your needs.

Sole Proprietorship

A Mississippi sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk. It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

A Mississippi partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too. Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

A Mississippi corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders.

A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits.

However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Mississippi

Starting an LLC in Mississippi is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

Starting an LLC in Mississippi involves a few essential steps:

• Choose a name for your LLC that meets state guidelines.
• Appoint a registered agent to represent your LLC.
• File the Certificate of Formation with the Mississippi Secretary of State.
• Prepare an Operating Agreement for your LLC
• Obtain an EIN for your LLC from the IRS
• File a BOI Report from the FinCEN website
• File an annual report

The filing fee for the Certificate of Formation is $50.

After forming your LLC, prepare for annual reports, which you must file yearly.

The process of forming an LLC is designed to be straightforward in Mississippi. A modern online filing system makes completing the necessary steps more accessible than ever.

Learn More About Starting an LLC in Mississippi

If you need additional help to start an LLC in Mississippi, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in Mississippi?

Yes, you can change your registered agent in Mississippi. To update your records, you must file a form with the Secretary of State.

How do I change my Mississippi LLC’s name?

To change your LLC’s name, file a certificate of amendment with the Mississippi Secretary of State. A small fee is charged for processing this change.

How do I renew my Mississippi LLC?

You can renew your LLC by filing an annual report with the Secretary of State, which is due every year.

How do I dissolve an LLC in Mississippi?

To dissolve your LLC, file the appropriate dissolution forms with the Secretary of State. Make sure to settle any debts and obligations before doing this.

How do I add a member to a Mississippi LLC?

To add a member, update your operating agreement and file an amendment if necessary. Inform the Secretary of State as required.

How do I add a DBA to an LLC in Mississippi?

You can add a Doing Business As (DBA) name by filing a registration form with the county in which your business operates. There may be a fee associated with this registration.

Can a minor own an LLC in Mississippi?

Yes, a minor can own an LLC in Mississippi. However, due to legal restrictions, they may need an adult to help manage the business.

When is the Mississippi Annual Report due?

Your LLC’s annual report is due on April 15th each year. Make sure to file it on time to avoid penalties.

Does LLC expire in Mississippi?

An LLC does not expire in Mississippi as long as it remains in good standing and you keep up with annual reports and fees.

Can a non-resident open an LLC in Mississippi?

Yes, a non-resident can open an LLC in Mississippi. You need to fulfill the exact requirements as any other applicant.

Can I buy a house or car with my LLC in Mississippi?

Yes, you can buy property or vehicles under your LLC. This can provide liability protection and may offer tax benefits.

Can you have multiple businesses under one LLC in Mississippi?

You can operate multiple businesses under one LLC, but it’s often advisable to keep them separate for liability and tax purposes.

Is Mississippi an excellent state in which to form an LLC? Is it worth it?

Mississippi has a straightforward process and lower fees than some other states. Depending on your specific business needs, it can be a suitable choice.

Can one person form an LLC and start an LLC in Mississippi?

Yes, one person can form a single-member LLC in Mississippi. This structure offers personal liability protection while allowing complete control over the business.