How to Start an LLC in Mississippi
Here are the 7 steps to start a limited liability company (LLC) in Mississippi
For more information on how to form an LLC in any state, see the article How to Form an LLC.
Find out how to form a Mississippi LLC for yourself
Learn about Mississippi LLC formation, including information on Registered Agents, naming rules, business licenses, and more.
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Creating an LLC in Mississippi
A limited liability company (LLC) offers many benefits to small businesses, including liability protection and tax advantages.
An Limited Liability Company LLC must be formed in Mississippi by filing a Certificate of Formation with the Mississippi Secretary of State and paying the $50 filing fee online.
However, you’ll first need to choose a name and registered agent for your Mississippi LLC. Your LLC is approved in 1-2 business days if you file online.
An LLC can be easily formed in Mississippi. Our step-by-step guide on How to Start an LLC in Mississippi will help you get started today. Find out more about LLCs and their benefits in our What is an LLC guide.
Step 1. Choose a Name for Your LLC Mississippi
Creating an LLC in Mississippi requires you to choose a business name before you can file a Certificate of Formation. Be sure that your business name complies with the Mississippi naming requirements and can be searched by potential customers.
- Mississippi law requires an LLC name to contain the words “Limited Liability Company” or “Limited Company,” or the abbreviations “Ltd.,” “LLC,” or “LC.” “Limited” may be abbreviated as “Ltd.” or “LTD,” and “Company” as “Co.”
- It is not acceptable for your Mississippi LLC to have words associated with a government agency (FBI, Treasury, State Department, etc.).
- You should avoid using words or abbreviations that may make your LLC Mississippi appear to be a different type of entity, such as “LP” or “corporation”.
- There may be additional documentation and licensure paperwork required for certain restricted words (bank, lawyer, attorney, credit union, etc.).
- Check the state’s business name database to ensure the name you want is not already taken(including businesses no longer in operation)
See a complete list of Mississippi’ naming rules here.
Check URL availability: You are likely to need a web page even if you don’t think you do. Buying your domain name now will at least give you the option of having one in the future. It’s a good idea to check the URL availability before finalizing your Mississippi LLC name.
By filing an Application for Name Reservation with the Mississippi Secretary of State, you can reserve a name for 180 days. To obtain the Name Reservation application form, you must first register with the Mississippi Secretary of State's online filing system. The cost of filing is $25.
An LLC stands for a Limited Liability Company. A simple business structure that is more flexible and offers many of the same benefits as a traditional corporation. For more information, see "What is a Limited Liability Company?".
Although Mississippi does not require the use of a DBA to conduct business under an assumed name, it is frequently necessary to file for such a DBA for practical reasons.
Step 2: Appoint Your Registered Agent in Mississippi
Your next step in forming an LLC in Mississippi is to appoint a Registered Agent, an individual or company authorized to receive legal and state mail on your behalf.
All Mississippi LLCs must have a registered agent. Please include your registered agent’s name and address on your Certificate of Formation.
Registered Agent Requirements in Mississippi
To comply with Mississippi law, your LLC’s registered agent must be a resident or business entity that maintains a physical address in Mississippi. The “registered address” cannot be a P.O. box. It must be a real physical address that can be visited in person.
Learn more about Mississippi Registered Agents by reading our what is a registered agent guide.
A Registered Agent must be a Mississippi resident or a corporation authorised to conduct business in Mississippi, such as a registered agent service. You have the option of electing someone from your company, including yourself.
There are no longer any separate forms for changing your registered agent in Mississippi. You simply need to complete the online amendment process with the Secretary of State of Mississippi. You can either submit the amendment online and pay the fee, or print the amendment and mail it to the state.
Are You looking for a Registered Agent?
Wise Business Plans offers a free year of registered agent service when forming an LLC in Mississippi.
Step 3.Prepare and File Certificate of Formation
To create a Mississippi LLC, you will need to file the Certificate of Formation with the Secretary of State with the Mississippi Division of Corporations. You may apply online, by mail, or in person.
If you choose one of our business formation services, we can handle this step for you.
The following information is typically required to create a Certificate of Formation:
- Your LLC name and principal place of business.
- Name, address, and signature of the LLC’s registered agent
- Decide whether your Mississippi LLC will be member-managed or manager-managed. Indicate the names and addresses of each member and manager.
- The reason for forming the LLC in Mississippi.
- Name and address of the LLC’s organizer.
- The effective date of the certificate,
- The person forming the LLC must sign the Certificate.
Foreign LLCs: LLCs that are based in another state but intend to conduct business in Mississippi must complete a form called the Qualification of Foreign LLC.
You must file an Application for Registration with the Secretary of State to register a foreign LLC in Mississippi.
A filing fee of $250 also applies to this form, and you need to attach your state’s certificate of good standing.
File the Certificate of Formation
Online filing through the Mississippi Department of State
There is a state filing fee of $50 payable to the Mississippi Department of State. (nonrefundable)
In a member-managed LLC, the members (owners) take on the business's daily responsibilities. Manager-managed LLCs are managed by managers who are elected by the members. Those who manage your LLC will have the authority to do a wide range of tasks-from hiring staff to opening bank accounts.
When an LLC conducts business in the state where it was formed, it is referred to as a "domestic LLC." Normally, when we talk about an LLC, we're talking about a domestic one. When an existing LLC wants to expand its operations to another state, it must form a foreign LLC.
Step 4. Get a Certificate From the State
Upon filing your Certificate of Formation, the secretary of state will review it. As soon as the Certificate of Formation is approved, the LLC becomes a legal entity.
Step 5. Write an Mississippi LLC Operating Agreement
An operating agreement is a legally-binding document that sets out how your LLC will operate, from the voting process to mergers.
Operating agreements are not required in Mississippi, but they are an essential part of your business.
Written operating agreements are helpful for different reasons, including resolving disputes over financial agreements and other potential litigation.
The LLC declaration can prove that your LLC is a separate entity, which can help preserve your limited liability.
An operating agreement ensures that all business owners are on the same page and reduces the possibility of future conflict.
How should an operating agreement be drafted?
The operating agreement should detail the LLC’s overall business purpose and other important matters, such as how the company will be taxed and how new members will be accepted. Legal agreements can clarify several important concerns, such as:
- Who makes decisions for the company, especially those who decide if partners disagree.
- Who is responsible for different aspects of the business as well as for strategic decisions.
- If a partner leaves the company, what will happen to their ownership interests in the corporation.
- The members and their contributions
- How profits and losses will be divided
- Procedures for admitting new members and removing outgoing members
In Mississippi, you can include just about anything in your operating agreement, as long as it doesn’t violate the state law or the Certificate of Formation.
Yes, A Mississippi single-member LLC is treated the same as a multi-member LLC for most purposes.
When it comes to filing a tax return, single-member LLCs have more options.
In Mississippi, an LLC operating agreement is not required, but it is highly recommended. This is an internal document that lays out the rules for how your LLC will operate. It hasn't been registered with the state. It outlines the members' and managers' rights and responsibilities, as well as how the LLC will be managed.
Step 6. Get an EIN for Your Mississippi LLC
Basically, an employer identification number (EIN) is a social security number for your LLC in Mississippi.
To identify your LLC for tax purposes, the Internal Revenue Service assigns a nine-digit Employer Identification Number (EIN). You can apply for your EIN either by mail or online.
An EIN is used for the following purposes:
- Manage state and federal taxes
- Create a business bank account
- Hire employees
Get an EIN Number in Mississippi
Getting an EIN number is easy and free, There are two ways to get an EIN number in Mississippi.
The 1st option is:
Apply online for an EIN from the IRS
The 2nd option is:
Get an EIN by Mail or Fax
Address to Mail
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
For LLCs that will have employees, an EIN is required. In addition, in order to open a business bank account, most banks require an EIN. Tax identification number issued by the state. A state tax identification number is not required in Mississippi.
Many multi-member LLCs will find the partnership tax status to be a perfect solution as a simple and effective tax structure. However, if your company intends to seek funding from outside investors or other types of passive owners, you should consider being taxed as a corporation.
Step 7. File Annual Reports
Every calendar year, all LLCs doing business in Mississippi need to be file an annual report with the Mississippi Secretary of State. The report can be filed on or after January 1st of each calendar year, and it must be submitted by April 15th of that year.
Mississippi limited liability companies (LLCs) are required to file the report online. To file the report, you’ll need a state-issued Business ID Number.
You can find the ID number by searching the Secretary of State’s business name database for the company’s name. Mississippi LLCs do not have to pay a filing fee. For foreign LLCs, the filing fee is $250.
Late Filings: If you miss the filing deadline, Mississippi does not charge late fees, but your LLC will be dissolved after four months.
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What to do After Forming Your Mississippi LLC
Keep your personal and business assets separate
Your personal assets (such as your home, car, and other valuables) may be at risk when your Mississippi LLC is sued if they are mixed with your business accounts.
Here are some steps you can take to protect your LLC in Mississippi:
1. Open a Bank Account
As soon as your LLC is officially formed, you should open a business bank account. Why? Keeping separate bank accounts will help you maintain the legal distinction between the LLC and you (the owner).
Because LLCs are limited liability companies, creditors and litigants can’t take your assets.
It is essential for small business owners to partner with the right bank.
Recommended: Check out our business bank account page to learn which banks offer the best business check accounts, ATM access, interest-bearing accounts, and online and mobile banking options for businesses.
2. Obtaining a business credit card:
- Allows you to separate personal and business expenses.
- Develops your company’s credit history, which can be helpful to raise capital (e.g., small business loans) later.
3. Hiring a business accountant:
- It prevents your business from overpaying taxes while preventing penalties, fines, and other costly tax mistakes.
- Gives you more time to focus on your growing business by simplifying bookkeeping and payroll.
- Manage your business’s funding more effectively. Find out where extra profit or loss can be made
Getting Business Insurance for Your LLC
You can manage risks and grow your LLC with business insurance. Here are the most common types:
- General liability insurance protects your business from lawsuits. Most small businesses purchase general liability coverage.
- Professional liability insurance protects professionals and businesses from claims of negligence from their clients or customers. Liability insurance typically covers negligence, copyright infringement, personal injury, and more.
- Workers’ compensation insurance: Covers illnesses, injuries, and deaths resulting from a worker’s work.
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Let us help you with your business insurance needs.
- General business liability insurance
- Medical insurance
- Term life insurance
- Workers’ Comp
- Surety bonds
- Commercial auto
Mississippi LLC FAQs
The Certificate of Formation costs $50 to file with the Mississippi Secretary of State. For $25, you can reserve the name of your LLC with the Mississippi Secretary of State.
An LLC is simple to create, manage, regulate, administer, and stay in compliance. The filing fee is only $50.
Protect your personal assets from business debts and liabilities.
By filing online, you can form an LLC in Mississippi in 1-2 days.
Online filings are now available for all Mississippi LLCs. Simply open an account with the Secretary of State and complete the dissolution process online. You can complete the entire dissolution process online and pay your fees, or you can print the forms and mail them to the Secretary of State.