Start a Business in Mississippi
Corporate Compliance by Local Corporate Guides®
Starting a business in Mississippi can and should be easier than you think. You file simple forms with the secretary of state, and your business is formed! Obviously there’s a few more things than that, but if you’d like to start your own business yourself, you will find it easy to hire us as your registered agent and you’ll find all the forms you could file to start a business in Mississippi, along with great filing instructions on the quickest and cheapest ways to start your business in Mississippi.
How to Start a Business in Mississippi
You file articles of incorporation for a Mississippi corporation or articles of organization for a Mississippi LLC using the MS Secretary of State’s online service.
You obtain a federal tax ID number (FEIN or EIN) with the IRS after you have confirmation and filed articles from the State of Mississippi showing your approved Mississippi business.
Opening a business banking account under your new Mississippi business name should be easy with these two items.
If you’re going to have employees or need to withhold sales tax, you will probably need to register with the MS department of revenue. We provide all these links in your online account.
Mississippi does not issue business licenses to all MS businesses. However, some businesses need state licenses and permits for their activity. Various MS agencies regulate professional, trade, and other licenses. We provide helpful links and info in your online account.
Some local cities or counties have a general or privilege license.
You obtain a local trade license if the city or county you’re going to be working in requires it.
If you’re going to have an office or shop you might need an approval from the city zoning for your type of business in that location.
If you get overwhelmed, just get your business pulling in money and worry about regulations later.
Are You A Do-It-Yourselfer? You Can Save Some Money:
If you want to start a business in Mississippi yourself, you can just hire us as your Mississippi registered agent, and you’ll instantly have the Mississippi LLC or corporation forms to file along with filing instructions on the quickest, cheapest, and most efficient way to incorporate a Mississippi corporation or form a Mississippi LLC. You’ll get the ongoing support of our online tools, reminders and the support of a professional Mississippi registered agent service.START YOUR MISSISSIPPI BUSINESS TODAY
Mississippi LLC vs Corporation:
Large business owners prefer corporations because they have a well-established management structure and offer the ability to sell stock, which can help attract top investors. Small to medium-sized business owners like LLCs because they’re easier to maintain. LLCs have fewer annual requirements and offer flexible management structures.
But, what about Mississippi? Any pros and cons for a Mississippi LLC vs a Mississippi corporation?
Mississippi LLCs and corporations require a $50 filing fee for the Certificate of Formation OR Articles of Incorporation. In addition, both entities must file an annual report each year; however, corporations must include a $25 payment. LLCs don’t have a fee for their annual report. They also aren’t required to fulfill corporate formalities such as annual shareholder meetings.
During tax season, Mississippi corporations will get hit harder than Mississippi LLCs. Traditional corporations are taxed twice—first through the state level, then by shareholder returns. Thankfully, rates for corporate and personal income are fairly low, topping out at 5%. However, C corporations will also be assessed a corporate franchise tax—$2.50 per $1000 of your total value capital used, invested, or employed within the state. LLCs, as long as they keep their default tax status, won’t be subject to either the corporate or franchise tax.
Also, in 2010, Mississippi strengthened its Limited Liability Act by adding language from the Delaware LLC Act—a state often regarded as having strong business laws. Essentially, a charging order requires Mississippi LLCs to pay creditors any distributions that would otherwise be paid to the debtor; however, the claimant cannot participate in management—preventing unwanted business partners. Definitely a plus for Mississippi LLCs.
If you want a corporation, you file Mississippi Articles of Incorporation:
The Mississippi articles of incorporation cost $50 with the Mississippi Secretary of State.
- Business email address.
- Whether you are forming a profit or nonprofit MS corporation.
- The Mississippi Corporation must have a corporate ending such as INC, Incorporated, Corporation or a different variety.
- The Mississippi corporation name must be different than already registered Mississippi corporations.
- The incorporation is effective when filed, unless you list a future effective date.
- Only nonprofits have to list duration.
- Only profit corporations need to list the number of shares the Mississippi Corporation is authorized to issue and the class of the shares.
- The name and office address of the registered agent in Mississippi.
- The name and address of each incorporator of the Mississippi Corporation.
- Other provisions.
- The Mississippi incorporator must sign the articles of incorporation.
Mississippi does not require original signatures on new MS corporation filings. The stamped form will be mailed to the address of the person who filed the documents.
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If you want a LLC, you file Mississippi Articles of Organization:
- The business name must have a LLC ending or variation of it.
- The Mississippi company name must be different than already registered Mississippi companies.
- The articles are effective when filed, unless you state a future effective date.
- Business email address.
- Federal Tax ID number.
- The Mississippi registered agent name and physical address.
- The Mississippi LLC duration is perpetual unless you state a specific date of dissolution.
- Management type – manager(s)/member(s).
- Other matters the managers or members elect to include.
- The form must be signed by at least one member, manager, or organizer.
- The name, title, and address of each signer.
Mississippi does not require original signatures on new MS LLC filings. You’ll get a certificate of formation mailed back to you after the state approves your filing.