How to obtain an LLC in mississippi [New Research]

Last updated : Aug 26, 2022

How much is it to get a LLC in Mississippi?

How much does it cost to form an LLC in Mississippi? The Mississippi Secretary of State charges a $50 fee to file the Certificate of Formation. You can reserve your LLC name with the Mississippi Secretary of State for $25.

How do I start an LLC in Mississippi?

1. Name Your Mississippi LLC.
2. Choose Your Registered Agent.
3. Prepare and File Certificate of Formation.
4. Receive a Certificate from the State.
5. Create an Operating Agreement.
6. Get an Employer Identification Number.

How long does it take to get an LLC in Mississippi?

Filing a Mississippi LLC takes just twenty-four hours if you file online but could take around a week if you file by mail. We'll take you step by step through the process of forming your LLC.

Does Mississippi allow single member LLC?

Mississippi allows one owner to form an LLC, called a single-member LLC. Limited Liability Companies are governed by an operating agreement.

How are LLCs taxed in Mississippi?

Limited Liability Companies (LLCs) Standard LLCs are pass-through entities and are not required to pay income tax to either the federal government or the State of Mississippi. LLCs are also not required to pay Mississippi's corporate franchise tax.

How much does an EIN cost in Mississippi?

Applying for an EIN for your LLC is free ($0) Applying for an EIN for your Mississippi LLC is completely free. The IRS doesn't charge anything for applying for an EIN.

Is a business license required in Mississippi?

Businesses operating in Mississippi are required to register for one or more tax-specific identification numbers, licenses or permits, including income tax withholding, sales and use tax (seller's permit), and unemployment insurance tax.

How do I become an LLC?

1. Step 1: Choose a state in which to form your LLC.
2. Step 2: Choose a name for your LLC.
3. Step 3: Choose a registered agent.
4. Step 4: Prepare an LLC operating agreement.
5. Step 5: File your LLC with your state.
6. Step 6: Obtain an EIN.
7. Step 7: Open a business bank account.

What's better Inc or LLC?

Both types of entities have the significant legal advantage of helping to protect assets from creditors and providing an extra layer of protection against legal liability. In general, the creation and management of an LLC are much easier and more flexible than that of a corporation.

How do I get an EIN number in Mississippi?

Once you determine that your small business needs a Mississippi state tax ID, the most convenient channel to apply is online. You can complete the online application in a matter of minutes, then wait a few days to a few weeks for the application to fully process.

What are the benefits of an LLC vs sole proprietorship?

Only LLCs can choose corporate tax status A key difference between LLCs vs. sole proprietorships is tax flexibility. Only LLC owners can choose how they want their business to be taxed. They can either stick with the default—pass-through taxation—or elect for the LLC to be taxed as an S-corporation or C-corporation.

How do I start a business in Mississippi?

1. Choose a Business Idea. Take time to explore and research ideas for your business.
2. Decide on a Legal Structure.
3. Choose a Name.
4. Create Your Business Entity.
5. Apply for Licenses and Permits.
6. Find a Business Location and Check Zoning.
7. File and Report Taxes.
8. Obtain Insurance.

Can you use a PO box for an LLC in Mississippi?

Your Registered Agent must have a street address in Mississippi (PO Boxes are not allowed). Your Mississippi Registered Agent must also be available during normal business hours (9am – 5pm) in case Service of Process arrives.

What is a sole proprietorship vs LLC?

An LLC exists separately from its owners—known as members. However, members are not personally responsible for business debts and liabilities. Instead, the LLC is responsible. A sole proprietorship is an unincorporated business owned and run by one person.

How much is business tax in MS?

Mississippi has a graduated income tax rate and is computed as follows: 0% on the first $3,000 of taxable income. 3% on the next $2,000 of taxable income. 4% on the next $5,000 of taxable income .

What is a privilege tax license in Mississippi?

A Privilege License is a license allowing a person to do business in the County for a profit. Businesses outside the incorporated areas of the county are required to obtain a Privilege License through Jackson County Tax Collector's Office. Businesses within the incorporated areas need to contact that city.

What is a franchise tax in Mississippi?

Mississippi's franchise tax applies to most corporations doing business in the State. The rate is $2.50 per $1,000 of the value of the capital used, invested, or employed in the State. The tax base consists of capital stock issued and outstanding, surplus and undivided profits, and true reserves.

What income is not taxable in Mississippi?

For 2022, the first $5,000 of taxable income is exempt, but the first $10,000 is exempt beginning in 2023. Plus, the tax rate on taxable income above $10,000 is gradually reduced starting in 2024. Seniors will also like the fact that most retirement income is exempt from Mississippi tax.

Is EIN the same as tax ID?

An Employer Identification Number (EIN) is also known as a federal tax identification number, and is used to identify a business entity. It is also used by estates and trusts which have income which is required to be reported on Form 1041, U.S. Income Tax Return for Estates and Trusts.

Do I need to register as a business?

Put simply, if you are making money from your hobby or side hustle, then you'll need to register as a business with HMRC, even if you work from home and don't have business premises. You need to register when: Any trading or professional business activity takes place. Goods or services are bought or sold.

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how to start an llc in mississippi today you will learn about the most common ways to start your business including the correct forms you'll need how to register your llc critical naming requirements and all other vital tips and tricks then as a bonus later on in the video i will reveal to you a trustworthy registered agent who will help set up your llc for free so make sure to stick with me until the end the state of mississippi like other states has several specific llc requirements there are three main ways you can start an llc in mississippi first is the diy or do-it-yourself process where you mostly depend on mississippi state's website the second way is hiring a professional service that practically offers more efficiency and security in the process of creating your llc while the third one is hiring an attorney we will skip the attorney hiring portion because that's expensive and most business owners won't need that service first let's take a look at the steps required for starting an llc on your own step one name your business before anything else you will have to think of the llc's legal business name each llc in mississippi must have a distinct llc name that is not currently in use you must include the terms limited liability company or an abbreviation such as llc you cannot include phrases such as a corporation which would lead people to believe you are a different business organization knowing if your business name is taken or not is very easy just go to google and type in the words business entity records mississippi secretary of state and click the first search result i also have the link in the description below for your convenience it will lead you to a landing page of business entity records in mississippi scroll down a little and you will see some search options which make checking the availability of your business name easier generally you can click the first option entity name and type in your business name for example i am typing a very common business name here best dentist which will give you a list of existing business names a unique business name will say no matches found just like this random name i typed in keep in mind that the division of revenue doesn't check names for trademark compliance it's ultimately up to you and your business attorney to ensure that your llc's name doesn't infringe on any other company's rights step two mississippi requires llc to have a registered agent an agent has a physical address a po box is not allowed and is available during business hours this agent will serve as the llc's primary point of contact for receiving key legal papers tax warnings summons subpoenas and so on you can register yourself or someone in your company but i highly recommend getting a professional registered agent as they have more knowledge by protecting your company in cases of possible cracks while i agree that family members or friends are reliable enough to be trusted as your llc's agent you are more comfortable sleeping at night knowing that your agent is professional and trained to manage legal documents to avoid problems concerning court schedules filing reports with the secretary of state etc besides hiring a professional registered agent is not expensive in fact there are companies that offer a free registered agent as part of your package when you form your llc through them inc file is a company i recommend which has this free service inc file offers a free registered agent on your first year of signing up for their service during that free year you can already take advantage of a professional and trained agent to receive legal documents on your behalf a dashboard where you can always access the correspondence that your agent has received as well as email notifications and automatic forwarding whenever your registered agent receives documents step 3 filing the mississippi llc certificate of formation after that you must file the certificate of formation with the mississippi secretary of state's business entities division and the office of the judge of probate to officially incorporate a domestic mississippi limited liability company the mississippi state filing cost for llcs is 50 for domestic llcs and 250 for foreign llcs basically a domestic llc means that you are already a resident of mississippi and you want to build a business in mississippi foreign llc on the other hand is for people living outside mississippi but wanting to start a business or a franchise of their business in mississippi with that said most businesses would be applying for a domestic llc you can file the certificate of formation online or by mailing it to the secretary of state expect the llc certification process to take approximately two weeks this is three to four days for the judge of probate and ten days for the secretary of state step four prepare an operating agreement now an operating agreement is a good idea to have in place with the other members if your llc has more than one member although a limited liability company operating agreement is not necessary for mississippi your operating agreement should clarify how your company or business will handle big picture issues such as allocating earnings and losses and dissolving the company your operating agreement should also cover the transfer of membership interest profits or losses and distributions initial investments decision making powers voting rights and management and lastly dissolving the business step 5 of file annual reports all llcs doing business in mississippi must file an annual report once every calendar year with the mississippi secretary of state the report can be filed anytime on or after january 1st of each calendar year and is due by april 15th of that year mississippi llcs must file the report online you must have a state-issued business id number to file the report you can find the id number by doing a business name search on the secretary of state business name database step 6 obtain an ein an ein or employer identification number is a federal tax id issued by the irs your ein is used by them to readily identify your firm and tax filings all mississippi firms pay a business privilege tax and the state requires you to have an ein to file you may also be required to provide your ein when opening a bank account or applying for municipal permits or licenses obtaining an ein is a slightly longer process compared to their previous steps i'm sure you know anything to do with the irs is confusing first you have to have complete knowledge of your llc such as your company information managing member information business address business information company details and even critical information regarding vehicular assets and federal excise taxes this is another reason why getting a professional registered agent is way more convenient as they can do this for you as part of their service now let's talk about the second option to form an llc and that is hiring a professional formation service professional formation services do all the steps you should be doing on your own from filing necessary forms to acting as your registered agent you usually have to

Thanks for your comment Cecil Wimberly, have a nice day.
- Pete Haft, Staff Member

Thanks for this interesting article

Thanks Beaulah your participation is very much appreciated
- Pete Haft

About the author

Pete Haft

I've studied conservation psychology at Fairfield University in Fairfield and I am an expert in mathematical physics. I usually feel stressed. My previous job was psychology professor I held this position for 30 years, I love talking about freestyle football and knitting. Huge fan of Wanz I practice rugby and collect dolls.