How to Form an LLC in Mississippi | Guide on Mississippi LLC

Forming an LLC (Limited Liability Company) in Mississippi is easy and affordable. The following are few procedural steps on how to start an LLC in Mississippi. LLCs can be formed in two ways, domestic and/or foreign. If you are planning to set up an LLC in states other than Mississippi, visit How to Start an LLC.

mississippi llc

Why an LLC in Mississippi

Starting an LLC in Mississippi has benefits that most of the other states may not be offering. The state has a strong transportation base and is well connected with other states that leverage the state number in the list of preferred states for starting an LLC. Along with that, it is considered as a very nice developed state from the point of view of tourism.

Those who want to consider Mississippi for LLC should surely go through the below-mentioned details.

Rural Economic Development Credit (RED) 

When a new LLC in Mississippi is registered with the government, then they give credits to the LLC for bringing some sources of development with them. There are only some business people who are given this credit, like the manufacturing units, technology enterprises, or telecommunication industries. Now when all of them apply for this credit, the government checks whether they are using the revenue bonds for their industry or not. These bonds are issued by the Mississippi Business Finance Corporation.

Tourism Tax Rebates

In Mississippi, tourism-related businesses get a huge tax rebate. It is not surprising that LLCs with this type of business are more interested in Mississippi than others. Around 80% of the total sales tax, LLCs have to pay while registration, is returned to them as the tax rebate. Tourism businesses that are looking forward to starting theme parks, water parks, or some other places of attraction in Mississippi then they can enjoy this tax benefit. 

Health Care Incentive Program 

Start-up companies who are thinking to Start an LLC in Mississippi will get an extra incentive if they are somehow related to the healthcare field. Such businesses will enjoy a direct deduction for 10 years in the state income tax that they are about to pay. Moreover, the taxes which they pay on the sales are also less than other businesses in the state.

Loan programs for LLC

Funding is the main reason due to which many LLCs are unable to establish their business. But in the state of Mississippi, this issue is not faced by many LLC. The state has started many programs to ensure that none of the LLCs gets scarce. The same funding program for which businesses are having a unique idea can enroll is the Agribusiness Enterprise Loan program and Minority Enterprise Loan program. They are sunning with the purpose of helping LLCs rise and establish.

How to Start a Mississippi LLC

Suppose you’re planning to invest in some profitable business or maybe about to set up your business in Mississippi. In that case, forming an LLC in Mississippi is the simplest option for you.

An LLC or a Limited Liability Company a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. This section gives you a step-by-step guide on How to Start an LLC in Mississippi. 

Step 1: Decide a Name for Your LLC

If you are to start an LLC in Mississippi, the first thing you do is decide on a business or company name, and how to name your LLC may be tricky. Thus, you have the option to choose a name that complies with the Mississippi business naming requirements. It must also be easily searchable for potential clients. Here is a step-by-step guide to follow when naming your Mississippi LLC. 

Why do you need a proper business name?

If you want your LLC to have special identification, your company name is essential. However, many people face lots of issues by avoiding focus on choosing a business name for their LLC business formation filings.

Because of this, here are some of the major benefits of choosing the best LLC corporate names.

  • To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
  • After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
  • You can only get the EIN number when you have your name registration certificate with you.

What are the requirements when deciding a name for your LLC? 

name search is vital to make sure your business’ name is unique. Check the availability of your name with Business Entity Search on the Mississippi Secretary of State’s website. Reserve the name by completing the Name Reservation Request Form for Domestic Entities.  

  • Don’t include words that could confuse people about your company. Words like ‘treasury, state department.’
  • You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
  • As for a business website and your URL name, check if your name is still available for domain use with NameCheap.

Reserve a business domain

Even if you don’t have plans to set up a website today, it will help if you buy a domain to avoid others from using your name for their website, so do visit NameCheap for your domain name and Kinsta for web hosting.

If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.  

Step 2: Assign a Registered Agent in Mississippi

A registered agent, or business entity, is a person that will act or work on your behalf. This person or business will receive significant tax forms, legal documents, a notice of lawsuits, and other official government correspondence in Mississippi. Choosing Mississippi-registered agents for your LLC is required. 

Make sure your registered agents are residents of Alabama. It could also be a business. Here are the recommended agents and employees for you:

These five LLC formation services are recommended agents’ registered services as they are authorized to conduct business in Mississippi. Compare them to check the best yet cheapest option for you. Besides, they can guarantee you professional service because they have been in the business for years. 

Step 3: File Certificate of Formation in Mississippi

A Certificate of Name Reservation is needed to file a Certificate of Formation or Articles of Organization or Certificate of Organization, as other states call it. You need to make reports of this certificate with the Mississippi Secretary of State, which costs $50. You may file them online. 

This Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in Mississippi, like if it is a member-managed or managers-managed

Before you start filings, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Mississippi LLC will offer.

How to File Online

Go to the Secretary of State Online Service. Select “non-subscriber.” Fill out the online form. The website will alert you if your county does not support online filings after selecting your principal county.

Step 4: Create Your Mississippi LLC Operating Agreement

An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts. 

Starting an LLC in Mississippi does not require you to have an operating agreement, but it is ideal to have one that contains all your details of business operation.

Step 5: Filing a Mississippi LLC EIN

The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes. It is like a Social Security number dedicated to a business. 

It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for tax filing and to determine tax classification options.

Mail to:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

After Starting your Mississippi LLC 

After forming your LLC, there are still some things that you will need. Take note of the following:

  • Get a company business account
  • File Mississippi business permits & licenses
  • Get liability for business insurance with coverage for employees
  • File a Mississippi LLC annual report or biennial report
  • Already existing LLCs that wish to operate in Mississippi must register as a foreign Mississippi LLC.  

This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.  

Top Businesses of Mississippi State 

Before you form an LLC in Mississippi, you should gain complete knowledge regarding the pre-established industries. It helps in understanding the business much better, and you can start your journey quickly.

Broad Agricultural Sector 

The agricultural sector of the Mississippi state is extensive. If you look at the total figure, then the state is generating around $6.2 billion per year for the state. The categories in the agricultural sectors of the state are:-

  • The poultry field of the state is very diverse and has produced around 747 million chicken broilers.
  • The state’s cotton farming is ranked the top in the country producing around 1.48 million bales of cotton every year worth $623 million.
  • The wheat of around $12 million is produced in the state alone.
  • The cattle business of around $305 million was done in the year 2018.
  • Various fishes are also famous that are available only in Mississippi state.

Entertainment

Gambling is made legal in the Mississippi state also, which has helped in the growth of the tourism industry. The revenue that is generated by the gambling activities in the state is around $42.25 billion, which has increased year by year. Due to these entertainment casinos, the tourism of the state is very well established. People visit the state, spend their time in the local restaurants and beautiful spots, and then bet money in the casinos.

Manufacturing 

For balancing such a substantial agricultural industry, there are various manufacturing units established. Packaging and processing of food is the primary industry of the state that works in the packaging of regular food as well as the non-vegetarian products also which is exported in massive amounts. Moreover, other goods like automobile factories, lightening equipment, and vehicles are also produced in the state. The biggest industries are Nissan Automotive plants and the Toyota plant in Blue Springs.

Businesses that are established well into the state with low investment values are:-

  • Cat Fish Farming
  • Auto Repairing workshop
  • Opening up a liquor store or a bar

Mississippi LLC Formation Review

Time needed: 1 hour and 5 minutes.

 Just to recap, here are the easy steps again when forming an LLC in Mississippi. Click on the steps in this list to read the full detail.

  1. Name your Mississippi LLC

    The first thing you must do is to choose a company name, which should include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
    name llc

  2. Choose a registered agent

    In Mississippi, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
    get registered agent

  3. File a formation certificate

    Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
    file formation certificate

  4. Create operating agreement

    An operating agreement is not a strict requirement but something encouraged when you start an LLC.
    create operating agreement

  5. Get an EIN

    The Employer Identification Number (EIN), also called  Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
    get an ein

F.A.Qs

What is the difference between ‘domestic LLC’ and ‘foreign LLC’?

A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.

What do I need for Domestic and Foreign LLCs?

For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.

Is the cost to form an LLC the same across states?

The cost to form an LLC varies per state.

Does an LLC need to use a DBA?

Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here

Why are operating agreements important?

This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.

Is there anything else I should keep in mind when naming my LLC?

>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.” 
>Do not include words that could create confusion between your LLC and any government business. 
>Words like ‘bank, attorney, university’ are restricted as well. 
>Lastly, your name should distinguish from other limited liability corporations, limited partnerships, or registered limited liability partnerships.

Where can I file my LLC name?

Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the fees for business names may also vary per state.  

How can I know if my URL name is available?

As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website. 

Can I mail the LLC Certificate of Formation to the Secretary of State?

No. Never mail these documents or payments to the Secretary of State directly. 

Why do I need an EIN?

The reason you might need an E.I.N. is that it would help for three reasons:
>Opening a business bank account
>Filing and managing federal and state taxes
>Hiring employees or agents

How do I get an EIN when I do not have a Social Security number?

You are not required a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.

I already have an EIN for a sole proprietorship; what now? 

Note that an LLC is different from a sole proprietorship. If you already have an EIN for your sole proprietorship, the IRS will require you to get a new one when your convert to an LLC. 

Do foreign applicants need an SSN to get an EIN?

International EIN applicants do not need an SSN to get an EIN.

What is an IRS?

The IRS is the one that will issue your EIN. You can request an EIN from the IRS ONLINE or download the FORM, fill it out, and send it by mail or fax.

NOTE:  Ask us about Multi-Member LLCs, Federal Tax Purposes, Personal Liability Protection, Entity Type, Business Debts, Business Address, Business Structures, Registered Agent Service, Professional Services, Federal Taxes, Limited Liability Protection, Statutory Agent Service, Personal Asset protection, Entity for Tax, Legal Entity,Business Privilege Tax, Income Tax Liability, Formation Requirements, Additional business Licenses, Legal Liability, Franchise Tax/ Annual Franchise Tax, Franchise Tax form, Agent for service, Franchise Tax Reporting, Franchise Tax registration,Mailing address, Physical address, Business credit cards, internal documents, formation document, online application, federal business licenses, protection from Liability, federal income taxes, personal income tax, Annual registration fee, filing procedures, legal protections or anything from the article in the comment box below.

Leave a Comment