LLC in Mississippi – How to Form a Mississippi LLC (2021)


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Having an LLC in Mississippi is a better and cheaper option than having other business structures. A limited liability company (LLC) reduces the owners’ personal liability and protects their personal assets. One can start an LLC in two ways, domestic LLCs or foreign LLCs (LLCs in more than one state). By following some basic steps, you can easily form an LLC in Mississippi.

LLC in Mississippi

How to Start an LLC in Mississippi

An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. 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

name llc

Deciding on a business name is the first step to start an LLC. In Mississippi, before you name your LLC, it is important to note a few things. Firstly, make sure the name is available to use. If the name is available, then check if the name complies with all the Mississippi business naming requirements. Once you pass through them, you can successfully name your business.

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.

Requirements when deciding a name for your LLC

LLC Name Search: A business name search is required to check if the desired name is available or not. If the name is available then the business owner has to fill up a name reservation form and submit it online to the Secretary of State, Mississippi. To do the name search, one has to visit the Business Entity Search page on the official Secretary of State website. The cost of a name reservation is $25 (not necessary).

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Step 2: Assign a Registered Agent in Mississippi

get registered agent

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 forms, formation documents, an internal document, a notice of lawsuits, any documents from the government agency, and other official government documents in Mississippi. Choosing a Mississippi registered agent for service of process for your LLC is required. 

Make sure your registered agents are residents of Mississippi or have a physical street address. It could also be a business. Here are the recommended agents and employees for you:

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Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.  

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, these professional service providers can guarantee you services like filing services, agent services, and others because they have been in the business for years. 

Step 3: File Certificate of Formation in Mississippi

file formation certificate

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. Check out the LLC cost in Mississippi for more details. 

This Mississippi 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. LLCs with employees need to check the Mississippi department of employment security for rules to hire employees.

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. Visit the Mississippi Certificate of Formation to know about the online filing process.

Step 4: Create Your Mississippi LLC Operating Agreement

create 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. 

When it comes to an LLC operating agreement Mississippi does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all your details of business operation. This document would be useful if you decide to dissolve Mississippi LLC later.

Step 5: Filing a Mississippi LLC EIN

get an 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 and taxes in general. It is like a Social Security number dedicated to a business’ taxes. The EIN is necessary for any active business or any form of business for that matter. 

To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Before sending the form, ask for EIN Assistant. Enter details of your LLC, and finally complete the form and send it to the address given. It is recommended to apply online.

Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999

Fax: (855) 641-6935 | Fee: Free

Note: You don’t need 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.


And that’s all! Congratulation, you are now done with all the necessary steps to form your Mississippi LLC. If you still haven’t used a professional service from here, I strongly recommend having one to handle the remaining tasks.


After Starting your Mississippi LLC 

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

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.

Mississippi Foreign LLC

To register a Mississippi foreign LLC, one has to file the foreign LLC formation certificate with the Secretary of State, Mississippi. Forming a foreign LLC allows you to operate your business in more than one state in the USA as a single business entity. Check Mississippi Foreign LLC to know more about having a foreign LLC.

Why an LLC in Mississippi

Starting a Mississippi Limited Liability Company 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. Other than that, entrepreneurs get diverse business funding options in the state. For example, a woman-owned business gets some reductions in tax liabilities in Mississippi.

It is easy to run a successful business in Mississippi. LLCs can earn an extra profit as other than personal taxes, no major federal taxes need to be paid by the LLCs. Along with that, it is considered a very nice developed state from the point of view of tourism.

Rural Economic Development Credit (RED) 

When a new LLC in Mississippi is registered with the government, they give credits to the LLC to bring some sources of development with them. Only some business people 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. The Mississippi Business Finance Corporation issues these bonds.

Tourism Tax Rebates

In Mississippi, tourism-related businesses get a huge tax rebate. It is not surprising that LLCs with this type of business is 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 looking forward to starting theme parks, water parks, or some other places of attraction in Mississippi 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 they are about to pay. Moreover, the taxes they pay on 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 with a unique idea can enroll is the Agribusiness Enterprise Loan program and Minority Enterprise Loan program. They are sunning to help LLCs rise and establish.

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, the state generates 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 also made legal in the Mississippi state, which has helped in the growth of the tourism industry. The revenue generated by the state’s gambling activities 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 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 and non-vegetarian products 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: 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 be unique, easy to find, and available in the state.
    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

Can I file an LLC in Mississippi by myself?

If you are a resident of Mississippi, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.

What is the cost of forming an LLC in Mississippi in a year?

Apart from the formation fee of $50 (domestic LLC) and $250 (foreign LLC), LLC costs in Mississippi $0 for Annual Reports every year. LLCs are liable to pay sales tax of 7% every year

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

You will get LLC in Mississippi immediately if you file it online. For the mail filing, it takes 3-5 business days to get an LLC.

How to renew my LLC in Mississippi?

Every year all the LLC have to submit an Annual Report to the Mississippi Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.

What is the tax structure for an LLC in Mississippi?

Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens.

In Conclusion

LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start their LLC in Mississippi at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, leave a comment below.

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