Any business can be challenging, and getting started with an LLC is no different. Fortunately there are many different options for setting up an LLC and getting it operating correctly. In Mississippi the process is relatively straightforward, so there is not much to worry about. As long as the setup and operation laws are followed, an LLC can be operated successfully in the state. Since Mississippi’s guidelines are less aggressive than what is required by some states, people looking for a home for their LLC may feel that the state is a good choice.

Getting Started

Naming the LLC

Before choosing a name for a particular LLC, it is important to search online to see is a company already has that name. In addition, the name must contain the words Limited Liability Company or its abbreviation to be valid. When looking for a name it is also important to make sure the domain name is available, so the company can have a web presence that matches and is easy to locate. Some words are restricted and require more paperwork to be able to use, while other words are completely prohibited because they could confuse consumers looking for federal and state agencies.

Selecting a Registered/Statutory Agent

A registered agent, often also called a statutory agent, is a person or other entity who is designated to receive official correspondence for the LLC. That can be an individual, or it can be a corporation. If an individual is chosen that person has to be a Mississippi resident. Choosing a corporation means the corporation has to be authorized to do business in the state. It’s possible for the owner of the LLC to designate themselves as registered agent, as well. If a person’s or corporation’s status changes, designating a new registered agent to remain in compliance will become necessary.

Filing Articles of Organization

The Articles of Organization for a Domestic LLC must be filed, and filing online makes it easy and convenient to get started. There is a $50 fee for filing. These Articles are the official documents of the LLC and provide information into who manages the company, how large it is, and other factors that the state needs to know for tax and other purposes.

Creating an Operating Agreement

Like most states, Mississippi does not require an operating agreement when it comes to forming an LLC. Many companies choose to create these documents anyway, to ensure the proper running of the business, but there is no state requirement to produce one. For those that want an agreement of this type simply for peace of mind, resources to create one are available and worth consideration.

Running Your Business

Getting Your EIN

What’s an EIN?

An EIN is an employee identification number, issued by the Internal Revenue service. Sometimes it is also called a Federal Tax Identification Number. It’s a unique number issued to each business.

You’ll need an EIN to

  1. Open a business bank account.
  2. File Federal and State Taxes
  3. Hire employees.

Before you get your EIN:

  1. Make sure your new business has been properly formed before applying.
  2. Be wary of paid sites. EINs are free direct from the IRS.

How do I get an EIN?

  1. Apply online: The easiest way is to apply online for an EIN. Note, the IRS website has office hours, and is only available Monday through Friday, 7am to 10pm. Yes, we also agree this is one of the most ridiculous things we’ve ever seen.
  2. Call: You can call 1-800-829-4933, between 7am to 7pm of your time zone, Monday to Friday.
  3. Snail Mail – You can download the form and mail it in.

Keep Business and Personal Accounts Separate

  1. Get a business bank account for your business. This will help you protect your personal assets from potential creditors and lawsuits, and will also make life A LOT easier come tax time.
  2. Get a business credit or debit card. This will help you keep your expenses separate and easier to track.

Accounting

No matter what business you run, accounting software and processes is a must for any small business. If you have an accountant, ask them which software they work with and recommend.

A good accounting system is necessary to:

  1. Track income and expenses, so you can easily see if you’re making money
  2. Makes filing income taxes so much easier.

Always try and find something that will:

  1. Sync with all of your bank and credit card accounts automatically – not just downloads, but auto sync.
  2. Automatch vendors, customers and other accounts.
  3. Let you accept credit cards and ach drafts with ease.

Mississippi LLC Taxes

In Mississippi, an LLC will need to set up for several different kinds of taxes.

Unemployment

The unemployment insurance tax is required in order to protect both businesses and employees,

Income

To ensure proper payment of taxes, employee withholding tax is a state requirement.

Sales Tax

Any LLC selling goods or services that are considered taxable must set up for sales tax.

Various permits may also be needed. These are all requirements of the state and cannot be avoided. Additionally, it’s necessary to have an EIN in order to pay taxes, hire employees, and have a bank account in the name of the LLC. It’s important to note that sales tax is only required if the LLC is selling a taxable good or service. Not all companies need this. Permits will vary, as well, depending on the nature and scope of the business.

Getting Insurance for your LLC

Among the main requirements for an LLC is insurance. Workers’ Compensation insurance has to be provided to employees, but other types of insurance are not required. Many companies still choose additional insurance, however, because they want to protect their LLC and their employees as much as possible. Good general liability insurance can help defend against many different types of lawsuits but is not required by the state. Depending on the kind of business operated, an LLC may want to have other different types of insurance, as well.

Keeping Your LLC Compliant

To keep a Mississippi LLC compliant, there are several things that have to be considered. The first of those is hiring requirements. An LLC must be sure that the people they hire are eligible to work in the US, and that they provide to those employees everything they’re legally required to offer. An annual report must also be filed. It is due between January 1st and April 15th every year, and there is no fee for the filing of that report. A Certificate of Good Standing can also be searched for and provided for an LLC that meets the requirements.

How to File a Foreign LLC in Mississippi

To register a foreign LLC, paperwork and a $250 fee are required. Not all foreign LLCs will qualify, as there are requirements that must be met to do business in the state.