Mississippi LLC Costs
When a business owner forms a limited liability company or LLC, it provides them with liability protection, unique tax benefits, state-specific incentives, and a workable management structure. Entrepreneurs and small business owners sometimes think that the LLC formation process in Mississippi is complicated and costs too much to pursue. However, it is relatively straightforward and worth the investment for most.
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Costs to start an LLC in Mississippi
LLC Certificate of Formation ($50)
- You must file your Certificate of Formation with the Mississippi Secretary of State.
- The cost to file a Mississippi Certificate of Formation is $50.
- The state of Mississippi does not offer any expedited LLC services.
Mississippi annual report fee (free)
- You must file an annual report with the Mississippi Secretary of State.
- You will file your annual report online using the Secretary of State Business Services website.
- Mississippi does not charge an annual fee or report fee to file your annual report.
- An LLC’s annual report is due on the 15th of April every year.
- Failure to file an annual report may result in dissolution.
Mississippi registered agent fee (varies between $50 to $300)
- When forming an LLC in Mississippi, you must appoint a registered agent.
- It lets the Mississippi Secretary of State that someone is available during business hours to accept documents, subpoenas, and tax notices.
- You can appoint anyone as a registered agent if they meet the state requirements, including yourself.
- The LLC costs for appointing a registered agent will be different depending on the commercial service you choose, your LLC needs, and the state filing fees.
Fees to form a foreign LLC in Mississippi ($250)
- You will need to register an LLC as a foreign LLC if you have an existing one in another state and wish to expand.
- You will register as a foreign LLC online using the Mississippi Secretary of State Business Services website.
- The LLC filing fee to register a Mississippi foreign LLC is $250.
LLC name reservation fee ($25)
- In Mississippi, you do not have to reserve an LLC name before formation.
- However, when you reserve a company name, you are ensuring no one else can register the same name before you begin LLC formation.
- An LLC name in Mississippi must be unique and meet the state requirements.
- You can reserve your Mississippi LLC name for up to 180 days before formation.
- You will complete the Mississippi Secretary of State Name Reservation Filing online form to reserve an LLC name.
- The cost to reserve a Mississippi LLC name is $25.
DBA filing fees in Mississippi ($25)
- The business term DBA in Mississippi stands for ‘doing business as.’ A DBA, or assumed name, is any registered name that a person or company uses that is not the legal name.
- In Mississippi, an LLC is not required to register a DBA.
- However, when you register for a Mississippi DBA, you put your name on file. And many financial institutions will require you to register a DBA if you are using a company name that is not its legal name.
- You will register your DBA online using the Mississippi Secretary of State Fictitious Business Name Registration form.
- The cost for a DBA in Mississippi is $25.
Cost of certified document copies ($15)
- You will order your certified Mississippi LLC document copies online using the Order Certificates and Document Copies form.
- The cost for certified LLC documents in Mississippi is $15 for up to 5 pages.
Certificate of Good Standing ($14)
- You will need a Certificate of Good Standing before opening a business bank account in Mississippi.
- You will order the Certificate of Good Standing online using the Mississippi Secretary of State Business Services website.
- The filing cost for a Certificate of Standing is $14.
Steps to start an LLC in Mississippi
Choose a business name
When deciding on an LLC name in Mississippi, you must consider a few things.
- The LLC name must be unique in Mississippi.
- Your LLC name must meet all Mississippi LLC naming guidelines.
- And you will want to check for web domain availability to keep branding seamless.
You will use the Mississippi Secretary of State Business Services website to conduct a name search to check for LLC name availability.
LLC name reservation fee
You can reserve your Misssissippi LLC name online for up to 180 days before formation.
You will complete the Mississippi Secretary of State Name Reservation Filing online form to reserve an LLC name.
The cost to reserve a company name in Mississippi is $25 online. An LLC name is good for up to 180 days. Mississippi does not require you to reserve an LLC name.
Appoint a Mississippi registered agent
Mississippi requires that you appoint a registered agent when forming an LLC in the state.
The price for a Mississippi registered agent or service varies between $50 and $100 a year. The cost depends on the state and your LLC needs.
A registered agent in Mississippi is an individual or business entity that receives tax forms, legal documents, subpoenas, civil notices, service of process, and other official government correspondence on behalf of a sole proprietorship, corporation, or LLC.
The registered agent you choose must be a Mississippi resident or a registered agent service authorized to conduct business in the state.
- Starter Plan – $39 a year plus State Fees
- Pro Plan – $149 a year plus State Fees
- Premium Plan – $249 a year plus State Fees
ZenBusiness offers a stand-alone LLC registered agent service in Mississippi. The price is $99 per year.
- Total Out The Door Mississippi LLC Formation Service Package – $40 a month and includes:
- Mississippi State Fee
- Filing Service Fee
- Registered Agent
- Tax ID
- Annual Plan – $225 plus State Fees a year
- Economy – $79 plus $153 Mississippi filing fees
- Standard – $329 plus $153 state filing fees
- Express Gold – $349 plus $255 state filing fees
File Mississippi Certificate of Formation
In Mississippi, you will file the Certificate of Formation with the Secretary of State.
You will file online using the Mississippi Secretary of State Business Services website.
The LLC to file a Mississippi Certificate of Formation is $50.
Mississippi does not offer any expedited services.
125 S Congress St
Jackson, MS 39201
The Certificate of Formation, also known as Articles of Organization, will ask you for specific information about your LLC.
- LLC name and address
- Registered agent information
The fee in Mississippi for filing your LLC Certificate of Formation is $50.
Get a Mississippi LLC EIN
An Employer Identification Number, or EIN, can also be referred to as a Federal Employer Identification Number (FEIN) or Federal Tax ID Number (FTIN).
The Internal Revenue Service, or IRS, issues a 9-digit number called an EIN. The federal government uses the number like a Social Security Number for LLCs for income tax purposes.
In Mississippi, if your business is a sole proprietorship and converting to an LLC, you will need to apply for an EIN.
Applying for an EIN is a simple process online through the IRS website.
Business banking for a Mississippi LLC
The best way to handle business banking is to open a business bank account that is separate from your personal one. It will protect your personal assets and credit scores.
Financial institutions in Mississippi will require you to submit a copy of your Certificate of Formation, an operating agreement, and an EIN.
Business banking accounts are generally free, and do not have additional charges or fees.
Business attorney fees in Mississippi
A business attorney keeps LLC formation simple in Mississippi because someone is available to handle business-related issues and problems that may arise.
For first-time clients, business attorneys typically offer free consultations.
Professional services such as LegalZoom and Rocket Lawyer offer LLC formation packages that include comprehensive legal services.
On average, a business lawyer in Mississippi will cost $300 per hour.
LLC taxes in Mississippi
- LLCs in Mississippi are pass-through entities. It means that you will file your personal tax return rather than the LLC’s state tax return.
- You will use the Mississippi Department of Revenue website to register for a seller’s permit if you sell physical products.
- The Mississippi state tax rate is 7.00%, and a max local and county rate of 1.00%.
- If you hire employees in Mississippi, you must register for Unemployment Insurance Tax through the Mississippi Department of Employment Security.
- You must also enroll in Employee Withholding Tax through the Mississippi Department of Revenue.
- Mississippi state taxes can get complicated. However, when you appoint a tax expert, you are ensuring you do not miss deadlines or accrue penalties and fees and possible dissolution.
Business licenses and permits in Mississippi
The cost of permits and business licenses in Mississippi will vary depending on where the LLC is located and the type of business.
You will use the Mississippi Secretary of State Business Services website to search for the business license or permits you need to do business.
A business licence in Mississippihas the average cost of $35. The total cost of permits and licences will depend on where your LLC is, and the type of LLC.
Mississippi counties and municipal offices will have different business licenses, permit processes, and rules. Contact the government office to inquire about the process, price, and office hours.
Some Mississippi LLC documents may require a notarization from a notary public.
Most government agencies have a notary public in the office if you cannot locate one.
According to Misssippi law, a notary public can only charge a max of $5 per person.
Employer obligations in Mississippi
- An LLC has specific employer obligations if they hire employees in Mississippi.
- An LLC must verify that all employees are eligible to work legally in the United States by using Form I-9 from the USCIS Website.
- You must enroll in worker’s compensation insurance.
- You will use the Mississippi Department of Human Services State Directory to report all new hires.
- You will find a complete list of Mississippi employer obligations.
Benefits of a Mississippi LLC
- When you form an LLC in Mississippi, you are keeping business banking simple. Banks will require you to open a bank account that is separate from your personal one. Also, it helps to protect your assets and personal credit scores.
- LLCs have different compliance requirements than other business structures. For instance, incorporations must answer to stockholders and board members when making business decisions.
- An LLC is a pass-through entity in Mississippi. Your LLC earnings are taxed once through your personal tax return.
- Forming an LLC helps to ensure you are not double-taxed in other ways. C-corporations are double-taxed most of the time, while LLCs are not.
- LLC formation in Mississippi is highly affordable. It only costs $50 to file your Certificate of Formation, and Mississippi does not have an annual report fee.
- Mississippi has business incentives that are only available to LLCs. Rural Economic Development (RED) Credits and Health Care Industry Zone Incentive Program are available for LLCs.
How long does it take to register an LLC in Mississippi?
The state of Mississippi does not accept LLC formation filings done by mail. It will take the Secretary of State 1 to 2 business days to process your online registration.
Mississippi does not offer expedited LLC formation services.
How do I dissolve my Mississppi LLC?
In Mississippi, you will want to dissolve your LLC in order to avoid ongoing costs and fees from the state. You will file your Articles of Dissolution online.
The filing cost for LLC cancellation is $50.
Does Mississippi have an annual franchise tax?
Mississippi does not impose a biennial/annual franchise tax.
Are there publishing requirements for Mississippi LLCs?
Unlike Arizona and New York, Mississippi has no publishing requirements outside of filing your LLC’s annual report.
Do I need a business operating agreement for my LLC in Mississippi?
You are not legally required to submit an LLC operating agreement to the State of Mississippi.
However, an operating agreement helps the company avoid future internal misunderstandings. It can be written or oral as long as it is in the company’s files.
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