Mississippi might not be the first place you think of for many new startups, but it’s quietly becoming a top spot for many new businesses, including technical ones. The state offers government support, works closely with colleges, and gives excellent tax breaks, making starting a limited liability company (LLC) appealing.
Our simple guide provides practical, step-by-step instructions on starting an LLC in Mississippi. With this guide, you’ll be able to launch your new business swiftly and efficiently.
Step 1: Name your Mississippi LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Received a Certificate From the State
Step 5: Create an Operating Agreement
Step 6: Get an Employer Identification Number
Step 1: Name your Mississippi LLC
When starting a business, you’ll need to choose a name to include in your articles. Names must comply with Mississippi’s naming requirements. The following are the most essential requirements to keep in mind:
- Your business name must include a limited liability company, LLC, or L.L.C.
- Your business name needs to be different from that of an existing business in the state. You can determine if a specific business name is taken by searching the Secretary of State’s website. For name availability in Mississippi, access this link.
- Business names should not contain words used to name a government agency.
- Some restricted words (bank, lawyer, attorney, credit union.) may need additional documentation.
- The name must be recognizable from other businesses in the state.
Here’s the list of Mississippi’s naming rules.
Additional considerations:
Reserve your name: You may reserve the name you intend to use for your business by applying for name reservation with the Secretary of State. The application costs $25 and can be paid online or by mailing a check. Mailing a check will extend the processing time by three to five days.
Website domain: Even if you don’t believe you’ll require a webpage immediately, you likely will eventually. At the very least, securing your domain name now allows you to keep the option open for the future. Before confirming your LLC name, verifying if the corresponding URL is available is advisable.
Step 2: Choose a Registered Agent
In Mississippi, selecting a registered agent for your LLC is mandatory. This individual or business entity is authorized to receive legal documents and get notifications on behalf of your LLC. Your registered agent can be an individual, like yourself, an employee, or a company offering registered agent services. They must meet specific criteria.
- Entities must offer registered agent services.
- The agent must have a Mississippi address.
- They must be present and available to accept documents during regular business operations.
A Registered Agent can be hired for $50-$300 annually. The list of registered agents for Mississippi LLC is on the Secretary of State’s website, or you can conduct your own search online.
Step 3: File an Articles of Organization
To start a Mississippi LLC, you must submit a Certificate of Organization to the Mississippi Secretary of State. This document should include:
- The LLC’s name, with the designation LLC or L.C.C.
- The LLC’s email address (which can be a personal one)
- The signature of a member or manager
- The LLC’s future effective date (if applicable), up to 90 days after filing
- The NAICS code identifying the LLC’s line of business
- The name and address of the registered agent
To initiate the formation of a Mississippi LLC, you must utilize the Mississippi Secretary of State’s online filing system. Start by registering and creating a username and password. Then, complete the Certificate of Formation online, pay the necessary fee, and submit the application. Alternatively, you can manually fill out the form, print it, and mail it with a check. Processing typically requires three to five days, with a filing fee of $50.
Step 4: Received a Certificate From the State
After the state approves your LLC’s formation documents, you’ll receive a certificate affirming the official existence of your LLC. This certificate allows your LLC to acquire an Employer Identification Number (EIN), open a business bank account, and obtain a business license.
Step 5: Create an Operating Agreement
Although not required in Mississippi, strongly consider having an LLC operating agreement. This internal document outlines how your LLC will operate. It defines the roles and responsibilities of members and managers and the LLC’s management structure. Furthermore, it can protect your limited liability by showing the distinctness of your LLC as a business entity. Without an operating agreement, state LLC law governs your LLC’s operation.
Key components to include in the operating agreement are:
- Members’ ownership percentages
- Members’ rights and obligations
- Voting powers of members
- Allocation of profits and losses
- Procedures for conducting meetings and voting
- Buyout or buy-sell provisions outline actions in the event a member wishes to sell their interest, death, or disability.
Step 6: Get an Employer Identification Number
All newly formed LLCs in the United States must get an Employer Identification Number from the IRS (except for single-member LLCs). This nine-digit EIN is a business’s equivalent to a social security number. It is essential for paying income tax, filing tax returns, opening business bank accounts, and other crucial functions.
You can obtain an EIN through the IRS website for free.
Follow these steps to start your business in Mississippi quickly. This guide simplifies the process of setting up your LLC:
LLC State Guides
How To Start an LLC in Mississippi FAQs
What is The Cost of Forming 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.
Can I Serve as My Registered Agent?
Yes, business owners can serve as agents; their names and addresses should be on the formation documents. It’s important to note that this information will become a public record.
When Must the Mississippi Annual Report be Submitted?
Annual Reports are due by April 15 and submitted to the secretary of state. Only foreign LLCs pay an LLC filing fee; otherwise, there is no filing fee.
How can I keep my Mississippi LLC in good standing?
After legally registering your LLC with the Secretary of State, you must meet Mississippi’s requirements to maintain your business correctly. These include filing annual reports by April 15 each year, handling state and federal business taxes, and renewing any necessary business licenses and permits.
