How to Form an LLC in Mississippi

Starting an LLC in Mississippi is easy, just follow these simple steps:

To start an LLC in Mississippi you will need to file the Certificate of Formation with the Mississippi Secretary of State, which costs $50. You can apply online. The Certificate of Formation is the legal document that officially creates your Mississippi Limited Liability Company.

Follow the step-by-step guide below to form a Mississippi LLC today and get your business up and running. To learn more about LLCs and their benefits, please read our What is an LLC guide.

STEP 1: Name your Mississippi LLC

Choosing a company name is the first and most important step in starting your Mississippi LLC. Be sure to choose a name that complies with Mississippi naming requirements and is easily searchable by potential clients.

1. Follow the naming guidelines:

• Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
• Your name cannot include words that could confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
• Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your LLC.

2. Name Availability in Mississippi. Make sure the name you want isn't already taken by doing a business entity name search on the State of Mississippi website.

To learn more about searching for a Mississippi LLC name, read our full guide.

3. URL Availability. We recommend that you check to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Not sure what to name your business? Check out our LLC Name Generator. Then, create a logo with our Free Logo Generator.

FAQ: Naming a Mississippi LLC

STEP 2: Choose a Registered Agent in Mississippi

You are required to nominate a Mississippi registered agent for your LLC.

What is a Registered Agent? A registered agent is an individual or business entity responsible for receiving important legal documents on behalf of your business. Think of your registered agent as your business's point of contact with the state.

Who can be a Registered Agent? a Registered Agent must be a resident of Mississippi or a corporation, such as a registered agent service, authorized to transact business in Mississippi. You may elect an individual within the company including yourself.

To learn more about Mississippi Registered Agents, read our full guide.

Recommended: ZenBusiness provides the first year of registered agent service free with LLC formation ($39 + State Fees)

FAQ: Nominating a Mississippi LLC Registered Agent

STEP 3: File the Mississippi LLC Certificate of Formation

To register your Mississippi LLC, you will need to file the Certificate of Formation with the Secretary of State. This can be done online.

Now is a good time to determine whether your LLC will be member-managed vs. manager-managed.

For help with completing the form, visit our Mississippi Certificate of Formation guide.

If you’re expanding your existing LLC to the state of Mississippi, you will need to form a Foreign LLC.

Mississippi NAICS Requirement

The North American Industry Classification System (NAICS) consists of 6-digit codes given to a business depending on the type of trade it engages in. You can look up the NAICS code for your type of business on the United States Census Bureau website by keyword search.

FAQ: Filing Mississippi LLC Documents

STEP 4: Create a Mississippi LLC Operating Agreement

When forming an LLC in Mississippi, LLCs are not required to have an operating agreement, but it's a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Mississippi LLC operating agreement guide.

FAQ: Creating a Mississippi Operating Agreement

STEP 5: Get an EIN

What is an EIN? EIN stands for Employer Identification Number. EINs are a nine-digit number assigned by the Internal Revenue Service (IRS) to help identify businesses for tax purposes. It is essentially a Social Security Number for a business.

An EIN is sometimes referred to as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN).

Why do I need an EIN? An EIN is required to:

• Open a business bank account
• File and manage Federal and State Taxes
• Hire employees

What if I already have an EIN for my sole proprietorship? The IRS requires that sole proprietorships get a new EIN when converting to an LLC.

Where do I get an EIN? You can get an EIN for free from the IRS. Getting an EIN is an easy process that can be done online or by mail.

FOR INTERNATIONAL EIN APPLICANTS: You do not need a SSN to get an EIN. For more information, read our How to Get an EIN as a Foreign Person guide.

FAQ: Getting a Mississippi EIN

Important Steps After Forming an LLC

Separate Your Personal and Business Assets

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your Mississippi LLC is sued. In business law, this is referred to as piercing the corporate veil.

You can start protecting your LLC in Mississippi with these steps:

1. Opening a business checking account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Need help finding your EIN for your bank application? Visit our EIN Lookup guide for help.

2. Getting a business credit card:

• Helps you separate personal and business expenses.
• Builds your company's credit history, which can be useful to raise capital (e.g., small business loans) later on.

For other important steps to protect your corporate veil, like properly signing legal documents and documenting company business, please read our corporate veil article.

3. Hiring a business accountant:

• Prevents your business from overpaying on taxes while helping you avoid penalties, fines, and other costly tax errors
• Makes bookkeeping and payroll easier, leaving you with more time to focus on your growing business 
• Manages your business funding more effectively, discovering areas of unforeseen loss or extra profit

For more business accounting tools, read our guide to the best business accounting software.

Get Business Insurance for Your Mississippi LLC

Business insurance helps you manage risks and focus on growing your business. The most common types of business insurance are:

• General Liability Insurance: A broad insurance policy that protects your business from lawsuits. Most small businesses get general liability insurance.
• Professional Liability Insurance: A business insurance for professional service providers (consultants, accountants, etc.) that covers claims of malpractice and other business errors.
• Workers' Compensation Insurance: A type of insurance that provides coverage for employees’ job-related illnesses, injuries, or deaths. In Mississippi, businesses with five or more employees, excluding business owners, are required by law to have workers' compensation insurance.

Read our review of the best small business insurance companies.

Create Your Business Website

Creating a website is a big step in legitimizing your business. Every business needs a website. Even if you think that your business is too small or in an offline industry, if you don’t have a website, you are missing out on a large percentage of potential customers and revenue.

Some may fear that creating a business website is out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.

Here are the main reasons why you shouldn’t delay building your website:

• All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
• Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own and control.
• Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.

Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.

Send Out a Press Release

Press releases are among the easiest and best ways to promote your business. They are also one of the most cost-effective strategies as they:

• Provides publicity
• Establish your brand presence on the web
• Improve your website’s search engine optimization (SEO), driving more customers to your website
• Are a one-time cost in terms of effort and money
• Have long-lasting benefits

Keep Your Company Compliant

Mississippi LLC Business Permits & Licenses

Do I need business licenses and permits?

To operate your LLC you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.

The details of business licenses and permits vary from state to state. Make sure you read carefully. Don't be surprised if there are short classes required as well.

Fees for business licenses and permits will vary depending on what sort of license you are seeking to obtain.

Find out how to obtain necessary licenses and permits for your business or have a professional service do it for you:

• Federal: Use the U.S. Small Business Administration (SBA) guide.
• State: Use the State of Mississippi's Official State Website
• Local: Contact your local county clerk and ask about local licenses and permits.

Mississippi LLC Tax Filing Requirements

Depending on the nature of your business, you may be required to register for one or more forms of state tax.

Mississippi Sales Tax

If you are selling a physical product, you’ll typically need to register for a seller's permit through the Mississippi Department of Revenue website.

This certificate allows a business to collect sales tax on taxable sales.

Sales tax, also called "Sales and Use Tax," is a tax levied by states, counties, and municipalities on business transactions involving the exchange of certain taxable goods or services.

Read our Mississippi sales tax guide to find out more.

Mississippi Employer Taxes

If you have employees in Mississippi, you will need to register for Unemployment Insurance Tax through the Mississippi Department of Employment Security. You will also need to sign up for Employee Withholding Tax through the Mississippi Department of Revenue.

Federal LLC Tax Filing Requirements

Most LLCs will need to report their income to the IRS each year using:

• Form 1065 Partnership Return (most multi-member LLCs use this form)
• Form 1040 Schedule C (most single-member LLCs use this form)

How you pay yourself as an owner will also affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.

File Your Mississippi LLC Annual Report

Mississippi requires LLCs to file an annual report with the Mississippi Secretary of State.

Avoid Automatic Dissolution

LLCs may face fines and even automatic dissolution when they miss one or more state filings. When this happens, LLC owners risk loss of limited liability protection. A quality registered agent service can help prevent this outcome by notifying you of upcoming filing deadlines and by submitting reports on your behalf.

Hiring Employees in Mississippi

If you plan to hire employees, stay compliant with the law by following these steps:

• Verify that new employees are able to work in the US
• Report employees as "new hires" to the State
• Provide workers' compensation insurance for employees
• Withhold employee taxes
• Print workplace compliance posters and place them in visible areas of your workspace

Find out more information from the Mississippi Department of Employment Security.

FAQ: Hiring Employees in Mississippi

Small Business Resources

Women in Business Tools and Resources

If you have a woman-owned business, many resources are available to help you concentrate on your business’s growth:

• Funding - (ie. grants, investors, loans) 
• Events - (ie. conferences, meetups)
• Guides - (ie. business formation, personal growth)
• Support - (ie. advice, communities, business strategies)

Our information and tools will provide educational sources, allow you to connect with other women entrepreneurs, and help you manage your business with ease.

Free LLC Legal Forms

TRUiC offers a number of free LLC legal forms to help with creating documents like:

• Operating agreements
• LLC resolutions
• Hiring documents, including:
  
  • Employment contracts
  • Independent contractor service agreements (ICSA)
  • Non-disclosure agreements (NDA)

All you’ll need to do to download the forms is sign up for the TRUiC Business Center, which is also free, forever.

How to Make a Website

Check out our how to build a website guide to learn how creating a website isn’t as difficult as it might seem. With the right tools, a good guide, and a bit of patience, you can learn how to make a website for your business in no time.

How to Build Business Credit

Learning how to build business credit can help you get credit cards and other business funding options in your business's name (instead of yours), with better interest rates, higher lines of credit, and more.

TRUiC’s Small Business Tools

TRUiC believes business tools should be free and useful. Our tools help solve business challenges, from finding an idea for your business, to creating a business plan, writing an operating agreement for your LLC, and more.

Check out TRUiC’s small business tools:

• Business Name Generator
• Business Idea Generator
• Free Logo Maker
• Operating Agreement Tool
• Business Plan Generator
• Entrepreneur Quiz

More Mississippi LLC Information

Register as a Foreign LLC in Mississippi

Forming a foreign LLC allows your company to operate as one entity in multiple states. If you have an existing LLC and want to do business in Mississippi, you will need to register as a foreign LLC. This can be done online.

How to Obtain a Certificate of Good Standing in Mississippi

A Certificate of Good Standing verifies that your LLC in Mississippi was legally formed and has been properly maintained. Several instances where you might need to get one include:

• Seeking funding from banks or other lenders
• Forming your business as a foreign LLC in another state
• Obtaining or renewing specific business licenses or permits

You can order a Mississippi LLC Certificate of Good Standing online. 

How to Dissolve an LLC in Mississippi

If at any point in the future you no longer wish to conduct business with your LLC in Mississippi, it is important to officially dissolve it. Failure to do so in a timely fashion can result in tax liabilities and penalties, or even legal trouble. To dissolve your Mississippi LLC, there are two broad steps:

• Close your business tax accounts
• File the Articles of Dissolution

When you are ready to dissolve your LLC, follow the steps in our Mississippi LLC Dissolution Guide.