How to Start a Business in Mississippi

With the lowest cost of labor in the nation, Mississippi is a great and affordable place to launch your business. Start your business today with our simple step-by-step guide and get on the fast track to financial and personal independence. If you get stuck along the way, connect with a business resources in your local area for help.

To Start a Business in Mississippi, follow these steps:

Step 1: Choose the Right Business Idea

The first step toward business ownership is deciding what kind of business to start. Look for an idea that suits your interests, your personal goals, and your natural abilities. This will help you stay motivated when the going gets tough and will greatly improve your odds of success. Need inspiration? Here were the most popular ideas among our Mississippi visitors in 2017:

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Find the Right Business Idea for You

Our free Business Ideas Tool will help you identify great businesses that match your interests and lifestyle.

Business Ideas
Tool

Step 2: Plan Your Business

Successful businesses are built through careful planning. Before committing a significant amount of money and other resources toward your business, critically analyze your idea and create a game plan. At a minimum, you should have good answers to the following questions.

Product Development
What problem does your business solve? What will set your product or service apart from the competition?

Sales & Marketing
Who are your potential customers? How will you get their attention and convert them into buyers?

People and Partnerships
What roles will you need to hire and what professional relationships will you need to form in order to succeed?

Financial Planning
How many clients or sales will you need in order to break even? How much money will it take to get there, and where will you get the funding?

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Start Planning

Our Business Planning Guide helps you analyze your business idea and gets you access to free planning tools.

Need Help? Find organizations in your local area that can assist you with planning.

Step 3: Form your Business

Registering your company as an Mississippi business entity, such as an LLC or a Corporation, has two major advantages:

  • Increased credibility
  • Protection from personal liability in the event your business is sued

For most small businesses, registering an LLC is a great option. In comparison to other business entities, LLCs are easier to set up and manage and they have favorable tax treatment. You can set up an LLC in Mississippi for as little as $50.

If you choose not to register your company as a business entity, you will be held personally responsible for the debts and liabilities of your business. In addition, unregistered business owners may need to file a Trade Name, also known as a "DBA." Find out if your business is required to file a DBA.

Secure your Domain

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

Find a Domain Now

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After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free

Step 4: Register for Taxes

With limited exceptions, most businesses require an Employer Identification Number (EIN), also known as a Tax ID Number. An EIN is used to identify a business in its federal tax filings. Without an EIN, you can't hire employees or open a business bank account.

Obtain an EIN

You should also be aware of important mississippi taxes that may apply to you business:

  • If you are selling a physical product, you’ll typically need to register for Mississippi Sales Tax.
  • If you hire employees, you will have to register for Unemployment Insurance Tax and Employee Withholding Tax on behalf of your employees.
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Register for Mississippi State Taxes

Sales Tax | Unemployment Insurance Tax | Withholding Tax

Step 5: Create Business Banking and Credit Accounts

Using dedicated business banking and credit accounts is essential for personal asset protection.

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

You can protect your business with these two steps:

1. Opening a business bank account:

  • Separates your personal assets from your company's assets, which is necessary for personal asset protection.
  • Makes accounting and tax filing easier.
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Recommended: Get $200 when you open a business checking account with Chase. Learn more.

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 later on.

Step 6: Set Up Accounting

An accounting system helps you track the performance of your business and simplifies annual tax filings. Quality accounting software lets you download your bank and credit card transactions, making accounting fast and easy. Learn more about the importance of accounting and how to get started with accounting today.

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Recommended: QuickBooks has all the accounting features your small business will need.

Try QuickBooks for free

Step 7: Obtain Permits and Licenses

To operate your new business legally, you will need to comply with federal, state, and local government regulations. In many cases, this involves obtaining one or more business permits and/or licenses. For example, a restaurant will likely need health permits, building permits, signage permits, etc.

Step 8: Get Insured

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

We recommend that all small businesses, including home based businesses, purchase a general liability policy. Businesses selling professional advice or services, such as consulting and accounting firms, should also consider a professional liability policy. In Mississippi, businesses with five or more employees, excluding business owners, are required by law to have workers compensation insurance.

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Our recommended insurance provider can set you up with an insurance policy that is right for your business

Get a Quote

Step 9: Define Your Brand

The strongest and most memorable businesses are built on a solid brand.

When developing your brand, think about what your business stands for. What are the core values that drive your business? Customers and clients are looking for companies that have a compelling brand, as much as they are shopping for high quality products and services.

Learn more about branding and how to build a brand for your business.

Step 10: Establish a Web Presence

A professional website is critical to the long-term success of your business, regardless of what industry you are in. A website allows potential customers to find your business online and discover the products or services you offer, and it also enhances your business’ credibility.

In addition to a website, you should also consider other avenues for promoting your business online:

  • Setting up social media profiles (Facebook, Twitter, etc)
  • Creating accounts on review sites (Yelp, Google Reviews, etc)
  • Registering for a local Google profile
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More than ever, people are looking for reviews before doing business. Yelp is an important aspect of social validation for your business, claim your page today and get $300 in Yelp advertising credit.

Sign up for our Business Center

Sign up for a free Business Center account for access to tools, legal documents, and discounts that will help you start and grow your business

Signup Now

Get Help From Local Resources

To help you start your business, we have identified the best resources across the state of Mississippi that can support you in your entrepreneurial endeavors.

Select your Region

Gulfport Local Resources

Mississippi Development Authority

Here are the Principle Service Areas:

  • Mentoring
  • Business Planning
  • Financial
  • Sales & Marketing

Offers Free Service

Description

The Entrepreneur Center at Mississippi Development Authority offers information, referrals, guidance, and other assistance to new and early-stage businesses and entrepreneurs to plan, start, finance, market, operate, and grow businesses based in Mississippi. 

CONTACT INFORMATION:

501 North West St.
Jackson, MS 39201
601-359-2399
jdonovan@mississippi.org

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See more business resources in Gulfport

Gulfport Resources

Hattiesburg Local Resources

The Accelerator at The Garden

Here are the Principle Service Areas:

  • Mentoring
  • Business Planning
  • Coworking
  • Product Development

Description

The Accelerator contains more than 60,000 square feet of fully fitted space available for lease, with complete access to state-of-the-art services and amenities. The Accelerator provides access to a wealth of solid business expertise via The University of Southern Mississippi and its business networks, offering your company the industry expertise needed to help your innovative technology succeed in a highly competitive landscape.

Restrictions

Must be a technology or manufacturing oriented business.

CONTACT INFORMATION:

46 Shelby Thames Drive
Hattiesburg, MS 39402
601-266-5130

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See more business resources in Hattiesburg

Hattiesburg Resources

Jackson Local Resources

Jackson County Small Business Incubator

Here are the Principle Service Areas:

  • Mentoring
  • Business Planning
  • Coworking

Description

The Jackson County Small Business Incubator LLC provides business counseling services to businesses who are past the idea stage and needing to scale. Workshops and training programs are delivered throughout the area to address the needs of the entrepreneurial community. 

CONTACT INFORMATION:

4836 Main St.
Moss Point, MS 39563
228-475-3341
smallbusinessincubator@gmail.com

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See more business resources in Jackson

Jackson Resources

Oxford Local Resources

Oxford Enterprise Center

Here are the Principle Service Areas:

  • Mentoring
  • Business Planning
  • Coworking
  • Product Development

Description

The Oxford Enterprise Center is Lafayette County's small business incubator featuring a self-contained office, data center, dry lab, and wet lab. The spaces range from 150-6,000 square feet. The incubator focuses on harboring and assisting the development of high-tech, high-wage businesses. As a member of the incubator, you will also have access to consulting services related to all facets of business, entrepreneur development programs, and legal information.

Restrictions

Restricted to technology companies with the potential to scale.

CONTACT INFORMATION:

9 Industrial Park Dr., Suite 104
Oxford, MS 38655
662-281-0720
holly@northmiss.org

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Oxford Resources