How to Start an LLC in Mississippi | 2024 Guide

Start a LLC in Mississippi

How to Start an LLC in Mississippi: If you’re looking to launch a business in Mississippi, starting a Limited Liability Company (LLC) may be the right choice for you. An LLC provides personal liability protection for its owners while giving them flexibility in managing and taxing the business. This guide provides a step-by-step process for starting an LLC in Mississippi. From choosing a unique name to registering with the state and obtaining necessary licenses and permits, Webinarcare Editorial Team will walk you through setting up your new business entity. So grab a pen and paper, and let’s get started!

What is a Limited Liability Company?

A Limited Liability Company (LLC) is a type of business entity that combines a corporation’s limited liability protection with a partnership’s tax benefits. LLCs are popular among small business owners for their flexibility and ease of formation. In Mississippi, an LLC must have a unique name and file Certificate of Formation with the Secretary of State. Depending on their business needs, LLCs may also elect to be taxed as a corporation or an S-corp. Owners of an LLC, called members, are not personally liable for the company’s debts and losses, and the company’s profits and losses are passed through to the member’s personal tax returns. This makes an LLC an attractive option for those seeking personal liability protection and simplified taxation.

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Steps on How to Start an LLC in Mississippi

To form an LLC for your business, you must follow the guidelines that include naming your LLC, hiring a Registered Agent, filing your Certificate of Formation, creating your LLC operating agreement, getting an employer identification number, opening a bank account and getting business licenses and permits.

Step 1: Name your LLC in Mississippi

After you have decided on the idea to form an LLC in Mississippi, deciding the name for your LLC is significant. There is a complete guide on LLC name guidelines for you to have a proper LLC business name. Here are some regulations you must follow while naming your LLC,

  • The name should not be confused with a government entity.
  • The name should be unique.
  • The name should be available to use.
  • Any other business does not use the name.
  • The new name must include “LLC” if it is a limited liability company.

In Mississippi, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 180 days. You must file a name reservation application in Mississippi Secretary of State to keep the name.

Recommended: We recommend a professional service that can offer you unlimited name search, trademark and copyright registration at a reasonable price. We recommend using –

LegalZoom($0 + State Fees for LLC Formation)

You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for filing Mississippi DBA (doing business as). In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it. If you have decided to file for a DBA, you can file it in one method, online. However, before filing a DBA, you should know that you need to renew your DBA from up to five years, which costs around $25.

Step 2: Hire a Registered Agent in Mississippi

Hiring a Registered Agent in Mississippi is a must since a Registered Agent is a person or business entity responsible for receiving important legal documents on behalf of your Mississippi LLC. Most states require you to designate a Registered Agent when forming your LLC.

The qualifications of a Registered Agent vary depending on the jurisdiction. Still, generally, a Registered Agent must meet the following criteria:

  • Availability: A Registered Agent must be available during regular business hours to receive and process legal documents and official correspondence.
  • Physical Address: A Registered Agent must have a physical street address within the state where the LLC is registered. This address, known as the registered office, cannot be a P.O. Box.
  • Residency or Authorization: For individuals serving as Registered Agent, they must be residents of the Mississippi where the LLC was formed. A business entity acting as a Registered Agent must be authorized to do business within that state.
  • Age: A Registered Agent must be at least 18 years old.
  • Good standing: A Registered Agent should not have any legal or financial issues that impede their ability to fulfill their duties.

Choosing a reliable and responsible Registered Agent is essential, as failure to receive and respond to legal documents can seriously affect your business. Some businesses use professional Registered Agent services to ensure compliance and proper handling of legal matters.

However, if you would like to have an easier process in filing the necessary documents, you can get Mississippi Registered Agent Services.

Step 3: File your Certificate of Formation in Mississippi

The Certificate of Formation for an LLC is an important document to start your limited liability company (LLC). Mississippi Certificate of Formation is a simple document that contains the business name and address as well as the name and address of the person who received lawsuits on behalf of the organization.

Here are the guidelines and specific requirements in filing your Certificate of Formation in Mississippi.

1. Obtain the Necessary Forms: Visit the Mississippi’s business filing office website, usually the Mississippi Secretary of State’s office, to download the required forms or file online.

2. Provide the Required Information: Fill in the necessary details in the form, which typically include:

  • The name of your LLC (must include an LLC designator such as “LLC,” “L.L.C.,” or “Limited Liability Company”)
  • The purpose of your LLC (a general statement or specific business activities)
  • The address of your LLC’s principal place of business
  • The name and address of your registered agent (the person or business entity responsible for receiving legal documents on behalf of your LLC)
  • The management structure of your LLC (member-managed or manager-managed)
  • The duration of your LLC, if not perpetual
  • The names and addresses of the LLC’s organizers or members

3. Sign and File the Form: Submit the completed form in the {state} state office, either by mail, in person, or online. You may mail it at SOS office.

4. Pay the Filing Fee: When you submit your Certificate of Formation, you’ll need to pay a filing fee of $50. Make sure to check and include the correct payment with your submission.

5. Receive Confirmation: After your Certificate of Formation have been filed and processed, you’ll receive a confirmation from Mississippi, typically a stamped and approved copy of the document or a Certificate of Formation.

Recommended: Filing formation papers is easy and hassle-free if you hire a professional service. We recommend using –

LegalZoom($0 + State Fee)

Once you have successfully filed your Certificate of Formation and it has been approved, your Mississippi LLC is officially formed. However, remember to complete additional steps, such as creating an Operating Agreement, obtaining an EIN, and registering for any required licenses and permits.

Step 4: Create Your Mississippi Operating Agreement

An operating agreement is a document that contains all of your company’s organizational details. Drafting an operating agreement in most states is not required. Yet, having one as an internal document is strongly advised. An operating agreement includes information like-

  • About Business
  • Members and management
  • Capital contribution
  • Profit Distribution
  • Change of membership
  • Dissolution

To understand how an operating agreement works, you should check out how to create an operating agreement in Mississippi.

Recommended: Get oprating agreement drafts ready on your table with a help of a professional service. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 5: Get an EIN

After documenting the operating agreement, you should get or request an Employer Identification Number (EIN) in Mississippi. An EIN will serve as the tax ID for your professional corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.

The application of an EIN in Mississippi can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

In obtaining an EIN for your LLC, you should be aware to ensure that your LLC is eligible for an EIN. You need an EIN if you have employees, operate as a corporation or partnership, or meet other specific IRS criteria. Before applying, gather the required information, including your LLC’s name, mailing address, and the responsible party’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Also, you can apply for an EIN through various methods, including online, by fax, mail, or telephone (for international applicants).

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 6: Open a Bank Account and Prepare for Taxes

After you have filed for and received your Employer Identification Number, you should open a bank account because you will use this account for yourself, your clients, and your employees.

Your business dealings in Mississippi might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Most banks demand an EIN to create a business bank account for firms other than sole proprietorships. Also, having an EIN makes tax preparation easier. You can anticipate paying employment and corporate taxes with Mississippi LLC.

Opening a bank account is necessary for Mississippi business. If you are still wondering where to open an account in your Mississippi, you should check the Best Bank for Small Business in Mississippi.

Step 7: Get a Business and License Permit

You must get a business license in Mississippi before establishing your LLC. A business license is a legal document granted by a state government body that permits you to conduct business within the area under its jurisdiction. The price of business licenses and permits in Mississippi ranges from $50 – $300. If there is a requirement for a specific license or city-based permit, you must inquire with the Mississippi Secretary of State.

Cost to Form an LLC in Mississippi

Even if you have a business name and structure in mind, you should consider whether you can afford the costs of forming an LLC in Mississippi. Certificate of Formation costs around $50. The initial filing fee is $50, and the annual fee is $0.

If you forget to pay the annual fee for your Mississippi LLC, you will have a penalty of $250. However, you can check the Mississippi LLC Cost for additional information.

Advantages of Creating Mississippi LLC

Even though some people decide on what to do with their businesses, some choose to put it in their own individual name, while others still choose to set it up via LLC in Mississippi. Important benefits will help you set up an LLC in Mississippi.

  • Pass-Through Taxation: The pass-through structure will make the company not pay twice the tax. Most start-ups and entrepreneurs in Mississippi apply for an LLC because of this structure. Pass-through taxation refers to how income and losses from an LLC (Limited Liability Company) are passed through to its members (owners) for tax purposes rather than being taxed at the business entity level. This means the LLC does not pay federal income taxes; the members’ profits and losses are allocated based on their interests. Each member then reports their share of the LLC’s income or losses on their personal tax returns and pays taxes at their individual tax rates.
  • Ownership Flexibility: If you need sole and primary control over your company’s operations, a sole proprietorship will allow you to do so. If you apply for an LLC in Mississippi with flexibility, you will have default rules set by law and need an operating agreement.
  • Personal Liability Protection: Personal Liability Protection protects your business from damage, debts, or legal obligations. In personal liability protection, the company’s profits and earnings will stay as is even if your company is about to be sued. This protection of having an LLC in Mississippi can also be extended to the company’s properties and assets. Many start-up companies will benefit from this since most are starting to build a company. Even if liability exists, the LLC in Mississippi will protect its assets.

FAQs

What are the requirements for starting an LLC in Mississippi?
To start an LLC in Mississippi, you must file Articles of Organization with the Secretary of State, pay a filing fee of $50, and have a registered agent with a physical address in Mississippi.
Can I be my LLC’s registered agent in Mississippi?
Yes, you can be your own registered agent in Mississippi as long as you have a physical address in the state.
How long does it take to start an LLC in Mississippi?
The processing time for LLC filings in Mississippi is typically between 5-7 business days.
Can a non-resident start an LLC in Mississippi?
Yes, anyone can start an LLC in Mississippi as long as they have a registered agent with a physical address in the state.
How much does it cost to start an LLC in Mississippi?
The filing fee for an LLC in Mississippi is $50.
Do I need an operating agreement for my Mississippi LLC?
Although it’s not legally required, it’s highly recommended that LLCs have an operating agreement to outline their operations.
What is a registered agent in Mississippi?
A registered agent is a person or company that is designated to receive legal documents and official mail on behalf of an LLC in Mississippi.
Does Mississippi have annual reporting requirements for LLCs?
No, Mississippi does not have annual reporting requirements for LLCs.
Can I change my LLC’s registered agent in Mississippi?
Yes, you can change your LLC’s registered agent in Mississippi at any time.
Can I apply for a tax ID for my Mississippi LLC online?
Yes, you can apply for a tax ID for your Mississippi LLC online through the IRS website.
Do I have to file for state taxes after starting an LLC in Mississippi?
Yes, LLCs in Mississippi are required to register for state taxes with the Mississippi Department of Revenue.
What is the minimum number of members needed to start an LLC in Mississippi?
There is no minimum number of members required to start an LLC in Mississippi.
How do I dissolve my Mississippi LLC?
To dissolve your Mississippi LLC, you must file a Certificate of Termination with the Secretary of State and pay a filing fee of $10.
Can I change my LLC’s name in Mississippi after I’ve already registered it?
Yes, you can change your LLC’s name in Mississippi by filing Articles of Amendment with the Secretary of State and paying a filing fee of $50.
How long does an LLC last in Mississippi?
LLCs in Mississippi do not have a set expiration date and can last indefinitely.
Do I need a business license to start an LLC in Mississippi?
Depending on the nature of your business, you may need a local business license to operate in Mississippi.
What happens if I don’t have a registered agent for my Mississippi LLC?
All LLCs in Mississippi are required to have a registered agent, and failure to maintain a registered agent can result in legal consequences.
Will my Mississippi LLC be taxed as a corporation or a partnership?
By default, LLCs in Mississippi are taxed as partnerships, but you can choose to be taxed as a corporation if you prefer.
Can I have a PO box as my registered agent address in Mississippi?
No, Mississippi requires registered agents to have a physical address in the state.
Can I reserve my LLC’s name before filing for an LLC in Mississippi?
Yes, you can reserve your LLC’s name through the Secretary of State’s website by paying a $25 fee.
What is the difference between an LLC and a corporation in Mississippi?
LLCs offer more flexibility and simplicity than corporations, but they have fewer protections from personal liability.
Where can I find the Articles of Organization form for a Mississippi LLC?
You can find the Articles of Organization form on the Secretary of State’s website.
How do I obtain business insurance for my Mississippi LLC?
You can obtain business insurance for your Mississippi LLC through a private insurance company or broker.
What types of businesses can form an LLC in Mississippi?
Virtually any type of business can form an LLC in Mississippi, with very few exceptions.
Do I need a lawyer to start an LLC in Mississippi?
You do not need a lawyer to start an LLC in Mississippi, but consulting with a lawyer can be helpful in some cases.
What happens if I don’t comply with Mississippi’s LLC regulations?
Failure to comply with Mississippi’s LLC regulations can result in fines, penalties, and even the dissolution of your LLC.
How do I check if a business name is available before starting an LLC in Mississippi?
You can check the availability of a business name in Mississippi by using the Secretary of State’s business search tool.
Can I run multiple LLCs in Mississippi?
Yes, you can run multiple LLCs in Mississippi as long as each LLC has its own unique name and registered agent.
What is an LLC?
LLC stands for Limited Liability Company and is a type of legal business structure that provides protection to its owners’ personal assets.
Do I have to live in Mississippi to form an LLC there?
No, anyone can form an LLC in Mississippi, regardless of where they live.
Can I complete the LLC registration process online in Mississippi?
Yes, you can file your LLC paperwork online through the Secretary of State’s website.
How long does it take to form an LLC in Mississippi?
It typically takes one business day to process the paperwork for your Mississippi LLC.
Is there a publication requirement for forming an LLC in Mississippi?
No, there is no publication requirement in Mississippi for forming an LLC.
Do I need an attorney to form an LLC in Mississippi?
No, you can complete the paperwork to form an LLC in Mississippi without an attorney.
How many people do I need to form an LLC in Mississippi?
You only need one person to form an LLC in Mississippi.
Can I be the sole owner and employee of my Mississippi LLC?
Yes, you can be the sole owner and employee of your Mississippi LLC.
Are there any restrictions on the name I choose for my Mississippi LLC?
Yes, the name must be unique and not currently in use by another business in Mississippi.
Can I reserve a name for my Mississippi LLC before filing my paperwork?
Yes, you can reserve a name for your Mississippi LLC for a fee of $25.
Do I need to appoint a registered agent for my Mississippi LLC?
Yes, you must appoint a registered agent with a physical address in Mississippi to receive legal and official documents on behalf of your LLC.
Can I be my own registered agent for my Mississippi LLC?
Yes, you can be your own registered agent if you have a physical address in Mississippi.
Can I change the registered agent for my Mississippi LLC later on?
Yes, you can change your Mississippi LLC’s registered agent by filing the appropriate paperwork with the Secretary of State.
When is the annual report due for my Mississippi LLC?
The annual report for a Mississippi LLC is due on April 15th of each year.
Is there a fee for filing an annual report for my Mississippi LLC?
Yes, there is a $15 fee for filing an annual report for a Mississippi LLC.
Do I need a business license to operate my Mississippi LLC?
Yes, most businesses operating in Mississippi require a state or local business license.
Does Mississippi require LLC members to carry insurance?
No, Mississippi does not require LLC members to carry insurance, but having insurance can protect your LLC’s assets.
Do I need to file a tax return for my Mississippi LLC?
Yes, Mississippi LLCs must file a state tax return.
Do Mississippi LLC members pay self-employment taxes?
Yes, Mississippi LLC members are considered self-employed and will need to pay self-employment taxes.
Can I dissolve my Mississippi LLC if it’s no longer needed?
Yes, you can file paperwork to voluntarily dissolve your Mississippi LLC.
Are there any special rules for foreign LLCs registering in Mississippi?
Yes, foreign LLCs must file some additional paperwork to register in Mississippi.
Do Mississippi LLCs need to hold annual meetings?
No, there is no requirement for Mississippi LLCs to hold annual meetings.
Can an LLC member be sued personally for the actions of the LLC?
In most cases, no, LLC members are typically not personally liable for the actions of the LLC.
Can an LLC member lose more than their investment in the company?
In some circumstances, yes, LLC members can be held liable for more than their investment in the LLC.
Can I convert my Mississippi LLC to another entity type?
Yes, you can convert your Mississippi LLC to another entity type by filing the appropriate paperwork with the Secretary of State.
Can an LLC in Mississippi be taxed as an S corporation?
Yes, if certain qualifications are met, an LLC in Mississippi can elect to be treated as an S corporation for tax purposes.

Also Read

How Fast Can I Form an LLC in Mississippi

Forming an LLC in Mississippi is generally a straightforward process that can be completed quickly if all the necessary information and documents are gathered in a timely manner. The first step in forming an LLC in Mississippi is to choose a name for your business that is unique and not already in use by another company in the state. You can check the availability of your desired business name by searching the Mississippi Secretary of State’s online database.

Once you have chosen a name for your LLC, you will need to file Articles of Organization with the Mississippi Secretary of State’s office. This document outlines basic information about your business, such as its name, address, registered agent, and members. Filing fees are required when submitting your Articles of Organization, and these fees can vary depending on how quickly you need your LLC to be processed.

After you have filed your Articles of Organization and paid the necessary fees, you will need to create an Operating Agreement for your LLC. While not required by law in Mississippi, an Operating Agreement is an essential document that outlines the ownership and management structure of your business. Having an Operating Agreement in place can help prevent disputes among members and provide a roadmap for how the business will operate.

Once you have completed these steps, you will need to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is necessary for tax purposes and is used to identify your business for federal tax filings. You can apply for an EIN online through the IRS website, and the process is typically quick and easy.

Overall, the process of forming an LLC in Mississippi can be completed relatively quickly if you have all the necessary information and documents prepared. However, the actual speed at which your LLC is formed can vary depending on factors such as the current workload of the Secretary of State’s office, any errors or omissions in your filings, and the efficiency of your own responses to any inquiries from the state.

It is important to note that while forming an LLC in Mississippi may be a relatively quick process, there are many other important steps involved in starting and running a successful business. It is always a good idea to consult with an attorney or other legal professionals to ensure that you are meeting all legal requirements and protecting your interests as a business owner. With careful planning and attention to detail, you can successfully form an LLC in Mississippi and set your business on the path to success.

Conclusion

In conclusion, starting an LLC in Mississippi is a strategic choice for entrepreneurs seeking a flexible, straightforward business structure with limited liability protection. By following the essential steps, including choosing a business name, filing Certificate of Formation, appointing a Registered Agent, creating an Operating Agreement, obtaining an EIN, and securing the necessary licenses and permits, you can successfully establish your LLC. This business structure offers numerous advantages, such as pass-through taxation and ownership flexibility, making it an attractive option for small business owners looking to grow and protect their ventures. As always, consult legal and business professionals for guidance specific to your situation and state requirements.

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