Starting Your Business in Mississippi | A Step-by-Step Guide


Steve Bennett
Steve Bennett
Business Formation Expert
Hi there, I'm Steve. My mission is to empower the next generation of online entrepreneurs with the knowledge and tools they need to succeed. My business insights are based on real-world experience, ensuring that aspiring entrepreneurs can confidently start and run their own businesses.

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Start a Business in Mississippi

If you want to start an LLC in Mississippi, there are numerous factors to consider. Starting your own business is one of the most exciting and profitable things you can do in Mississippi. But where do you start? Follow our comprehensive guide on How to Start a Business in Mississippi. We will assist you in removing doubt from the process and investigate your success chances. It will begin with defining your business idea and progress to establishing, launching, and expanding your business. Webinarcare Editorial Team will help you every step of the way!

What Business to Start in Mississippi?

If you’re looking to start a business in Mississippi, consider starting a limited liability company (LLC). LLCs offer personal liability protection for their owners while also providing the flexibility of a partnership or sole proprietorship. Beyond that, here is the list of businesses to consider in Mississippi.

  1. Home Improvement Contracting Business
  2. Real Estate
  3. Consulting Business
  4. IT Firm
  5. Landscaping Business

Whatever business you choose to start, it’s important to conduct thorough market research and create a solid business plan before diving in. We reviewed some of the Best LLC Services and provided features as an add-on with their packages for you to check out.

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Starting a business can be a challenging but highly rewarding endeavor. By taking the time to research and plan, you can increase your chances of success. Whether you choose to form a corporation or start an LLC in Mississippi, it’s important to surround yourself with a strong team that will guide you. Don’t let fear hold you back, take that first step towards turning your business dreams into a reality.

WEBINARCARE EDITORIAL TEAM

How to Start a Business in Mississippi?

To form a business in Mississippi, you must follow a few steps that include creating a business plan, choosing a business entity type, determining your business costs, naming your business, registering a business, and lastly, marketing your business.

Please continue reading to learn more about the overall procedure and what new small business owners should keep in mind as they complete each step.

Step 1: Creating a Business Plan

When developing a business plan, many factors should be considered during the decision-making process. Your business plan in Mississippi serves as a road map for your company’s success.

A business plan should take into account the specific goals of your company. You should know the product or service you will provide in Mississippi. A well-thought-out business plan is essential for determining how your company will make a profit. If the purpose of the business plan is ambiguous and unrelated to the service you provide, it will impact the business you are forming. Make sure your business goals are SMART (specific, measurable, achievable, realistic, and time-bound). Also, researching your competitors’ services will help you determine your strategy for your state business. Finally, you should consider your company’s funding.

With this article’s assistance, you can better comprehend your business’s essential components and success strategy. You can apply for Mississippi Small Business Loans from banks and investor funding to help support your company in Mississippi.

Once you have the entire plan in your hands, you can work on the legal framework of your company. Legally, you can form an LLC for your ideal business.

Step 2: Choose a Business Entity in Mississippi

Selecting a business entity for your Mississippi company. When starting your own business, you must choose a business structure. How well your personal assets are secured, how much tax you pay, and how much paperwork you have to deal with will all be significantly impacted by the type of corporate entity you choose. Consider setting up a corporation, LLC, LLP, or sole proprietorship as your business entity in Mississippi.

Sole Proprietorships

Consider a sole proprietorship if you want to start a business in Mississippi by yourself. A sole proprietorship is the simplest business structure in which a single individual owns and operates the entire business. The owner and the business are considered the same legal entity in a sole proprietorship. There is no legal distinction between the owner and the business, meaning that the owner has complete control over the business operations, profits, and losses.

Sole proprietorships are best suited for Mississippi small businesses with low risks and for individuals who want to maintain complete control over their business without the complexities of establishing a separate legal entity.

Limited Liability Company

A Limited Liability Company (LLC) is a business structure that combines features of both partnerships and corporations, offering limited liability protection to its owners (called members) while allowing flexibility in management and taxation. An LLC is a separate legal entity from its owners, meaning the members are not personally liable for the business’s debts, obligations, or liabilities.

It is a popular choice for small to medium-sized businesses that want the liability protection of a corporation while maintaining management flexibility and simpler tax treatment. It’s essential to consult with a legal or financial professional to determine if an LLC is the best choice for your specific business situation.

Limited Liability Partnership

A limited liability partnership (LLP) is comparable to an LLC. However, it is usually used by licensed business professionals like attorneys or accountants. A partnership agreement is necessary for this kind of business entity. You can form an LLP in Mississippi if you are planning to.

Corporation

Forming a Corporation in Mississippi reduces your personal liability for business debts as an LLC does. A corporation is a legal entity that is separate and distinct from its owners, known as shareholders. It is created under the laws of the state it is incorporated in and is considered a separate “person” under the law. The corporation can enter into contracts, own property, sue and be sued, and pay taxes separately from its owners.

A corporation can be taxed as an S-corporation (S-Corp) or a C-corporation (C-Corp). If a small corporation satisfies certain Internal Revenue Service (IRS) standards, then S-corporation status is available, providing pass-through taxation. However, most larger businesses and startups seeking venture financing are taxed as C-corps.

To choose the right business structure in Mississippi, consider personal liability protection, taxation, management flexibility, administrative requirements, and setup costs. Consult a legal or financial professional to help you make the best decision.

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Step 3: Determine your Mississippi Business Cost

In Mississippi, you should determine the cost of your business. You should consider paying the Certificate of Formation fee, business licenses fee, office supplies and equipment, payroll, rent, utilities, transportation, and taxes.

Usually, filing an initial Mississippi Certificate of Formation fee costs $50, while the LLC annual fee costs $0 in Mississippi. In terms of filing Mississippi Articles of Incorporation, the costs usually range up to $50 for filing online.

If forming an LLC is your ideal business, consider knowing the LLC Cost in Mississippi.

Step 4: Name your Business in Mississippi

Naming your business doesn’t take a lot of time. With the help of Mississippi Business Name Search, you can acquire a name for your business. If you form an LLC in Mississippi, you must follow the below rules while naming your business-

  • 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 business right away but want to hold the name that you have decided on, then you can reserve your business name. You must file a name reservation application in the Mississippi Secretary of State to keep the name.

If the business name is available, you may choose to reserve it for a specific period of 180 days. The online name reservation fee is $25 and the mail name reservation fee is $25. If your business plans to operate under a name other than its legal name, you may also need to register a fictitious or “doing business as” (DBA) name.

The DBA filing can be done in one method, online, which you can file in Mississippi Secretary of State. You can check out how to file a DBA in Mississippi for clearer understanding.

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Step 5: Register Mississippi Business

To register a business in Mississippi, you need to file it with the Mississippi Secretary of State. Before that, you must have a Mississippi Registered Agent for your business. The Registered Agent is a person who is responsible for receiving important legal documents on your behalf.

You can serve as your own Registered Agent, or you can appoint a friend or family member, or you can check the Best Registered Agent Services in Mississippi.

Apply For Certificate of Formation

After you have a Registered Agent, you need to file the Mississippi Certificate of Formation, if you want to have an LLC structure, or you need to file the Mississippi Articles of Incorporation if you want to have a Corporation.

Request For an EIN

In addition to the paperwork, your Registered Agent should apply for 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. You can obtain the EIN for free from the IRS.

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 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 (for 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.

After you have your EIN number, you can benefit in several ways. It will give your LLC the absolute advantage necessary to operate at full capacity without encountering legal or judicial issues.

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

LegalZoom($0 + State Fee for LLC formation)

Step 6: Apply for Business License and Permit

Business licenses and operating permits are necessary to run any business in Mississippi. Before launching your new business, request any required business license or permission. Most Mississippi businesses need licenses or permits to operate. Federal, state, and local governments may all require businesses to have licenses and permits. The business license fee depends on the type of license you are applying for. It can start from $25 till going up to $100+. However, in Mississippi, the business license fee ranges from $50 – $300.

Step 7: Obtain a Bank Account

Your business dealings in Mississippi might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Opening a separate bank account for your Mississippi business is essential for maintaining a clear separation between your personal and business finances.

You can check out the Best Banks in Mississippi, which offers the best fees, services, and convenience for your business needs.

Step 8: Market your Business in Mississippi

Now that your Mississippi business is registered, you can market it with an ideal marketing plan. An ideal marketing plan can help a start-up business to become known. Making a comprehensive social media network like META, Facebook, Instagram, Twitter, and YouTube falls within this category. While creating an SEO campaign for your company website, you may also look at specialized communities on Facebook and LinkedIn.

FAQs

What type of business should I start in Mississippi?
The choice of business depends on your interests and what is in demand in Mississippi.
How do I register my business in Mississippi?
You can register your business through the Mississippi Secretary of State.
What types of taxes will I need to pay in Mississippi if I start a business?
You will need to pay sales tax, individual income tax, corporate income tax, and employment tax in Mississippi.
How do I apply for a business license in Mississippi?
You can apply for a business license through the Mississippi Department of Revenue.
Do I need to get a Federal Employer Identification Number (EIN) to start a business in Mississippi?
Yes, if you plan to have employees or if your business is organized as a corporation, you will need to get an EIN.
Is there any financial assistance available for small business owners in Mississippi?
Yes, Mississippi Development Authority’s Small Business Administration could be the best office to reach out for loans.
How long does it take to get a business license in Mississippi?
It usually takes around two weeks to get a business license in Mississippi.
Do I need to pay a fee to register my business in Mississippi?
Yes, you will need to pay a fee to register your business in Mississippi.
How can I apply for a loan to start my business in Mississippi?
You can apply for a loan through a bank or through the Mississippi Development Authority.
Can I start a business in my home in Mississippi?
Yes, if you get the necessary permits and licenses.
Do I need to have a business plan to start a business in Mississippi?
Yes, a business plan is important in securing financing for your Mississippi-based business.
What are the advantages of starting a business in Mississippi?
A low-cost of living, affordable labor, and deregulation policies that push business go up.
Can I run my business in Mississippi without an office?
It depends on the nature of your business. If you can work remotely, you don’t need to have an office in Mississippi.
What are the most profitable industries in Mississippi?
Agriculture is the leading industry in Mississippi, with production of soybeans, cotton, miss crops, and chickens.
What are the best sources of financing for my Mississippi-based business?
Mississippi Development Authority and traditional banks could be great sources of funding.
How can I find reliable employees for my Mississippi-based business?
Job fairs, job boards, and advertising are the best venues to reach job seekers in Mississippi.
Do I need to have insurance when starting a business in Mississippi?
It’s recommended to have general liability insurance for your Mississippi-based business to alleviate risk.
Can anyone start a business in Mississippi regardless of their nationality/residency?
Anyone with legal residency or citizenship status permissible by the laws of Mississippi can start a business.
What permits and licenses do I need to start a restaurant in Mississippi?
You will need to get a restaurant license, food handler’s permit, local health department permits, and a Mississippi sales and use permit.
What documents do I need to register my business in Mississippi?
You need a Business License Application, Certificate of Formation, Articles of Incorporation, Partnership Agreements, and Operating Agreements.
Do I need a lawyer to start my business in Mississippi?
You don’t need a lawyer but it’s recommended when registering for legal advice.
Can I get a loan to start a business in Mississippi if I have bad credit or no credit history?
Having no credit history stands a better chance compared to having a bad credit history. However MDA gives specific consideration to disadvantaged small businesses.
Do I need to have a physical store to start an e-commerce business in Mississippi?
No, you don’t need a physical store to start an e-commerce business in Mississippi.
I would like to open a liquor store in Mississippi, what are the permits and licenses required?
Check with the Mississippi Alcohol Beverage Control for Permit & License details.
What is the cost of living in Mississippi and how does it affect my potential business success?
Credit to affordable housing, utilities, and cost-effective labor market, Mississippi stands a pocket-friendly economy compared to the national average.
What is the average rent for commercial space in Mississippi?
Commercial Space rental fee varies from as low as $8 per square up to an average rate of $25 per square foot.
Do I need to pay business personal property tax in Mississippi?
Only when property’s value exceeds the exemption threshold amount differentiated amongst business types – check with Mares for details.
How long does it take to finish the incorporation process of my Mississippi business?
Incorporation processing period for Mississippi businesses usually takes 7-10 business days.
Are there any grants available for small businesses in Mississippi?
Mississippi Development Authority is favorable for Small Business grant applications as deemed fit
What is required to start a business in Mississippi?
To start a business in Mississippi, you need to choose a legal structure, register your business with Mississippi Secretary of State, get tax identification number and any required business license.
What is a DBA and do I need it to start a business in Mississippi?
A DBA stands for Doing Business As or Fictitious Name. If you are planning to operate your business under a name that is different from your legal name, you will need a DBA in Mississippi.
Where can I find information on the tax laws in Mississippi?
You can visit the Mississippi Department of Revenue’s webpage to find information on tax laws in Mississippi.
What kind of business license do I need in Mississippi?
The type of business license you need in Mississippi depends on the type of business you want to operate and the location of your business. You can contact the Mississippi Business One Stop website to find out more about which business cards you need.
How long does it take to register a business in Mississippi?
Registering a business in Mississippi can take anywhere from a few days to several weeks, depending on the type of business you want to start and the processing time of the agency responsible for registering businesses.
What is the cost of registering a business in Mississippi?
Registering a business in Mississippi can cost as little as $50 or as much as thousands of dollars, depending on the legal structure you choose, the type of business you want to start, and the filing fees.
What are the different legal structures I can choose for my business in Mississippi?
The legal structures you can choose for your business in Mississippi include sole proprietorship, partnership, limited partnership, LLC, and corporation.
Do I need to file tax returns for my business in Mississippi?
Yes, you are required to file tax returns for your business in Mississippi.
How much tax do I have to pay as a business owner in Mississippi?
The tax you pay as a business owner in Mississippi will depend on the type of business you operate, your business income, and other factors.
Can I incorporate my business in Mississippi?
Yes, you can incorporate your business in Mississippi by filing articles of incorporation with the Mississippi Secretary of State.
How do I choose a name for my business in Mississippi?
To choose a name for your business in Mississippi, the name must be unique to your business, distinguishable from other businesses, and cannot mislead the public.
Do I need to register my business’s trademark in Mississippi?
You may need to register your business’s trademark in Mississippi. Contact the Mississippi Secretary of State’s office for more information.
Where can I find resources to help me start and grow my business in Mississippi?
You can visit the Mississippi Business One Stop website to find resources to help you start and grow your business in Mississippi.
Can I start a home-based business in Mississippi?
Yes, you can start a home-based business in Mississippi, but check regulations to know any requirement to get licensing and permits.
What are the common reasons businesses fail in Mississippi?
Common reasons for business failure in Mississippi include insufficient capital, inadequate planning, poor financial management, and excessive debt.
How can I finance my business in Mississippi?
You can finance your business in Mississippi through traditional loans, business credit cards, startup grants and Good Company Funds.
Is it necessary to have a business plan to start a business in Mississippi?
It is not required to have a business plan to start a business in Mississippi, but it’s a useful tool to define your business strategy.
What laws govern businesses in Mississippi?
Tax laws, labor laws, employment laws, environmental laws and consumer protection laws govern businesses in Mississippi.
Can I hire employees for my business in Mississippi?
Yes, you can. Review labor laws and withhold the income tax payable by your employees.
Do I need to obtain a business permit in Mississippi before starting a business?
It depends on your business, as well as several factors. For instance, you may need to obtain state-specific permits and local-specific licenses.
Are there any incentives for small businesses in Mississippi?
There are several incentives for small businesses in Mississippi, such as tax credits, loan guarantees and grant programs.
Are there any penalties for not complying with Mississippi’s business regulations?
Yes, there may be penalties, including fines and penalties if you do not comply with Mississippi’s business regulations.
Is it required to have knowledge of accounting to start a business in Mississippi?
You can hire an accountant to take care of financial accounting. However, basic knowledge of accounting is going to be beneficial.
Does Mississippi have any business entities exempted from certain taxes?
Yes, certain businesses may qualify for exemptions and deductions specific to their sector and business activity.
What are local permits and licenses necessary to conduct business in towns or counties in Mississippi?
Local permits and licenses can vary across would-be given towns or county depending on permit requirements and type. This information can assist better with particular regions.
Can I meet other business owners in Mississippi for guidance and help?
To some extent, Mississippi has many groups dedicated to small business development and networking platforms, which enable businesses to connect with others and at times mentors for guidance.
Where can I ask doubts or complain against a Mississippi company?
The Mississippi Secretary of State’s website has compiled answers to many common business-related questions to contact customers’ right section, although there’s a small business regulatory review team authorized by the state government to act in these scenarios.
Can my business obtain healthcare benefits in Mississippi?
In Mississippi you could able avail insurance for your acquired employees dependents or make use of individual plan coverage models of Mississippi ACA rating region premiums.
What should I do if I want to sell my existing Mississippi business?
To sell your Mississippi business, you can professional business brokers, though it’s advisable to seek legal advice before proceeding.

Also Read

Why You Should Start Business in Mississippi

One of the most compelling reasons to start a business in Mississippi is its affordability. The cost of living in the state is significantly lower than many other parts of the country, making it an ideal location for aspiring entrepreneurs looking to stretch their dollars further. From low housing costs to affordable business expenses, Mississippi offers a competitive advantage for those looking to launch and grow their business without breaking the bank.

In addition to its affordability, Mississippi also offers a business-friendly environment that is supportive of small businesses and startups. The state has a robust network of resources, including small business development centers, incubators, and accelerators, that are designed to help entrepreneurs navigate the complexities of starting and running a successful business. With access to expert guidance, mentorship, and funding opportunities, Mississippi provides a solid foundation for entrepreneurial success.

Another key advantage of starting a business in Mississippi is its strategic location. Situated in the heart of the South, Mississippi offers easy access to major markets in the region, as well as the rest of the country. With well-connected transportation infrastructure, including highways, railroads, and ports, businesses in Mississippi can easily reach customers and suppliers across the United States, allowing for greater growth and expansion opportunities.

Furthermore, Mississippi is home to a diverse and skilled workforce that is well-equipped to meet the needs of businesses across a wide range of industries. From manufacturing and agriculture to technology and healthcare, Mississippians are hardworking, reliable, and dedicated employees who can help drive business success. With a deep talent pool to draw from, businesses in Mississippi can find the skilled workers they need to build and grow their operations.

Lastly, business owners in Mississippi can benefit from the state’s strong sense of community and support. Mississippians are known for their resilience, resourcefulness, and willingness to lend a helping hand to their neighbors. Whether it’s collaborating with other businesses, receiving government assistance, or tapping into the local network of entrepreneurs, business owners in Mississippi can count on a strong sense of community to help them navigate the challenges of starting and running a business.

In conclusion, starting a business in Mississippi offers a unique blend of affordability, support, strategic location, skilled workforce, and community spirit that can set entrepreneurs up for success. With a thriving economy and a wealth of resources at their disposal, Mississippi provides an ideal environment for businesses to grow and thrive. Whether you’re a first-time entrepreneur or a seasoned business owner looking for a fresh start, Mississippi is a place where your dreams can take root and flourish.

Conclusion

Starting a business in Mississippi has unique advantages and challenges since it offers a large and diverse market, access to skilled talent, and numerous networking opportunities, making it an attractive location for entrepreneurs. However, business owners must also contend with a high cost of living, intense competition, and potentially complex regulations.

Ultimately, whether starting a business in Mississippi is the right decision depends on the entrepreneur’s specific needs, goals, and industry. It is crucial to conduct thorough research and consider factors such as taxes, regulations, workforce availability, and target market when choosing a location for a new business. By carefully weighing the pros and cons, entrepreneurs can make informed decisions and set themselves up for success in the competitive Mississippi business landscape.

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