Start an LLC in Mississippi

Last updated on: February 8, 2022

Do you dream of opening an LLC or Professional LLC in Mississippi? Then this guide might come in handy for taking your formation plans a step further. 

If you don’t really know how to start an LLC, here we will outline the main process involved in the general formation. This includes the procedures for sending an LLC application in Mississippi, handling additional forms, and paying service fees.

In addition, we will cover a few additional steps that might be required when you are starting an LLC in Mississippi to ensure that everything will go smoothly with your launch.

Finally, we will examine some of the main requirements crucial for maintaining an LLC in Mississippi and keeping it in good standing with the state.

Naming Your Mississippi LLC

One of the first steps to take care of when you open an LLC in Mississippi is finding an apt name for your business. This is vital for the LLC’s future—a company’s success is often determined by the effectiveness of its name.

A good LLC name should be unique and memorable in order to attract more clients and establish a steady customer base. But above all, it should meet all state naming requirements, otherwise, your registration application will be rejected by the state. 

If you’re thinking about where and how to get an LLC, always consider the name first, especially when it comes to its validity. The state’s naming guidelines include:

  • Avoiding forbidden words such as:
    • “bank”;
    • “banking”;
    • “insurance”;
    • “trust”;
    • “corporation”;
    • “incorporated”;
    • “partnership”;
    • “limited partnership”;
  • Adding an indication of the entity’s business structure like: 
    • “Limited Liability Company,” 
    • “Limited Liability Co.,” 
    • “L.L.C.,” 
    • “LLC etc.;
  • Ensuring that the limited liability company name is available, i.e. it hasn’t been taken by other entities registered in the state;
  • Avoiding words that could potentially deceive the public about the nature of the business conducted by any LLC in MS; any links to government agencies are also forbidden. 

Name Availability in Mississippi

Already have an LLC name picked? Don’t rush and file your Certificate of Formation quite yet as it will only take you a couple of minutes to check the name’s availability through the Mississippi business name database.

As a free tool, the business name search provided by the secretary state’s website can help you determine whether your name is still available. If it is, you can proceed with filing your formation documents. But if it’s already taken, you will have to figure out how to alter it or find other options.

To make it more unique, you can find synonymous keywords or change the word order. Keep in mind that the following changes will not be taken into consideration:

  • Contractions;
  • Business type identifiers like LLC or Ltd;
  • The articles “a,” “an,” or “the”;
  • Special characters like @, #, $, and %;
  • Punctuation marks;
  • Singular vs. plural nouns;
  • Arabic vs. Roman numerals (4 vs. IV);
  • Capitalization;
  • Spacing.

LLC Name Reservation

Say you found a perfect name but aren’t yet ready to register your LLC. To make sure your name won’t be taken by another company, you are free to reserve it.

In Mississippi, LLC name reservation costs $25. The state will reserve your name for up to 120 days, though you can renew it again. The next reservation can only be approved within a 60-day period of the previous one’s expiration date.

You can only apply for it through the state’s online filing system. Paper documents are not valid in this case. On average, the applications are processed within 24 hours.

Drafting an Operating Agreement LLC Mississippi

After you apply for LLC Mississippi, your next course of action is to ensure its ongoing maintenance. Most entrepreneurs and consulting experts recommend drafting an operating agreement to aid you on this stage of entity management, although this document is not a hard requirement by the state.

An operating agreement is an internal document that outlines the company’s operating structure and key procedures. A typical agreement should generally include:

  • Information about LLC;
  • Name and address of the registered agent;
  • Duration of the LLC;
  • Members and their contribution;
  • Management structure;
  • Procedure for admitting new members, as well as outgoing members;
  • Voluntary dissolution of the company;
  • Indemnification and liability clauses, etc.

But every company is different, so it’s up to you to change up and expand the contents of the operating agreement LLC. After all, it should be shaped according to the needs and goals of your company.

When you start an LLC in Mississippi, one of the early stages of the process is precisely the creation of an operating agreement. It comes with a wide range of benefits, including:

  • Limited liability protection: all members will have additional proof of the company’s structure as the document confirms the separation of personal and business assets;
  • Allocation of rights and responsibilities: by clearly stating the roles that all members play in the company, the document helps you minimize potential conflicts within the company;
  • Standardization of operational procedures: by detailing what should go into each process beforehand, you can effectively raise the productivity of your company’s operations;
  • Raising LLC’s profile: the document gives your company a more stable, reliable reputation, which could sway potential business partners, investors, and banks in your favor;
  • Avoiding default rules: if you don’t establish a clear procedure for processes like inheritance or dissolution, the decision will fall under default state rules which tend to be very general, failing to consider your company’s specific interests.

There is no standardized form for this exclusively internal document to set up an LLC in Mississippi as it is not required by the state. If you wish to create an operating agreement, you can do so by:

  1. Drafting it yourself: even if you don’t have any extensive legal knowledge, it’s perfectly possible to create an operating agreement on your own. The structure of the document is completely up to you, but you can simplify the process by using free online templates. A good alternative to this is to use an operating agreement from your online service package should you hire such a company. Providers like MyCompanyWorks add a customized operating agreement to all their service packages, with the starting price of $79;
  2. Hiring an attorney: if your funds can spare a few hundred dollars on an attorney service, then this option might be the most reliable of the lot. A business lawyer can draft a highly detailed and personalized operating agreement based on your company’s needs. This can help you avoid procedural issues in the future and minimize certain risks when it comes to protecting your LLC in court.

Unlike most formation documents, the state doesn’t need you to file your operating agreement with any government agency. Once drafted, it can be stored safely with other documents.

Designating an LLC Registered Agent

When you first look into how to get an LLC, you will likely see registered agents being mentioned fairly early on. Finding an agent is vital for forming an LLC in Mississippi since their info goes into your Certificate of Formation. Without it, the state will simply reject your application.

A Mississippi LLC registered agent primarily establishes reliable lines of communication between the company and the state. They receive all official correspondence and pass it onto the owner. Both individuals and legal entities can act as registered agent LLC as long as they meet state requirements.

Individual as Mississippi Registered Agent

To act as a registered agent, you don’t need to have prior experience or a degree. Anyone can be appointed as long as they are a state resident over 18 years of age who have a physical address in Mississippi. It’s crucial for a registered agent to be present at the registered office throughout business hours in order to effectively handle incoming correspondence.

Registered Agent Service

Online providers like LegalZoom offer an easy way to get this professional service for reasonable rates. By hiring their specialists, you can forget about penalties and deadlines and focus on running your company instead. 

Remember that any attempt to run a business in Mississippi without a registered agent can lead to serious legal consequences, including administrative dissolution.

Applying For an EIN

An Employer Identification Number (EIN) is a nine-digit code issued by the IRS, allowing them to access a company’s tax records through their database. It’s not strictly necessary for creating an LLC in Mississippi, but without it, you won’t be able to perform some of the crucial functions. An EIN should definitely be obtained if:

  • Your LLC has more than one owner;
  • Your LLC will hire employees;
  • You have a Keogh plan (a form of retirement savings for self-employed individuals);
  • Your LLC will pay taxes, etc.

If you’re not sure how to get an EIN for an LLC, the process is not that complicated. Simply send an application to the IRS using the following methods.

Online

If you need to get EIN for LLC in Mississippi as soon as possible, your best option is an online application. Your EIN will be issued immediately, though note that applications are only received between 7 a.m. and 10 p.m. EST, Monday through Friday. You will also need a valid Social Security number.

Mail

Taking up to 4 weeks, this is one of the slowest methods of getting an EIN. If you’re not in a hurry, you are free to use it by sending Form SS-4 to:

Internal Revenue Service Operation
Attn: EIN Operation
Cincinnati, OH 45999

Fax

If you prefer using fax, be prepared to wait for up to 4 days. To get your tax ID, you can send Form SS-4 to:

(855) 641-6935

Submitting the Certificate of Formation

The key stage of the Mississippi LLC formation is the official registration. You can only legally start doing business after your LLC formation documents are approved by the state and added to the relevant databases.

Unlike with other states, Mississippi formation documents are referred to as the Certificate of Formation, rather than the Articles of Organization. This document usually contains the following:

  • Company name;
  • Registered agent name and address (no P.O. boxes);
  • An email address;
  • The North American Industry Classification System (NAICS) code for your type of business;
  • Your LLC’s “future effective date.” (If you want your business founded immediately, leave this section blank) etc.

Here, you can only file an LLC via online application. To draft the Certificate of Formation in Mississippi, complete the following steps:

  1. Create an account or log in to an existing one on the online filing system;
  2. Go to the “Name Reservation and Formation Filings” tab;
  3. Select “Form a Mississippi Corporation, Non-Profit, LLC or Partnership”;
  4. Enter all required information;
  5. Pay the service fee;
  6. Send the documents.

But how much does it cost to start an LLC in this state? Luckily, Mississippi LLC costs are fairly low compared to other states. The service fee is only $50, and your application is usually reviewed immediately.

Opening a Business Bank Account

Many entrepreneurs choose to open a Mississippi LLC for the privilege of limited liability that the structure affords. However, these protections are only valid when there is clear proof of separation of your personal and business assets. The best way to do this is to open a business checking account at any local branch.

Most bank applications involve the following documents:

  • The LLC’s EIN;
  • A copy of the Mississippi LLC certificate of Formation;
  • The LLC operating agreement;
  • Banking resolution (for multiple members LLCs).

Fulfilling Mississippi LLC’s Additional Legal Obligations 

Mississippi LLC Business Licenses

After the registration, it’s time to learn how to get an LLC license in Mississippi given how relevant it is for most companies.

There is a wide range of licenses and permits applied at various levels, from federal to municipal. You might need to obtain quite a few of them in addition to the Mississippi business license in order to commence operations. Typically, LLC license costs depend on your company’s location and industry.

To learn more about LLC license in Mississippi, visit the state’s Professional Licensing page and consider reading the business entities informational document.

LLC Annual Report in Mississippi 

After you create a Mississippi LLC, your next big step is to file the Annual Report. It should be filed each year between January 1 and April 15. Without it, doing business in Mississippi is impossible.

The fastest way to submit an annual report is to file online, and you don’t even have to pay LLC annual fee since Mississippi doesn’t impose one. 

Tax Filing Requirements for Mississippi  LLCs

State Taxes

In Mississippi, there is no separate tax return for an LLC since it’s all filed through the owners’ reports. The state also imposes no “franchise” or “privilege” tax, so the general LLC tax filing procedures are fairly simple.

Federal Taxes

LLCs are classified as pass-through entities. This means that all profits and losses are reported on the personal 1040 tax returns and/or Schedule C of the members, though the IRS allows you to elect a corporate taxation system.

Additional Taxes

Depending on your industry, you might have to file several Mississippi LLC tax forms. If your company sells goods and services, it is automatically subject to the Sales Tax and Use Tax. You can register it with the Department of Revenue through the Taxpayer Access Point.

Another common expense is the Unemployment Tax applied to companies that employ workers. To pay it, your company must be registered with the Mississippi Department of Employment Security.

Certain counties and municipalities set their own tax requirements. You can always consult an experienced lawyer or accountant to learn more about how to file tax for LLC in Mississippi.

Bottom Line

Now that you know how to obtain an LLC, hopefully, you will find the process easier to tackle. Still, online LLC formation requires a degree of investment, in terms of both time and money, as well as an understanding of the state procedures. To save your efforts, you can hire any of the Best LLC Services that could help you register LLC in Mississippi on your behalf.

Thanks to their substantial experience, professional services can set up an LLC online faster and with fewer issues. Their rates are generally pretty affordable, some of them even start at $0. Additionally, an online company’s expertise extends beyond LLC formation—they can also give you access to maintenance features and other business solutions, often for free or at discount.

Senior Business Tax Writer, etc
Jean Wilson Murray
https://bestllcservices.co/
(323) 789-5289
Senior Business Tax Writer, etc
Jean Wilson Murray

Entrepreneur, investor, financial commentator

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