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