You’ve finally decided to pursue your dream and start your own business in Mississippi. You’ve chosen a limited liability company (LLC) — a flexible business structure offering personal assets and limited liability protection to its owners.
But how much will LLC incorporation cost you?
As you make your way through the steps of forming an LLC in Mississippi, what costs and fees should you budget for?
Getting up to speed on state fees and extra costs is key for short-term financial planning and ongoing compliance for your small business.
In this post, we break down all the costs you may face when forming a Mississippi limited liability company.
Mississippi LLC formation cost: $50
The baseline cost of forming a domestic LLC in Mississippi is $50.
This state fee covers the processing and approval of a new LLC registration by the Mississippi Secretary of State (SOS). You pay it when filing “Articles of Organization” — a legal document establishing your LLC.
If you have an LLC registered in another state — a foreign LLC — and wish to do business in Mississippi, the company formation cost will be higher.
You’ll need to complete a filing for “Certificates of Authority,” add a Certificate of Good Standing from your home state and pay a $250 registration fee.
All LLC filings must be done online through the Mississippi Secretary of State’s website. You can simply submit the form with payment through online filing, or print out the certificate, fill it out, and send it by mail with a check.
The average processing time upon receipt of your Mississippi certificate of formation is one or two business days.
Note: There are no expedited services available for this filing.
Extra Mississippi LLC costs to account for
The costs to start an LLC vary depending on your type of business and approach to business formation.
You can save money by doing most paperwork yourself. Or commission professional services such as legal help for operating agreement creation, commercial LLC formation services for state registration, and accounting help for tax purposes.
This section breaks down those “extras” you might shell on.
Registered agent costs: vary
You can appoint yourself as a registered agent for your Mississippi LLC. But many business owners choose to hire a registered agent service instead.
Here are the benefits of using a professional registered agent service:
- Privacy. You don’t need to disclose your personal or business address to the state. So that no process server comes knocking on your door. The registered agent of your LLC is the designated recipient of all legal papers, tax notices, and service of process.
- Compliance. A professional service can help you avoid mishandling important legal documents and keep you posted on important compliance deadlines.
- Flexibility. Your LLC’s registered agent must be available during business hours. Hiring a service allows you to set your own hours while the service has you covered.
While the price of registered agent services in Mississippi varies, plan to pay between $50 and $300 annually.
Trade name registration: $25
Common reasons to register a trade name for your LLC:
- A trade name may allow you to do business under a name that is too similar to an already-registered company name.
- A trade name may be more simplified and easier to use than to constantly refer to the full legal name of your LLC (which often includes various acronyms and abbreviations).
Trade name registration in Mississippi costs $25 for LLCs. To get one, complete the Fictitious Name Registration form on the Mississippi Secretary of State’s website and submit it with a payment.
Mississippi LLC name reservation: $25
State laws don’t permit duplicate or similar-sounding business name registrations.
Therefore, you must check the availability of your preferred name by using the Mississippi business search tool. If the name is available, you can take the optional — and advisable — step of reserving the name with the Secretary of State’s office.
Reserving your LLC name can keep others from registering a company under the same name while you prepare the paperwork.
To reserve your LLC name, you must submit the Name Reservations Filing form online and pay a $25 fee. Once completed, your LLC name reservation lasts for 180 days.
Certified document copies: costs vary
Throughout the formation and operation of your Mississippi LLC, you may need to obtain certified copies of your LLC formation documents.
For example, to open a business bank account.
You can order certified copies through the Order Certificates and Document Copies page of the Mississippi Secretary of State’s website.
Depending on the type of documents and how many certified copies you need, costs will vary.
Business permits and licenses: costs vary
The state of Mississippi does not issue any general business licenses.
Instead, it regulates businesses by industry/operation type. This means your LLC — and potentially other employees of your company — may be required to obtain occupational licenses.
These types of licenses are required to operate in certain professions, including but not limited to:
- Respiratory care practitioners
- Medical radiation technicians
- Tattoo & body piercing professionals
Information regarding these licenses and their applications for them can be found by visiting the Mississippi State Department of Health’s Professional Licensure page.
Sample business license costs in Mississippi:
- Dietitians — $100
- Occupational therapist — $100+$150
- Tattoo parlor operators — $150
Additionally, your Mississippi LLC might need to get a sales tax license if you plan to sell taxable goods and services. The license is issued by the Mississippi Department of Revenue. Filing for the sale tax license is free of charge.
Does Mississippi have an annual LLC fee?
No. Though the state of Mississippi does require every LLC to file an annual report, there are no state renewal fees. It’s one of the benefits of forming an LLC in Mississippi as opposed to other states.
Your LLC’s annual report is filed with the Secretary of State’s office and can be submitted between January 1st and April 15th each year.
What taxes do LLCs pay in Mississippi?
By default, LLCs are considered to be “disregarded entities.”
Meaning the IRS doesn’t tax the company — it taxes the profits gained by members. The income derived from the business entity is dispersed among the LLC members, who, in turn, pay taxes individually on that income in their own tax returns.
Therefore, if you are a Mississippi resident, your income from LLC will be subject to state personal income taxes of 0% to 5% on top of any federal taxes.
Moreover, other state business taxes may apply to your LLC:
- Sales tax. If your LLC provides goods and services applicable to sales tax, you will need to pay Mississippi’s 7% sales tax (other sales tax rates may vary by county).
- Employment taxes. If your LLC has employees, you will also be responsible for applicable state employment taxes. To pay these, you’ll need to obtain an Employer Identification Number (EIN) from the IRS website and a state tax ID number from Mississippi DOR.
Note: A single-member LLC can elect an S-corporation tax status (over sole proprietorship). This lets the owner pay themselves a salary, which will be taxed in Mississippi.
Mississippi LLC Costs & Fees Summary
Forming and operating your own LLC in Mississippi is rather affordable as business startup costs are low — $50 in state filing fees. Also, no annual LLC renewal fees are due.
Still, other direct and indirect costs of LLC formation are worth accounting for. Using a commercial registered agent service can cost $50-$150 annually, while a professional business license costs $100-$150 per employee.
Finally, you should also set aside money for tax season as LLC members are personally responsible for paying tax on company profits.