The cost to register a business name in Mississippi depends on the structure you choose. An LLC (limited liability company) costs $50 to file with the Secretary of State, whereas a corporation or partnership may have additional fees.
Name Reservation and Requirements
If you’re planning to register a business in Mississippi, you can reserve your desired business name through the Secretary of State’s office. This reservation will be valid for 180 days and can be completed online or by mail. Your LLC’s name should not be “misleadingly similar” to other business names on record and must contain the phrase “Limited Liability Company” or its abbreviations (L.L.C. or LLC), and should not include words or phrases suggesting a government agency.
Depending on the location and industry of your LLC, additional Business Licenses or Permits may be necessary, such as a City Business Permit.
Costs and Considerations for Mississippi Businesses
Mississippi tends to rank low on lists of the best states for business, but ranks well for cost of living and cost of doing business, making it affordable for entrepreneurs.
It’s free to apply for an Employer Identification Number (EIN), which should be done after registering your business.
Once registered, there are other expenses to cover, including licenses, permits, and other documents. Notably, Mississippi has fewer requirements and no state income tax.
The franchise tax in Mississippi is $2.50 per $1,000 of capital used within the state, but there is no franchise tax for LLCs. Taxes for an LLC include Social Security Tax (12.4%) and Medicare Tax (2.9%).
Registering a DBA (doing business as) costs $25 with the Mississippi Secretary of State.
Forming an LLC in Mississippi
It costs $50 to start a Mississippi LLC, which is a one-time fee for the LLC Certificate of Formation. Before reserving a name, ensure it is available and complies with state regulations.
LLCs are required to appoint a registered agent in Mississippi, and professional agent services can cost between $40-$125.
For foreign LLCs, a Foreign Qualification or Certificate of Authority from the Secretary of State is required, which has a fee of $500.
LLC Formation Process
To register an LLC in Mississippi:
- Check if the LLC name is available and complies with state regulations.
- File the Certificate of Formation online and pay the $50 fee.
- Appoint a Mississippi Registered Agent.
- Consider creating a Mississippi LLC Operating Agreement.
- Obtain an EIN.
- Comply with state tax obligations and ongoing requirements.
Mississippi LLCs can be approved in 1-2 business days when filed online. The registered agent must be a Mississippi resident or a service authorized to conduct business in the state. The minimum cost is $50, but additional services may increase this.
An operating agreement is not required but recommended as it outlines the ownership and procedures of the LLC.
Steps to Start an LLC in Mississippi:
- Pick a Name for Your LLC.
- Appoint a Mississippi Registered Agent.
- Form Your LLC.
- Create an Operating Agreement.
- Obtain an EIN.
- Comply with State Tax Obligations.
- Follow Ongoing Requirements.