Starting a business can be a complex process, which makes doing your research before jumping in is especially important. One important early decision is figuring out which business structure to go with.

A Mississippi Limited Liability Company (LLC) is a popular choice, and in this guide, I’ll walk you through the process of starting an LLC in Mississippi – from choosing a name to filing your paperwork.

Related: Guide to starting a business in Mississippi

Is the LLC right for you?

Deciding if a Limited Liability Company (LLC) is the right choice for your business in Mississippi comes down to understanding your needs for personal asset protection, tax preferences, and operational flexibility. Mississippi LLCs offer the advantage of protecting personal assets from some business debts and lawsuits. They also provide a choice between being taxed as a sole proprietorship, general partnership, or corporation (either S corporation or C corporation), allowing for the most flexibility and potential tax benefits.

This structure is relatively simple to set up and maintain, with less paperwork than a corporation. If these benefits align with your business goals and management style, an LLC could be the ideal structure for your new Mississippi small business.

Featured LLC Formation Services

Steps To Form A Mississippi LLC

Step 1: Choose an LLC Name

The first step in forming a Mississippi Limited Liability Company is to make sure the name you want is available. The name of every LLC is required to be distinguishable from other entity names registered in the state, and the Mississippi Secretary of State makes it easy to do a Mississippi LLC name search so you can quickly verify if your LLC name is available.  

In addition to the name being unique, the entity designator (identifier used at the end of the business name) must be either:

• Limited Liability Company
• LLC
• L.L.C.

A comma may be used after the business name and before the designator.  “Magnolia State Crafts LLC” and “Magnolia State Crafts, LLC” are both acceptable.

If there is a name you want but are not ready to register the LLC, you can file the Reservation of a Business Entity Name with the Mississippi Secretary of State. The name reservation will hold a name for up to 180 days at the cost of $25.

Before finalizing a name, you may also want to see if a domain name is also available to have a matching website address.

Step 2: Appoint a Mississippi Registered Agent

In Mississippi, every LLC will need to designate a registered agent. A registered agent is simply an individual or company with a Mississippi street address who will be responsible for any legal correspondence. This commonly includes the receipt of legal documents, such as lawsuit notifications, on behalf of the business.

While many LLC owners opt to fulfill this role themselves, some owners choose to hire registered agent services like Northwest Registered Agent. Utilizing a registered agent service ensures that your LLC adheres to state requirements while offering an added layer of convenience and confidentiality since the owner’s personal address isn’t disclosed in public records.

Related: What is a Mississippi registered agent?

Step 3: File the Mississippi LLC Certificate of Formation

The paperwork to officially create an LLC in Mississippi is called the Certificate of Formation. To submit the paperwork file online through the Mississippi Secretary of State website.

There are a few sections and terms that can be confusing when filling out the Certificate of Formation, so to help you fill them out, I’ll explain a few of these sections.

Related: How to fill out the Mississippi Certificate of Formation

Future effective date: If you want the LLC to start on today’s date, leave the field blank.  If you want to delay the LLC start to a date in the future, enter a date less than 90 days in the future to start.

Some will delay the LLC start date if they aren’t ready to go but want to get the filing out of the way, or if they are close to the end of a calendar year and want to delay until the following year so they won’t have to file business taxes.

Nature of business: This section asks for information regarding the activities of the business.  To answer, you need to enter a number called NAICS (North American Industry Classification System).  This code is a six-digit number that classifies and categorizes the different business industries.  This information is used in reporting statistical data for each of the industries in the U.S.  Remember this number, as you will need it when filing annual tax returns.  Find your NAICS number by clicking on the “Search for NAICS Codes” and entering the keyword(s) that most closely resembles what your business will do.  Enter the code(s) in the boxes.

If the activities of your business aren’t specifically listed, choose one that is close.  The filing allows for up to three codes to be entered.  The first one is typically the code for the main business activity.

Signature: At least one signature from someone authorized to sign on behalf of the LLC is needed.  This can be a member, manager, or non-members like an attorney or accountant, the members give signing authority.  Enter the person’s title, name, and address.
Under the title, there are three options – Manager, Member, and Organizer. The definitions of these are:

• A Manager is someone the Members hired to run the LLC, similar to a CEO of a corporation.
• A Member is an owner of the LLC
• An Organizer is someone who is assisting with the formation of the LLC.  This is often a Registered Agent, Attorney, or Accountant.

What To Do After Starting A Mississippi LLC?

Once the LLC has been formed, there are a few additional steps to take care of. Below is a list of the most common tasks.

Prepare a Mississippi LLC Operating Agreement

The operating agreement is a document that governs the framework of an LLC.  This document covers items like ownership rights, member responsibilities, how profits and losses are distributed, and more.

Most states (including Mississippi) do not require an LLC to have an operating agreement, but it is still worth considering. Without an operating agreement:

• The LLC could be subject to generic state rules that may be detrimental in the event of a lawsuit.
• Member’s personal liability protection may be diminished.
• Members may not fully understand their roles and responsibilities, which could lead to costly disputes in the future.

Related: Mississippi operating agreement template

Obtain an EIN

If the LLC will hire employees or is owned by more than one member, an EIN is required. 

The EIN or Employer Identification Number (also referred to as a Federal Employer Identification Number, FEIN, or Federal Tax ID Number) is a unique 9-digit tax identification number assigned to a business by the Internal Revenue Service (IRS). Similar to a social security number for an individual, the EIN identifies business entities for tax purposes.

Related: How to apply for an EIN

Open an LLC Bank Account

Opening a bank account for your LLC is important for liability protection as the account separates the business’s funds from the member’s personal funds.

Several documents will be needed to open a business bank account, such as:

• A banking resolution is a document that authorizes the members to open a business bank account on behalf of the LLC.
• Copies of the original formation paperwork from the state showing the creation of the LLC.
• Driver’s licenses of the members.
• Depending on the age of the LLC, a Mississippi Certificate of Good Standing may be needed to prove the LLC is active and in good standing with the state.

Related: How to open a business bank account for your LLC

Apply for Business Licenses and Permits

Depending on what your business does and where it is located, there will likely be various business licenses and permits needed before starting your business. Some common registrations include:

• Business license: There isn’t a statewide general business license, though some cities require businesses to obtain licensing before they can start.
• Professional license: Certain services, such as barbershops, accountants, salons, and others, must be licensed in Mississippi.
• Sales tax permit: To sell products and certain services, registration of a sales tax permit with the Mississippi Department of Revenue will be necessary.

Related: What business licenses are needed in Mississippi?

File Mississippi LLC Annual Reports

LLCs are required to file an annual report with the Mississippi Secretary of State.  The report can be filed between January 1st and April 15.

Related: How to File a Mississippi LLC Annual Report

File the Beneficial Owner Information Report

Beginning in 2024, any individual who owns at least 25% or has “substantial control” of an LLC or corporation in Mississippi or any other state must file the Beneficial Ownership Information (BOI) form with the Financial Crimes Enforcement Network (FinCEN). BOI reports are filed electronically through FinCEN’s website.

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