How to Start an LLC in Mississippi

There are two ways to go about forming an LLC: On your own, or with the help of an LLC formation service. For many business owners, we recommend using a service, as it can help save you time and hassle.

The advantage of doing it on your own is that you will save a bit of money (~$50-$150 or so). The disadvantage is that it’s more complex, and often takes longer – and there are more opportunities to make mistakes.

For many entrepreneurs, the small cost of using an LLC formation service is worthwhile. Two companies that are frequently recommended are ZenBusiness and Northwest Registered Agent. These two companies can help guide you through the business formation process, and help to drastically simplify the entire experience. ZenBusiness offers great service at a lower cost, while Northwest is known for personalized service.

These services also offer other features and services that will be useful for your company. This includes Registered Agent services (see step #3), mail forwarding, compliance services, and more. There are different plans to choose from with various features available, so you can select a package that suits your needs and budget.

Recommended services

Visit ZenBusiness

The focus of ZenBusiness is on forming new companies. They help simplify the process of starting a business, using powerful online tools. ZenBusiness plans are ongoing and help customers grow their businesses. They provide many services and resources, and can also help connect entrepreneurs to other relevant services.

See the full ZenBusiness review here

Visit Northwest

Northwest Registered Agent will scan all documents you receive for your business so that you can easily see them in your online account. There, you’ll have unlimited cloud storage as well as strong business data protection, and help from their friendly customer service staff when you need it. A yearly subscription for their registered agent services costs $125.

See the full Northwest review here

Visit Bizee

Bizee specializes in new company formation. With Bizee, you can form a new LLC, corporation, or other business entity in your state. So far, they have helped form more than 500,000 new businesses. Bizee works directly with each US state to help start new businesses. Essentially, they are a middleman between you and your state’s business department.

See the full Bizee review here

Before moving forward with a business application, you must decide on a name. This is an important step, as you will want to select a name that’s memorable and suitable for your business.

It’s also important that your company name meets certain requirements. The main requirement is that the name must be unique and different from any other company registered in Mississippi. To confirm availability, you can conduct a business entity name search here.

In addition to being unique, the name must also not contain any government-related terms or words. And if it contains phrases related to regulated industries, like banking or legal services, then special permission must usually be obtained. For example, you can’t register an LLC name with the phrase “bank” in the name, unless you actually have the proper licensing to operate a financial institution in Mississippi.

Finally, the name must contain “LLC”, “L.L.C.”, or “Limited Liability Company”. You will see a full list of naming requirements during the process of registering your business.

LLCs in Mississippi are required to appoint a Registered Agent. This is an individual – or a company – that is appointed to represent the LLC. The main responsibility of this role is to be the primary point of contact for the business. The Agent will receive important legal notices, tax documents, etc. on behalf of the company.

Who can be a Registered Agent? Any resident of Mississippi (including yourself, or an employee), or any company licensed to do business in the state.

This leaves two options: Either appoint yourself or an employee as your Registered Agent or use a professional service. If you choose the latter, expect to pay around $50-$150 per year. Northwest Registered Agent is a great choice for personalized service, while ZenBusiness is a bit cheaper. Both will ensure no important documents are missed, and can also help to protect your privacy as a business owner.

Note: This step is optional, but recommended.

Operating agreements are important legal documents that are kept internally by businesses. This means that they are simply kept on file, and not submitted to any government agency. Because of this, they are completely optional. However, most businesses should still have one.

An operating agreement is a document that establishes several aspects of a new business. Most importantly, it defines ownership structure and operating procedures. For businesses with multiple members or owners, this is very important. An operating agreement reduces the risk of future conflict over ownership rights and other disputes.

Services like ZenBusiness can help with the drafting of a new operating agreement. You can also hire an attorney to help, although this may be costly. Alternatively, you may be able to find a template online that you can use to put together your operating agreement.

The Mississippi LLC Certificate of Formation is the primary document that needs to be submitted in order to form your LLC. In most states, this is called the Articles of Organization. The document must be filed with the MS Secretary of State. The process must be done online (there is no mail option at this time). The filing cost is $50.

Once you have submitted your application, you will need to wait for the state to process the documents. You will be notified when the processing is complete – or if there are any issues to address. The filing process generally takes 2-3 weeks.

An EIN, otherwise known as an employer identification number, is a federal tax ID that allows you to hire employees and is also used for communications with the IRS. It’s a bit like a social security number, only for your business instead of you yourself.

To apply for an EIN, simply fill out this application on the IRS website. The application is simple, and there is no cost to file. EINs are required to hire employees, so this is not a step that most businesses can skip. Even if you don’t plan to hire employees, an EIN is still needed for certain activities, like opening a business bank account.

The steps above will form your LLC as a legal entity. However, there are additional permits and licenses that will typically be required in order to operate a business legally. The LLC paperwork simply establishes the business entity – but local, state and federal licenses/permits may also be required.

The requirements vary depending on the type of business. Some will need statewide professional licenses. Others may need federal or state licenses for specific industries. And most will need local business licenses in the cities or counties where they plan to operate (check with your local county clerk for details).

There are also specialty licenses that may be necessary. For example, restaurants will need health licenses and potentially liquor licenses. Be sure to research all your requirements thoroughly.

Starting your business is just the beginning! LLCs in Mississippi will need to complete various ongoing compliance tasks in order to stay in good standing with government agencies. There are requirements on every level of government – state, federal, and local (city/county).

The specific requirements that your business will face vary depending on where you are located and what type of business you are running. That said, there are some general steps that are likely to be required:

It’s wise to set aside some time now to research all your ongoing requirements. By staying on top of things from day one, you can ensure that everything is handled efficiently. It’s also a good idea to create reminders in your calendar so that you don’t miss any filing dates.

Services like ZenBusiness and Northwest Registered Agent can also help with some of these ongoing requirements, such as annual reports. They can also remind you of certain due dates, helping to avoid any issues. If you want personalized assistance during and after the business formation process, it’s definitely worth using one of these LLC formation companies.

Once you have your EIN, you will also be able to open a business bank account. Most financial institutions, from large banks to tiny credit unions, now offer these services to businesses of all shapes and sizes. Bank requirements will vary, however, so call ahead to see what you’ll need to provide in order to open the account.

You may be tempted to simply use your existing bank account, but this is a bad idea. It is very important to separate your business and personal finances as much as possible. Using a separate bank account will improve the simplicity of your bookkeeping and accounting efforts, and can also help protect your personal assets in the event of a lawsuit.

At this time, you may also want to consider opening a business line of credit, and/or a business credit card. You can do this with the same financial institution, or a different one.