How to Start a Business and Form Your LLC in Mississippi
- Mississippi Business Facts and Environment
- Step 1: Decide on a Business Structure
- Step 2: Pick a Business Name
- Step 3: Register the Business
- Step 4: Obtain Your Federal Employer Identification Number
- Step 5: Open Company Bank and Credit Accounts
- Step 6: Set-up An Accounting System
- Step 7: Obtain Licenses and Permits
- Step 8: Hire Employees (if applicable)
- Step 9: Obtain Business Insurance
- Step 10: Systemize and Organize
- Step 11: Branding and Marketing
- Step 12: Annual and Ongoing Requirements
- Important Mississippi Contacts
Mississippi Business Facts and Environment
MS Business Facts
Mississippi, also known as the Magnolia State has proven itself as an attractive home to world-class corporations. The business environment is favorable to many of today’s grown industries. With a can-do approach and numerous commercial resources, the great state of Mississippi is a perfect fit for a wide array of industries.
In 2018, Mississippi ranked #10 in the Best States for Doing Business by Area Development. The state was ranked #5 for speed of permitting and licensing and #10 for competitive utility rates, which makes Mississippi a desirable home to energy, aerospace, manufacturing and tourism companies.
Major Companies Headquartered in Mississippi
The Magnolia State has become home to many large corporations, such as Sanderson Farms, Island View Casino Resort, the Ameristar Casino in Vicksburg, The Yates Companies and BancorpSouth.
Startup Environment
The startup environment in Mississippi reaches in various forms such as investment groups, technical resources, incubators, and entrepreneurship groups. Technical resources assist entrepreneurs in developing their infrastructures necessary for expansion. Entrepreneurship Groups enable entrepreneurs to share best practice and form partnerships as well as mentoring opportunities. The Investment Groups offer the needed capital through venture and angel capital. The incubators offer a working environment that includes office space, meeting rooms, and administrative services.
Step 1: Decide on a Business Structure
There are 3 basic options: a DBA, a Corporation or an LLC. Click here to learn more about business entities.
- A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
- A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
- An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
Step 2: Pick a Business Name
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Mississippi, but we highly recommend you do the following before searching Mississippi state databases:
- Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
- Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
- Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself.
TIP: search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.
- Make sure your company name choice is available by searching the Mississippi Business Entity Database and doing a name search on the State of Mississippi website. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).
NOTE: Familiarize yourself with the Mississippi naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.
Restrictions on Mississippi Business Name & Business Purpose
- Mississippi requires corporations to have unique names.
- Mississippi corporate names may have the following approved designations:
- Co.
- Company
- Corp.
- Corporation
- Inc.
- Incorporated
- Limited
- Ltd.
- The use of the following words and phrases in corporate names is considered “restricted” in Mississippi:
- Bank
- Banker
- Banking
- Insurance
- Trust
- Trust Company
Step 3: Register the Business
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Mississippi.
How to form an LLC in Mississippi
- File the “Articles of Organization” with the Mississippi Secretary of State.
- Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.
- Hire a professional Registered Agent.
- Hold an Organizational Meeting to take contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more. (yes, even for 1 person LLCs).
- Optional: Elect S-Corporation status with the IRS by filing IRS Form 2553. Yes, even an LLC can choose to be taxed as an S-Corporation (or even a C-Corporation).
TIP: Speak to your tax advisor about this important issue because it adds complexity to your LLC most people would rather avoid.
- Optional: Create an operating agreement. This is a legal document that outlines ownership and operating procedures of your LLC.
How to Incorporate in Mississippi
- File the “Articles of Incorporation” with the Mississippi Secretary of State.
- Hold an Organizational Meeting to properly organize the corporation, take contributions from the shareholders, elect directors and officers, issues stock, adopts the Corporate Bylaws and more.
- Hire a professional Registered Agent.
- Optional: Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
Considerations when incorporating or forming an LLC in Mississippi
- The Mississippi Secretary of State could take anywhere from 4 to 5 weeks for mail filings to process the paperwork. This may increase during peak periods.
TIP: Check our order form to see how long Mississippi is currently taking to process regular and expedited orders. - A Registered Agent is required for every Mississippi Corporations and LLC. The chosen registered agent must have a physical street address in Mississippi. A professional Registered Agent who will provide their address and forward any important documents to you. This is convenient if you have to move, since you won’t have to file forms or pay fees, (just update your address with your agent).
How to File a DBA in Mississippi
- Check the state database of business names.
- Complete the DBA registration form.
- Pay $25 for the filing fee.
Ready to Start Now? Let Us Do The Work
Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.
- Learn more about our business formation service
- Read our verified reviews and 100% Satisfaction Guarantee
- Contact our friendly support team if you have any questions
Step 4: Obtain Your Federal Employer Identification Number
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.
TIP: We will obtain your EIN for you if you we form your company.
Step 5: Open Company Bank and Credit Accounts
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
Top 5 Major Banks in Mississippi
- Regions Bank
- Trustmark National Bank
- BancorpSouth Bank
- Renasant Bank
- BankPlus
Click here to view a list of our recommended banks in our Vendor Network.
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Set-up An Accounting System
Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.
Company documents generally are required to be kept for 3 years, including: a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.
Review our list of Accountants, Accounting Software and Bookkeepers in our Vendor Network.
Step 7: Obtain Licenses and Permits
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.
Step 8: Hire Employees (if applicable)
If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.
Review our list of recommended Payroll Providers in our Vendor Network.
Step 9: Obtain Business Insurance
There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.
Click here to view our list of insurance providers in our Vendor Network.
Step 10: Systemize and Organize
Prepare the business as if someone needed to take it over and run it for you. This means have a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.
Step 11: Branding and Marketing
Now that you’ve set-up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.
Step 12: Annual and Ongoing Requirements
DBA: Your Fictitious Business Name should be valid for 5 years (unless you change company name or other information listed on the FBN) at which point you’ll need to renew it with the county.
LLC: Mississippi corporations are required to file a Periodic Report with the Mississippi Secretary of State each year by April 15, in addition to general taxation. Information on your business’ taxes can be found here.
Corporation: Business in Mississippi should file a report annually by April 15 with the Secretary of State of Mississippi. The filing fee is $25.
Click here to view our MyCompanyWorks Premium™ service which can automate most or your ongoing compliance tasks.
Important Mississippi Contacts
Mississippi Secretary of State
Business Services Division (for Corporation and LLC filings)
125 S. Congress Street
Jackson, MS 39201
P.O. Box 136
Jackson, MS 39205-0136
Phone: 601-359-1633
Mississippi Taxation Departments
Mississippi Labor and Employment Departments
Mississippi Startup Resources
1. Small Business Administration (SBA) Mississippi District Offices
2. SCORE Mississippi
- The Mississippi District Office serves the northern 70 counties, while the Gulfport Branch Office serves the 12 most southern counties.
3. Mississippi Legal Statutes:
- Mississippi Business Corporation Act – note this is the broad code that includes various other topics including partnerships and associations.
- Mississippi Revised Uniform Limited Liability – the specific act that applies to Mississippi LLC’s.
- Mississippi Professions and Vocations – this includes regulations on Mississippi’s professions and businesses
4. Mississippi Chambers of Commerce
- Mississippi Gulf Coast Chamber of Commerce
- Oxford-Lafayette County Chamber of Commerce
- Monroe County Chamber of Commerce
- Natchez-Adams County Chamber of Commerce
- Madison County Mississippi Chamber of Commerce
- Entergy strives to contribute to a society that is healthy, educated, environmentally safe and productive.
6. Mississippi Angel Investors
7. Mississippi Business News
8. MDA
- The Mississippi Development Authority (MDA) is the state of Mississippi’s lead economic and community development agency, with approximately 300 employees engaged in providing services to businesses, communities and workers throughout Mississippi.
9. Mississippi Small Business Development Center
- Mississippi Small Business Development Centers provide free counseling, workshops, and information to existing businesses and start-ups.
10. USGBC
- USGBC Mississippi is a nonprofit, volunteer organization formed in 2006 to increase awareness of evolving principles of sustainability and green building practices, technologies, policies and standards. It’s comprised of three branches: North, Central, and South.
