How to Start a Business in Mississippi
Mississippi Business Facts
Mississippi is one of the best states in terms of agriculture. Thirty percent of the labor force in the Magnolia State works in farming. Every year, the agriculture industry produces $6.3 billion. Another reliable industry in Mississippi is fishing. The state is one of the main suppliers of fish to grocers. It also supplies fish throughout the country.
Major Companies Headquartered in Mississippi
Mississippi is the headquarters of many major companies including Sta-Home Health Agency, Sanderson Farms, Greek Orthodox Church Of Holy, The Yates Companies, Inc., and NMMC.
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 Corporation, LLC or DBA. Click here to learn more about business entities.
- A Corporation is a separate entity (provides liability protection to the owners) with a structure that includes shareholders, directors and officers. It’s 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 and provides very easy management (doesn’t require directors or officers) and taxation. The LLC 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.
- 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.
Step 2: Choose 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
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.
Step 4: Obtain your Federal Employer Identification Number (FEIN or “EIN”)
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.
You can read more about corporate tax laws in Mississippi on the Mississippi Department of Revenue Taxation Division site.
Optional Considerations when registering a Mississippi business
- Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent)
Ready to register a business in Mississippi?
- We specialize in registering businesses in Mississippi.
Step 5: Open Company Accounts: Bank and Credit Cards
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
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Obtain Business 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 7: 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 $24.
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:
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
5. Entergy Mississippi, Inc.
- Entergy strives to contribute to a society that is healthy, educated, environmentally safe and productive.
6. Angel.co Mississippi Startups
- A list of all 150+ Mississippi Startups and 4,700+ Mississippi angel investors registered with Angel.co. Good research resource.
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
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.
