Mississippi LLC Costs – Summary

Articles of Organization	$50
Business Name Reservation (Optional)	$25
DBA Registration (Optional)	$25
Registered Agent (Optional Third Party)	$199 to $400 annually
Creating an Operating Agreement (Optional Third Party)	$200 to $1,000
Food Service Permit	$224.25
Liquor License	Varies
Contractor License	$400 commercial, $50 residential

As an entrepreneur, the idea of starting a business is exciting. However, before you can start selling products or services to your customers, you must first ensure that your company is officially recognized by the state. In Mississippi, the costs and obstacles you’ll encounter as you build your new enterprise are relatively small when compared with other states. That said, you still need to know what to expect so you can plan accordingly and pay all the necessary fees and expenses.

For many entrepreneurs, forming an LLC makes the most sense. LLCs offer legal protection for founders while also allowing for pass-through income to reduce the overall tax burden. So, if you’re thinking about starting an LLC in Mississippi, here’s everything you need to know about the paperwork and costs involved in starting an LLC.

General steps and costs when forming a Mississippi LLC

Naming your Mississippi LLC

The first thing you have to do is name your business. This name will go on all official paperwork, so you must have it ready to go before you can do anything else. That said, depending on the nature of your new venture, you should verify whether your name is unique. The best way to do this is to look up the name on the SoS business entity search site. This search tool allows you to find companies with exact or partially matching names. If you find something identical or nearly identical to your business, you can also find out whether it’s active or inactive. If it’s inactive, you may be able to use the name.

But what happens if you know your name is unique but you’re not ready to form your LLC yet? In that case, you can reserve a business name with the state. Reserving the name prevents anyone else from using it, but it’s only valid for 180 days. You’ll need to submit an Application for Reservation of Name with the Secretary of State and pay a $25 filing fee.

Another point to consider is whether you’ll use a DBA (doing business as) name. DBAs are helpful because they can often sound more appealing to customers and clients, and they may be more descriptive about what your business offers. However, because your DBA is different from your official company name, you must register the DBA with the state separately. As with the name reservation form, you submit the document to the Secretary of State and pay a $25 filing fee. However, you must pay this fee annually to keep your DBA in good standing.

Filing articles of organization

Once you’re ready to make your LLC official, you must file articles of organization with the Secretary of State. Mississippi only charges a one-time filing fee of $50, which is much less than most other states. That said, there are other fees associated with business operations, such as amending your articles of organization (another $50 fee), dissolving your LLC and more. You can see the entire list of LLC-related fees on this form.

Appointing a registered agent

Mississippi requires all LLCs to have a formal registered agent. A registered agent is someone who can receive state and legal documents on the company’s behalf. If you’re a single-member LLC, you can act as the registered agent as long as you have an official address in Mississippi.

If you’re forming a multi-member LLC, though, it may be best to use a third-party registered agent instead. This way, there is no conflict of interest, and all founding members can be notified when something comes in. Typically, registered agents cost anywhere from $199 to $400 for the year, depending on the size and scope of your business.

Creating an operating agreement

An operating agreement is a document outlining the structure of your business, including responsibilities and what to do in specific situations (e.g., if an organizing member dies). Single-member LLCs don’t need an operating agreement because the state of Mississippi doesn’t require it. However, multi-member LLCs should have an agreement in place.

This agreement can clarify everything from ownership stake to your company’s hierarchy. While you could create this document yourself, it can sometimes be far too complex to handle on your own. Instead, it’s often better to rely on a third-party service like a law firm or business development company to handle the details.

The cost of creating an operating agreement with a third party can vary from around $200 to $300 on the low end to over $1,000 on the high end. The more complicated your business, the more expensive it is to create the agreement.

Other Annual and Additional Mississippi LLC Costs

Registering your LLC is only one part of the administrative process of getting your business off the ground. You may also have to worry about licenses, permits, and taxes. Here’s a rundown of the various other costs associated with forming an LLC in Mississippi.

Franchise tax

One of the main advantages of starting an LLC is that you can choose “pass-through” income for tax purposes. In this case, the company doesn’t have to pay separate taxes. Instead, all members must pay taxes on their earnings. However, depending on the nature of your business, you may want to pay taxes as a corporation. In that case, you must pay a franchise tax every year.

That said, Mississippi is phasing out the franchise tax requirement, and it will disappear by 2027. So, you may elect to form your LLC as a corporation-style business, knowing that this tax will stop in a few years.

Business licenses & permits

While registering your business in Mississippi makes your new enterprise official, you’ll likely have to secure other permits and licenses to operate legally within the state. For example, if you plan to sell alcohol, you’ll need a liquor license. If you’re running a massage therapy business, you’ll need a therapy license. Here’s a quick rundown of some of the most common licenses you might need to obtain.

• Sales Tax Permit – You must have this permit to sell products and collect sales tax. Fortunately, this permit is free, so most retailers can start selling as soon as their LLC is registered.
• Food Service Permit – Mississippi requires all food service businesses to submit an application and plan review packet. This packet contains information like your menu, floor plan, and other certifications. You must pay an administrative fee of $224.25 to have your packet reviewed and approved. Once you’re approved, the amount of your annual renewal depends on your company’s risk level. The lowest fee is $40, and the highest is $264.50.
• Liquor License – To obtain a liquor license in Mississippi, you must first determine what kind of vendor you are. For example, wineries and distilleries have different paperwork and permit fees compared to restaurants, bars, and hotels. You must also obtain temporary liquor licenses for events, like live theater or festivals. Fees can range from $925 for selling all alcohol on premises for a bar or restaurant to $5,625 for a distillery that produces 5,000 pounds of alcohol or less per year.
• Contractor License – If you’re running a contractor business, you must be licensed and bonded before you can take on any work. The cost of licensing in Mississippi is $400 for a commercial license and $50 for a residential license. You can find the entire schedule of license fees online.

In addition to these common licenses, you may have to get a license for other types of businesses, such as hairstylists, tattoo artists, or massage therapists. For example, masseuses must submit a form with the Mississippi State Board of Massage Therapy and pay a $50 filing fee. You’ll need to do some research to determine what fees and forms are necessary. Also, some cities or counties may set their own requirements and regulations, so plan accordingly.

Annual report

Mississippi requires all LLCs to file an annual report, which outlines the financial strength and operational efficiency of their business. As long as you file this report between January 1st and April 15th, you don’t have to pay a renewal fee to keep your LLC registered and in good standing. If you miss this deadline, the state will dissolve your LLC, and you must pay a reinstatement fee.

Mississippi LLC formation you can write off

Although the costs of forming an LLC in Mississippi are not that high, you can likely write them off on your taxes. The IRS allows new business owners to write off startup costs, including administrative and legal fees. Here’s a breakdown of what you can deduct.

• Costs of Completing the Articles of Organization
• Filing Fees (including those associated with business permits)
• DBA Fees
• Operating Agreement Costs (only if you use a third party to create this document)
• Registered Agent Costs (only if you use a third party as a registered agent)
• Attorney Fees (if applicable)

Mississippi LLC State Fees

Fees are taken from the Secretary of State’s fee schedule.

Form Name	Filing  Fee
Domestic LLCs
Certificate of Formation	$50
Certificate of Amendment	$50
Certificate of Merger	$25
Certificate of Dissolution	$50
Annual Report	$0
Reinstatement	$50
Application for Name Reservation	$25
Application for Transfer of Name Reservation	$25
Certificate of Revocation of Dissolution for Limited Liability Companies	$25
Registered Agent/Office Statement of Change	$10
Certificate of Change of Address of Registered Agent	$10/company
Certificate of Resignation of Registered Agent	$0
Foreign LLCs
Application for Registration of Foreign Limited Liability Company	$250
Application for Appointment of Registered Agent of a Foreign LLC	$25
Registered Agent/Office Statement of Chang	$10
Certificate of Change of Address or Registered Agent	$10
Certificate of Resignation of Registered Agent	$0
Foreign LLC Certificate of Amendment	$50
Certificate of Cancellation of Foreign Limited Liability Company $25	$25
Foreign LLC Application for Name Reservation $25	$25
Foreign LLC Annual Report	$250
Foreign LLC Reinstatement	$100

Conclusion

As you can see, forming an LLC in Mississippi is a relatively cost-effective and straightforward process. The state is very kind to entrepreneurs and makes it easy to start a new business. Once you know the steps and fees involved, you can expedite the paperwork and start earning money right away.

As far as third-party formation services, they often make the most sense when you’re creating a multi-member LLC. If you’re the only member, you can likely handle everything yourself since you don’t have to worry about an operating agreement. Also, you can choose to receive official correspondence to your address as a registered agent. Either way, forming an LLC online is a fantastic way to get your new venture off the ground.

FAQ