If you’re looking at how to start a business in Mississippi, you’ll see it means thinking about more than just your products or services.
The Mississippi business license cost isn’t set by the state, because there’s no universal, statewide license.
Instead, most business owners apply for a city or county “privilege license,” with the final price depending on your location and the kind of work you do.
In other words, while you won’t find a single, statewide Mississippi business license that covers everyone, almost every entrepreneur will face some licensing expenses before opening their doors.
Let’s walk through what that looks like in Mississippi, from local privilege licenses to state and industry-specific permits.
Do you need a business license in Mississippi?
In Mississippi, licenses aren’t issued through one blanket state program.
Instead, requirements are set at the local and industry level, which means two businesses in different towns, or even in the same town but in different industries, can face very different rules.
Still, almost every business will need some kind of approval before it can legally operate.
Pro Tip: Don’t assume your license needs are the same everywhere. Your business license cost will vary not just state to state, but county to county and industry to industry. Mississippi is no exception, so it’s worth calling your local office before you launch.
How much does a business license cost in Mississippi?
So, how much is a business license in Mississippi?
It depends on two things: where you set up shop and what kind of work you’re doing.
In smaller towns, you might pay as little as $25 to $50 a year for a local privilege license.
If you’re in a larger city or a busier county, those fees often run higher, sometimes $150 or more.
On top of that, state-level or professional licenses come into play for certain industries, usually ranging from $50 up to $500.
Several factors influence your final cost:
- City vs. county: Urban areas often charge more than rural communities.
- Business structure: Sole proprietors typically pay less than larger companies or corporations.
- Industry: Regulated sectors like healthcare, food service, or construction need additional permits.
- Business size: Some cities base fees on the number of employees or the value of your inventory.
Types of businesses licenses in Mississippi and their cost
Here’s a quick look at the main types of licenses and permits you might need when starting out in Mississippi.
The details, like who issues them and how much they cost, depend on your location and the kind of business you’re running.
City business license
Most new businesses in Mississippi need what’s called a privilege license from their city.
You’ll get this through the city clerk or revenue office, and it’s the paperwork that officially puts your business on the local tax map.
The amount you pay is tied to where you’re located and the type of work you do.
County business license
In addition to city requirements, some Mississippi counties ask for their own privilege license.
This usually comes up if your business is based in an unincorporated area or if you’re operating temporarily, like a vendor or contractor working across county lines.
You’ll apply through the county tax collector or clerk, and the rules can look a little different from what the cities require.
State-level permits
Some industries require an extra step.
Professions like contracting, cosmetology, or pharmacy fall under state boards that issue their own licenses.
If you’re in food service, healthcare, or alcohol sales, you’ll also need permits designed to keep your business compliant with state regulations.
Federal licenses
Only a handful of businesses will ever need these.
Federal licenses apply to industries that are regulated nationwide, such as aviation, firearms, or broadcasting.
For most small businesses in Mississippi, this won’t be something you need to worry about.
Cost breakdown
| License/Permit Type | Issued By | Purpose | Typical Cost Range |
| City business license | City clerk or revenue office | Required to operate within city limits | $25-$150 annually |
| County business license | County tax collector or clerk | Privilege license | $25-$250 annually |
| State-level permits | State boards or regulatory agencies | Regulated professions | $50-$500 |
| Federal licenses | Federal agencies | Nationally regulated professions | Often several hundred |
Examples of different industries and the different licenses they require in Mississippi
When you’re ready to start a business in Mississippi, the licenses you’ll need depend on the type of work you’re doing.
If you open something like a retail shop or run an online store, you’ll usually need a local city or county license along with a sales tax permit to handle your transactions.
For food businesses like cafés, food trucks, or bakeries, a health department permit has to be added to the list (this covers inspections and safe food handling).
Contractors and construction professionals need state-issued licenses before they can legally bid on jobs.
The key thing to remember is that every industry has its own set of boxes to check before you can officially operate.
Renewing your business license in Mississippi
Getting your license is only the first step. You’ll also need to keep it up to date.
In most Mississippi cities and counties, privilege licenses must be renewed every year.
Renewal is usually handled through the same office that issued your original license, such as the city clerk or county tax collector.
The renewal fee is usually the same as what you paid upfront, though some locations may change the amount from year to year.
And missing your renewal date can be costly! Many jurisdictions add late penalties or fines, and in some cases, your license can be temporarily suspended until the balance is paid.
To avoid this, it’s a good idea to set a reminder well before your renewal date so you don’t risk extra charges or a pause in your business.
Conclusion
Figuring out Mississippi business license costs is an important step toward making your business official. If you’re still in the early stages, it also helps to understand how to start an LLC in Mississippi so you know which formation steps come before licensing.
The next best step is to find out the exact requirements for your city, county, and industry so you know what to budget for.
If you’re not sure where to begin with licensing and permits, we can help!
Get your plan in motion today!
FAQ
Yes. Most e-commerce businesses still need a small business license in Mississippi from their city or county, plus a free sales tax permit if selling taxable products.
Usually, yes. Even solopreneurs and micro-businesses often need a local license, especially if you’re selling taxable goods or services.
You can apply through your city clerk or county tax office for a privilege license. Regulated industries must also apply to the relevant state board.
Local licenses can be issued in a few days to weeks. State or professional licenses may take longer due to exams or inspections.
Yes. An LLC is a business structure, not a license, so you’ll still need the appropriate approvals.
No. An LLC provides liability protection, while a license gives you permission to operate legally.
You could face fines or penalties, and in some cases be ordered to stop operating. Regulated industries risk losing additional legal protections.