Form an LLC in Mississippi with Inc Authority for Free

Choose a unique and relevant business name that your customers can easily remember. It must be distinguishable from the name of any other foreign or domestic business entity registered in the state of Mississippi.

You can confirm your chosen LLC name’s availability by conducting a business name search online. Also, ensure that you follow the Mississippi LLC naming conventions, including adding words like “LLC” to it. 

After choosing a name for your Mississippi LLC, consider reserving it till you officially register your LLC. This helps protect the LLC name from being taken by another Mississippi business entity before you form your LLC in Mississippi.

While at it, secure a matching domain name for your business website. If a good domain name is not available for your selected business name, you might have to consider changing your name and getting a matching domain name. 

In any state where you conduct business, you need to have an official address where someone is available during business hours to receive all business correspondence. This individual or business is called a registered agent. 

You need a local registered agent to receive the legal documents on behalf of your LLC and forward them to you. This could be an individual or a business, but they must be a state resident or authorized to do business in the state. 

You may form a single-member LLC or a multi-member LLC, depending on the number of co-owners of your Mississippi LLC. You also need to choose between a domestic LLC or a foreign LLC, depending on your needs.

You can also opt for a professional LLC. This is for Mississippi limited liability companies that offer services permitted only by licensed professionals, such as law attorneys, dentists, architects, and accountants.

Even though you can complete this step after registering your Mississippi LLC, we recommend handling it earlier. A written operating agreement gives you a clear vision of your future business, including how it should be run.

LLC operating agreements list down all that pertains to running your new business, including conflict resolution, rules of governance, members’ rights, succession plans, and more. It’s a must-have document if you want to run your LLC efficiently.

One of the most crucial parts of forming an LLC in Mississippi is filing the Certificate of Formation, which is done through the state’s online filing system. This will allow your LLC in Mississippi to legally run its operations within the state. 

You can file your certificate online or print and mail it to the SOS’s office. The filing fee is $50. We recommend filing online as it is the fastest and most efficient way. Inc Authority can file it on your behalf, further simplifying the process. 

All newly formed LLCs in the US must acquire an Employer Identification Number (EIN) from the Internal Revenue Service, except for single-member LLCs. The EIN is a nine-digit number that acts as a social security number for a business. 

It comes in handy when opening a business bank account, filing tax returns, and paying income tax, among other things. You don’t need to pay any fee when applying for an EIN, but you’ll need a taxpayer identification number. 

It’s vital that your Mississippi LLC has its own bank account to maintain its limited liability status. If you mix personal and business funds, you risk being held personally liable for damages against your limited liability company. 

Opening a business bank account also helps you establish a banking relationship for your LLC, which helps when you want to secure loans. You’ll need your operating agreement, EIN, and LLC Certificate of Formation to open an account. 

Even after registering your limited liability company in Mississippi, you still won’t be able to operate until you acquire all the needed business licenses and permits. These will depend on the nature of your business and its precise location. 

Even though a state-level business license is not required in Mississippi, some counties and cities need various permits and licenses for businesses. These include zoning permits, occupational permits, and trader’s licenses. 

One of the perks of setting up a limited liability company is that you have the freedom to decide how you want to be taxed. Mississippi LLCs can be taxed as a C-corporation, sole proprietorship, S-corp, or partnership.

Check with the Mississippi Department of Revenue to see if your LLC is subject to any state taxes. It’s important to note that Mississippi has a sales tax rate of 7% and a flat 5% individual income tax rate before you make a choice.

Once you’ve formed your Mississippi LLC, file a Beneficial Ownership Information (BOI) report with the Financial Crimes Enforcement Network (FinCEN). It’s a new requirement, and failure to comply may attract up to $500 per day in civil fines.  

The BOI report can be filed online. If you start your LLC between Jan 1 2024 and Jan 1, 2025, you’ll have to file your report within 90 days from the formation date. After Jan 1, 2025, you’ll have 30 days to file the report. There’s no filing fee. 

All Mississippi LLCs must file annual reports once every calendar year with the Mississippi Secretary of State. The annual reports can be filed online anytime on or after January 1st of each year and are due by April 5th of the same year.

An annual report provides the state with information about your LLC, including if it has changed ownership. You need a state-issued Business ID Number to file the report. The filing fee for foreign LLCs is $250 and domestic LLCs is $0. 

Both big and small businesses need a website to conveniently offer information about their businesses to potential customers. Use professional web design services to get your website up and running and ensure a good user experience. 

With your LLC’s website already established, set up social media channels next. Choose one or two social platforms that are most relevant to your business. These platforms should be the ones your target audience uses the most. 

Your legal obligations don’t end once your Mississippi LLC is up and running. You must stay updated on ongoing legal and tax requirements to ensure you remain compliant with the state’s laws and regulations in the long term. 

For example, you must file your annual report every year, as we previously mentioned. You’ll also need to fulfill certain requirements at the local level, such as paying local taxes, employer taxes, obtaining city licenses, and so on.

Below are the features you’ll enjoy with the free business formation plan:

• Business name search tool: It provides an easy-to-use business name search tool where you can type your preferred business name and see if it’s being used by any other business entity within the state. 

• Free registered agent services: Whether you choose a free or paid business formation plan, Inc Authority will provide you with a Mississippi registered agent. You can get their services entirely free for the first year.

• Online document management: With Inc Authority, you have the option to store all your business documents online and access them anytime through your Inc Authority account. This simplifies document management.

• Tax planning consultation: The free plan also comes with a free tax planning consultation. Inc Authority will provide you with a tax planning expert who will guide you through everything related to your LLC’s taxes. 

• LLC formation: Inc Authority is well known for its LLC formation services. Its team of experts will review and file your application and get your LLC registered with the Mississippi Secretary of State efficiently and quickly.

• S-Corp election and filing: In case you prefer the S-corp special tax status, Inc Authority will help you fill out and submit the S-election form (Form 2553 of the IRS) to get you the federal S-corp status quickly.

• Business funding analysis: Every business requires sources of funding in order to operate smoothly and expand further. Inc Authority experts will assess your funding requirements and offer trusted funding sources. 

This plan is perfect for bootstrapped startups and small businesses that want a legal business entity without spending too much.

Price: Free

Below are the additional services you’ll get with the Starter plan:

• LLC operating agreement: You should draft an operating agreement for your Mississippi LLC. Inc Authority offers different templates that you can use to create a comprehensive operating agreement.

• Employer Identification Number: Running an LLC in Mississippi requires you to have an EIN. Inc Authority’s Starter Plan will help you with the application process and ensure you get this number as soon as possible. 

• Corporate forms and documents package: Starting and running your LLC requires you to create various documents regularly. Inc Authority offers multiple templates for these documents to help you draft them quickly. 

• Compliance notifications: Mississippi laws require LLCs to comply with certain rules and regulations. Inc Authority will send you reminders on upcoming deadlines and inform you of the compliance requirements. 

• In-depth tax advice: While a brief consultation is offered with the Free Plan, this involves a more comprehensive evaluation of your LLC’s tax requirements and offers the best possible tax savings. 

• Web design and marketing services: In case you intend to create a website for your LLC, you’ll need a domain name that matches your business name. This plan gives you that along with 5 different email addresses. 

Price: Custom

Below are the additional services you’ll get over the Starter plan:

• Customer success advisor: Inc Authority will assign a dedicated customer success manager or an account manager for your account. They’ll guide you through the entire LLC formation process and answer any questions.  

• Private banking specialist: A separate business bank account is vital for proper management of your business finances. Inc Authority will assign a private banking specialist who will help you find the best banking options.

• Personalized business advisory: Besides helping you form your LLC, Inc Authority is committed to seeing you grow. Its expert business advisory services will help you grow your business quickly and take it a level higher. 

• Expedited preparation & filing: Same-day filing is one of the biggest benefits of choosing this plan. Clients on the Fasttrack plan are priority clients and Inc Authority will ensure their applications are filed within one day. 

If you’re looking for top-tier, personalized services, and super quick filing, then this is the best plan for you. It’s Inc Authority’s highest tier plan and ideal for businesses who want premium services and are willing to pay for them.