How to Form an LLC in Mississippi
Mississippi may not be the first destination you think of when it is about new startup influxes. The state is slowly becoming the top destination for growing numbers of new businesses, including emerging tech brands. The combination of college cooperation, government support, and tax incentives makes Mississippi LLC formation highly attractive.
This guide will show you how to create an LLC in Mississippi. We’ll help you launch your business quickly.
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Before Filing LLC Paperwork
Although the LLC formation process itself is simple, there are some things you need to do before you can file your paperwork. These are the things you need to do before you can move forward with setting up your Mississippi LLC.
Appoint a Registered Agent
Every LLC that operates in Mississippi must have an agent registered. This agent is the person or entity that will accept tax or legal documents on your behalf. Legally, you can act as your own agent or appoint another LLC member to this role. Anyone who wishes to be their LLC’s registered agent must be at least 18, and reside in Mississippi.
It’s understandable that you would prefer to have one of the registered agents located in your area do this for you. A registered agent can be hired for between $50 and $300 per year.
Register Your Mississippi LLC’s Business Name In Advance
There are no guarantees and it is possible that the name you want to use is already in use. To find out if this is true, use the business search engine of the Secretary of State.
You can reserve the name you desire if it is not already taken or if you have chosen a better alternative. The filing fee for this form is $25.
Online filing of Mississippi LLC documents
To file your LLC, Mississippi has a modern and simplified approach to business filings. You will need to create a account and log into the Secretary of State’s site. A Certificate of Formation can be filed for $50. For foreign entities, however, you will need to pay $250 for the filing fee.
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Mississippi LLC Formation Approval
You can expect your LLC approval within days thanks to the modern and efficient Mississippi government approach to business formations. But that’s not all. There are many details that must be taken care of once your Mississippi business is established. These details will be discussed in the sections below.
Completion of your Annual Report
Mississippi law requires LLCs to file annual reports to maintain their business in good standing. These forms must be submitted online anytime between January 1st and April 15. There are no annual fees. However, late submissions could lead to the dissolution or liquidation of your LLC.
Register for an Employer Identification Number (EIN).
Most businesses require an EIN. Single-member LLCs are an exception. These businesses can use Social Security numbers. An EIN, which is a unique alternative to an SSN can be used to identify your brand, without compromising privacy or exposing you to fraud. EINs can be obtained for free from the IRS website.
Pay your taxes if applicable
Mississippi, like many other states, doesn’t require standard LLCs pay separate taxes. Most LLCs can be considered “pass-through entities” and members can claim the business on their individual taxes. In that single-member LLCs do not need to file separate returns, this is a different approach from corporations. Except for LLCs that owners or members prefer to tax as corporations, these are the exceptions.
Make an LLC Operating Agreement
Mississippi does not require LLCs to create an operating agreement. It is still a good idea. A detailed operating agreement clarifies the obligations of all members, as well as their financial expectations. An operating agreement will provide clarity and avoid confusion later. An operating agreement gives legitimacy to your LLC and helps maintain its good standing.
Most Frequently Asked Questions
What is an LLC?
A limited liability company combines the flexibility and ease of a sole proprietorship or partnership structure with the greater risk protection offered by a corporate structure. LLC owners, also known as “members”, have limited liability. This means that their personal liability to the company is limited to what they have invested. It does not cover losses or debts beyond that amount.
Members of an LLC are subject to taxes by default. This is the same as for owners of a general partnership or sole proprietorship. This structure is commonly referred as a “pass through” tax structure. If the LLC meets certain criteria, it can choose to be taxed either as a C-corp (C-corp) or as an S-corp (S-corp). Small business owners prefer LLCs because of their simplicity and flexibility.
Where do I file an LLC in Mississippi?
The Secretary of State’s website allows you to file LLC forms. To complete the process, you must register.
How much do Mississippi LLCs cost?
For Mississippi LLC formations, domestic entities pay $50; foreign entities are charged $250
Are Mississippi LLCs required to submit an annual report?
Yes, Mississippi LLCs must submit annual reports. There is no annual fee, but the deadline is April 15.
Are Mississippi LLCs required to pay taxes?
Mississippi LLCs are generally taxed together as pass-through entities. There are exceptions for LLCs that are treated as corporations and are subject to a franchise tax of $2.50 per $1,000 in capital employed in the state.
Brian Wilson is the content manager and founder of LLC Radar.
Brian grew up in North Texas, just outside of Dallas, and has a bachelor’s degree in business journalism from Southern Methodist University. Since graduating from SMU, Brian has gained over 10 years of experience in business writing for several online publications.
Brian resides in Plano, Texas and he can be reached at email@example.com
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