Cost of Starting an LLC in Mississippi 2024: A Comprehensive Guide

Cost of Starting an LLC in Mississippi

Embark on your exciting entrepreneurial journey in Mississippi with confidence, as our comprehensive guide helps you navigate the LLC world. Discover the costs of starting an LLC in Mississippi, and determine if this flexible business structure aligns with your company’s goals and needs.

LLCBase supports you every step of the way, covering everything from initial setup fees to ongoing expenses. Dive into the dynamic world of Mississippi LLCs and make informed decisions that make your business successful. Unleash the full potential of your Mississippi LLC and soar to new heights!

Let’s explore the costs of starting an LLC in Mississippi together! We’ve broken them down into initial costs, annual costs, and any extra expenses you may need to consider. Happy planning!

Initial Costs of Forming an LLC in Mississippi

Are you curious about the initial costs of forming an LLC in Mississippi? Check out the list below for a breakdown of expenses to get your business up and running!

1. Secretary of State Filing Fee

To form an LLC in Mississippi, you must file Certificate of Formation with the Mississippi Secretary of State. The regular filing fee is $50; if you need expedited processing, it will cost an additional fee.

Mississippi Domestic LLC
  • Online Filing: $50 + No franchise tax Franchise Tax.
  • Filing Statement of Information within 1 year (15th April) of registration: $0.
  • By Mail: Complete the application form and mail it to SOS office. This costs $50 + $25 for counter drop off (non-refundable).
Mississippi Foreign LLC
  • Online Filing: $50 + No franchise tax Franchise Tax.
  • Filing Statement of Information within 1 year (15th April) of registration: $0.
  • By Mail: Complete the application form and mail it to SOS office. This costs $50.

2. Name Reservation Fee

If you want to reserve your desired LLC name before filing the Certificate of Formation, you can do so for a $25 (online) and $25 (offline) fee. The name reservation is valid for 180 days, giving you ample time to prepare and submit your Certificate of Formation. To reserve a name, you must submit a Name Reservation Request form to the Secretary of State by mail or in person, along with the required fee.

3. Registered Agent Fee

Mississippi requires all LLCs to have Registered Agent for the service of process. Registered Agent services typically cost between $50 – $150 per year, depending on the provider. Some popular Registered Agent service providers in Mississippi include Northwest Registered Agent, LegalZoom, and Incfile. Besides the annual fee, these providers offer additional services such as mail forwarding and compliance notifications.

4. Business Licenses and Permits

Depending on your business type and location, you may need to obtain various licenses and permits in Mississippi. The costs for these can vary widely, so it’s essential to research your specific business requirements. To identify the licenses and permits applicable to your business, you can use the Mississippi Secretary of State Business Services (https://www.sos.ms.gov/BusinessServices/Pages/default.aspx) website.

5. Operating Agreement

Although not required by law, having an operating agreement for your Mississippi LLC is a good idea. You can draft one yourself or enlist the help of an attorney, which can cost anywhere from $1,000 or more. The operating agreement outlines your LLC’s ownership structure, management, and procedures. It can help prevent member disputes and provide clear decision-making and profit distribution guidelines.

6. Employer Identification Number (EIN)

Most LLCs need an EIN for tax purposes, bank account opening, and hiring employees. You can obtain an EIN in Mississippi for free from the Internal Revenue Service (IRS) by submitting an online application or mailing Form SS-4. The online application is the fastest method; you will receive your EIN immediately upon completion. If you choose to mail the form, the processing time can take up to four weeks.

Starting an LLC in Mississippi involves certain costs, making selecting the right support for a smooth experience crucial. The best LLC formation services in Mississippi offer expert assistance in comprehending, managing, and reducing expenses. Not only do these services simplify the setup process, but they also help identify solutions tailored to your unique needs. Consequently, your new LLC builds a solid foundation, optimally utilizing available resources and budget in Mississippi.

LLC Services

Rating & Pricing

Top Features

Learn More

#1 Editor's Choice

$0 + State Filing Fee

  • Free LLC Formation

  • Various Legal Services

  • Attorney Advice

$299 + State Filing Fee

  • Single Package

  • Flat Pricing

  • Legal Services

Annual Costs of Maintaining an LLC in Mississippi

Wondering about the yearly expenses for sustaining an LLC in Mississippi? Peruse the list below to discover the costs of keeping your business compliant and thriving!

1. Annual Franchise Tax

All Mississippi LLCs are required to pay an annual franchise tax of No franchise tax, regardless of income or activity. This tax is due on the Not applicable in Mississippi. It’s important to note that newly formed LLCs are not exempt from this tax and must pay the No franchise tax fee for their first year of operation. You can pay the franchise tax online through the Mississippi State Tax Commission website or by mailing a payment voucher.

2. Annual Report

Mississippi LLCs must file an annual report with the Mississippi Secretary of State every April 15 the year following formation. The filing fee is $0. The Statement of Information is due within 1 year (15th April) of the initial filing of the Certificate of Formation and then every April 15 the year following formation during the anniversary month. The Statement of Information form can be submitted online or by mail.

3. Registered Agent Fee

As mentioned earlier, LLCs in Mississippi must maintain Registered Agent with an annual fee. This fee typically ranges from $50 – $150 per year, depending on the provider. When choosing Registered Agent, consider additional services offered, reputation, and customer support.

4. Business License and Permit Renewals

Depending on your business and location, you may need to renew licenses and permits periodically, which can incur additional fees. It’s essential to stay up-to-date on the renewal requirements and fees for your specific business licenses and permits to maintain compliance and avoid penalties. You can use resources like the Mississippi Secretary of State Business Services (https://www.sos.ms.gov/BusinessServices/Pages/default.aspx) website and your local city or county government websites for information on renewal requirements and fees.

Recommended: Effortlessly manage your LLC’s annual expenses and obligations in Mississippi – choose a reliable LLC Formation Service to simplify the maintenance process. Focus on growing your business today! We recommend –

Our #1 Pick: LegalZoom – ($0 + State Fees) Online LLC Setup

Additional Costs to Consider for Your Mississippi LLC

Ready to explore the extra expenses you may encounter with your Mississippi LLC? Browse the list below to be well-prepared, ensuring your business flourishes without surprises!

1. Tax Preparation and Accounting Services

Depending on the complexity of your business finances, you may need to hire a tax professional or accountant, which can cost anywhere from $100 to $1,000 or more per year. The cost of these services typically depends on factors such as the accountant’s experience, the size of your business, and the level of service required. To find a suitable tax professional or accountant, consider seeking recommendations from other business owners or using professional organization directories, such as the American Institute of Certified Public Accountants (AICPA).

2. Legal Services

Enlisting the help of an attorney for legal advice or to draft contracts can add to your LLC’s expenses. Attorney fees can range from $150 to $500 per hour or more, depending on the attorney’s experience and location. To save on legal costs, consider using online legal services, which offer legal document templates and attorney consultations at a fraction of the cost of traditional legal services.

3. Business Insurance

Depending on your industry and business activities, you may need various types of insurance, such as general liability, professional liability, or workers’ compensation. The insurance cost can vary widely based on factors like the size of your business, the amount of coverage needed, and the level of risk associated with your industry. For example, a small consulting business may pay around $500 annually for general liability insurance, while a construction company may pay several thousand dollars annually. To find the best insurance rates, consider getting quotes from multiple insurance providers and working with an insurance agent specializing in your industry.

4. Office Space and Utilities

Depending on your business, you may need to rent office space, which can add to your monthly expenses. The cost of office space in Mississippi can vary greatly depending on location, size, and amenities. Remember that in addition to rent, you’ll also need to cover utilities, such as electricity, water, and internet service, which can add several hundred dollars per month to your expenses.

5. Marketing and Advertising

To grow your business, you’ll likely need to invest in marketing and advertising, which can vary widely in cost depending on your strategy. Other marketing expenses may include social media advertising, email marketing, and print materials like business cards and brochures. To maximize your marketing budget, consider researching low-cost or free marketing strategies, such as social media engagement, content marketing, and networking events.

How to Save on Mississippi LLC Costs

Looking for ways to save on your Mississippi LLC costs? Check out the strategies below to keep expenses in check and ensure your business thrives!

1. Do-It-Yourself (DIY) Formation

You can save on professional fees by handling the LLC formation process yourself. You can file the Certificate of Formation, obtain an EIN, and draft an operating agreement by researching the necessary steps and required documents. The Mississippi Secretary of State‘s website provides detailed information on forming an LLC, and the IRS website allows you to apply for an EIN online at no cost.

2. Utilize Online Resources

Many free or low-cost resources are available online to help with various aspects of your business, such as drafting an operating agreement or creating a marketing plan. For example, websites like SCORE and the U.S. Small Business Administration (SBA) offer free business templates, guides, and resources. Additionally, you can find low-cost marketing tools and platforms like Canva for designing marketing materials or Mailchimp for email marketing campaigns.

3. Shop For Professional Services

We recommend exploring various providers, including LegalZoom, for services such as Registered Agents and legal assistance to find the best value. By comparing rates and service offerings, you can ensure you obtain the most cost-effective solution for your business needs. Don’t hesitate to negotiate prices or inquire about discounts, as numerous providers are often willing to work with you to win your business.

4. Bundle Services

Some companies offer packages for LLC formation, Registered Agent services, and other business essentials, potentially saving you money. By bundling these services, you may save on individual service costs and streamline setting up and maintaining your Mississippi LLC. However, carefully compare bundled packages to ensure they include the services you need and offer true cost savings compared to purchasing services individually.

FAQs

What is an LLC and what does it stand for in Mississippi?
An LLC (Limited Liability Company) is a legal entity that provides protection for its owners from personal liability and it stands for the same in Mississippi.
How much does it cost to start an LLC in Mississippi?
The filing fee for an LLC in Mississippi is $50.
Do I need to file an Operating Agreement with the Mississippi Secretary of State when starting an LLC?
No, you do not need to file an Operating Agreement with the Mississippi Secretary of State when starting an LLC.
What are the annual fees associated with maintaining an LLC in Mississippi?
The annual fee for maintaining an LLC in Mississippi is $0.
What is the turnaround time for processing an LLC application in Mississippi?
The turnaround time for processing an LLC application in Mississippi is approximately 1-2 business days.
Can a non-resident start an LLC in Mississippi?
Yes, a non-resident can start an LLC in Mississippi.
Are there any residency requirements for the members of an LLC in Mississippi?
No, there are no residency requirements for the members of an LLC in Mississippi.
Do I need to hire a lawyer to start an LLC in Mississippi?
No, you do not need to hire a lawyer to start an LLC in Mississippi.
Can I swear under oath that my formation documents are true and correct instead of having them notarized?
Yes, you can swear under oath that your formation documents are true and correct instead of having them notarized in Mississippi.
Do I need to publish a notice of my Certificate of Formation in a newspaper in Mississippi?
No, you do not need to publish a notice of your Certificate of Formation in a newspaper in Mississippi.
Can I reserve a name for my LLC in Mississippi?
Yes, you can reserve a name for your LLC in Mississippi by filing an Application for Reservation of Name with the Secretary of State’s office.
Do I have to file an Annual Report for my Mississippi LLC?
No, you do not have to file an annual report for your Mississippi LLC.
What is the Mississippi Secretary of State’s Office website?
The Mississippi Secretary of State’s Office website is sos.ms.gov.
Can I obtain my Certificate of Good Standing online in Mississippi?
Yes, you can obtain your Certificate of Good Standing online in Mississippi.
Do I have to appoint a registered agent for my Mississippi LLC?
Yes, you must appoint a registered agent for your Mississippi LLC.
Can I be my own registered agent for my Mississippi LLC?
Yes, you can be your own registered agent for your Mississippi LLC if you have a physical address in the state.
Can a foreign LLC transact business in Mississippi?
Yes, a foreign LLC can transact business in Mississippi as long as they first obtain a foreign qualification from the Secretary of State.
What does it cost to obtain a Foreign Qualification from the Mississippi Secretary of State?
The filing fee for a Foreign Qualification from the Mississippi Secretary of State is $250.
Can I use a PO box as the principal address for my Mississippi LLC?
No, you cannot use a PO Box as the principal address for your Mississippi LLC.
Are Mississippi LLCs required to pay state taxes?
Yes, Mississippi LLCs are required to pay state taxes.
What kind of taxes does a Mississippi LLC have to pay?
A Mississippi LLC may be subject to several types of taxes, including franchise tax, income tax, sales/use tax, and employer taxes.
How do I obtain a Mississippi Tax ID Number?
You can obtain a Mississippi Tax ID Number by registering for one online with the Mississippi Department of Revenue.
Do I need to file a Tax Election Form for my Mississippi LLC?
No, you do not need to file a Tax Election Form for your Mississippi LLC as it is taxed as a pass-through entity by default.
What is a pass-through entity?
A pass-through entity is an entity whose income is not taxed at the entity level, but instead at the individual owner’s level.
Can I change my management structure after forming my Mississippi LLC?
Yes, you can change your management structure after forming your Mississippi LLC by amending your Operating Agreement.
Who can sign the Articles of Organization for a Mississippi LLC?
The Articles of Organization for a Mississippi LLC can be signed by any authorized member of the LLC.
What is a Certificate of Formation and when do I need to file it?
A Certificate of Formation is a document that establishes the formation of an LLC and must be filed with the Mississippi Secretary of State to start an LLC.
What is the difference between a member-managed and a manager-managed LLC in Mississippi?
A member-managed LLC is one in which all members of the LLC are responsible for making management decisions while in a manager-managed LLC, a designated individual or group is responsible for management decisions.
What is the registered agent’s responsibility in Mississippi?
The registered agent’s responsibility in Mississippi is to receive legal papers on behalf of the LLC and forward them to the person designated by the LLC.
What is an LLC in Mississippi?
An LLC in Mississippi is a limited liability company that is a hybrid business entity that combines the benefits of a corporation and a partnership.
What are the requirements for starting an LLC in Mississippi?
To start an LLC in Mississippi, you need to file the Articles of Organization with the Mississippi Secretary of State, appoint a registered agent, and pay the required filing fee of $50.
How long does it take to form an LLC in Mississippi?
It typically takes 1 to 2 weeks to form an LLC in Mississippi.
What is the annual fee to maintain an LLC in Mississippi?
The annual fee to maintain an LLC in Mississippi is $50.
Can a non-resident form an LLC in Mississippi?
Yes, a non-resident can form an LLC in Mississippi.
Does Mississippi have a publication requirement for forming an LLC?
No, Mississippi does not have a publication requirement for forming an LLC.
Do I need an attorney to form an LLC in Mississippi?
No, you do not need an attorney to form an LLC in Mississippi.
Can I form an anonymous LLC in Mississippi?
No, Mississippi does not allow anonymous LLCs.
Can I form a single-member LLC in Mississippi?
Yes, Mississippi allows single-member LLCs.
Do I need a business license to form an LLC in Mississippi?
Yes, you may need a business license to operate an LLC in Mississippi.
What taxes does an LLC in Mississippi need to pay?
An LLC in Mississippi may need to pay state and federal income taxes, as well as unemployment taxes and sales taxes.
What is the personal liability protection of an LLC in Mississippi?
The personal liability protection of an LLC in Mississippi extends to the owners, meaning that their personal assets are generally not at risk if the company is sued.
Can an LLC in Mississippi have more than one owner?
Yes, an LLC in Mississippi can have more than one owner.
Are LLCs in Mississippi required to have meetings and minutes?
No, LLCs in Mississippi are not required to have meetings or record minutes.
Can LLCs in Mississippi be taxed as S corporations?
Yes, LLCs in Mississippi can be taxed as S corporations if they meet certain eligibility criteria.
Question:What is the minimum age requirement to form an LLC in Mississippi?
There is no minimum age requirement to form an LLC in Mississippi.
Question:What is the maximum number of owners allowed in an LLC in Mississippi?
There is no maximum number of owners allowed in an LLC in Mississippi. However, it is recommended to have no more than 100 members to avoid the classification as a publicly-traded partnership.
Question:What is the Foreign Qualification in Mississippi?
The Foreign Qualification in Mississippi is the process of registering your identified LLC under the IRS of a different state but legally allowed to operate businesses in the state of Mississippi.
What is the Renewal Process of a Mississippi LLC?
The Renewal Process of a Mississippi LLC starts every year, on or before April 15.
Does Mississippi have a revenue-sharing provision to establish the cap on the fees of a domestic LLC?
Yes, Mississippi has implemented a revenue-sharing provision to establish a cap on the fees of a domestic LLC; the current revenue-sharing cap of Mississippi is $300,000.
What is Standard processing with LLC in Mississippi state filing?
The Standard processing with LLC in Mississippi state filing takes up around one week.
What is Expedited Processing with LLC in Mississippi state filing?
The Expedited Processing with LLC in Mississippi state filing takes around 24 hours.
What is the procedure of involvement or filing Mississippi LLC amendment?
The procedure of involvement or filing Mississippi LLC amendment includes a revision made in the formal documents of an LLC in the said residents of Mississippi.
What is the policy of Mississippi regarding Registered Agents?
Mississippi State, just like every other U.S. state, obligatorily requires a Registered Agent to be involved in the intent and continuity of any LLC within Mississippi’s regions.
What is the technique for formation of a Mississippi professional LLC or PLLC?
The normal forms are filed to form a Mississippiprofessional LLC or PLLC, while Titles Chapter 35 and chapter 41 should be followed concerning documentation.
How do I dissolve a Mississippi LLC?
To dissolve a Mississippi LLC, you must file an LLC, dissolution form with the Mississippi Secretary of State and meet the requirements for distributing assets, paying creditors, and canceling licenses and permits in your business name.
Do I need insurance for my Mississippi LLC?
Although Mississippi doesn’t strictly require all businesses to have insurance, it may still be beneficial to have coverage, particularly to protect against losses and damages.
What business structure is suitable if I have plans to go to NASDAQ?
Nasdaq companies can be LLC type since it has taxation benefits.
Conglomerate in Mississippi structures their ownership as a LLC, can I do it too?
Yes, Conglomerates in Mississippi structures ownership sometimes as an LLC, so it is possible. However, it should depend based on specific needs and allowed by Mississippi’s specific rules and regulations.

Also Read

How to Save Money While Starting Your Business LLC in Mississippi

One of the first steps in starting your LLC is choosing a name for your business. While you may want a unique and catchy name, opting for a simpler name can save you money. Mississippi requires LLCs to register with the Secretary of State, and each name you file for will come with a filing fee. By choosing a name that is straightforward and easy to remember, you can avoid multiple filings and save on unnecessary expenses.

Another cost-saving tip is to handle the formation process yourself instead of hiring a lawyer or a service to help you file the necessary paperwork. Mississippi makes it relatively easy for entrepreneurs to establish an LLC by providing clear guidelines and forms on their website. By taking the time to educate yourself on the process, you can avoid expensive legal fees and ensure that your LLC is structured according to your preferences.

When it comes to registering your LLC, consider opting for a virtual office or coworking space instead of leasing a traditional office space. Virtual offices can provide you with a prestigious business address and access to meeting rooms without the hefty price tag of leasing an office permanently. Coworking spaces can also offer a cost-effective solution for entrepreneurs who need a physical workspace without committing to a long-term lease.

Additionally, consider purchasing business insurance to protect your LLC without breaking the bank. While insurance premiums can vary depending on your business type and location, shopping around for quotes can help you find a policy that fits your budget. Having insurance in place can provide you with peace of mind knowing that your business and personal assets are protected in case of unexpected circumstances.

As you start your business, prioritize your spending by investing in essential tools and resources that will help you grow. While it may be tempting to splurge on fancy equipment or unnecessary services, focusing on the fundamentals can lead to long-term success. Consider budget-friendly options for marketing, such as social media and networking events, to promote your LLC without overspending on traditional advertising.

Finally, seek out financial assistance and resources that can help you navigate the nuances of starting a business in Mississippi. Local small business development centers and organizations offer workshops and mentorship programs to support new entrepreneurs. By tapping into these resources, you can gain valuable insights and guidance on how to save money while building your LLC.

Starting a business LLC in Mississippi doesn’t have to break the bank. With thoughtful planning and strategic decision-making, you can establish your LLC without draining your finances. By following these practical tips and staying mindful of your expenses, you can set your business up for success while saving money along the way.

Conclusion

Forming and maintaining an LLC in Mississippi comes with various costs, from initial filing fees to ongoing franchise taxes and Registered Agent fees. However, you can successfully establish and operate your Mississippi LLC by understanding these expenses and finding ways to save on costs. We hope this guide has provided you with the information you need to decide to form an LLC in Mississippi. Visit LLCBase for more information about starting an LLC in Mississippi. We wish you the best of luck on your entrepreneurial journey.

Leave a Comment