How to form an LLC in Mississippi

When it comes to taxes and legal protection, small companies may gain a lot by forming an LLC. If you’ve decided that an LLC is indeed the best form of organization for your company, here’s how to set one up in the state of Mississippi.

It’s important to keep in mind that you may either establish an LLC on your own or hire a business formation agency to do it for you.

1. Name your Mississippi business

When deciding on a name for your Limited Liability Company in the Magnolia State, there are two important rules to follow:

• A limited liability company’s name must be unique and not be used by any other Mississippi companies.
• The word “Limited Liability Company” or the acronyms “L.L.C.” or “LLC” must appear in the name of an LLC.

Verify the availability of a name for the limited liability company.

Confirm that the name you have picked for your Corporation is available in Mississippi by utilizing the Secretary of State Business Search.

Register your proposed LLC entity with the State Secretary.

As soon as you’ve settled on a name for your limited liability company, you can register it through the Secretary of State for up to 6 months by submitting an Application for Name Reservation electronically (needs signup) and paying the $25 reservation fee.

In doing so, you may reserve the name for use by your limited liability company (LLC) in Mississippi until you are ready to submit a Certificate of Formation.

2. Choose a Mississippi Registered Agent

Every limited liability company in Mississippi must choose a resident agent to receive legal notices and other communications on its behalf. The company or person who has agreed to accept service of process on behalf of the LLC in the event of a lawsuit.

The Registered Agent need not be a Mississippi resident; it might instead be a company with permission to operate in the state. To qualify as a Registered Agent in Mississippi, a real street address is required.

What is the role of a Registered Agent?

Your firm must choose a person or business to act as its “Registered Agent” to receive official government communications on its behalf, including tax forms, legal papers, notification of litigation, and other such items. The role of a registered agent is similar to that of a liaison between your company and the government.

Who can be a Mississippi Registered Agent?

A Registered Agent in Mississippi must either be an individual who resides in the state full-time or an organization (such a Registered Agent service) that is registered to do business in Mississippi. You, or anybody else in the business, may make the choice.

3. Register Your Certificate of Organization

Establishing a limited liability company legally requires drafting and filing a Certificate of Formation, which details the company’s formation and initial details. Accuracy is essential, since this document serves as the basis for your company’s legal registration with the state.

Certificate of Formation inclusions

A Mississippi Certificate of Formation for LLC applicants must provide the following information:

• Company, Limited Liability, or LLC Title
• Whether an LLC has an indefinite or finite lifespan
• Where the LLC’s main operations are based
• Company’s registered agent’s full name and address
• Address the Secretary of State can send mail to the LLC
• How the company will be run, between member and management control
• Will the LLC provide expert services?
• The LLC’s organizers’ full names and mailing addresses.
• Identifying information for a minimum of one member or a manager who has oversight responsibilities for the LLC’s day-to-day activities.

Registration of a Certificate of Organization

There is a $50 filing fee, and all Mississippi Limited Liability Company applications must be submitted via the Secretary of State’s digital filing system.

You may either create a Certificate of Formation and pay for it online (after creating a username and password) or print one off, fill it out manually, and send it along with a check (between 3 – 5 days processing time).

4. Obtain A Certificate From The State

Just after LLC’s formation paperwork has been submitted and authorized, the state will issue a certificate verifying the LLC’s official existence to anybody who requests a copy and pays the appropriate postage.

With this document in hand, the LLC may apply for tax IDs and permits, as well as open a company checking account.

5. Establish a company Operating Agreement

A complete LLC operating agreement is not required by law in Mississippi, but it is advisable for all new limited liability corporations.

The following should be accomplished through the operational agreement:

• Provide details on how the LLC is organized.
• Specify the roles and duties of each member of the LLC.
• Describe the management structure that will be used to administer the LLC.

The lack of an operating agreement may cause serious problems for an LLC in both the law and in its day-to-day operations if the members are not clear on their roles.

6. Register for your Employer Tax ID (EIN)

A Federal Employer Identification Number (EIN), often known as a tax ID number, is required by many LLCs. You will need an EIN to register a business with the IRS, open a bank account, and in many cases, recruit workers.

The IRS’s website has all the information you need to determine whether you require an EIN and how to apply for one, and it’s free of charge. Although most companies will need an EIN, single-member limited liability companies (LLCs) may use the owner’s SSN instead.

Permits to Operate a Business

LLCs operating in Mississippi may need to apply for and get various permissions and licenses from the state and/or municipal governments, depending on the specifics of the company and where it is located.

Mississippi does not have a central website for obtaining state occupational licenses and permits, although the Secretary of State’s Mississippi Boss: Business One Stop Shop website might be of some use.

Contacting the city clerk where your LLC operates from is another method to find out the state and local permit requirements.

7. Submit Annual Renewals

Mississippi law requires all LLCs to submit yearly reports in order to keep their business operating legally. Between January 1 and April 15, you will have the opportunity to complete and submit these papers online.

To get the Business ID number needed to finish the report, a Mississippi limited liability company may utilize the Secretary of State Business Search.

Although there is no fee every year, your LLC might be dissolved if the required paperwork is not submitted on time.

Fees and Setup steps

Fees

Submitting your Certificate of Formation to the Mississippi Secretary of State will set you back $50. For $25, you may have the Secretary of State of Mississippi hold your LLC’s name.

Fees for registering a foreign limited liability company in the United States are $250.

Besides these mandatory LLC expenses, there are a few more worth thinking about:

• Branding an LLC with a name reservation
• Trade name used for doing business (Doing Business As i.e. a DBA)
• Originals and copies of documents that have been authenticated
• Prove-of-existence cert document

Setup steps

After registering your limited liability company, you will have the backing of the law to start operations. Companies should make preparations to maintain their LLC’s legal compliance and current status also on the state’s website.

The following opportunities become available after you have formed a limited liability company:

• Get any health department permissions, zoning permits, home occupancy permits, professional licenses, and any additional licenses you need to legally run your company. A seller’s permission is needed in several states.
• In order to begin collecting taxes from customers, you must register your company with the state.
• Open a commercial bank account
• Set up a company credit card account now.
• Invest in company insurance.
• A trademark may help you protect your business’s name and logo.

DIY or company setup service: Which is better?

To set up an LLC, you won’t need to pay for legal representation. You may start a limited liability company (LLC) in most states by incorporating the business entity on the website of your secretary of state and through the Internal Revenue Service (IRS).

Using a seasoned company formation service might be helpful if you don’t know your way around the LLC creation procedure.

When starting a business, entrepreneurs may save both time and money by using a firm that specializes in forming limited liability companies. You may have them take care of the things you haven’t had time to think about, and pay anywhere from $30 to $580 to get them done including:

• The formation of an operating agreement for a limited liability corporation (LLC) that details the who, what, where, when, why, and how of your business.
• Writing up articles of incorporation that include the LLC’s management, registration agent, and creation date.
• Taking up the role of registered agent for your business.
• In the event of an audit or legal proceeding, having meticulous documents is essential.
• Paying the necessary payments and signing up with the right authorities.
• Checking the availability of the LLC name and registering the company name.
• Having the necessary formation and legal paperwork completed and filed.

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