Last Updated on June 13, 2022 by Fair Punishment Team
LLCs sound like an intimidating thing, but they’re not! If you have been thinking about starting your own LLC in Mississippi, know that it is a lot easier than you likely think it is. There are only five main steps in the whole process, and at the end of it, you have a business.
If you have been thinking of starting your own LLC in the state of Mississippi, all you need to do is follow the steps outlined above.
If you can stay on task and get everything done in the right order, you will have a new business started up in no time. By that time, you will wonder what you were so scared of in the first place.
What Exactly Is An LLC?
An LLC is, or Limited Liability Company, is a type of business structure that is used in the United States. This business structure protects the owners from having any personal responsibility for things such as liabilities or debts.
An LLC may be a partnership, or a sole proprietorship. LLCs are excellent, as they protect an individual’s personal assets by keeping them separate from business-related issues.
As such, the personal assets of a business owner will be protected if lawsuits against the company arise, or if the business experiences debts.
How To Start An LLC In Mississippi
Starting an LLC in Mississippi is probably a lot easier than you thought. There are five basic steps, and anyone can do it when they take the time to do so. If you want to find out how to create an LLC in Mississippi, just keep reading.
If you are busy enough, you can also get someone else to do all the hard work for you. The professional service Zen Business is known for their easy and affordable way of doing things. If you don’t have the time to get everything done yourself, they’re a great option to make life a little easier.
What You Need to Know
In order to start an LLC in Mississippi, you need to:
- Be at least 18 years old
- Be able to pay the fees needed to
- Have a physical street address in the state of Mississippi
- Be able to register your LLC in person or via mail if you are in a partnership or corporation
- Ensure your business does not violate federal laws or regulations
Naming Your Mississippi LLC
Naming your Mississippi Limited Liability Company is the first big step you will take in the whole process. A name is more than just words – it needs to reflect the company. Often, a name with a location in it will help clarify where the business is.
For the best results, adding something that is easily searchable and well known to the public is a good idea. However, there are some important rules to follow when it comes to naming your LLC.
If you fail to comply with the rules of naming your LLC, the name will not be accepted, which will stop you in your tracks. Pick your name wisely, and use the resources given below to ensure that it is able to get used.
There are three things to consider when naming your Mississippi LLC. Let’s take a look at them below:
- In Mississippi, there are three guidelines to follow when naming an LLC in the state. They are as follows:
- Name must include “Limited Liability Company, LLC, or L.L.C – if your company name does not include one of the three, it is not suitable.
- Company Name cannot sound similar to government agencies that could cause confusion – for example, you cannot name your LLC something like “FBI”, or “State Department”, as this is likely to cause confusion and would not be suitable.
- Name should not include restricted words – these words include “university”, “bank”, or “attorney”. If you want these words in your company name, you may be required to provide additional legal paperwork, and a licensed person (for example, a lawyer or doctor) may need to be a part of the LLC.
- The name you want must be available in the state of Mississippi. Your chosen name might already be taken by another company. You can go to the Mississippi Department of Commerce, Community, and Economic Development website to check if the name you want is available for use in your business.
- The URL for your LLC must be available. To do this, you can check its availability as a web domain. You can buy the domain or URL to ensure it remains yours, even if you are planning to create the website in the future.
Choose A Registered Agent
The next step is choosing a Mississippi LLC Registered Agent. This is not optional, as it is required that you nominate a Mississippi registered agent for your new business.
A registered agent is a person or business that is responsible for acquiring documents (such as legal documents from the state) on behalf of the LLC.
A registered agent has to be a Mississippi resident or a corporation based in Mississippi. An example of this would be a registered agent service. They must be authorized to conduct business in the state. This person can be elected in a company, and it can even be yourself.
File The Articles Of Incorporation
The next step in starting up your LLC is filing the articles of incorporation. You will need to file the Certificate of Formation with the Secretary of State, which can be done online. Doing this will cost $50, which is nonrefundable.
If you already have an LLC and simply wish to expand it to Mississippi, you’ll need to form a Foreign LLC. You can read more about doing this here.
At this point, you should also be deciding if your business will be member-managed or manager-managed.
NAICS Requirement
In Mississippi, a NAICS (North American Industry Classification System) is required. This is a 6-digit number or code that is given to a business.
It is dependent on the type of trade the business engages in, however. You can easily find the NAICS code for the type of business you will be running right here by doing a quick keyword search.
Create An Operating Agreement
Although it is not legally required for a Mississippi Limited Liability Company to have an Operating Agreement, it is always recommended to have one. Having an Operating Agreement is considered to be good practice, so it would be beneficial to create one.
An operating agreement is a legal document that outlines the operating procedures and ownership of the LLC. These Operating Agreements are important because it helps to ensure that everyone in the business is on the same page.
When everyone knows what is going on and what is expected, the risk of conflict arising in the future greatly decreases. This means that the LLC is likely to run smoothly and encounter minimal issues among its owners.
Get An EIN Number
An EIN, or Employer Identification Number, is a nine-digit number that is assigned to businesses. This number is used to help the business be identified for taxes, among other things. The number is assigned to a business by the IRS (Internal Revenue Service).
It is needed in order to hire employees, open a business bank account, and file and manage the LLC’s federal and State Taxes.
You can think of an EIN as a Social Security Number, but for a business. You might hear this number referred to as a FEIN, or Federal Employer Identification Number. Alternatively, it might be called a Federal Tax Identification Number, or FTIN.
If you already have an EIN for a sole proprietorship you have, you will be required to get a new one when it is converted to a limited liability company. You can get your EIN number for free from the IRS. It is a very easy process, and you can decide to do it either via mail or online.
To request an EIN online from the IRS, click here.
If you wish to request your EIN by fax or mail, you will need to apply for it by mailing to:
- Internal Revenue Service
- Attn: EIN Operation
- Cincinnati, OH 45999
Or fax it to:
- (855) 641-6935
Do You Need A BIN?
As your LLC is in Mississippi, no BIN (Business Identification Number) to hire employees. Instead, your EIN number is required for this purpose.
What To Do After Your LLC Has Been Formed
Once your limited liability company has been formed, there are a few things that you should consider doing. We will briefly go through these below:
Separate Your Business Assets From Your Personal Assets
If you fail to separate your business and personal assets, you run the risk of your own belongings (such as your car or valuables) being taken from you if your company is sued or goes into debt. When this happens, it is known as “piercing the corporate veil”.
Prevent this from happening by opening a business account, getting a business credit card, and hiring a business accountant.
Ensure You Have Business Insurance For Your Mississippi Limited Liability Company
This will help you manage potential risks and aid you in growing your new business. There are three common types of business insurance, which are as follows: General Liability Insurance, Professional Liability Insurance, and Workers’ Compensation Insurance.
Create A Website For Your New Business
This is an important thing to do if you want to legitimize your business. In today’s world, all businesses need to have a website, no matter how small or new they are. Websites are a huge source of customers, whether the business does any online work or not.
You do not need to have any experience in building websites in order to do this, as there are many websites to use to make website building far more simple than it used to be.
Send Out Our Press Release
This is one of the easiest and most cost effective ways of marketing and promoting your business. Doing a press release for your LLC will have long lasting benefits, and will let people know about the business while providing publicity.
Not only that, but a press release will improve the SEO of your website, which is an incredibly important part of your LLC being successful.
Frequently Asked Questions
Do I Need A Business License?
You might need to obtain a state or local business license, depending on where the business is located and what type of business it is.
What Are The Tax Requirements To Start An LLC In Mississippi?
Mississippi LLCs are not required to pay any income tax to the State or federal government. Additionally, Mississippi LLCs do not have to pay Mississippi’s corporate franchise tax.
Can You Be Your Own Registered Agent?
Yes you can. In fact, anyone in the company can be the Registered Agent.
How Long Does It Take For A Mississippi LLC To Be Processed?
You can expect the process to take 2 days when you apply online.
Is Starting A Mississippi LLC Expensive?
It costs $50 to start an LLC in Mississippi, which is more than a number of other states.
Must my operating agreement be filed with the state?
No, your operating agreement is only for you and your company, and should be filed safely, so you can access it in the future. In other states, it is required that your operating agreement is in place, but it is not a legal requirement for Mississippi.
Is An Ein Required Of My LLC?
Yes. If your LLC has, or will have employees, then an EIN number is required. If you are the only one at the company, an EIN number is not necessary.
How To Get An EIN If You Don’t Have A Social Security Number
You don’t need a social security number to get an EIN number. You will need to fill out the IRS Form SS-4, but leave the 7b section out. After it has been filled out, you will need to call the IRS at (267) 941-1099 to get the process completed.
Is A Business Website Important For An LLC?
Yes, having a business website is very important for a business, including an LLC. Having a website will allow your company to be seen by many potential customers. Since the world is so digital now, choosing not to have a business website would harm your business.
Are Press Releases Important?
Yes, having a press release can be extremely important and beneficial to your business. It improves SEO (search engine optimization), and provides the business with a lot of publicity at a low cost.
Final Thoughts
Getting an LLC started up in Mississippi is much like getting one started in any other state. The process is simple and doesn’t take a lot of time, especially if you know what you’re doing.
Overall, you will only need to pay around $50 for the paperwork and everything else you will need, so it’s an inexpensive process, too.
If you’ve been thinking of starting an LLC in Mississippi, hopefully this post will help you with the process. Just remember to work at everything bit-by-bit, that way you won’t get overwhelmed by the thought of starting your own business. Good luck!
