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6 Easy Steps to Starting an LLC in Mississippi

6 Easy Steps to Starting an LLC in Mississippi

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A joint stock company (LLC) is one of the easiest business units to form and maintain. Mississippi business owners can have their LLC set up within minutes so they can run a legal business as quickly as possible. However, many do not know where to start when they form one. That’s why we’ve created this detailed guide with each step to get a Mississippi LLC up and running.

Why it’s worth starting an LLC in Mississippi

Aside from being a one-man business, an LLC is the simplest business unit to form. Unlike more complicated structures like companies and partnerships, an LLC has no more tax implications and rules. Startups often choose this business model because they can get it running fast without the need for a legal expert to guide them through the setup.

Most states make the LLC formation process simple so you can do it on your own. Mississippi is no exception. You can register, renew, and pay all associated fees for your LLC on the Mississippi State Secretary’s Web site.

LLCs offer several benefits to businesses, such as being a pass-through device that prevents you from being taxed on your income and shareholder dividends. An LLC also keeps your business and personal assets separate, allowing for the protection of your personal cash flows and assets should your business ever become involved in legal matters.

In addition, Mississippi is one of the cheapest states to form an LLC in. Currently, the state requires a $ 50 fee for the initial setup and no annual or semi-annual fees. This is very affordable compared to other states like California, which require LLCs to pay an annual fee of $ 800 after the initial fee of $ 70.

The investment is needed to start an LLC in Mississippi

Because of the simplicity of the LLC structure, you do not have to worry that the formation of one will delay the start of your business or disrupt your budget, especially in Mississippi. The state allows you to submit your LLC online using a digital questionnaire that asks for all the information you need to set up your business legally.

And with just an initial fee of $ 50, Mississippi business owners can run their business at an affordable price. There are no annual or semi-annual LLC fees to worry about. You also have to pay $ 25 to reserve your company name and should budget between $ 99- $ 300 a year for a registered agent service that Mississippi requires LLCs to have. Finally, your LLC’s annual report filing costs $ 25.

You can save time and money by submitting to Incfile if you are in doubt about doing it yourself. Incfile only charges the Mississippi application fee for its basic silver plan, which includes the preparation and filing of your bylaws and unlimited searches for company names. You also get a free year of registered affiliate service, which saves you some start-up costs.

6 Steps to Starting an LLC in Mississippi

Below you will find a step-by-step guide to starting your LLC in Mississippi.

# 1 – Choose your company name

You will need a name for your LLC when filing, so solidifying your business name should be your very first step. Start by writing a few ideas about company names you like. Mississippi requires LLCs to include Limited Liability Company, LLC or LLC in their company name, so make sure the names you choose work well with the add-on.

With your list of potential name competitors in hand, go to the Mississippi State Secretary’s website to perform a name search. The free tool lets you search for company names that already exist in the state and ensure that you have a unique name for your business. Mississippi does not allow duplicate company names or names that may be confused with an existing business.

Mississippi also does not allow its LLCs to include the name of a member or leader or words that may confuse the type of business it is, e.g. Partnership or company.

Before deciding on your final business name, we suggest that you take a few more steps to determine if your choice is the best one. Search the U.S. Patent and Trademark Office first to make sure your company name or part of your business name is not already a trademark. This can help you prevent legal issues later.

Also, check if a domain name is available for your company name shortlist. Long names can turn into long domain names, which can be challenging for people to remember. However, shorter names can already be used as domains. Contact a domain registrar to see if your company name is available as a domain before sending the name to the state.

# 2 – Form LLC structure

Next, legally form your LLC by filing its paperwork. First, name a registered agent. Mississippi requires a registered agent to receive business communications regarding your LLC, and you must have one ready to go when submitting a file for LLC formation.

You can even search for a registered agent in Mississippi or use a business formation service like Incfile to provide the service to you. Most registered agents cost at least $ 50, but it is more common to pay between $ 99 and $ 300 a year.

If you use Incfile to submit your corporate documents, you will receive a registered affiliate service for free the first year. Then the service is renewed to $ 119 annually.

You can choose to file your LLC papers yourself through the Mississippi Secretary of State Web site. Register an account to access the portal, select your business unit, register your business name and file your paperwork. The state notifies you when your application has been accepted, and sends reminders when it’s time to renew via your portal account.

Submitting LLC papers is not necessarily complicated, but it can give you peace of mind when an experienced company takes care of it for you. Incfile makes it easy to set up your business according to Mississippi guidelines in minutes.

Incfile offers three plans: Silver, which is free except for the state application fee, gold for $ 202 plus the state application fee, and Platinum for $ 352 plus the state fee. You get basic preparation and filing, unlimited name searches and free registered agent service with Silver.

Gold adds a free operating agreement, setting up commercial bank accounts, corporate tax advice and an online dashboard. With Platinum, you also get accelerated archiving, business contract templates, and a domain name.

The benefit of using a service like Incfile to archive your business is that it guides you through each step. You also get notifications about your business, e.g. When to pay your annual report and when to renew your business licenses.

# 3 – Get an Employer Identification Number (EIN)

An EIN is a federal tax number used for businesses. It works in the same way as a person’s social security number to identify the business for tax and legal purposes.

Individual member LLCs do not necessarily need to get an EIN unless you are planning to have employees or want to be taxed as a company rather than a sole proprietorship. Multi-member LLCs are required to obtain an EIN in each state.

But even if you are not required to get an EIN, you should consider it anyway. Without using an EIN, enter your social security number on company documents and leave it exposed to suppliers, clients and other business contacts. With an EIN, your social security number remains protected. You will also need an EIN if you are hiring employees in the future or want to open a company-specific bank account.

Some business unit training services – including included – add a fee so you can get an EIN with them with some plans. However, you do not have to pay for an EIN. To get one, visit the IRS website and complete the application process. It’s fast and free.

If you choose to get an EIN, do so when submitting your business documents to easily add it to the documents. Otherwise, you will need to change your documents later.

# 4 – Prepare an operating agreement

Mississippi does not require LLCs to develop or enter into an operating agreement. However, it is still a good idea to have one if other members are involved in your LLC.

An operating agreement contains important information about your company, who is involved, and its policies. Here are some of the key points you want to include in your operating agreement:

Names and contact information for each member How each member is involved in your LLC and any official titles Each member’s rights and responsibilities, including the owner Policies and rules for admitting new members Rules for business meetings and notes Your company’s purpose Members’ voting rights How profits and losses are shared How members will resolve any issues that arise with the business resolution procedures

Why is all this information important? Basically, it proves that your LLC is a legitimate business that is separate from your person. If you happen to be involved in legal issues, the operating agreement shows that you have a well-thought-out business model that needs to be treated as a separate entity from yourself. It also helps you reduce risks and plan for the future.

You can find free trial surgery agreements online for use as templates for your own. However, if you are already using the Incfiles Gold or Platinum plan, the service will help you complete and submit your operating agreement.

# 5 – Get a Business Bank Account

Like an operating agreement, a business account is not something Mississippi requires you to have for your LLC. But it’s another thing that can make your business run more smoothly.

If you have an accountant, they have probably already mentioned the benefits of having a business account rather than moving your business revenue through your personal accounts. Keeping your finances separate makes it easier to show that your business is a separate entity, which is important if you have a legal issue with your business.

Plus, come tax time, you will appreciate not having to browse all of your personal records to pull income and expense information to file your corporate taxes.

Our guide to the best business accounts can help you find one that fits your business needs. We recommend Novo as an excellent option for most companies because it is free, easy to use and can be integrated with the best financial tools, such as QuickBooks and Gusto.

# 6 – Archive Annual LLC Reports

Mississippi requires LLCs to submit an annual report to the Mississippi Secretary of State. These reports must be paid on the same day as tax on April 15 each year.

The annual report serves as a way to keep your business information up to date every year. In it you enter your company name and contact information, the purpose of your company, LLC members and the information of your registered agent. You must also include the name and address of the person reporting the report.

Failure to apply for your annual report may result in the dissolution of your LLC in the state of Mississippi. Fortunately, submitting it is easy. You can submit your report on the Secretary of State’s website or use your Incfile account to do so with guidance. Mississippi charges $ 25 for annual reports.

Next step

Depending on your business goals, there are several other steps you may want to take after forming your LLC. First, consider whether you want to brand your business name. This can be a great move to protect your branding and prevent similar brands from popping up. You can also brand your business to protect your business model and purpose.

If your LLC employs employees, you may want to consider getting started with HR software to help you recruit and manage your employees.

And even if you just started your Mississippi LLC, it’s a good idea to know how to dissolve your LLC if the need arises. Visit our step-by-step resolution guide to help you prepare for the future.

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