How to Start an LLC in Mississippi: Step By Step Guide

Are you contemplating starting an LLC in Mississippi? Here’s everything you need to know.

As a new LLC business owner in Mississippi, there are procedures and steps to setting up an LLC.

These procedures include everything that will keep your business up and running.

So in this article, you will learn about the best guide on how to start an LLC in Mississippi easily.

How to start an LLC in Mississippi

Here are the steps involved in starting your LLC in Mississippi. You might need to read this checklist before proceeding.

Choose a Name for Your LLC

Under Mississippi law, your LLC name must have the words “Limited Liability Company” or the abbreviations “LLC” or “L.L.C.”

In addition, your LLC’s name must be distinguishable from the names of other business entities already on file with the Mississippi Secretary of State.

However, you can do a name check for availability by searching the Mississippi business name database.

Also, you may reserve a name for 180 days by filing an Application for Name Reservation with the Mississippi Secretary of State.

You will also need to register with the Mississippi Secretary of State’s online filing system to get the Name Reservation application form at $25.

However, you don’t have to use your LLC’s official legal name registered in your Certificate of Formation when you do business.

You can use a fictitious business name, a “DBA” trade name, or an assumed name.

Meanwhile, you can register a fictitious name with the Mississippi Secretary of State by filing a Fictitious Business Name Registration form using its online filing system.

Also, you can get this name for $25.

However, name reservation is not mandatory but is recommended.

Appoint a Registered Agent

Every LLC in Mississippi must have an agent for service of process in the state.

A registered agent is an individual or business entity that agrees to accept legal papers on the LLC’s behalf if it is sued.

However, it may be a Mississippi resident or a Mississippi or foreign corporation authorized to do business in Mississippi.

In addition, the registered agent must have a physical street address in Mississippi.

File a Certificate of Formation

An LLC in Mississippi needs to file a Certificate of Formation with the Mississippi Secretary of State.

However, the certificate must include:

the LLC’s name, including the designator LLC or L.C.C.
the LLC’s email address (this can be a personal email address)
the LLC’s future effective date–leave blank if you want your LLC to be effective upon filing the Certificate of Formation; the future date can be up to 90 days after filing the Certificate
the NAICS code is used to identify the LLC’s line of business
the name and address of the LLC’s registered agent, and
the signature of a member, manager, or organizer.

In addition, all filings must be finalized using the Mississippi Secretary of State’s online filing system.

Also, you must register online with the system, and then you can either complete a Certificate of Formation or pay for it online.

You can also print one out, complete it in hard copy, and mail it in with a check.

All of these can be done for a filing fee is $50.

Prepare an Operating Agreement

Even though an LLC operating agreement is not required in Mississippi, but is highly recommended.

An operating agreement is an internal document that specifies how your LLC will be run.

Also, it sets out the rights and responsibilities of the members and managers, which include how the LLC will be managed.

More so, it can help preserve your limited liability by showing that your LLC is a legally separate business entity.

However, state LLC law will govern your LLC’s operations without an operating agreement.

Furthermore, the operating agreement should include the following:

the members’ percentage interests in the LLC
the members’ rights and responsibilities
the members’ voting powers
how profits and losses will be allocated
rules for holding meetings and taking votes, and
Buyout, or buy-sell, provisions determine what happens when a member wants to sell their interest, dies, or becomes disabled.

Obtain an EIN (Employers Identification Number)

You must obtain an EIN if your LLC has more than one member with the IRS.

Also, if it has no employees or you form a one-member LLC, you must obtain an EIN for it only if it will have employees.

In addition, if you elect to have it taxed as a corporation instead of a sole proprietorship.

However, you may obtain an EIN by completing an online application on the IRS website at no cost.

File Annual Reports

In addition, all LLCs in Mississippi must file an annual report once every calendar year with the Mississippi Secretary of State.

However, the report can be filed any time on or after January 1st of each calendar year and is due by April 15th.

Also, all LLCs in Mississippi must file the report online.

You must also have a state-issued Business ID Number to file the report.

Meanwhile, you can find the ID number through a business name search on the Secretary of State database.

However, there is no filing fee for Mississippi LLCs, but if your business is a foreign LLC in Mississippi, you will be charged $250.

How to Start A Foreign LLC in Mississippi

If you have an existing LLC and you want to extend the business to Mississippi, you need to register as a foreign LLC.

This is because forming a foreign LLC allows your company to operate as one entity in multiple states. If you have an existing LLC and want to do business in Mississippi, you must register as a foreign LLC. This can be done online or by mail.

How to Obtain a Certificate of Good Standing in Mississippi

In Mississippi, the certificate of good standing is also called the certificate of legal status.

With a certificate of good standing, your business is verified that it was legally formed and adequately maintained in Mississippi.

Meanwhile, you can order a Mississippi LLC Certificate of Good Standing online for free.

You might need to get your certificate of legal standing if:

You will seek funding from banks or other lenders
You might form your business as a foreign LLC in another state
You will obtain or renew specific business licenses or permits

You can order a Certificate of Legal Existence online or by mail.

Online: Request a Certificate Online Through the Mississippi Secretary of State.

Conclusion

As simple as filing an LLC in Mississippi is, you will follow simple guides and requirements to get your LLC running in Mississippi.

The steps have been simplified and explained in this guide on how to start an LLC in Mississippi.

The first step to take on how to start an LLC in Mississippi is to Choose a Name for Your LLC

However, you must note that another business must not have used the name you choose for your LLC and ensure that the domain name is also available.

Also, you Appoint a Registered Agent for Your LLC, file a certificate of formation, prepare an operating agreement, and obtain an Employer Identification Number (EIN) from the Internal Revenue Service.

In addition, you must file an annual report.

We hope you find this guide on how to start an LLC in Mississippi helpful.

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