How to Start a Business in Mississippi
Everything you need to form your Mississippi LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
Forming an LLC in Mississippi requires paying a $50 filing fee for the Certificate of Formation and an annual report fee of $0, with the report due April 15. The state also offers a free sales tax permit. From a tax perspective, Mississippi charges 0% personal income tax on the first $10,000 of income and 4% on income above that, plus a corporate franchise tax that phases out completely by January 1, 2028.
This guide covers every step of starting a business in Mississippi, from choosing your business structure to obtaining necessary licenses and permits.
Choosing Your Mississippi Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most Mississippi small businesses.
| Entity Type | Liability Protection | Taxation | Mississippi Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $50 | $0 MS LLC Annual Report (Form F0108) | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $50 | $25 Corporate Annual Report (Form F0008) | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your Mississippi Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the Mississippi Secretary of State, Business Services Division database. Reserve for $25 (180 days).
- 3
Appoint a registered agent
Must have a physical Mississippi street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Certificate of Formation (Form F0100) ($50) or Articles of Incorporation (Form F0001) ($50) with the Mississippi Secretary of State, Business Services Division.
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the Mississippi Department of Revenue. State sales tax rate: 7%.
- 7
Get required licenses and permits
Mississippi issues no single general statewide business license.
- 8
Register for Mississippi taxes
Personal income tax: Graduated. For tax year 2026, 0% on the first $10,000 of taxable income and 4% on taxable income above $10,000.
How Much Does It Cost to Start a Business in Mississippi?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (Mississippi Secretary of State, Business Services Division) Required | $50 | Most documents paid for online are approved and filed immediately; |
| Corporation filing fee Required | $50 | If forming a corporation instead |
| MS LLC Annual Report (Form F0108) Required | $0 | April 15 each year; may be filed on or after January 1. Must be filed online. |
| Name reservation | $25 | 180 days |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | Mississippi issues no single general statewide business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $50 to $350 |
Start a Specific Business in Mississippi
Mississippi Business Guides
- How to Start an LLC in Mississippi
- How to Start a Corporation in Mississippi
- Sole Proprietorship in Mississippi: How to Start One
- Mississippi Business License: What You Need and How to Get It
- Mississippi Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in Mississippi
- Mississippi Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in Mississippi
- Mississippi Registered Agent: Requirements and How to Choose One
- Best LLC Services in Mississippi
- Mississippi Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in Mississippi
Why Start a Business in Mississippi?
- Forming an LLC costs $50 to file the Certificate of Formation with the Secretary of State, one of the lower formation fees in the country.
- The Mississippi LLC annual report carries a $0 fee; profit corporations pay $25, and both are due April 15.
- There is no fee to obtain a Mississippi sales tax permit from the Department of Revenue, though a bond may be required for businesses with no permanent in-state location.
- Individual income tax for tax year 2026 is 0% on the first $10,000 of taxable income and 4% above that, dropping to 3.75% in 2027.
- The corporate franchise tax is being phased out: $0.50 per $1,000 of capital above $100,000 in 2026, $0.25 in 2027, and fully repealed effective January 1, 2028.
- Mississippi has about 2,954,160 residents as of July 1, 2025, and roughly $170 billion in current dollar GDP, ranking 36th among the 50 states.
Mississippi Business Resources
Frequently Asked Questions
- How long does it take to form an LLC in Mississippi?
- For online filings, most documents are approved and filed immediately. If staff review is needed, filings are normally returned filed within 24 hours of submission.
- What does it cost to start an LLC in Mississippi in year one?
- Your total startup cost for an LLC is $50 to file the Certificate of Formation. The annual report due April 15 and the sales tax permit from the Department of Revenue are both free. If you have no permanent business location in Mississippi, a bond may be required for your sales tax permit.
- Can a non-resident form an LLC in Mississippi?
- Yes. If you have no permanent business location in Mississippi, the Department of Revenue may require you to post a bond when you register for your sales tax permit.
- What is the cheapest way to start a business in Mississippi?
- Form an LLC. File the Certificate of Formation for $50. The annual report costs $0, and the sales tax permit costs $0 in fees.
- Is an operating agreement required to form an LLC in Mississippi?
- No. An LLC is formed by filing the Certificate of Formation with a name meeting state requirements. An operating agreement is a separate legal document that governs the management and operation of the LLC, but it is not required for formation.