Madison Business License: Privilege License Schedule and Home Occupation Permit Rules
Madison Business License: Privilege License Schedule and Home Occupation Permit Rules
Mississippi does not issue a general statewide business license. A madison ms business license is a city privilege license, issued by the City of Madison under Miss. Code 27-17. Registering your company with the Secretary of State is a registration, not a license, and the Department of Revenue sales tax permit is a tax registration. If you run the business out of your home, you also need a separate Home Occupation Permit. This guide covers how to apply for both, what the city's schedule charges as printed on the application, and the mistakes that send applicants back to City Hall.
Informational notice: This article is informational content, not legal or tax advice. Fees and rules change. The figures below are as printed on the city's application form as of 2026-10-15, so confirm them before you pay. For complex situations, consult a qualified attorney or CPA.
Materials and information to gather
Pull these together before you visit or call:
- Entity paperwork. If you formed an LLC, you file the Certificate of Formation (Form F0100) with the Secretary of State for a $50 filing fee. Keep your filing confirmation.
- Assumed name filing. If you trade under a name other than your legal name, you need a Fictitious Business Name Registration (Form F0070), which costs $25. It is filed with the Secretary of State, not the county.
- Owner or principal details. Ask Finance and Administration what identification it wants.
- Employee count, including part-time staff, so you can find the correct line of the schedule.
- Inventory list if you will hold goods for sale, because the application includes an inventory table.
- Home documents if you work from a house. A Home Occupation Permit is available only for an owner-occupied dwelling, so keep proof that you own and live in the home, plus the square footage of the living area and the room you plan to use.
- Sales tax permit application if you make retail sales. The permit carries no fee, although a bond may be required for applicants with no permanent Mississippi location.
Step-by-step: getting your Madison privilege license
Confirm you are inside city limits. The privilege license comes from Finance and Administration at City Hall, 120 Montgomery Street, 601-856-7116. Counties license only businesses outside municipalities. If your location is outside city limits, the city license does not apply, and you should ask Madison County instead. Call first if your address is near the boundary.
Form your entity and check your name. File the Certificate of Formation through the Secretary of State's online portal at corp.sos.ms.gov. An LLC name must include 'limited liability company,' 'L.L.C.' or 'LLC,' and it must be distinguishable from names already on state records. Search existing names at https://corp.sos.ms.gov/corp/portal/c/page/corpBusinessIdSearch/portal.aspx before you file. Once formed, the LLC annual report (Form F0108) has no fee, but it must be filed online by April 15 each year. Failure to file can lead to administrative dissolution.
Register for sales tax if you sell at retail. Apply through the Department of Revenue at https://www.dor.ms.gov/business/sales-use-tax/registration-information-sales-and-use-tax-applicants. The state rate is 7%. The state rate has no county add-on, and the local levies in Mississippi are limited to Jackson and Tupelo, so confirm with the Department of Revenue that no city rate applies to your Madison sales.
Count employees and find your schedule line. The city's fee depends on headcount. Use the table below, and confirm how the city counts part-time staff. Mississippi has no state minimum wage law, which does not change any license fee, but federal wage rules still apply if you hire.
Apply for the Home Occupation Permit if you work from home. The Zoning Administrator approves this permit under Section 405. Ask whether it must be approved before the privilege license is issued, and confirm the sequence before you pay any fee.
File with Finance and Administration and pay. Bring the completed application and your entity or assumed name paperwork, and ask what else the counter needs. Ask at the counter how the license renews. The city's pages do not publish a renewal date, so get that date in writing.
Handle property tax separately. Property taxes go through the Madison County Tax Collector, a separate office from City Hall. The county seat is Canton. Ask the Tax Collector whether your business equipment or inventory is assessed.
Privilege license schedule (as printed on the application)
The city's application prints the following figures as of the date above. Check the current form before you file, because the schedule can change.
| Category | Figure on the form | What to confirm |
|---|---|---|
| Employees, 1 to 3 | $20 | How the city counts part-time staff |
| Employees, 4 to 10 | $30 | Which band applies at the edges |
| Above the 4 to 10 band | $3 per head, capped at $150 | Where the band starts and how heads are counted |
| Manufacturer | $80 | Whether your activity fits this category |
| Inventory | Table on the form | Which row matches your inventory value |
| Pawn | $250 | Whether your business meets the pawn category |
| Travel agency | $200 | Whether your business meets the category |
| Weapons | $100 plus $250 | What each figure covers |
The renewal date is not published on the city's pages. Ask Finance and Administration whether the license is annual and when it is due.
Home Occupation Permit rules
A home business needs a Home Occupation Permit approved by the Zoning Administrator under Section 405, in addition to the privilege license. Plan your space around these conditions:
- Owner-occupied only. Renters do not qualify. The home must be owned and lived in by the applicant.
- Residents only. Only people who live in the home may work on site.
- Size limit. The business may use no more than 25% of the floor area and no more than 400 square feet. Both limits apply, so the smaller result governs.
- Inside the house. Business activity must take place inside the dwelling, not in an outbuilding such as a shed.
- No signs and no exterior lighting tied to the business.
- No visible materials stored or displayed outside.
- No tractor-trailers associated with the business.
Tax and entity notes
The Secretary of State registration and the city license are separate from taxes. An LLC taxed as a partnership does not pay the Mississippi franchise tax, which applies to corporations. Members of a pass-through LLC report income on their own Mississippi returns. If you are unsure which tax treatment fits your company, ask a CPA before you choose.
Common mistakes to avoid
- Treating the Secretary of State filing as the license. The $50 LLC filing registers the company. It does not replace the city privilege license.
- Filing an assumed name with the county. Form F0070 goes to the Secretary of State.
- Applying with the city when you are outside city limits. Confirm your location first, or you may pay the wrong agency.
- Guessing your headcount. The schedule is set by employee count, so write down the number you plan to have on day one.
- Using a rented home for a Home Occupation Permit. The permit requires an owner-occupied dwelling.
- Skipping the LLC annual report. It is free, but it must be filed online by April 15.
- Assuming there is no renewal. The city does not publish a renewal date, so ask and calendar it.
What to expect
Applicants who bring complete paperwork and an accurate headcount may move through the privilege license quickly, though the city does not publish a processing time, so ask at the counter. Getting the Home Occupation Permit approved may take longer, because it involves the Zoning Administrator. Plan for the possibility of a second trip, and do not sign a lease, buy equipment, or advertise your address until both approvals are clear.
Official resources
- Mississippi Secretary of State, Business Services: https://www.sos.ms.gov/business-services
- Online filings: https://corp.sos.ms.gov/corp/portal/c/page/corpnewfilings/portal.aspx
- Fee schedule: https://www.sos.ms.gov/content/documents/Business/FeeSchedule.pdf
- Mississippi Department of Revenue: https://www.dor.ms.gov/
- Mississippi Small Business Development Center Network (free advising): https://www.mississippisbdc.org/
For complex ownership, lease, or tax questions, speak with a qualified attorney or CPA before you file. This article is informational only and is not legal or tax advice.