Mississippi Privilege License: What It Is, Who Issues It and What It Costs
Mississippi Privilege License: What It Is, Who Issues It and What It Costs
If you are opening a business in Mississippi, you will run into the term "privilege license" fast. Searches for "mississippi business license cost" and "mississippi privilege license" usually lead here because the answer is not what most people expect. Mississippi does not issue a statewide business license. The local privilege license comes from the city, town or village where you do business, or from the county if you operate outside any municipality. This guide covers what the license is, who issues it, how the fee is set and what to confirm before you apply.
Informational note: This guide is general information, not legal or tax advice. Local rules and rates change, so confirm current figures with the issuing office, and talk with a qualified attorney or CPA about your specific situation.
What a privilege license is
A privilege license is a local tax on the privilege of doing business in a particular place. Miss. Code Ann. 27-17 sets the framework. The statute calls the obligation a privilege tax, and the document you receive after paying it is the privilege license. City forms and search results use both terms for the same thing.
The privilege license is separate from your Secretary of State filings. Forming an LLC or corporation creates a legal entity, and filing an assumed name registers a trade name. Neither filing gives you permission to operate in a city or county.
Mississippi has no state business license
There is no general state business license in Mississippi. Three things are often confused with one:
- Secretary of State entity filing. The Certificate of Formation (Form F0100) for an LLC carries a $50 filing fee. Filing it with the Secretary of State is a registration of the entity, not a license to operate. Check that your name is available in the Mississippi business entity search before you file.
- Sales tax permit. If you make retail sales, you register with the Mississippi Department of Revenue for a sales tax permit. The DOR describes it as a permit for the privilege of operating a business in Mississippi, and there is no fee for it. It is a tax registration, not a license. A bond may be required for applicants with no permanent Mississippi location.
- Industry or occupational licenses. Some trades and professions need a license from the relevant state board. Those depend on the activity you perform, not on the privilege license.
Start entity filings at the Secretary of State Business Services page, and tax registrations at the Department of Revenue.
Who issues the privilege license
Every incorporated place issues its own privilege license under Miss. Code Ann. 27-17. The U.S. Census counts 299 incorporated places in Mississippi, which means cities, towns and villages. Each one sets the local terms for businesses inside its limits, including renewal dates and late penalties.
The office you pay depends on where the business is located:
- Inside a city, town or village: the municipal tax collector issues the license.
- Outside any municipality: the county tax collector issues the license. Counties license only businesses outside municipal limits.
Under Miss. Code Ann. 27-17-451, the municipal or county collector is the office that issues the license. A home-based business in unincorporated county land and a storefront a few miles away inside a city can therefore be licensed by different offices. If your address is near a city boundary, confirm with the tax collector before you pay anything.
What it costs: the 27-17-9 schedule
For businesses that are not retail or wholesale, Miss. Code Ann. 27-17-9 sets the privilege license amount by employee count. The schedule stands as of October 2026. Confirm the figure your city or county collector applies before you budget.
| Business type | Employees | Privilege license amount |
|---|---|---|
| Non-manufacturer | 3 or fewer | $20 |
| Non-manufacturer | 4 to 10 | $30 |
| Non-manufacturer | More than 10 | $30 plus $3 per employee over 10, capped at $150 |
| Manufacturer | 11 or more | $80 |
| Manufacturer | 10 or fewer | Confirm with your city or county tax collector |
The schedule counts employees, so a business with 11 workers pays more than one with 10. The $150 cap on non-manufacturers means the per-employee add-on stops growing once the total reaches that amount.
Retail and wholesale are priced by inventory
Retail and wholesale businesses are not priced by headcount. Under Miss. Code Ann. 27-17-365, the license is based on inventory at 15% of its true value. That is why fees for these businesses vary so widely. The Madison and Horn Lake license forms show a range from $20 to $1,840, and the inventory figure drives where you land in that range.
Have your inventory value ready before you contact the collector, because that number sets the fee. If your business both manufactures and sells at retail, ask the collector which schedule applies to each part of the operation.
Privilege tax changes to watch
In 2025, Senate Bill 3125 would have set the local privilege tax at $10. The bill died in committee. No 2026 bill has amended these sections, so the schedule above stands as of October 2026. Recheck the current figure with your collector before each renewal, since the statute and local practice can change.
How to apply for a privilege license
The process is local, but the steps are similar across the state:
- Confirm your jurisdiction. Find out whether your business location is inside a city, town or village or outside all municipalities. That tells you whether to visit the municipal or county tax collector.
- Get the current application. Each city publishes its own form. Ask the collector for the form and for the renewal schedule that applies to you.
- Report your figures. For most businesses, you report your employee count, which sets the fee under the 27-17-9 schedule. For retail and wholesale, you report inventory value, and the fee is 15% of that value.
- Pay and keep the receipt. Keep proof of payment with your entity records and tax filings.
- Calendar the renewal. Renewal dates and late penalties are set by each city, not by the state. Ask the collector to confirm both at the time you apply.
Other things to confirm before you open
These items come up alongside the privilege license. Each one has its own rules and its own agency.
- Assumed (fictitious) business name. If you operate under a name other than your legal name or entity name, file it with the Secretary of State, not with the county. The filing fee is $25 (Form F0070). The Secretary of State fee schedule lists it.
- Franchise tax. The franchise tax applies to corporations, not to an LLC taxed as a partnership. For tax year 2026, it is $0.50 per $1,000 of capital above $100,000, with a $25 minimum, and it is repealed effective January 1, 2028. An LLC taxed as a corporation also pays Mississippi corporate income tax, which is 0% on the first $5,000 of taxable income, 4% on the next $5,000 and 5% above $10,000.
- State sales tax. The state sales tax rate is 7%. Mississippi has no county add-on, and only Jackson and Tupelo add a city levy. Register through the DOR sales and use tax registration page.
- Minimum wage. Mississippi has no state minimum wage law, so the federal minimum wage applies to covered employees.
Free help
The Mississippi Small Business Development Center Network is hosted by the University of Mississippi and has 19 locations statewide. Its advisors can walk you through local registration steps. Start at mississippisbdc.org.
Quick checklist
- Decide whether you need an LLC or corporation filing, and file it with the Secretary of State for $50 if you form an LLC.
- Confirm whether your location is inside a city, town or village, or outside all municipalities.
- Contact the municipal tax collector or the county tax collector to get the current application.
- Calculate your fee from your employee count, or from 15% of your inventory value for retail and wholesale.
- Register for a sales tax permit with the DOR if you make retail sales, and file an assumed name with the Secretary of State if you use one.
- Calendar the renewal date that your city or county sets.
Official resources
- Mississippi Secretary of State, Business Services: sos.ms.gov/business-services
- Secretary of State online filing portal: corp.sos.ms.gov
- Mississippi Department of Revenue: dor.ms.gov
- Mississippi Small Business Development Center Network: mississippisbdc.org
This guide is informational only and is not legal or tax advice. Privilege license rules come from Mississippi statute and from each city and county, and they can change. Confirm details with the issuing office before you form, register or pay. For complex situations, such as mixed manufacturing and retail operations, multiple locations or entity tax elections, consult a qualified attorney or CPA.