How to Form an LLC in Mississippi | 2025

Mississippi offers a straightforward and cost-effective path for entrepreneurs looking to form an LLC. With low filing fees, business-friendly tax rates, and flexible requirements, it’s an especially attractive option for small and midsize businesses.

This guide walks you through the process, requirements, and benefits of forming an LLC in Mississippi. Let’s look at how to get started. We'll also discuss the Wise Business account. The global account that can help your company with all things cross-border.

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How to Start an LLC in Mississippi (Step-by-Step)

Entrepreneurs will find a straightforward and easy-to-follow path to LLC formation in the state of Mississippi. Here’s a quick overview:

#1 - Choose a Business Entity Name

Your LLC’s name must be unique and comply with Mississippi’s naming rules, including using “LLC,” “L.L.C.,” or “Limited Liability Company” in the name. Your name can’t contain words like “bank,” “insurance,” “trust,” or “corporation,” either.

Check the Mississippi Secretary of State’s online database to confirm the availability of your business name.³ If you have a name but aren’t ready to file the Certificate of Formation, you can submit an Application for Reservation of Name to hold the name for 180 days.

#2 - Appoint a Registered Agent

Every Mississippi LLC must have a registered agent with a physical address in the state who is available to receive business documents during business hours.

You can act as your own registered agent as long as you have a Mississippi address. If not, there are professional registered agent services available for a fee.

#3 - Obtain State Business Permits

Depending on your industry and location, you may need specific licenses or permits to operate legally in Mississippi. Research requirements with local and state agencies and complete all necessary applications.

#4 - File a Certificate of Formation

File the Certificate of Formation online with the Mississippi Secretary of State. This document includes your LLC’s name, registered agent, management structure, and NAICS code. The filing fee is $50.¹

#5 - Draft an Operating Agreement

While it’s not required by law, an operating agreement is highly recommended. This internal document outlines ownership, management, and operational procedures. It’s an important safeguard against disputes that clarifies each member’s role.

#6 - Apply for an EIN and Register for State Taxes

Obtain an Employer Identification Number (EIN) from the IRS for free. Register with the Mississippi Department of Revenue for applicable state taxes, such as sales tax or payroll tax.

#7 - File Annual Reports

Like most states, Mississippi requires LLCs to submit annual reports to the Secretary of State to stay in good standing.

The report is due every year by April 15th, and it comes at no cost to domestic LLCs. Foreign LLCs will need to pay a $250 fee.²

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What are the Business Requirements for a Mississippi LLC?

Be sure to check with local and state agencies to verify any local or industry-specific requirements in addition to those laid out below.

• Certificate of Formation: Filed online with a $50 fee to formally register a Mississippi LLC.
• Registered Agent: Required to maintain a physical presence in Mississippi.
• Operating Agreement: Not mandatory, but strongly advised for internal governance.
• Business Licenses/Permits: May be required depending on your industry and location.
• Annual Report: Must be filed each year to stay in good standing.
• EIN: Required for hiring employees, opening business bank accounts, and filing taxes.

What are the Benefits of Starting an LLC in Mississippi?

Mississippi offers many benefits for LLC members. Notably, the state boasts business-friendly tax rates, with a corporate income tax of 4-5% and no annual franchise tax for LLCs. Pass-through taxation means profits and losses pass through to members’ personal tax returns, shielding them from double taxation.

It’s one of the more affordable states to register and retain an LLC thanks to low filing fees and limited costs associated with annual reports, which we’ll explore in more detail in the next section.

While it’s not an “anonymous LLC” state, Mississippi still offers standard privacy protections for members and managers. While you’ll need to list at least one member or manager’s name in the formation documents, you can shield other member info from public disclosure.

Limited liability protection also shields owners’ personal assets from business debts and lawsuits. Members and managers can maintain a clear separation between personal and business finances during operation.

How Much Does It Cost to Start an LLC in Mississippi?

The costs associated with starting an LLC in Mississippi are relatively minimal, especially if you’re operating a domestic LLC. With low filing fees and no costs associated with annual reports, it’s a great option for smaller and midsize businesses looking to get started at a low cost.

Certificate of Formation	$50 (one-time fee)
Registered Agent Services	Varies; No cost if you act as your own agent, or $100-250/year for professional services
Business Licenses/Permits	Varies by industry and location
Annual Report	No cost for domestic LLCs, $250 for foreign LLCs
Operating Agreement	No state fee, though legal assistance may incur costs
EIN	No cost from the IRS

Can I Open an LLC in Mississippi Without Living There?

Yes, you don’t need to be a Mississippi resident to form an LLC in the state. However, you’ll need to appoint a registered agent with a physical address in Mississippi to remain in good standing with the state.

Can a Nonresident Open a Company in Mississippi?

Yes, nonresidents can own and form an LLC in Mississippi. There’s no residency requirement for members or managers, though nonresidents will need to name a registered agent with a Mississippi address and may need to comply with additional federal requirements.

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Comparison with Other States

So, with all that information in mind, is it worth forming an LLC in Mississippi?

The answer to that question will vary depending on the size, industry, and other considerations related to your LLC. Check out our comparison table below to see how Mississippi stacks up in comparison with some of its neighbors.

Feature	Mississippi	Louisiana	Alabama	Tennessee
Filing Fee	$50	$105	$236	$300
Annual Report Fee	$0 (domestic LLCs) \ $250 (foreign LLCs)	$30-35	$50+	$300+
Privacy	Standard	Standard	Standard	Standard
Tax Environment	No franchise tax for LLCs; 4-5% corporate income tax; pass-through taxation	No franchise tax for standard LLCs; state income tax varies	$50+ minimal annual Business Privilege Tax; state income tax; pass-through taxation	Franchise tax: 0% for most small LLCs. No state income tax on individuals.
Best For	Low-cost startups, simple compliance, and small to midsize businesses	Businesses with local operations need a straightforward process	Businesses with a strong local presence	Larger LLCs, businesses needing robust state infrastructure

Compared to other states in the southeastern United States, Mississippi offers some of the lowest filing fees. Even better, it has no annual report fees for domestic LLCs. Alongside Louisiana, it also has a more favorable tax environment—no franchise tax is levied unless the LLC opts to be taxed as a corporation. Alabama and Tennessee impose additional annual or privilege taxes.

All four states require some disclosure of LLC owners or managers, however. None are considered “anonymous LLC” states like Delaware, Wyoming, or New Mexico.

Ultimately, Mississippi stands out for affordability and ease, while Tennessee is better for larger, more complex LLCs due to its infrastructure.

FAQ: Mississippi LLC

Privacy Protections for Mississippi LLCs

Mississippi LLC s provide standard privacy protections. While you’re able to limit the public disclosure of member and manager information, you’ll still need to list at least one name in the formation documents.

Why Do People Use Mississippi for LLC?

Mississippi is chosen for its low startup costs, favorable tax climate, and simple compliance requirements. The state’s LLC Act emphasizes contractual freedom and flexibility for members, so it’s a solid choice for small and growing businesses looking to protect personal assets.

Is Mississippi LLC Tax-Free?

No, it’s not tax-free. There’s no franchise tax for domestic LLCs, but you’ll still need to pay a corporate income tax and sales tax on applicable transactions. Still, LLCs in the state benefit from pass-through taxation, so profits are taxed at the individual level unless the LLC elects otherwise.

What Are the Disadvantages of a Mississippi LLC?

Mississippi offers low startup costs and minimal compliance requirements for LLCs. However, members will still need to file annual reports to maintain good standing. The tax rate is competitive, but LLCs are still required to pay state income and sales taxes.

The Bottom Line

A combination of low costs, manageable compliance, and strong asset protection makes Mississippi a compelling choice, especially for smaller businesses looking to establish or expand their U.S. presence. Residents, out-of-state entrepreneurs, and non-citizens alike can benefit from Mississippi’s accessible and business-friendly policies.

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Sources:

1. Business Document Filing Fees
2. Annual Reports
3. Mississippi Secretary of State’s online database
4. IRS Website
5. Department of Revenue | Mississippi Government