Forming an LLC in Mississippi: Everything You Need to Know
Forming an LLC in Mississippi is easy and straightforward and the Mississippi Code of 1972 governs the LLC laws in Mississippi.3 min read
2. Obtaining Insurance, Permits, and Licenses
3. Foreign LLC in Mississippi
4. Dissolving Your LLC
Forming an LLC in Mississippi is easy and straightforward. The Mississippi Code of 1972 governs the LLC laws in Mississippi. These rules set forth the requirements necessary for those wanting to form an LLC within the state.
Steps for Forming a Mississippi LLC
There are some typical steps that are required when forming your LLC, all of which are required in all states. Some of these steps include:
- Decide how you want the LLC to be managed and how many members will be owning the company, i.e., member-managed or manager-managed
- Choose a business name that is distinguishable from other businesses in the state. There are several other requirements regarding an LLC name, so be sure to review all requirements on the Mississippi Secretary of State’s website.
- Obtain a registered agent who will agree to receive legal papers on the LLC’s behalf. This must be a resident of the state or a business authorized to conduct business in the state. You can choose someone in the company to act as the registered agent.
- File the Certificate of Formation, which is the formal document that will be filled out and submitted in order to register as an LLC. The fee is $50, and the processing time is about one business day (if filing online). If you choose to mail it, it should take a couple of days.
Other steps that should be taken include drafting an operating agreement. This document is not required in the state; however, it is advisable to have one. It will outline the decision-making processes and other significant items regarding the business. Next, you want to obtain an EIN, or employer identification number. This will be your business identification number. It can be requested on the IRS website for free.
You’ll also need to file your annual report, which can be reported online anytime between January 1 and April 15. In the State of Mississippi, there is no fee to file this report. However, if your business was formed in another state, and you operate as a foreign business in Mississippi, then you will file your annual report and pay a $250 filing fee.
The State of Mississippi collects state taxes, so most LLCs must register with the Department of Revenue for this reason. Thereafter, you will be charged with sales and income tax.
Obtaining Insurance, Permits, and Licenses
If you want to hire employees, then you will have to register for unemployment insurance. This can be done by registering online with the Mississippi Department of Employment Security. You will also have to obtain workers’ compensation insurance in the event that an employee is injured on the job.
Keep in mind that not only will you need to abide by state law, but you will also need to abide by federal tax laws as well as local jurisdictional laws in the county and city in which you are operating. Therefore, depending on the industry in which you operate, you might need to obtain certain licenses and permits. This can include health permits, building permits, etc.
Foreign LLC in Mississippi
If you have an LLC that is currently in good standing in another state, and you want to conduct business in Mississippi, then you will need to register your foreign LLC in the state. In order to do this, you have to choose a registered agent in the state, and submit an Application for Appointment of Registered Agent of a Foreign LLC, which costs $25. Furthermore, you must also obtain a Certificate of Good Standing in your home state, and it must be dated within six months of your application. As previously noted, the application, titled a Certificate of Registration for a Foreign LLC, has a $250 filing fee.
Dissolving Your LLC
If you want to dissolve your Mississippi LLC, you will need to close your business tax accounts and file formal articles of dissolution. There are some additional requirements when dissolving your business, and therefore, it is important that you visit the Secretary of State website to ensure that you have completed all of the necessary steps during the dissolution process.
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