Wondering how to start an LLC in MS? The process begins with selecting a company name. Make sure to choose a name that satisfies Mississippi's naming requirements and is quickly searchable online.

Limited Liability Company (LLC)

An LLC business structure combines the pass-through taxation benefit of a partnership or sole proprietorship and the limited liability of a corporation, creating the best of both worlds for business owners. First-time business owners recognize the benefits of this business structure, such as tax advantages, business deductions, personal liability protection, income tracking, and the fact that LLCs don't pay business taxes.

When selecting the name of the LLC it's important that it adheres to the following criteria:

  • The name of the LLC must be distinguishable from any name currently registered or reserved or with the Mississippi Secretary of State (SOS) and from any federal or state agency.
  • The name may not use words that imply that the LLC is organized for anything other than a lawful business purpose.
  • The name may not use the words "incorporated," "incorporation," or any abbreviation of either word.
  • The name must contain the words "professional limited liability company," "limited liability company," "LLC," or "PLC."
  • The name must either be in English or in a language that uses the English alphabet.

The LLC name must be distinguishable from other businesses in the area. It also must indicate that the business is an LLC. Consider that the most important step in forming an LLC is to appropriately name it. Taking the time to make sure a name is well-suited to your business and is easily searchable online will pay dividends in the long run. Remember, LLC business names must end in "Limited Liability Company" or some variant of its abbreviation.

Registered Agents

Mississippi requires businesses to designate a registered office and registered agent for all LLCs. A registered agent is responsible for sending and receiving legal papers on behalf of the LLC. A registered agent will need to be hired in cases where the owner of the LLC is not a Mississippi resident.

Certificate of Formation

In order to create an LLC, a certificate of formation or articles of organization will need to be filed within the state of creation. In most states, this paperwork will need to be filed with the Secretary of State (SOS). Although the filing of the required documents is fairly easy, there will most likely be a filing fee charged by the SOS. The articles of organization will include such things as:

  • The name and address of the LLC.
  • The name and address of the registered agent.
  • The names and addresses of the members of the LLC.
  • The filing fee, which is about $50.

Remember, the Mississippi SOS will only accept certificates of formation that use the official Mississippi SOS form.

Operating Agreement

An LLC operating agreement is considered to be the most significant document of the LLC because it draws up the framework and roles of the business. More specifically, this agreement outlines the working and financial relationships among the managers and members of the company.

The agreement identifies the rules agreed to by all members of the LLC in managing profit distribution and disputes. It's significantly more important for a multi-member organization to have an operating agreement, rather than a single-member LLC. The agreement can be written or oral. In case there is a future dispute, written agreements are recommended because they acknowledge what actions the members agreed to perform.

Employer Identification Number (EIN)

The IRS requests that all businesses that operate as a partnership or a corporation, or which have employees, should have an EIN. This nine-digit number identifies your business for tax purposes. An EIN is required for businesses that:

  • Have employees.
  • Are involved in a farmer co-op, non-profit organization, real estate mortgage investment conduit, estate, trust, or are plan administrators.

Similar to a personal Social Security number for individuals, the EIN is a federal business identifier. An EIN is required so that the LLC can pay state and federal taxes, open a business bank account, and hire employees.

Annual Renewal Forms

Each year the Mississippi SOS requires LLCs to file their Mississippi annual report. This report contains the LLC's relevant information, such as the registered agent and names of the members. The renewal forms have to be filed online and must be submitted between January 1 and April 15 for each calendar year. The only required information is your current registered business ID, which is linked with the SOS.

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