Small Business Resource Center
Get all of the information you need to start and run a small business.
If you want to establish a business in Mississippi, you need to be aware of the state's business laws and requirements. The steps below provide a general outline for getting your business up and running in the state.
The first step in starting a business is picking a business idea and creating a business plan. You'll need to take time to evaluate your business idea to see if your business venture can be profitable. When considering your idea, ask yourself questions like:
Creating a business plan should help you map out your vision and answer these questions. In addition, investors and lenders will want to review your business plan before providing financial assistance. Check out our section on business financing, loans, and capital for ideas and guidance on financing your small business.
As you plan out your business, you need to select a legal structure. Your business's legal structure determines how it's owned, organized, and operated. Legal structures differ in their startup and maintenance costs, filing and organizational requirements, tax structures, and liability protections. Every entity has its advantages and disadvantages so you'll need to figure out which structure is the best fit for your business.
The most common legal structures for a small business are:
You might have other options for your business structure: States have specific business ownership structures they recognize.
Other types of partnerships: In Mississippi, you can form a limited partnership, limited liability partnership (LLP), or limited liability limited partnership (LLLP), which are types of partnerships where some partners have limited liability.
Professional corporations and LLCs: If you provide a professional service, you have the option of forming a professional corporation or professional LLC in Mississippi. In general, a "professional service" is a service that requires a license or other legal authorization from a state licensing authority.
Depending on which business structure you choose, you might be able to elect to become an S corporation, a tax entity. Different types of businesses, such as LLCs and corporations, can elect to be taxed as S corporations but legally remain corporations or LLCs. If you have specific legal questions, talk to a tax attorney or other tax professional.
It's time to pick a name for your Mississippi business. When choosing a business name, make sure you pick one that's unique and memorable. You'll want to make sure your business's name sticks in customers' minds and won't get confused with another business.
You should also choose a name that's marketable and reflects your business image. Your business name will appear on advertisements, business listings, store signs, and your company's website. So you should make sure it's a name that can grow with your business and is easy for customers to find and identify.
In Mississippi, like in most states, your business name must be distinguishable (different enough) from the names of other business entities already on file with the Mississippi Secretary of State (SOS). You can see which business names are already in use by doing a business search on the SOS website.
Entity name designators: In Mississippi, you must include certain words that identify your business's entity structure (like including a word such as "LLC" for LLCs or "Incorporated" for corporations). See our article on how to form a Mississippi LLC for more information about naming your LLC.
Reserving your business name: You can reserve an available name for 180 days by filing an Application for Name Reservation with the Mississippi SOS. You'll need to register with the Mississippi SOS's online filing system to get the name reservation application form. You can also renew your business name reservation.
Registering a fictitious business name (FBN): If you do business under a name other than your or your business's legal name, then you're using an FBN (also called a "DBA," "trade name" or "assumed name"). A "legal name" is the name on the owners' birth certificates (for sole proprietorships and general partnerships) or the name on the company's formation paperwork (for example, its articles of incorporation or articles of organization). You can, but aren't required to, register your FBN with the SOS. You can apply for your FBN registration online. As of 2024, the filing fee is $25 to register an FBN. (Miss. Code §§ 75-93-1 and following (2024).)
If you do business online, you might want to register your business name as a domain name. Moreover, to avoid trademark infringement issues, you should do a federal and state trademark search to make sure the name you want to use isn't the same as or too similar to a name already in use.
Register your business in Mississippi using the SOS's online filing system. You must create an account to become a registered filer. You can then access the formation documents and submit your filing online. Some business types don't require you to file any paperwork.
Here's how to form each type of business:
To form some of these businesses, you need to appoint a registered agent in Mississippi for service of process. A registered agent agrees to accept legal papers on the company's behalf.
After you form your corporation or other applicable business with the SOS, you can file IRS Form 2553, Election by a Small Business Corporation, with the IRS to elect S corporation tax status.
You'll probably need to apply for at least one license, permit, or registration for your business. You can find more detailed information in our article on Mississippi business licenses.
Tax registration. If you sell taxable goods or services in Mississippi, you must register with the Mississippi Department of Revenue (DOR) to report and collect sales tax and obtain a sales tax permit. If your business has or will have employees, you must register with the DOR for a withholding account number. For both types of tax, you can register online using the Mississippi Taxpayer Access Point (TAP).
Employer identification number (EIN). If your business has employees or is taxed separately from you, you must obtain an EIN from the IRS. Even if you're not required to get an EIN, there are often business reasons for doing so. For instance, banks often require an EIN to open an account in the business's name and other companies you do business with could require an EIN to process payments. You can get an EIN by completing an online application on the IRS website. There's no filing fee.
Regulatory licenses and permits. You might need to apply for permits or licenses related to health and safety, the environment, building and construction, and specific industries or services. Different departments and agencies oversee various regulatory licensing. For example, the Mississippi State Department of Health (DOH) regulates the health industry, and the Mississippi Department of Environmental Quality regulates air, wastewater, hazardous waste, geology, underground storage, pollution and other environmental areas. For information about local licenses and permits, check the websites for any cities or counties where you'll do business.
Professional and occupational licenses. You can get licensing information about your profession or occupation from the agency that regulates your field. You can search the agency directory on the Mississippi state website. The directory has contact information and links to the agency's website.
Once you've satisfied your initial legal requirements, you should choose a business location. You'll need to consider several factors when picking a location for your business:
Do you need a physical location for your business? Your business will probably need a mailing or office address. Many states require you to provide a principal office address when registering your business. Your address can sometimes be your home address, a P.O. box, or a coworking space, among other options. Read our article on whether you need a physical address for your small business to learn more.
Can you run your business out of your home? Many kinds of businesses can be run out of a home. Home-based businesses are becoming more popular, especially for online businesses. Depending on your business activities and residential zoning laws, you could be able to run your business out of your home. Look over your lease (if you rent your home) and homeowners association rules (if applicable), either of which might ban some or all home businesses.
Visit the individual income tax forms section of the DOR website for downloadable resident tax forms. You can find business tax forms, instructions, and frequently asked questions through the DOR's business section. You can file returns and pay all taxes through TAP.
Sole proprietorships. As a sole proprietor, you'll pay state taxes on business income as part of your resident state income tax return (Form 80-105).
Partnerships. Partners pay state taxes on partnership income on personal tax returns. Most partnerships must also file Form 84-105, Pass-Through Entity Tax Return. In Mississippi, partnerships can elect to pay a pass-through entity tax on behalf of individual partners' state income who can then claim a tax credit on their personal returns. This pass-through entity election is made by filing form 84-381, Pass-Through Entity Election Form.
LLCs. By default, LLCs are considered "pass-through tax entities," meaning members pay state taxes on their share of LLC income on their personal tax returns. In other words, LLCs are taxed as partnerships by default. However, an LLC can elect to be taxed as a corporation by filing Form 8832, Entity Classification Election with the IRS. Depending on how your LLC is taxed, your company must file a separate state tax form—either a pass-through entity tax return or a corporation return—with the DOR. If taxed as a partnership, your LLC will follow the state's partnership tax laws (as discussed in the previous section). LLCs must also file an annual report with the SOS. For more, read our article on LLC annual report and tax filing requirements in Mississippi.
Corporations. Shareholders must pay state taxes on their dividends from the corporation. A shareholder-employee with a salary also must pay state income tax on their personal state tax return. Mississippi corporations and corporations with Mississippi-based income must file a corporate income and franchise tax return. Mississippi imposes a franchise tax on all businesses taxed as corporations. As of 2024, there's a $25 minimum franchise tax. Finally, corporations, like LLCs, must file an annual report with the SOS.
If you have employees, you must also deal with state employer taxes.
And, apart from Mississippi taxes, there are always federal income and employer taxes. Check IRS Publications 334, Tax Guide for Small Business, and 583, Taxpayers Starting a Business.
Regardless of your industry or type of business, you should look into getting insurance coverage for your business. Business insurance can protect your business and your personal assets from unexpected events, such as personal injury lawsuits and natural catastrophes.
An insurance agent can help you explore the different coverage options for your business. You should consider getting general liability insurance to protect your business against claims related to bodily injury or property damage. Your business might also benefit from cyber liability insurance to cover litigation and settlement fees following a data security breach.
For further guidance, see our article on what types of insurance your small business needs.
No matter the type of business you form, you should consider opening a separate business account to make it easier to track your income and expenses. For some business types, including LLCs and corporations, a separate bank account is necessary to maintain your liability protection.
When starting your Mississippi business, you should visit the Mississippi Business One Stop Shop (BOSS) website. Click the "Start Your Business" icon and answer a few questions about your business, including your business type and desired location. Once you've completed the questionnaire, BOSS will provide you with a personalized guide to starting your business.
The guide includes information about:
The SOS also provides a brief guide to starting a business in Mississippi that reviews the entity types, registration, and licensing.
Take our business formation quiz for help deciding the best structure for your business. |
Get all of the information you need to start and run a small business.
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Find out if your desired business name is free for you to use.