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Perhaps you are hoping to form an LLC in Mississippi. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Mississippi.
Mississippi LLC Cost of Filing
Here are the costs involved in forming an LLC in Mississippi.
Cost of Filing Formation Certificates
The Mississippi Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Mississippi Secretary of State.
Mississippi Domestic LLC
- Online Filing costs $50
- Annual Report filing costs $0
- Name Reservation Fee costs $25
- By mail filing: Not Available
Mississippi Foreign LLC
- Online Filing costs $250
- Annual Report filing costs $250
- Name Reservation Fee costs $25
- By mail filing: Not available
Visit the Business Documents Filing Fees by Mississippi Business Corporations to learn more about the forms and fees requirements of business LLCs in Mississippi.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so. Besides, Mississippi only allows online filing to date.
Mississippi LLC Formation Service or Registered Agent Fee
You need a registered agent to form an LLC in Mississippi, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.
LLC Service | Our Rating & Pricing | Top Features | Learn More |
#1 TOP PICK
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Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Mississippi Department of Revenue for regulatory boards or agencies requiring licensing.
Mississippi LLC taxes to be Paid
Though the annual report filing in the State of Mississippi is free of cost, the LLCs in the State are subject to different State Tax filing obligations. Though the taxes vary from county to county.
Mississippi State Income Tax
This is the State Tax levied on any income you pay to yourself. The tax rate varies between 3.0% to 5.0%, depending on the total amount of taxable income.
Mississippi Sales Tax
The standard rate of sales tax applicable is at the rate of 7.00% and the maximum local or county rate that applies additionally is 1.00%.
Mississippi Federal Self-Employment Tax
Any profit that Mississippi LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.
Mississippi Employer Payroll Tax Withholding
If you hire employees in Mississippi, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.
Cost Comparison among States
Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to Mississippi, read the table below:
| State | Filing Fee | Annual Fee/Biennial Fee | Sales Tax |
| Mississippi LLC | $50 | $0 | 7.00% |
| Tennessee LLC | $300 | $300 (Annual) | 7.00% |
| Alabama LLC | $200 | $100 (Annual) | 4.00% |
| Louisiana LLC | $100 | $35 (Annual) | 4.45% |
| Arkansas LLC | $45 | $150 (Annual) | 6.50% |
Mississippi’s economy has witnessed a forward-looking forecast with a significant rise in its GDP. Manufacturing, trade, real estate, health, and education have been the major contributing sectors to the State’s rising economy.
Other Costs
- Mississippi Name Reservation: $25 for online fillings
- Doing Business As (DBA): $50 for online filling
- Certified Document Copies: $45
- Certified of Good Standing: $14
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Mississippi LLC: $50
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.
How Much Does It Cost to Maintain an LLC in Mississippi
To maintain an LLC in Mississippi you do not need to pay an annual fee. However, state income tax at 3% to 5%, sales tax at 7% and federal taxes are levied.
One of the first costs that LLC owners in Mississippi should consider is the initial formation fee. When starting an LLC in the state, owners are required to file Articles of Organization with the Secretary of State and pay a filing fee. While this fee can vary, it is typically affordable and a one-time expense.
Once the LLC is established, there are ongoing annual costs to consider. In Mississippi, LLC owners are required to file an annual report with the Secretary of State and pay a fee to keep their LLC in good standing. This fee is typically modest and helps ensure that the state has current information on the company and its ownership.
LLC owners should also be aware of any additional costs that may arise, such as business licenses or permits that are required to operate in specific industries or locations. These costs can vary depending on the nature of the business and its location, so it’s important for LLC owners to research and understand any additional requirements.
Another important cost to consider is professional fees. While not required, many LLC owners choose to work with legal or financial professionals to assist with the formation and maintenance of their company. These professionals can provide valuable guidance and support, but their services come with a cost that should be factored into the overall upkeep of the LLC.
Overall, the cost of maintaining an LLC in Mississippi is manageable for most businesses. By planning ahead and budgeting for these expenses, LLC owners can ensure that their company remains in good standing with the state and avoids any penalties or fines that may arise from non-compliance.
In conclusion, understanding the costs associated with maintaining an LLC in Mississippi is essential for business owners. By being aware of the initial formation fee, annual report fees, additional costs, and potential professional fees, LLC owners can effectively budget for the ongoing expenses of running their business. This proactive approach can help ensure the long-term success and compliance of the LLC while avoiding any financial surprises along the way.
In Conclusion
The cost of Mississippi is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.