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.
On this page, you’ll learn about the following:
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.
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:
|Annual Fee/Biennial Fee
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.
- 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
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.
Establishing an LLC in Mississippi involves a few initial costs. Entrepreneurs are required to file the necessary paperwork with the Secretary of State’s office, which includes the Articles of Organization, along with paying a filing fee. Additionally, it is often advisable to seek legal advice or assistance to ensure compliance with all state regulations, which may incur additional costs. These initial expenses may vary based on the complexity of the LLC’s structure, the nature of the business, and any legal assistance sought, making it important for entrepreneurs to carefully evaluate their specific requirements.
Once an LLC has been formed, there are recurring costs to factor into the budget. The state of Mississippi imposes an annual reporting fee, which is typically due on or before April 15th of each year. This fee, akin to a renewal fee, contributes to maintaining the legal standing of the company. Failure to pay the annual report fee may result in penalties or in more serious cases, may lead to the dissolution of the LLC.
Furthermore, business owners should consider the expenses incurred for maintaining an Agent for Service of Process. It is a legal requirement for the LLC to have a registered agent who is authorized to receive legal documents and official correspondence on behalf of the company. While entrepreneurs may choose to be their own registered agent, they can opt to contract a professional registered agent service, which may incur an additional cost. Engaging a third-party registered agent allows business owners the flexibility to focus on their daily operations without the concern of missing important legal notifications or failing to meet critical deadlines.
In addition to the aforementioned costs, it is crucial to recognize the financial implications of ongoing compliance requirements. LLCs in Mississippi are expected to file an annual tax return, which highlights the company’s income or loss for a particular financial year. Moreover, depending on certain factors such as the type of business, number of employees, and location, LLCs may also be liable to pay other taxes or fees such as sales tax or employer withholding tax. It is imperative for business owners to consult with accounting professionals or taxation experts to determine the precise obligations and associated costs applicable to their specific situation.
In conclusion, maintaining an LLC in Mississippi carries financial considerations beyond the initial set-up costs. Entrepreneurs must account for yearly reporting fees, registered agent expenses, taxes, and possibly other liabilities based on the nature and scale of their business operations. By making provision for these expected costs, business owners can effectively manage their finances and ensure compliance with the state’s regulations, thereby safeguarding the longevity and reputation of their LLC.
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.