How Much Does an LLC Cost in Mississippi (Formation Fees)
Forming a Mississippi LLC is a good business move, and one of the first steps of the formation process is planning your budget.
As a Mergers and Acquisitions specialist with a Master's Degree in tax law, I have assisted over 50 businesses and individuals in forming LLCs and creating joint organizations across the Southeast.
Our team spent 40 hours researching and compiling current fees and regulations for Mississippi LLCs, cross-referencing the Mississippi Secretary of State's fee schedule and Department of Revenue guidelines.
When planning to start an LLC, consider employing a professional Mississippi LLC service to help avoid errors that could prolong the LLC formation process.
Quick Summary
- A Mississippi LLC costs $50 for filing the Certificate of Formation.
- Once the business has been approved and registered, there are additional expenses that should be covered, including licenses, permits, and other business documents.
- According to the Mississippi Department of Revenue, obtaining a sales tax permit, which is free, enables the collection of a 7% sales tax.
- When I started an LLC in Mississippi, the state offered online filing only but all the forms you’ll need to register your LLC are found in the Secretary of State’s website.
Cost to Start an LLC in Mississippi
An LLC business structure shields your personal assets from company debts and avoids double taxation.
Before an LLC is allowed to legally operate in the state, there are mandatory fees and optional expenses that have to be shouldered by the company.
1. LLC Formation Filing Fee ($50 - Mandatory)
To officially establish your LLC in Mississippi, you must pay a $50 LLC filing fee (plus a $4 credit card transaction fee) to file your Certificate of Formation [1]. This fee is paid only once, so you do not have to worry about annual fees.
Mississippi is one of the most affordable states for LLC formation, with neighboring Alabama charging $208 and Louisiana charging $100 for similar filings.
When I helped a client form an LLC in the state lately, I filed the application using the online Business Services portal since the state requires online-only filing as of 2025. Expedited service is not available since online applications are processed within 1-2 business days.
2. Registered Agent Fee ($80-$300 – Optional)
Selecting a Registered Agent is necessary for your Mississippi LLC. It can be an individual or a corporate entity with a Mississippi address that has been permitted to receive legal documents.
It's best to delegate these processes to a registered agent service if you think that legal correspondence could be too much to handle.
Professional registered agent service in Mississippi can cost you between $80-$300.
3. Name Reservation Fee ($25 - Optional)
You can pay $25 to file a Name Reservation form, which reserves your LLC name for 180 days, if you want to secure your business name before forming your Mississippi LLC.
Before reserving a business name, I remind clients to check if the name is available and if it complies with state regulations.
"While optional, reserving your business name ensures its availability upon filing your Certificate of Formation."
- Jon Morgan, CEO, Co-Founder & Editor-in-Chief of Venture Smarter
Expenses Following the Approval of Your LLC
Once the limited liability company has been approved and registered, the company has to spend on licensing fees, taxes, business insurance, and business related documentation.
1. Professional Licensing Fees (Depending on the Profession - Mandatory)
You will require a professional license if your company operates in a sector subject to governmental regulation, such as landscape architecture or body piercing.
The amount you must pay will vary depending on the license type. For instance, my clients in the art and cosmetics industry were charged $100 for an art therapist license and $55 for a cosmetologist license.
2. Local License Fees (Depending on the Line of Business - Mandatory)
Specific municipalities in Mississippi issue a local business license (sometimes called a privilege license).
The cost of a local permit varies. For instance, a privilege license is required for all businesses in Jackson County, and the fee is based on the kind of business, the volume of inventory, and the staff size.
Construction, city planning permits, and licensing for specific industries, like amusement parks or the distribution of alcohol, are some more examples of local licenses.
3. Sales and Use Tax Permit (Mandatory)
A sales and use tax permit is required for all businesses that sell goods in Mississippi, and you must file for one online at the Mississippi Taxpayer Access Point (TAP) website [2].
Registration is free of charge. In Mississippi, this permit allows you to collect 7% sales tax, according to the Mississippi Department of Revenue [3].
Read our article and learn how to file LLC taxes in Mississippi.
4. Operating Agreement (Optional, but Recommended)
After forming your Mississippi LLC, we recommend you draft your operating agreement. Under Mississippi law, your operating agreement outlines how your LLC operates. This document is critical for a multi-member LLC to prevent disputes over money and management.
Most LLC formation services charge $100 to $200 for an Operating Agreement.
5. DBA Name ($25 - Optional)
In Mississippi, a fictitious business name (DBA) costs $25. I had to submit a Certificate of Assumed Name before I was able to obtain a DBA.
Registration for fictitious business names must be done online. You should first check the Mississippi Business Database to see if your DBA name is available.
6. Certificate Of Good Standing ($25 - Optional)
Mississippi Certificate of Good Standing (also known as Certificate of existence) applications must be submitted online for a $25 fee.
It's a state-issued report that attests to the fact that your business entity is operating legally in Mississippi.
A Certificate of Good Standing is often required when registering as a foreign LLC in another state or opening a business bank account.
7. Employer Identification Number ($0 - Optional, but Recommended)
The Internal Revenue Service offers EINs for no cost ($0). However, depending on the business, the price might be between $10 and $50 if you employ a professional to apply for it.
When clients ask the importance of an EIN, I tell them that obtaining one is necessary for opening a business bank account, hiring staffs, and acquiring loans.
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FAQs
Is There A Penalty For Paying My Taxes Late In Mississippi?
There is a penalty for paying your taxes late in Mississippi. You will be charged 10% of the tax due.
Who Gets the Filing Fees for My Mississippi Business Registration?
The Secretary of State of Mississippi gets the filing fees for your business registration.
When Is the Mississippi LLC Annual Report Due?
The Mississippi LLC annual report is due by April 15 each year and can be filed online at no cost for domestic LLCs. Failure to file may result in administrative dissolution of your business entity.
References:
- https://www.sos.ms.gov/content/documents/Business/FeeSchedule.pdf
- https://tap.dor.ms.gov/WebFiles/Help/TAP/index.html#returnsandpayments
- https://www.dor.ms.gov/business/sales-tax-frequently-asked-questions#
