How Much Does an LLC Cost in Mississippi (Formation Fees)
Forming an LLC in Mississippi costs $50. That's the fee to file the Certificate of Formation with the Mississippi Secretary of State. It's one of the lowest formation fees in the country.
That fee only covers formation itself. A few optional filings can add to your bill up front. Staying in good standing afterward brings its own costs. Here's every fee you'll run into, from formation through the years after, plus what's optional along the way.
Quick Summary
- Mississippi's LLC filing fee is a flat $50, one of the lowest in the country.
- The annual report costs nothing to file, but it's still mandatory every year by April 15.
- Mississippi's corporate franchise tax doesn't apply to a default LLC. See the State Taxes section below for when it can.
| Cost Item | Amount | Frequency | Required? |
|---|---|---|---|
| LLC Formation Filing Fee | $50 | One-time | Mandatory |
| Name reservation | $25 | One-time | Optional |
| DBA / Fictitious Business Name registration | $25 per name | One-time | Optional |
| Annual Report | $0, due April 15 | Every year | Mandatory |
| Registered agent service | $0 (self) or $80 to $300 | Every year | Optional |
| Sales and Use Tax Permit | 7% sales tax collected on sales | Every year | Mandatory if applicable |
| Business licenses and permits | Varies by locality/profession | Varies | Mandatory if applicable |
| Operating agreement | $0 (template) to $100-$1,000+ (attorney) | One-time | Optional |
| EIN from the IRS | $0 (free at IRS.gov) | One-time | Recommended |
One-Time Costs to Form a Mississippi LLC
These are the fees you pay once, when the LLC comes into existence. A couple of optional filings some founders handle at the same time round out the list. It's a similar lineup to LLC costs in every other state. This one just carries Mississippi's own numbers.
1. LLC Formation Filing Fee ($50 - Mandatory)
The Certificate of Formation is the document that legally creates your Mississippi LLC. You file it with the Mississippi Secretary of State. The state's Y'ALL Business portal handles the submission online. The fee is a flat $50 [1].
The Secretary of State doesn't publish a standard processing-time estimate for this filing. Budget some buffer. Don't assume a fixed turnaround. Check our article for more on how long it takes to form an LLC in Mississippi.
2. Name Reservation ($25 - Optional)
Reserving your LLC's name before you file holds it. That way another business can't register it first. It costs $25. Most founders skip this step. Filing the Certificate of Formation directly locks the name in anyway.
3. DBA / Fictitious Business Name Registration ($25 - Optional)
Want to operate under a different name than your LLC's legal name? Register a Fictitious Business Name for each one you use. The same online portal handles it, right alongside formation. The fee is $25 per name.
Costs to Keep a Mississippi LLC in Good Standing
Formation is a single payment. Keeping the LLC compliant year after year adds its own set of dates and fees. A few optional protections round out the list.
1. Annual Report ($0, Due April 15 Every Year - Mandatory)
Every Mississippi LLC files an annual report to keep its company information current with the state. It costs nothing to file, and it must be filed online through the Secretary of State's portal [2]. The report can be filed any time on or after January 1st. It's due by April 15th every year.
There's no stated late fee for missing the deadline. An LLC that hasn't filed risks administrative dissolution instead. That cancels its legal standing in the state.
2. Registered Agent Service ($0 Self / $80 to $300 Annually - Optional)
Every Mississippi LLC needs a registered agent with a Mississippi street address. That agent accepts legal documents and official state notices on the LLC's behalf. You can act as your own agent for $0. You'll just need that same address, and you'll need to be reachable during business hours.
Hiring a Mississippi registered agent service instead usually runs $80 to $300 a year. The trade-off is privacy. Your agent's address becomes the public record instead of your own home or office.
3. Mississippi State Taxes and Business Licenses (7% Sales Tax, Franchise Tax Doesn't Apply - Mandatory as Applicable)
A default Mississippi LLC is a pass-through entity for state tax purposes. It follows the same classification it uses for federal taxes. Members report their share of LLC profit on their own Mississippi income tax return. The LLC itself doesn't pay a separate entity-level tax.
Mississippi's corporate franchise tax works differently. It's imposed on corporations for the privilege of doing business in the state [3]. Because a default LLC isn't classified as a corporation, that tax doesn't apply to it. It only applies if the LLC elects to be taxed as a corporation for federal purposes. That election carries over to Mississippi.
Selling taxable goods or services means one more step. You'll need to register for a Sales and Use Tax permit through the Department of Revenue. That permit lets you collect tax on sales. The rate is 7% on tangible personal property [4].
Mississippi doesn't have a single statewide business license for LLCs. Local governments and professional licensing boards handle their own requirements instead. The cost depends on where you operate and what you do.
Check with your city or county government, plus any state licensing board that covers your field. Read our article for more on how to file LLC taxes in Mississippi.
Nothing in the rest of this section is required, but each one solves a real problem when it comes up.
4. Operating Agreement ($0 Template / $100 to $1,000+ Attorney - Optional)
Mississippi doesn't require an LLC to file an operating agreement with the state. Skipping one is risky, though. Ownership shares, management structure, and exit terms stay unsettled. That's a problem if a dispute ever comes up.
It's the internal document that spells out how the LLC actually runs. State law fills the gaps by default if you don't have one.
Drafting one yourself with the free template linked in the cost table above costs nothing. Hiring a lawyer instead runs $100 to $1,000 or more, depending on how much detail the agreement needs.
5. EIN ($0 - Optional, but Recommended)
An EIN costs nothing from the IRS. You apply directly on the IRS website. Banks and payroll providers use it too. It's how they all identify your business.
You'll need one to open a business bank account, hire employees, or file certain tax returns. Some formation services charge extra for this step. You can just as easily do it yourself for free.
FAQs
Does Mississippi's Franchise Tax Apply to My LLC?
No, not unless your LLC elects corporate tax treatment for federal purposes. Mississippi's franchise tax reaches corporations, and most small LLCs never make that election.
Is Mississippi's LLC Filing Fee Really Only $50?
Yes. Mississippi's LLC filing fee really is a flat $50, per the Secretary of State's own fee schedule for the Certificate of Formation.
What Happens If I Miss the Annual Report Deadline?
There's no published late fee for missing the Annual Report deadline. The real risk is administrative dissolution if the report goes unfiled, so treat April 15 as a hard date.
Do I Need an EIN for a Single-Member Mississippi LLC?
No, a single-member Mississippi LLC with no employees isn't required to get one. Most banks still ask for an EIN before they'll open a business account, and it costs nothing from the IRS either way.
References:
- https://www.sos.ms.gov/content/documents/Business/FeeSchedule.pdf
- https://www.sos.ms.gov/business-services/annual-reports
- https://www.dor.ms.gov/business/business-tax-frequently-asked-questions
- https://www.dor.ms.gov/business/sales-use-tax/sales-tax-rates
