How to Start a Business in Mississippi (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

To start a business in Mississippi, choose a structure, register with the Secretary of State (a Mississippi LLC files a Certificate of Formation online for a $50 filing fee), get a free federal EIN, and register for taxes on the Department of Revenue's TAP portal — a sales and use tax permit is required to sell taxable goods, it has no fee, and the state sales tax rate is 7%.

Step 1: Choose a Business Structure

Your first decision is the legal structure, because it drives liability, taxes, and paperwork. A sole proprietorship is the default for one owner who takes no formation steps — it is simple but offers no liability protection, so a business debt or lawsuit reaches your personal assets. A limited liability company (LLC) separates your personal assets from business debts while keeping pass-through taxation, which is why it is the most common choice for small Mississippi businesses. A corporation suits businesses that plan to raise investment or issue stock. Compare the trade-offs in our S-Corp vs LLC guide and the glossary before you commit.

The structure you pick also determines whether you file anything with the state at all. A sole proprietor has no state formation filing in Mississippi; you simply begin operating (though you still handle taxes and licenses below). An LLC or corporation, by contrast, comes into existence only when the Secretary of State accepts your formation document, and it must maintain a registered agent from that point forward.

Think through three questions before you decide: how much personal liability protection you need, how you want the profits taxed, and whether you will bring in co-owners or investors. For most solo founders and small partnerships, an LLC balances a liability shield with simple pass-through taxation and light ongoing paperwork. If profits later grow substantially, an LLC can layer on an S-corp tax election to manage self-employment tax, so the LLC choice does not lock you out of that option down the road.

Step 2: Register the Entity With the Secretary of State

If you form an LLC or corporation, you register with the Mississippi Secretary of State through its online business filing system. A Mississippi LLC files a Certificate of Formation for a $50 filing fee. The filing names the company, its registered agent and registered office in Mississippi, and organizer information. Mississippi generally requires these formations to be filed online, and the confirmation establishes your entity's existence. Before filing, use the Mississippi business entity search to confirm your name is available and distinguishable from existing entities.

Every LLC and corporation must appoint and maintain a registered agent — a person or company with a physical Mississippi street address available during business hours to receive service of process and state notices. You can serve as your own agent if you meet the requirements, or hire a commercial service. See our Mississippi registered agent guide and the formation document overview for details, plus the Mississippi LLC cost breakdown of ongoing fees.

Although Mississippi does not require an LLC operating agreement to be filed with the state, you should adopt one internally. It sets out ownership percentages, how profits and losses are split, voting rights, and what happens if a member leaves — and for a single-member LLC it reinforces the separation between you and the business that protects your liability shield. Our Mississippi operating agreement guide explains what to include. Corporations follow a parallel path, filing articles of incorporation and adopting bylaws.

Step 3: Get a Federal EIN

An Employer Identification Number (EIN) is a free federal tax ID issued by the IRS. You need one if you form a corporation or a multi-member LLC, hire employees, or file certain excise or employment tax returns. A single-member LLC or a sole proprietor with no employees can often use a Social Security number, but getting an EIN is free and keeps your personal number off business paperwork, and most banks require an EIN to open a business account. Apply directly through the IRS — never pay a third-party site for what the government provides at no cost.

Applying online through the IRS EIN assistant issues the number immediately. If you are a non-U.S. founder without a Social Security number, review the IRS rules and our guide to the ITIN for related identification questions. For a full walkthrough, read how to get an EIN.

Get the EIN after your entity is approved but before you open a bank account or hire, since you will need it for both. The number stays with the business for its life and is used on federal returns, payroll filings, and many state registrations, including your Mississippi tax accounts. Keep the IRS confirmation letter (CP 575) with your formation records so you can prove the number if a bank or vendor asks.

Step 4: Register for Taxes on Mississippi TAP

Mississippi taxes are administered by the Department of Revenue (DOR), and you register through its Taxpayer Access Point (TAP) portal. The most common registration for a new business is the sales and use tax permit, which you must obtain before selling taxable goods or certain services. There is no fee for the permit. Once registered, you collect Mississippi sales tax — the state rate is 7% — and remit it to the DOR on the schedule the state assigns. Depending on your activity, you may also register for withholding tax if you have employees.

Mississippi also imposes individual and corporate income tax, and your business profit is reported accordingly: an LLC's or sole proprietor's profit generally passes through to the owners' personal returns, while a C corporation is taxed at the entity level. Because rates and brackets change, confirm the current figures directly with the Department of Revenue rather than relying on a fixed rate. Our business tax hub and Mississippi LLC tax filing guide explain how the federal and state layers fit together, including quarterly estimated payments for pass-through owners.

Register for the tax accounts that match your activity: sales and use tax if you sell taxable goods, withholding tax if you pay employees, and any special taxes tied to your industry. Doing this before your first taxable sale keeps you compliant from day one and avoids penalties for collecting or owing tax without a permit. TAP also becomes the place where you later file returns and make payments, so setting it up early streamlines your ongoing bookkeeping.

Step 5: Licenses, Privilege Taxes, and Local Rules

Mississippi has no single statewide general business license that every business must hold. Instead, licensing happens at two other levels. First, counties and municipalities impose local privilege taxes and licenses, so you should check with the city and county where you operate. Second, many professions and occupations — from contractors and cosmetologists to health-care providers — are licensed by their respective state boards. The mix that applies to you depends on what you do and where you do it.

Confirm both your local privilege license obligations and any professional board requirements before you open. Our business license overview and the Mississippi business license guide explain how to identify which licenses apply. If you operate under a name other than the legal entity name, you may also want a Mississippi DBA filing, and if you have a brand to protect, consider a trademark. When it is time to wind down, our Mississippi dissolution and annual report guides cover ongoing and closing obligations.

Finally, remember that starting the business is only the first milestone. Keep your entity in good standing by filing any required reports on time, maintaining your registered agent, keeping business and personal finances in separate accounts, and renewing local privilege licenses when they come due. These routine steps preserve both your liability protection and your ability to bid on contracts, open accounts, and grow without administrative surprises.

Frequently Asked Questions

How much does it cost to form an LLC in Mississippi?

A Mississippi LLC files a Certificate of Formation with the Secretary of State online for a $50 filing fee. A sole proprietor has no state formation filing and pays nothing to the state to begin operating.

Does Mississippi have a statewide general business license?

No. Mississippi does not have a single statewide general business license. Instead, it imposes local privilege taxes and licenses through counties and municipalities, and it licenses many professions through state boards.

Do I need a sales tax permit in Mississippi?

Yes, if you sell taxable goods or services. You register for a sales and use tax permit through the Department of Revenue's Taxpayer Access Point (TAP). There is no fee for the permit, and the state sales tax rate is 7%.

Do I need an EIN to start a business in Mississippi?

You need a federal EIN if you form a corporation or multi-member LLC, hire employees, or file certain returns. A single-member LLC or sole proprietor without employees may use a Social Security number, but an EIN is free and often recommended.

Does a Mississippi business need a registered agent?

Yes, a formed entity such as an LLC or corporation must appoint and maintain a registered agent with a Mississippi street address to receive legal and state documents. A sole proprietorship, which is not a registered entity, does not need one.

Related

• How to start a business (cluster hub)
• How to form an LLC in Mississippi
• How to get an EIN
• Business tax basics
• S-Corp vs LLC
• Mississippi business license
• Glossary of legal terms

Sources

1. Mississippi SoS — Business Services (online formation).
2. Mississippi SoS — Business Formation and Services (LLC Certificate of Formation, $50).
3. Mississippi DOR — Sales and Use Tax (7% state rate).
4. Mississippi DOR — Taxpayer Access Point (TAP) (register for tax accounts).
5. Mississippi DOR — Individual Income Tax.
6. Mississippi DOR — Corporate Income and Franchise Tax.
7. IRS — Get an Employer Identification Number (free EIN).
8. IRS — Limited Liability Company (LLC).
9. IRS — Sole Proprietorships (choosing a structure).
10. IRS — Business Structures.
11. Mississippi Code — Title 79, Corporations, Associations, and Partnerships (via Justia).
12. Cornell LII — 26 CFR § 301.7701-3 (entity classification, check-the-box).
13. U.S. Small Business Administration — Choose a Business Structure.
14. U.S. Small Business Administration — Apply for Licenses and Permits.

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Laws, fees, and rates change; verify current requirements with the Mississippi Secretary of State, the Mississippi Department of Revenue, and the IRS before acting.