If you’re thinking about starting a business in Mississippi, one of the first things you’ll need to do is form an LLC. Here’s a step-by-step guide to help you get started.
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Overview
Introduction
To form an LLC in Mississippi, you’ll need to file the Articles of Organization with the Secretary of State. The filing fee is $100. You will also need to appoint a registered agent and publish a notice in a local newspaper.
What is an LLC?
An LLC is a business structure that offers limited liability protection to its owners. LLCs are popular among small businesses because they are easy to form and offer flexible management structures.
To form an LLC in Mississippi, you must file Articles of Organization with the Mississippi Secretary of State. The Articles of Organization must include the LLC’s name, registered address, and the names of its members. You will also need to appoint a registered agent for your LLC.
Once your Articles of Organization are filed, you can obtain an Employer Identification Number (EIN) from the IRS. You will need this number to open a business bank account and to file your annual taxes.
LLCs are not required to have formal meetings or elect a board of directors, but you may want to adopt an Operating Agreement that outlines the roles and responsibilities of each member. An Operating Agreement can help prevent disagreements amongst members and protect your LLC in the event that it is sued.
If you want professional help forming your LLC, you can contact a business formation attorney or a registered agent service in Mississippi.
The Benefits of an LLC
An LLC provides personal liability protection and can help to ensure your business is seen as a separate legal entity by the IRS. An LLC also allows for pass-through taxation, meaning that the business itself is not taxed—only the business owner’s individual tax return is filed. This can provide significant tax benefits, as LLC owners can deduct business expenses on their personal tax returns.
LLCs are relatively simple and inexpensive to set up and maintain when compared to other business structures. In Mississippi, you can form an LLC online or by mail with the Mississippi Secretary of State. The process is relatively straightforward and can be completed in a matter of days.
There are a few things to keep in mind when forming an LLC in Mississippi. First, you’ll need to choose a name for your LLC that complies with state naming regulations. You’ll also need to file Articles of Organization and pay a filing fee. Once your LLC is approved, you’ll need to obtain an Employer Identification Number (EIN) from the IRS and open a bank account in the name of your LLC.
How to Get an LLC in Mississippi
In order to establish an LLC in Mississippi, you will need to follow the state’s specific LLC formation requirements.3 min read
Step One: Choose a Name for Your LLC
The first step in forming your LLC is choosing a name for your business. In Mississippi, LLCs can use “Limited Liability Company,” “L.L.C.,” or “LLC” in their name, as well as any other abbreviations that are allowed by the MS Secretary of State. Your LLC name must be distinguishable from the names of other businesses on record with the SOS.
You can check for availability of your proposed LLC name by searching the Business Entity Database on the SOS website. If your first choice is unavailable, you can try an alternate name or make a reservation for your desired name while you complete the rest of the formation process. To reserve a name, file a Name Reservation Request form with the SOS. The fee is $25 and the reservation is good for 120 days.
Step Two: File Your Articles of Organization
The first step in forming your LLC is to file your Articles of Organization with the Mississippi Secretary of State. These articles are also sometimes called a Certificate of Formation or Certificate of Organization.
Your Articles of Organization must include:
-The name of your LLC
-The address of your LLC’s registered office in Mississippi
-The names and addresses of each member of your LLC
-The date on which your LLC will dissolve, if applicable
-The purpose of your LLC
-Whether your LLC will be managed by members or managers
You can file your Articles of Organization online, by mail, or in person. The filing fee is $100.
Step Three: Appoint a Registered Agent
Your LLC must have a registered agent in Mississippi. The registered agent is the person or business entity that agrees to receive important legal documents on behalf of your LLC.
The process for appointing a registered agent is as follows:
-First, you’ll need to appoint a registered agent for your LLC. You can do this by filing the Certificate of Appointment of Registered Agent form with the Mississippi Secretary of State.
-Be sure to include the $25 filing fee.
-Next, you’ll need to have your registered agent sign the Certificate of Appointment of Registered Agent form.
-Lastly, you’ll need to file the Certificate of Appointment of Registered Agent form with the Mississippi Secretary of State.
The above steps may seem daunting, but they are actually quite simple. Once you have completed them, you will have officially appointed a registered agent for your LLC!
Step Four: Create an Operating Agreement
An LLC operating agreement is not required in Mississippi, but we strongly recommend that you have one. The operating agreement sets forth the rules and regulations for running your LLC, including such things as:
-How decisions will be made
-Who will manage the LLC
-What happens if a member leaves the LLC
-How new members can be admitted to the LLC
-Buy-out provisions in the event of a member’s death or disability
An LLC operating agreement gives your business structure and can prevent disagreements among members down the road.
Step Five: Get an EIN
The next step is to apply for an Employer Identification Number (EIN) for your LLC. You can do this online through the IRS website. You will need your EIN to open a bank account and file your taxes. The IRS will also use your EIN to keep track of your LLC for tax purposes.
Step Six: File Mississippi Annual Report
The Mississippi Secretary of State’s office will mail you a notice approximately 60 days before your business entity’s annual report is due. The date your annual report is due is listed on your notice. Failure to timely file your annual report will result in the termination of your LLC.
To file your annual report, you will need:
-Your business entity’s name and number
-The name, address and email of your registered agent
-Your business purpose
-The name and address of each LLC member
-The signature of a designated LLC representative
Conclusion
There are many benefits to forming an LLC in Mississippi, including personal asset protection, tax advantages, and flexibility in management. The process is relatively simple and can be done online or by mail. Once you have chosen a name for your LLC and registered it with the state, you will need to obtain an Employer Identification Number (EIN) from the IRS. You will also need to create an operating agreement that outlines the ownership and operating procedures of your LLC. Once you have completed these steps, you will be well on your way to starting a successful business in Mississippi.
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