CobaltProsper

How to start an LLC in Mississippi

By Brent Chudoba, editor Updated

Forming an LLC in Mississippi costs $50 to file the Certificate of Formation with the Mississippi Secretary of State. After that you file an annual report of $0. Mississippi charges no franchise tax on a standard LLC.

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

Mississippi LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Certificate of Formation)$50
Annual report$0/year
Franchise or business taxNone
Registered agentRequired

Source: Mississippi Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Mississippi?

  1. Name your LLC. Pick a name that is available and meets Mississippi naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Mississippi requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Certificate of Formation. Submit it to the Mississippi Secretary of State and pay the $50 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Mississippi charges $0 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Mississippi have a franchise tax on an LLC?

No. LLCs are classified and taxed per their federal tax treatment; Mississippi does not impose a separate state franchise tax on LLCs.

How is an LLC taxed in Mississippi?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Mississippi has a state individual income tax with a top rate of 4% (flat brackets), so those profits are taxed on your Mississippi return on top of federal tax. 4% flat rate for calendar year 2026 on taxable income above a $10,000 exemption ($10,000 per taxpayer, so effectively $20,000 for married filing jointly). Under 2025 House Bill 1, the rate continues stepping down: 3.75% (2027), 3.5% (2028), 3.25% (2029), and 3% for 2030 and all years after. Further reductions beyond 2030 are contingent on the state hitting revenue-surplus triggers; the tax is only fully repealed if the rate is ever legislatively cut to 0%, which is not scheduled to happen by 2030.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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