Mississippi LLC Overview
Mississippi is one of the most affordable states for LLC formation. $50 filing and a free annual report ($0/year) offer among the lowest total costs in the US. Combined with the lowest cost of living in the country.
Mississippi's economy is anchored by agriculture, manufacturing, energy, military installations, and a growing automotive sector (Nissan, Toyota). The Gulf Coast offers maritime and gaming industries.
The main consideration is the $25 minimum franchise tax and 5% income tax on income above $10,000. For non-residents with minimal operations, Arizona ($50, $0/year, no franchise tax) may be slightly more favorable.
Mississippi LLC Costs and Fees
All fees below are sourced from the Mississippi Secretary of State fee schedule.
| Fee | Amount | When Due |
|---|---|---|
| Certificate of Formation (online) | $50 | One-time (at formation) |
| Annual Report ($0/year — free) | $0 | April 15 each year |
| Registered agent | $100-150/year (third party) | Ongoing |
| State income tax | 0%-5% (first $10K exempt) | On Mississippi-sourced income |
| Sales tax | 7% state (highest flat rate in US) | On taxable goods/services |
| Amendment | $50 | When needed |
| Certificate of Good Standing | $25 | When needed |
Lowest cost of living advantage
Mississippi combines $50 filing, free annual report, and the lowest cost of living in the US. The $25/year franchise tax is the only ongoing state cost.
Step-by-Step: How to Form a Mississippi LLC
Step 1: Choose your LLC name
Search for available names on the Mississippi Business Entity Search. Your name must include "Limited Liability Company," "LLC," or "L.L.C." Ensure the name is distinguishable from existing entities on file.
Step 2: Appoint a registered agent
Every Mississippi LLC must have a registered agent with a physical street address in Mississippi. The agent must be available during normal business hours to accept legal documents on behalf of the LLC.
Step 3: File Certificate of Formation
File online through the Mississippi Secretary of State. The filing requires:
- LLC name with designator
- Registered agent name and Mississippi address
- Principal office address
- Duration
- Name and address of each organizer
- $50 filing fee
Step 4: Create an Operating Agreement
While not always legally required in Mississippi, an Operating Agreement is essential for banking, tax compliance, and internal governance. It establishes member rights, profit distribution, and management structure. We include a custom Operating Agreement in every formation package.
Step 5: Obtain an EIN
Apply for an Employer Identification Number (EIN) from the IRS. This is your LLC's tax ID number, required for banking, hiring, and tax filings. Online application is available for those with an SSN; fax or mail application for international applicants without an SSN.
Step 6: Register for Mississippi taxes (if applicable)
If you will sell taxable goods or services in Mississippi, register with the Mississippi Department of Revenue for applicable tax accounts including sales tax and income tax withholding if you have employees.
Annual Compliance Requirements
- Annual report: Due April 15. Fee: $0 (free).
- Franchise tax: $2.50 per $1,000 capital in MS (minimum $25). Filed with MS Department of Revenue.
- Federal tax filing: Form 5472 with pro forma 1120 for foreign-owned LLCs.
- Mississippi income tax: 0% on first $10K, 5% above $10K.
- Sales tax: 7% statewide.
- Registered agent: Maintain agent with MS address.
- FinCEN BOI Report: Required.
Mississippi Taxes for LLCs
| Tax Type | Rate | Notes |
|---|---|---|
| State income tax | 0%-5% | First $10K exempt; 5% above |
| Franchise tax | $25 minimum | $2.50 per $1,000 capital |
| Sales tax | 7% | Highest flat state rate in US |
| Annual report | $0/year | Free annual report |
Free annual report keeps filing costs at zero. The $25 minimum franchise tax is nominal. The 7% sales tax is the highest flat state rate in the US.
Processing Times
| Processing Option | Time | Additional Fee |
|---|---|---|
| Online filing | 2-5 business days | $0 |
| Expedited | 24 hours | $50 |
| Paper filing | 7-14 business days | $0 |
24-hour expedited available for $50. Standard online: 2-5 business days.
Pros and Cons of a Mississippi LLC
Advantages
- Low $50 filing fee
- Free annual report ($0/year)
- Lowest cost of living in the US
- First $10K income tax-free
- Very low franchise tax ($25 min)
- Growing automotive manufacturing
- Gulf Coast maritime access
- Affordable operations
Disadvantages
- $25/year minimum franchise tax
- 5% income tax above $10K
- Highest flat state sales tax (7%)
- Smaller ecosystem
- Less well-known for LLC formation
- Limited tech infrastructure
Our Pricing: Mississippi LLC Formation
Domestic Filers (US Residents)
$249 service fee + $50 state filing fee
International Filers (Non-US Residents)
$349 service fee + $50 state filing fee
Every formation package includes:
- Certificate of Formation filing with Mississippi Secretary of State
- One year of registered agent service in Mississippi
- Custom Operating Agreement
- EIN application
- Banking introduction letter
- Digital document delivery within 24 hours of state approval
- Compliance calendar with all filing deadlines
- Dedicated support via email and WhatsApp
Form your Mississippi LLC today
$299 all-in for US residents. $399 for international. No hidden fees.
Start My Mississippi LLC →Over five years: $175 ($50 filing + $0 reports + 5 x $25 franchise tax). Very affordable. Compare with Arizona ($50) or Wyoming ($510).
Comparing states? Read our Wyoming vs Delaware comparison guide for the full breakdown of top formation states.