How to Start an LLC in Mississippi (2026 Guide)
Mississippi is one of the cheapest states in the country to form and keep an LLC: $50 to file, and a genuinely free annual report every year after. Here's all 8 steps, plus why "free" doesn't mean "optional" — Mississippi dissolves LLCs that skip the report, no fee warning first.
To start a Mississippi LLC, file a Certificate of Formation (form F0100) with the Mississippi Secretary of State for $50 — filed online at business.sos.ms.gov, often confirmed by same-day email, with standard processing in about 5–10 business days and no expedited option. Every LLC then files a free ($0) annual report by April 15 each year — Mississippi's only ongoing state requirement for domestic LLCs (foreign LLCs pay $250 for the same filing). State income tax is a flat 4.0% on income above $10,000, and sales tax is 7% statewide with minimal local add-ons.
- State filing fee
- $50
- Processing time
- ~5–10 business days
- Annual report (domestic)
- $0 · due Apr 15
- Income tax
- 4.0% flat above $10K
- Sales tax
- 7% statewide
- Filing agency
- Secretary of State
Why Form an LLC in Mississippi?
Mississippi is consistently one of the cheapest states in the country to form and maintain an LLC — a genuine advantage if you're bootstrapping. What you get:
- A $50 formation fee — among the lowest state filing fees anywhere.
- A genuinely free annual report — $0 for domestic LLCs, every year, forever, as long as you file it.
- A flat 4.0% income tax — simple math, with the first $10,000 of income exempt, and the rate scheduled to keep dropping (3.75% in 2027, eventually toward 3.0%).
- No local sales tax add-ons in most areas — the 7% statewide rate is one of the simplest sales tax structures in the country, even though the rate itself is on the higher side.
The free annual report is the trap, not the perk: because it costs nothing, there's no bill to remind you it exists. Miss April 15 and Mississippi can begin administrative dissolution — there's no late-fee grace period the way a paid filing might have. And if you're selling into Mississippi from another state, watch out: registering as a foreign LLC triggers the same annual report requirement, except at $250 instead of $0.
How to Start a Mississippi LLC in 8 Steps
Your name must be distinguishable from every Mississippi entity and contain "Limited Liability Company," "LLC," or "L.L.C." Search free on the Secretary of State's Business Entity Search.
Every Mississippi LLC must continuously maintain a registered agent — a Mississippi resident or authorized entity with a physical in-state street address.
File the Certificate of Formation
The $50 filing (form F0100) that creates your LLC. File online through the Secretary of State's portal — Mississippi has no paper filing option and no expedited tier.
Not required by Mississippi, but it overrides state default rules, satisfies your bank, and hardens a single-member LLC's liability shield.
Get Your Free EIN from the IRS
Your federal tax ID for banking, hiring, and Mississippi Department of Revenue registration. Always free at IRS.gov.
File Your Annual Report (Free, by Apr 15)
$0 for domestic LLCs, filing window opens January 1, due April 15. Miss it and Mississippi can administratively dissolve the LLC.
Get Business Licenses & Permits
No general statewide business license — but sales tax registration, local permits, and professional board licenses as applicable.
Understand Mississippi LLC Taxes
A flat 4.0% state income tax on income above $10,000, 15.3% federal SE tax, and a 7% statewide sales tax with minimal local add-ons.
What a Mississippi LLC Really Costs (2026)
| Cost Item | Amount | When |
|---|---|---|
| Certificate of Formation (required) | $50 | One-time, at formation |
| Annual Report (required, domestic) | $0 | April 15, every year |
| Registered agent service (optional) | $0–$125/yr | Annual, if hired |
| Name reservation (optional) | $25 | 180 days |
| Assumed name / DBA (optional) | $25 | 5-year term |
| EIN from the IRS | $0 — always free | At IRS.gov |
| Annual report if foreign LLC | $250/yr | Only for out-of-state LLCs registered in MS |
Bottom line: $50 to form and $0/yr to maintain — a legally valid Mississippi LLC for a true minimum of $50. Model your exact setup below.
Mississippi LLC Cost Calculator
Mississippi LLC Cost Calculator
First-year + 3-year totals · verified July 2026
Excludes taxes and local permits. Annual report is $0 in every year modeled for a domestic LLC in good standing.
Free ≠ Optional: The Annual Report Trap
Every domestic Mississippi LLC files an annual report with the Secretary of State by April 15, at $0 cost — you can file starting January 1. There's no paper option; everything runs through the online portal. The catch: because there's no fee, there's no bill to prompt you, and Mississippi doesn't soften a missed deadline with a late fee — it moves toward administrative dissolution. The Secretary of State has even issued formal warnings about third-party mailers implying a fee is owed for this free filing — don't pay anyone for a $0 report.
Mississippi LLC Taxes at a Glance
Default LLCs pass profits to your personal return, taxed at Mississippi's flat 4.0% rate on income above $10,000 (the first $10K is exempt). Add federal self-employment tax of 15.3% on 92.35% of net profit. The LLC itself owes no entity-level income tax by default — Mississippi's franchise tax applies only to LLCs that elect corporate taxation, and it's being phased out entirely for tax years beginning on or after January 1, 2028. Sellers collect 7% sales tax statewide, with minimal local add-ons in most areas. Past roughly $60–80K profit, model an S-Corp election — details in Step 8.
Ahmad Adil's Take: Mississippi is one of the cheapest states in this entire series to form and run — $50 in, $0/yr after, a flat and shrinking income tax rate. That combination makes it an easy recommendation for cost-conscious founders. But "free" is exactly the word that gets people in trouble here: a $0 annual report has no bill to jog your memory, and Mississippi doesn't give you a warning fee before dissolution the way a $15 or $25 filing might. My rule for every Mississippi client is the same one I give in every other free-renewal state: treat the free filing like it costs real money, because reinstating a dissolved LLC does. Set a hard April reminder the day your LLC is approved, and Mississippi stays exactly as cheap as it looks on paper.
- ✓Forms your Mississippi LLC for $39 + the $50 state fee
- ✓Files online with the Secretary of State
- ✓Free Mississippi registered agent the first year
- ✓No upsells · No data selling · Privacy by Default
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Mississippi LLC — FAQ
Ahmad Adil is the founder and CEO of LLC School. The figures here — the $50 Certificate of Formation, the free annual report due April 15, and Mississippi’s flat 4.0% income tax on earnings above $10,000 — reflect current Mississippi Secretary of State and Department of Revenue guidance. This is educational content, not legal or tax advice.
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