If you are starting a business in Mississippi, forming an limited liability corporation may seem like the best way to go, but with the ease of operation you would have if you had a sole proprietorship or partnership.Provisions from the statutes of business-friendly Delaware provide many advantages for business owners who want to form an limited liability company in Mississippi.
Step 1: How many owners will your business have?
A limited liability company can have a single owner or multiple owners.If you are going to start a business with a few other people, you need to make sure everyone is on the same page.Mississippi law allows for officers such as President or CEO to be just like corporations, but they are not required.There are governing interests, financial interests and any combination of them.Before forming your company, you should clearly spell out the rights and duties of your owners.Mississippi allows you to name people who are members of your limited liability company but have no governing or financial interests.
Step 2: You can choose a business name.
Check the state's business name directory to make sure the name you want isn't already in use.You can reserve your name for 180 days by filling out a name reservation form.You must include the words "Limited Liability Company" or the abbreviation "LLC" in your business name.
Step 3: You can read an authoritative summary of the statute.
Before you register your limited liability company, make sure you understand the default rules for the organization and operation of your business.If you want to change the way your business is run, you have to create an operating agreement that spells out those changes in writing.The Mississippi statute has a rule that members vote based on profit sharing.If you have a member of your company who does not take a share in the company's profits but who you want to have the ability to vote on company policies and procedures with other members, you should change this rule in your operating agreement.
Step 4: You can register online with the Mississippi Secretary of State.
You need to set up an online account to file business documents, order certificates or request certified copies.
Step 5: The certificate of formation needs to be filed with a fee.
When you file your certificate, you must pay a $50 fee.Unless specified otherwise on the certificate of formation or the operating agreement, Mississippi LLCs are automatically considered to be member-managed.
Step 6: A registered agent should be appointed.
If a Mississippi limited liability company is sued, it must have an agent in the state to accept legal papers on its behalf.The agent must have a physical street address in the state to be a registered agent.
Step 7: You have to apply for an employer identification number.
If you plan on opening financial accounts in the name of your limited liability company, you will need an EIN from the IRS.There isn't a fee to get an EIN.You can use this number the same way you use your Social Security number.You can use this number to identify the employer of your employees.
Step 8: An operating agreement can be drafted.
It is in your company's best interest to have an operating agreement.Your operating agreement defines the responsibilities, interests and liabilities of owners as well as describing the voting arrangements, structure and operation of the business.If you have one, you don't have to file it with the Secretary of State, but you should.
Step 9: An annual report should be filed.
The report must be filed with the Secretary of State.Between January 1 and April 15 is when you can file your report online.There is no fee to file an annual report if your company was formed in Mississippi.You must pay a $250 filing fee if it was formed in another state and you do business in Mississippi.Similar to the reports filed by corporations, these reports are similar.The Secretary of State takes action against companies that don't file a report.The name and address of at least one member is required in your report.
Step 10: You have to register with the Mississippi Department of Revenue.
Most limited liability companies have to register with the DOR because they collect all state taxes.If you sell goods and services, you still have to register with the DOR and pay sales tax even if you have pass-through income taxes.
Step 11: You need to register for unemployment insurance.
If you have employees in your business, you should register for unemployment insurance with the Mississippi Department of Employment Security.
Step 12: Board exams and registration are necessary.
Before a business can operate, it must be registered or certified with a licensing board.If you are opening a barber shop, you need to register with the Board of Barber Examiners.You would need to register with the Alcoholic Beverage Control Office if you opened a bar.