Forming an LLC in Mississippi costs $50 to file the Certificate of Formation with the Mississippi Secretary of State, with online approval through the Business Services portal in 1–2 business days. The annual report is free ($0 fee — informational only) and due by April 15 each year for in-state LLCs. Mississippi has no LLC franchise tax for pass-through entities, and the state is on a glide path to phase out its individual income tax entirely — currently a flat 4.4% (dropping toward 3% by 2030, with a stated long-term goal of 0%). Mississippi's economy is anchored by automotive manufacturing (Toyota in Blue Springs, Nissan in Canton), shipbuilding (Ingalls in Pascagoula is the largest shipbuilding employer in the state), agriculture, and forestry. For founders relocating to a low-cost-of-living, low-tax state, Mississippi is one of the most cost-efficient options in the country.
How much does a Mississippi LLC cost?
Mississippi keeps LLC costs refreshingly low. Budget $50 for the state filing fee — that is your only mandatory expense to get started, and the Secretary of State processes it in 5-7 business days. If you hire a registered agent service rather than serving as your own, add roughly $149 per year, bringing your true Year 1 cost to around $199. The good news for long-term planning: Mississippi imposes no annual report fee, which means no recurring state charge eating into your bottom line each year. Unlike California (which hits LLCs with an $800 annual franchise tax), New York (which mandates a costly publication requirement), or Tennessee (which charges $300 per year), Mississippi simply leaves you alone after formation. Over five years, even with a registered agent, your cumulative total stays around $646 — one of the lowest ongoing cost structures in the country.
Why form your LLC in Mississippi
Auto manufacturing (Toyota, Nissan), agriculture, and shipbuilding (Ingalls). Filing and maintenance costs are among the lowest in the country.
- Free annual report ($0 fee — informational only)
- Cheap $50 filing fee, fast 1–2 business day approval
- Flat 4.4% income tax (and falling toward 3% by 2030)
- No LLC franchise tax for pass-through entities
- Major auto manufacturing (Toyota, Nissan)
- Largest shipbuilding employer in the U.S. (Ingalls)
Best fit for: Automotive manufacturing · Shipbuilding · Agriculture & forestry
Don’t want to file yourself? Northwest Registered Agent files your Mississippi LLC for $39 + state fee and acts as your registered agent the first year free.
How to form a Mississippi LLC in 7 steps
- 1Search the Mississippi business name database
Use the Mississippi Secretary of State Business Services portal to search names. The name must include "Limited Liability Company", "L.L.C.", or "LLC". Reserve a name for $25 (held 180 days) if needed.
- 2Appoint a Mississippi registered agent
Required to have a physical Mississippi street address. Can be the LLC owner if they're a Mississippi resident, or a commercial registered agent service.
- 3File the Certificate of Formation
File online through the Mississippi SOS Business Services portal for $50. Standard processing is 1–2 business days. The Certificate includes LLC name, registered agent, principal office, mailing address, and management structure.
- 4Draft an Operating Agreement
Not required by Mississippi law but strongly recommended. Defines membership interests, voting, profit/loss splits, and dissolution. Banks routinely ask for it.
- 5Apply for an EIN with the IRS
Free at irs.gov, takes 10 minutes online. Required for opening a business bank account, registering with the Mississippi Department of Revenue, and filing federal taxes.
- 6Register with the Mississippi Department of Revenue (DOR)
Register through Mississippi Taxpayer Access Point (TAP) for sales and use tax (if you sell taxable goods/services), withholding tax (if you have employees), and any industry-specific accounts.
- 7Calendar the annual report
Mississippi LLC annual reports are due by April 15 each year. The fee is $0 for domestic (in-state) LLCs (foreign LLCs pay $250). File through the Business Services portal. Failing to file leads to administrative dissolution.
File directly with Mississippi Secretary of State →
Mississippi LLC taxes & compliance
Mississippi is on a glide path to phase out its individual income tax entirely (target: 3% by 2030, with a goal of 0%). Combined with $0 annual reports, it’s one of the cheapest states to operate.
Ongoing compliance checklist
- Annual report — $0 for domestic LLCs, due April 15
- No franchise tax for pass-through LLCs
- Sales and use tax filings (Mississippi DOR)
- Withholding tax filings if you have MS employees
- Federal income tax (Form 1065 multi-member, Schedule C SMLLC)
Registered agent rules
Required — MS street address.
Hidden costs new Mississippi LLC owners forget
- Combined sales tax: 7% statewide + 1% in some cities (averaging 7.07%)
- Foreign LLC qualification: $250
- Local privilege tax in some cities
- Industry-specific state licenses (alcohol, gaming, etc.)
- Late annual report: $25 reinstatement fee
- Property tax can be material in some counties
Should you use a formation service in Mississippi?
You can absolutely file directly with the Mississippi Secretary of State for the $50 state fee. The reasons most Mississippi owners use a service anyway are (1) registered-agent privacy — keeping their home address off public filings — and (2) calendar reminders for ongoing compliance.
Have Northwest form your Mississippi LLC for $39 + state fee
Free registered agent for the first year. Real human support. Privacy-by-default — your home address stays off public filings.
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See the real 5-year cost of a Mississippi LLC
Filing fee · registered agent · annual report · franchise tax — all calculated, year by year.
Open cost calculator for Mississippi →Mississippi's rare LLC perk: no annual report, ever
Mississippi is one of a handful of states that imposes no annual report requirement on LLCs — there is no recurring state filing, no renewal fee, and no deadline to miss after your initial $50 formation. This distinguishes it sharply from neighboring states: Alabama charges $50 per year for its annual report, Louisiana imposes a $35 annual report plus a $30 franchise tax minimum on LLCs, and Arkansas charges $150 per year. Mississippi LLCs also face no state franchise tax, unlike corporations organized in the state, which owe a franchise tax of $2.50 per $1,000 of capital. On the income side, Mississippi is actively phasing out its individual income tax — the rate dropped to 4% in 2025 and is scheduled to reach 0% by 2030 — meaning single-member LLC pass-through income will eventually face zero state income tax. Combined with no self-employment income surtax at the state level, Mississippi quietly offers one of the cheapest long-term LLC operating environments in the South for service businesses, e-commerce operators, and sole practitioners whose primary nexus is in-state.
Year 1: $50 (state filing fee) + $149 (registered agent) + $0 (annual report — none required) = $199 total. Year 5 cumulative: $50 (one-time filing) + $149 x 5 (registered agent) = approximately $795 total over five years. No franchise tax, no recurring state LLC fees of any kind beyond keeping a registered agent.
Because Mississippi requires no annual report, owners assume there are no ongoing state obligations at all and let their registered agent lapse. Mississippi law requires every LLC to maintain a registered agent with a physical in-state address at all times. Dropping the agent without appointing a replacement triggers administrative dissolution — and reinstatement requires a separate filing plus a $50 fee, wiping out the savings from skipping annual reports.
Mississippi LLC: frequently asked questions
How much does it cost to start an LLC in Mississippi?
Mississippi Secretary of State charges $50 to file the Certificate of Formation. The annual report is free ($0) for domestic LLCs. Realistic year-one cost: $50. Ongoing yearly cost: $0 in state fees — making Mississippi one of the cheapest states to maintain an LLC.
How long does it take to form an LLC in Mississippi?
Online filings through the Mississippi SOS Business Services portal approve in 1–2 business days. Mail filings take 5–7 business days. Mississippi does not offer a separate paid expedited tier — online is fastest.
Does Mississippi have an LLC annual report fee?
No fee for domestic (in-state) Mississippi LLCs — the annual report is free, just informational. Foreign (out-of-state) LLCs registered in Mississippi pay $250 annually. The report is due by April 15 each year.
Does Mississippi have an LLC franchise tax?
No franchise tax for pass-through LLCs. Owners pay personal income tax on their share of LLC profits — Mississippi's flat 4.4% (dropping further). LLCs that elect C-corp taxation are subject to Mississippi's corporate franchise tax.
When is the Mississippi LLC annual report due?
April 15 each year. The fee is $0 for domestic LLCs. File through the Mississippi SOS Business Services portal. LLCs that fail to file for an extended period are administratively dissolved.
What's Mississippi's LLC tax rate?
Mississippi has a flat 4.4% individual income tax in 2025, with scheduled phase-down toward 3% by 2030 (and a stated long-term goal of eliminating the income tax entirely). Sales tax is 7% statewide. LLCs taxed as pass-through don't owe state-level entity tax.
Can a non-resident form an LLC in Mississippi?
Yes. Mississippi has no residency requirement for LLC members or managers. You only need a Mississippi-based registered agent. Out-of-state owners commonly use a commercial registered agent service.
Is Mississippi a good state to form an LLC?
Yes — particularly for Mississippi residents and businesses tied to automotive manufacturing, shipbuilding, agriculture, or forestry. The combination of $50 filing, $0 annual report, falling income tax, and no franchise tax makes Mississippi exceptionally cost-efficient. The phase-down toward a 0% income tax over time makes Mississippi increasingly attractive.