Learning how to start a business in Mississippi is straightforward—as long as you have the right guidance and preparation. The Magnolia State offers entrepreneurs a welcoming environment with relatively low startup costs and easy registration processes.

Whether you’re planning to launch a retail store in Gulfport, open a restaurant in Hattiesburg or start an online business from your home in Tupelo, this guide breaks down the process into 10 manageable steps. 

Who Needs to Register Their Business in Mississippi?

In Mississippi, most businesses must register with the Secretary of State’s office to operate legally within the state. This requirement applies to a wide range of business structures, including corporations, limited liability companies (LLCs) and limited partnerships. Registration helps establish your business as a legal entity and ensures compliance with state regulations.

If you’re planning to conduct business under a name that differs from your personal legal name, you’ll need to file for a “Doing Business As” (DBA) registration. This applies to sole proprietorships and other businesses using trade names, ensuring that customers, vendors and the state can properly identify your business. Even sole proprietors who operate under their own names should consider registration if they want to access business banking, protect their brand, or establish credibility.

Registering your business is a crucial step in formalizing your operations, protecting your name, and building a solid foundation for future success.

How to Register a Business in Mississippi

Staying organized is key to navigating the process of registering your business smoothly. From choosing a business structure to filing the necessary paperwork, understanding what’s required ahead of time will help you avoid delays and ensure compliance. Follow these 10 steps to set your business up for success in Mississippi:

Step 1: Choose Your Business Structure  

The first step in registering a business in Mississippi is deciding on the legal structure that best suits your needs. You can choose from several options, including sole proprietorship, limited liability company (LLC), corporation or partnership. Your business structure will affect your taxes, liability and other legal obligations, so it’s important to make an informed decision. You may want to consult an attorney for guidance.

Step 2: Choose Your Business Name  

Once you’ve chosen a business structure, the next step is to select a unique name for your business. The name must be distinguishable from other registered businesses in Mississippi, especially for LLCs and corporations. 

You can check for name availability through the Mississippi Secretary of State’s online business search tool. If you plan to operate under a different name than your legal business name, you will also need to register a “Doing Business As” (DBA) name.

Step 3: Register Your Business Entity  

After choosing your business name, you must file the appropriate formation documents with the Mississippi Secretary of State. For an LLC, you will file “Articles of Organization,” while a corporation will require the filing of “Articles of Incorporation.” These can be completed online via the Secretary of State’s website. Sole proprietorships and partnerships generally do not need to file formation documents with the state unless they are using a trade name (DBA).

Step 4: File for a DBA Name (if applicable)  

If you are operating your business under a name other than your legal business name, you will need to file for a DBA (Doing Business As) name. This step is important for sole proprietors or partnerships using a business name that differs from the owner’s personal name because it establishes the legal identity of the business. Registering the business name ensures transparency for customers, vendors, and regulatory authorities, making it easier to identify who is behind the business. Additionally, it helps protect the name from being used by other businesses in the same jurisdiction and is often a requirement for opening a business bank account, signing contracts, or applying for licenses and permits.

You can file for a DBA name with the Secretary of State, and it’s recommended to check if the name is already in use before submitting your application.

Step 5: Register for state taxes  

Next, you will need to register for the relevant state taxes with the Mississippi Department of Revenue. This step is required for most businesses and includes registering for sales tax if you are selling taxable goods or services, registering for withholding tax if you have employees, and other taxes depending on your business type. It’s important to stay compliant with all state tax requirements to avoid penalties.

Step 6: Obtain Necessary Permits and Licenses  

Depending on your industry, you may need to obtain specific permits or licenses to operate legally in Mississippi. Common industries requiring special permits include healthcare, food service and construction. 

Be sure to check both state and local regulations to ensure your business is compliant. Local city or county governments may have additional requirements, so it’s a good idea to contact them as well.

Step 7: Get an Employer Identification Number (EIN)  

If your business is structured as a corporation, LLC or partnership—or if you plan to hire employees, you will need to apply for an Employer Identification Number (EIN) from the IRS. This number is used for tax purposes and is required for most business entities. You can apply for an EIN through the IRS website.

Step 8: Register for Workers’ Compensation Insurance (if applicable)  

If your business has employees, you are required to carry workers’ compensation insurance in Mississippi. This insurance protects employees in case of work-related injuries or illnesses. 

Step 9: Open a Business Bank Account  

Once your business is legally registered, it’s important to open a business bank account. This helps keep your personal and business finances separate, which is crucial for tax reporting and legal protection. 

Consider North One as a digital-first business banking option—it’s a great choice for entrepreneurs and small businesses. North One has no monthly fees for basic accounts and offers mobile banking and integration with other business tools. It’s ideal for those who prefer a straightforward, online solution to manage business finances.

Step 10: Comply with ongoing requirements  

After your business is up and running, there are ongoing requirements to stay compliant with Mississippi law. This includes filing annual reports with the Secretary of State, paying business taxes, and renewing any required licenses or permits. Make sure to stay organized and maintain good standing by meeting these obligations every year.

Getting your Mississippi business off the ground

Understanding how to start a business in Mississippi is just the beginning of your entrepreneurial journey. While the process involves multiple steps—from choosing your business structure to maintaining ongoing compliance—Mississippi’s business-friendly environment makes it possible for determined entrepreneurs to succeed. By following these ten steps and staying informed about your obligations, you’ll build a solid foundation for your business. 

Remember: resources like local chambers of commerce and the Mississippi Small Business Development Center are available to support you. And, of course, North One is standing by to make sure you have the small business banking tools necessary to succeed in your venture!

FAQs About Starting a Business in Mississippi

How much does it cost to start a business in Mississippi?

The cost of starting a business in Mississippi can vary depending on the type of business and the specific requirements. Some of the basic fees include:

  • LLC filing fee: The filing fee for Articles of Organization to form an LLC is $50.
  • Corporation filing fee: Filing Articles of Incorporation for a corporation costs $50 for standard processing.
  • DBA registration: If you’re filing for a “Doing Business As” (DBA) name, the fee is typically $25.
  • Business license fees: These fees vary based on your business location and type, ranging from $25 to several hundred dollars.
  • State tax registration fees: Registering for sales tax or other state taxes is typically free, though some industries may require additional licenses or permits, which could involve additional costs.

Other costs, such as setting up a business bank account, purchasing insurance or obtaining professional licenses, may also be required depending on the nature of your business.

What do I need to start a business in Mississippi?

To start a business in Mississippi, you will need a unique name, an EIN, permits and licenses (depending on your business type) and a business bank account. You may also need business insurance, including workers’ compensation and general liability insurance.

Can you run a business out of your home in Mississippi?

Yes, you can run a business out of your home in Mississippi, but there are several factors to consider. If you’re running a home-based business, you should:

  • Check local zoning laws: Some cities or counties have zoning restrictions that limit or regulate home-based businesses. Make sure your business complies with these local laws.
  • Consider permits: Certain types of home businesses, such as those involving food production, may require additional permits.
  • Homeowner’s Association (HOA) rules: If you live in a community with an HOA, you should review their rules to ensure your business activities are allowed.
  • Tax implications: Running a business from home may entitle you to deductions on your taxes, such as a home office deduction. Consult a tax professional for guidance.