New Year, New Business Goals? How to Form a Mississippi LLC
As we near the end of the year, some of us may find ourselves thinking about what to buy the kids for Christmas, planning soup kitchen drives, preparing for visits with family, counting how many religious services must be attended between now and January 1st, looking forward to a few days of rest and relaxation, or wondering who’s cleaning up after cooking your family’s traditional New Years Day meal.
Some of you may be thinking of what comes afterwards as 2022 is ushered in, and you are actively planning out goals and committing to plans to hit the ground running in the New Year.
Well, if you’re considering starting a new business for extra income or as your full-time job (the Great Resignation is still in full swing, folks), you may wonder about the legalities of starting a business. If you’re not thinking about the legal aspects, you should!
Let’s take a look at one of the most popular business entities - everybody’s current fave - the Limited Liability Company (LLC).
LLCs appear to have become one of, if not THE, most popular legal entities in the country over the last few decades. They certainly provide some great benefits for their members (the owners/founders), including pass through taxation, limited personal liability, flexible management options, and fewer formalities than the more complex corporate entities.
But how does one form an LLC in Mississippi?
Well, you’ll need several things:
1. A Business Name – this will need to be a distinct name that is not currently in use or reserved by another registered entity (Mississippi also requires specific words or acronyms to be included in the business name);
2. A Certificate of Formation – this is a form that must be filed with the Secretary of State that contains important information about your business and its purpose;
3. A Registered Agent – the person or entity that will receive your mail in the event that your LLC is sued; and
4. A $50.00 filing fee.
What’s Required After Successful Registration with the State?
Although the State of Mississippi does not currently require that an LLC create or file an Operating Agreement, the document that governs an LLC, it is usually suggested that the members of the LLC create an Operating Agreement to help the company function in an organized manner; settle disputes among members; create succession, dissolution, and/or exit plans; etc.
Additionally, all LLCs are required to file an Annual Report with the Secretary of State. Currently, these reports can be filed between January 1st and April 15th - for free! FYI: We’ve seen those sneaky forms that are being mailed to LLCs, offering to file their Annual Reports for $75 - see the MS Secretary of State’s warning about this issue here.
Finally, just like any business, LLCs must ensure that they have all license and permits required to operate within their local area, pay all applicable taxes, and comply with all federal, state, and local laws.
So if you find yourself sketching out plans to start a new business or register your current business with the State to take advantage of some of the benefits of entities like LLCs, Limited Partnerships, or Corporations, and you need guidance and assistance, book a consultation or quick 15-minute call with us at The Law Office of Kiara A. Taite, PLLC.
We look forward to helping you get started by (1) advising you on the best entity for your goals and needs, (2) helping you register your business with the State of Mississippi, and (3) ensuring that you understand the legal side of doin’ business.
*A free tip: If you’ve formed a business entity, you should also confer with an Accountant to make sure you understand the tax implications of your new endeavor!