By Jake Lawson, LLC Formation Strategist
Mississippi offers one of the most entrepreneur-friendly LLC cost structures in the country. After helping over 1,200 business owners navigate LLC formations across all 50 states, I can tell you that Mississippi’s $50 filing fee and $0 annual report requirement make it exceptionally affordable for small businesses.
But here’s what most cost guides miss: the real value isn’t just in Mississippi’s low fees—it’s in their streamlined system that eliminates many of the hidden costs and complications you’ll find in other states.
Let me break down every Mississippi LLC cost you’ll encounter, plus my proven strategies for minimizing expenses while maximizing your business protection.
Mississippi LLC Costs at a Glance
Here’s what you’re actually looking at for Mississippi LLC expenses:
| Requirement | Cost | Frequency |
| Certificate of Formation | $50 | One-time |
| Name Search/Reservation | $0 | Optional |
| Registered Agent | $0-$125/year | Annual |
| Operating Agreement | $0 (with our template) | One-time |
| EIN Number | $0 (direct from IRS) | One-time |
| Annual Report | $0 | Annual |
| DBA/Trade Name | $25 | Optional |
| Total Minimum Cost | $50 | One-time |
Jake’s bottom line: Mississippi lets you form a legitimate LLC for just $50. That’s it. No hidden fees, no mandatory ongoing costs, no surprise requirements.
Breaking Down Mississippi’s Required Costs
Certificate of Formation: $50 (One-Time)
This is Mississippi’s only mandatory LLC formation cost. The Certificate of Formation creates your LLC’s legal existence and must be filed with the Mississippi Secretary of State.
What this fee covers:
- Processing your LLC formation documents
- Reserving your business name
- Creating your legal entity
- Issuing your Certificate of Formation
Jake’s perspective: At $50, Mississippi has one of the lowest formation fees in the nation. Compare this to California ($70), New York ($200), or Massachusetts ($520), and you’ll appreciate Mississippi’s entrepreneur-friendly approach.
Payment options:
- Online filing (recommended): Immediate processing
- Mail filing: Check or money order payable to “Mississippi Secretary of State”
Mississippi Annual Report: $0 (Annual)
Here’s where Mississippi really shines—their annual report is completely free. You just need to confirm your LLC’s information is current and file the report.
What’s required:
- Confirm business address
- Update registered agent information
- Verify member/manager details
- Submit by the required deadline
Jake’s take: Most states charge $25-$300 for annual reports. Mississippi’s $0 fee saves you hundreds over your LLC’s lifetime. This alone makes Mississippi incredibly cost-effective for long-term business operations.
Optional Costs That Most LLCs Need
Registered Agent: $0-$125/Year
Every Mississippi LLC must have a registered agent, but you have cost-effective options:
Option 1: Be Your Own Registered Agent ($0) Requirements:
- Mississippi street address (no P.O. boxes)
- Available during business hours (8am-5pm)
- Comfortable receiving legal documents
When this works:
- You have a reliable Mississippi address
- You’ll be available during business hours
- You don’t mind your address being public record
Option 2: Friend/Family Member ($0) Requirements:
- Must have Mississippi address
- Must be available during business hours
- Must be reliable long-term
Option 3: Professional Registered Agent Service ($100-$125/year) Benefits:
- Privacy protection (your address stays private)
- Professional handling of legal documents
- Backup if you’re traveling or unavailable
- Often includes additional business services
Jake’s recommendation: For most small businesses, professional registered agent service is worth the cost. At $100-125 annually, it provides valuable privacy and peace of mind.
Top service: Northwest Registered Agent offers excellent service at competitive rates and includes a free first year when they form your LLC.
Operating Agreement: $0 (With Smart Planning)
Mississippi doesn’t require operating agreements, but you absolutely should have one.
Why you need an operating agreement:
- Protects your LLC’s liability shield
- Defines ownership and management structure
- Prevents costly disputes between members
- Required by most banks for business accounts
Cost options:
- DIY with templates: $0 (we provide free templates)
- Online legal services: $50-$200
- Attorney-drafted: $800-$2,500
Jake’s strategy: Start with a solid template for simple LLCs, then upgrade to attorney-drafted agreements as your business grows or becomes more complex.
EIN (Federal Tax ID): $0 (If You Do It Right)
Every LLC needs an EIN, but many entrepreneurs get scammed into paying for this free service.
The right way (free):
- Apply directly through IRS.gov
- Takes 10-15 minutes online
- Receive your EIN immediately
The wrong way (expensive):
- Third-party services charging $50-$300
- Unnecessary complications and delays
- No additional benefit over direct IRS application
Jake’s warning: Avoid “EIN services” that charge fees. The IRS provides this service free, and it’s straightforward to do yourself.
Truly Optional Costs
DBA/Trade Name: $25
A DBA (Doing Business As) lets your LLC operate under a different name than its legal name.
When you might need a DBA:
- Your legal name is “Johnson Business Consulting LLC” but you want to market as “JBC Consulting”
- You want to operate multiple brands under one LLC
- You want to use a simpler version of your legal name
Cost: $25 filing fee with Mississippi Secretary of State
Jake’s advice: Don’t file a DBA unless you have a specific need. Many entrepreneurs think they need one but actually don’t.
Name Reservation: $0 (Usually Unnecessary)
Mississippi offers name reservations, but I rarely recommend them.
Why most entrepreneurs don’t need name reservations:
- You can check name availability for free online
- You can file your Certificate of Formation immediately after confirming availability
- Name reservations add unnecessary steps and potential delays
When name reservations might make sense:
- You’re forming an LLC months in advance
- You’re coordinating multiple business entity formations
- You want to lock in a name while preparing complex documentation
Business License and Permit Costs: Highly Variable
This is where costs become impossible to predict because they depend on your specific business activities and location.
State-Level Licenses
Common examples:
- Professional licenses (varies by profession)
- Sales tax permits (usually free)
- Industry-specific permits (varies widely)
Local Licenses
Municipality-dependent:
- General business licenses: $25-$200
- Industry-specific permits: $50-$500+
- Zoning compliance: Varies by location
Jake’s research strategy:
- Contact your city hall about business license requirements
- Check with your county clerk’s office
- Research state-level requirements for your industry
- Budget $100-$300 for initial licensing (conservative estimate)
Tax Costs: The Ongoing Reality
Mississippi LLCs face several tax obligations, but costs vary dramatically based on your business:
Federal Taxes
- Self-employment tax: 15.3% on business profits
- Income tax: Based on your total income and tax bracket
Mississippi State Taxes
- Income tax: 0%-5% depending on income level
- Sales tax: 7% base rate (if selling products)
- Property tax: If your LLC owns real estate
Professional Tax Help
- Basic tax prep: $300-$500 annually
- Complex returns: $500-$900 annually
- Year-round consulting: $1,000-$3,000 annually
Jake’s tax strategy: Start with basic tax prep software or simple professional help, then upgrade to more comprehensive services as your business grows.
Money-Saving Strategies I Use With Clients
The Bare Minimum Approach: $50 Total
- File Certificate of Formation yourself ($50)
- Serve as your own registered agent ($0)
- Use free operating agreement template ($0)
- Get EIN directly from IRS ($0)
- Research business licenses yourself ($0 for research)
When this works: Simple, single-member LLCs with straightforward operations
The Smart Value Approach: $175-$200 Total
- File Certificate of Formation yourself ($50)
- Hire professional registered agent ($125/year)
- Use quality operating agreement template ($0-$50)
- Get EIN directly from IRS ($0)
- Basic license research ($0-$25)
When this works: Most small businesses wanting professional touches without excessive costs
The Full-Service Approach: $300-$500 Total
- Hire formation service ($100-$200 + $50 state fee)
- Professional registered agent included
- Attorney-reviewed operating agreement ($100-$200)
- EIN application included
- Basic license consultation included
When this works: Complex LLCs, multiple members, or entrepreneurs who value comprehensive service
Comparing Mississippi to Other States
Mississippi’s advantages:
- $50 formation fee vs. $520 in Massachusetts
- $0 annual report vs. $300+ in some states
- Simple requirements vs. complex compliance in states like California
- Fast processing times vs. months-long waits elsewhere
What Mississippi lacks:
- Delaware’s legal precedent advantages
- Wyoming’s strong privacy protections
- Nevada’s tax benefits for certain businesses
Jake’s verdict: If you live and do business in Mississippi, it’s an excellent state for LLC formation. Don’t get lured by out-of-state marketing—form where you do business.
Common Cost Mistakes to Avoid
Mistake 1: Paying for “Name Availability Checks”
Mississippi provides free name search tools. Don’t pay services for this basic research.
Mistake 2: Expensive EIN Services
The IRS provides EINs free. Avoid services charging $50-$300 for this simple application.
Mistake 3: Over-Lawyering Simple LLCs
Not every LLC needs a $2,000 operating agreement. Match your legal costs to your business complexity.
Mistake 4: Ignoring License Requirements
While researching licenses is free, operating without required licenses can result in expensive fines.
Mistake 5: Out-of-State Formation Schemes
Forming in Delaware or Wyoming while doing business in Mississippi typically increases costs and complexity without benefits.
Budgeting for Your Mississippi LLC
Year One Budget (Conservative)
- Certificate of Formation: $50
- Registered agent service: $125
- Operating agreement: $0-$100
- Business licenses: $100-$300
- Professional tax prep: $300-$500
- Total: $575-$1,075
Ongoing Annual Costs
- Annual report: $0
- Registered agent: $125
- License renewals: $50-$200
- Tax preparation: $300-$500
- Total: $475-$825 annually
The Bottom Line on Mississippi LLC Costs
Mississippi offers exceptional value for LLC formation and maintenance. At just $50 to start and $0 for annual reports, it’s one of the most cost-effective states for business entities.
Key cost principles:
- Start lean: The $50 minimum is sufficient for many simple LLCs
- Invest strategically: Professional registered agent service provides excellent value
- Avoid scams: Get your EIN free from the IRS
- Research thoroughly: License requirements vary but research is free
- Plan for growth: Start simple but be prepared to upgrade services as needed
Remember: The cheapest option isn’t always the best value. Balance cost savings with the professional services and legal protections your business actually needs.
Mississippi’s business-friendly approach extends beyond just low costs—they’ve created a system that’s both affordable and efficient. Take advantage of their entrepreneur-friendly environment while building a solid foundation for your business success.
Jake Lawson is an LLC Formation Strategist and Tax Advisor who has successfully helped over 1,200 entrepreneurs navigate business formation costs across all 50 states. He specializes in creating cost-effective formation strategies that provide maximum protection at reasonable prices and provides unbiased reviews of formation services at llciyo.com.