How to Start a Business in Mississippi

Mississippi offers six ways of forming your business, which we cover in detail below. Review these closely and pick the one that fits your business best.

Once you've found a brandable business name, you'll need to determine whether it's available. Start by checking the Mississippi Secretary of State (SOS) website to ascertain whether your name, or close variations thereof, has been claimed by another business in the state.

Once you've established that your name is original, you can go ahead and file a name reservation. You can do this as early as six months prior to registering your business.

Nearly all businesses will need to register for federal taxes by applying for an employer identification number. There are three main filing options: electronic, fax, and mail. International applicants can apply by phoning the Internal Revenue Service (IRS).

Those wanting to start a sole proprietorship or general partnership need not file formation documents. However, all other recognized business types must be registered with the state.

Unlike many states where online registration is optional, the Mississippi SOS requests that all business registration and relevant documentation be submitted via their online portal. To do this, you'll need to create a Mississippi Online Business Services account.

Once you've created your Online Business Services account, you can proceed to register your entity with the state.

Most, but not all, businesses that sell products must register for a sales tax permit and number. Certain service providers must do so, too. Each location of the business must have its own permit.

Many professions are also regulated at the state level. Regulated businesses include:

• Auctioneers.
• Automobile dealers.
• Barbers.
• Chiropractors.
• Massage Therapists.
• Pharmacists.
• Physicians.

You can register almost all of your new business tax accounts using the Department of Revenue's (DOR) Taxpayer Access Point (TAP). Start off by registering your business as a new tax-paying entity.

Every corporation, association, or entity that conducts business, earns revenue, or simply exists in Mississippi is required to register for corporate income and franchise tax, regardless of whether they are active or not.

Businesses that employ staff must withhold personal income tax. To do so, they need to register for a withholding tax account with the DOR.

Businesses that have employees must also register for unemployment insurance (UI) tax through the Mississippi Department of Employment Security (MDES). Current rates vary between 0.2 and 5.4% depending on business-related factors.

You are required by law to report newly hired and rehired temporary and permanent employees to the state directory within 15 days. This even applies to people who work for one day and are terminated before fulfilling the new hire reporting requirement.

Note that independent contractors do not need to be reported.

Federal and state laws dictate that employers need to display numerous employment-related posters in their place of work. These include:

• An unemployment insurance poster.
• A Mississippi workers' compensation poster.

Some businesses may also be required to display the:

• Job safety and health protection poster.
• Equal employment opportunity posters.
• Fair Labor Standards Act (FLSA) minimum wage poster.
• Employee rights for workers with disabilities/special minimum wage poster.
• Family and Medical Leave Act (FMLA) poster.
• "Your rights under USERRA: The Uniformed Services Employment and Reemployment Act" poster.
• Davis-Bacon poster.
• Employee rights on government contracts poster (WH 1313 SCA).
• Employee Polygraph Protection Act (EPPA) poster.
• Migrant and Seasonal Agricultural Worker Protection Act (MSPA) poster.

Links to these posters are available on mdes.ms.gov. Be sure to contact the US Department of Labor for clarity on these and other compliance requirements.