Should you form your corporation in Mississippi? We've collected the relevant information that will help you make this decision.
Pros
Tax rate of 3-5%
Low cost of living
Low cost of doing business
Cons
Owner disclosure in periodic report
Cost of Doing Business
$50 filing fee / $23.35 periodic report
Privacy
Owner disclosure in periodic report
Forming Your Corporation in Mississippi
The Name
In order to communicate to the public that your new business is incorporated, its official name will need to end with one of the following signifiers (or a relevant abbreviation): “incorporated”, “Company”, or “corporation.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. There are also restrictions placed on the use of terms common to the financial services industry. Do a FREE name search now.
Board of Directors Requirements
You will need to form an official board of directors when incorporating in Mississippi. Here are the states explicit regulations regarding these directors:
Required number of directors
Mississippi corporations must have at least one director listed in their incorporation documents.
Age restrictions
Directors of corporations located in Mississippi must be at least 18 years of age.
Residence restrictions
There are no residence restrictions imposed on the directors of C corporations in Mississippi. However, S corporations are only allowed to have directors located in the United States.
What information needs to be included in the Articles of Incorporation?
Mississippi does not require the names or addresses of directors to be disclosed in incorporation documents.
Requirements For the Articles of Incorporation
The Articles of Incorporation is a document that must be filed during the incorporation process in every state. Here is the information that must be included in this document when filing in Mississippi:
Stock Information
Mississippi requires the number of initial shares outstanding, and their par value, to be disclosed during the incorporation process. The number of outstanding shares does not affect initial state filing fees.
Officer Information
The state of Mississippi does not require officer information to be disclosed during the filing process.
Registered Agent Information
All Mississippi corporations must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.
Additional Mississippi Filing Requirements
Many states have steps in the incorporation process that are unique to that state. These can also vary at the municipality or county level as well. Here are the steps required throughout all of Mississippi:
Initial Report Deadlines
All corporations in Mississippi must file an initial report within six months of incorporating.
If Your Business Is a Professional Practice
Professional service corporations are permitted to form under the professional corporation (PC) structure.
Corporate Record-keeping Requirements
Corporations are required to keep formal documentation regarding several of their operations. These are the explicit record keeping formalities required by Mississippi:
A copy of the Articles of Incorporation, bylaws, and their amendments
The business address and names of all officers and directors
Meeting minutes for all shareholder and director meetings.
A copy of the corporation’s most recent annual report
Formal documentation of all shareholder agreements
Mississippi Corporate Taxation and Fee Requirements
There are several tax and fee requirements that must be addressed by corporations in Mississippi. They are as follows:
Taxation
All states have complex taxation requirements. For more information regarding taxes in Mississippi, it is advised that you visit the state’s official business related website.
Annual Report Requirements
Corporations in Mississippi are required to file an annual report before April 15th every year. The fee associated with this process is just under $25. They must also file and pay an Annual Corporate Income and Franchise Report that is due within 3 ½ months of the closing of each fiscal year. The amount due with this report is determined by the amount of capital in use inside of the state and carries a $25 minimum. Learn more about annual reports.
Tax Identification Numbers
Mississippi requires an EIN (employee identification number) for all corporations that will have employees, and most banks will require one to open accounts. Mississippi does not require corporations to obtain state tax ID numbers. Learn more about EINs.
Business License Requirements
The business licenses and permits required in Mississippi vary wildly depending on the county or municipality in which your new corporation is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.
S Corporation Election
Mississippi does not require a state-level S corp election, as they recognize any elections held at the federal level.
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