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Business Information & Rankings

• U.S. News and World Report’s economic ranking of the 50 states listed Mississippi 8th in the nation.
• Mississippi has been experiencing its most sustained level of economic growth ever. Over 109,000 new jobs have been created in the last five years with a total capital investment of over $19.1 billion.

Cost of Living Index

Crime Rate

Mississippi has the 25th lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Business inventory is taxed. Counties or cities may exempt products, including finished products, owned by or remaining in the hands of any manufacturer, its subsidiary, or any distributor or wholesale machinery.

Corporate Income Tax

Companies establishing or transferring regional or national headquarters to Mississippi may be eligible for five-year state income tax credits of $1,000 for each new job created and full sales tax exemptions for direct purchases of construction materials, machinery, and equipment for the headquarters facility.

Personal Income Tax
Mississippi’s personal income tax system consists of three separate brackets. The first $5,000 is taxed at 3%. The next $5,000 is taxed at 4%. A top rate of 5% starts at an income level of $10,000.

Personal Property Tax
Taxable. Most intangibles are exempt. However, Mississippi levies an intangible tax on notes with usurious (excessively high) interest.
Mississippi is one of the 38 states that collect property taxes at both the state and local levels.

State Sales and Use Tax
Base Rate: 7%
Machinery Rate: 1.5%

Reduced rates are available for the sales of manufacturing machinery and manufacturing machine parts.

Unemployment Insurance
Mississippi’s new employers’ rate is 2.7% for 3 years.

Mississippi is considered as one of the top tourism destinations in the United States and along with casino gambling has been instrumental in increasing revenues as well as economic gains for the state .These two industries have also witnessed a rise in the number of start-up companies in Mississippi especially in the resort towns of Gulfport, Bay St. Louis, and Biloxi and also in the Mississippi River towns of Greenville, Tunica Natchez, and Vicksburg. In fact, the state of Mississippi with $2.25 billion in gambling revenue is ranked sixth in the nation.

Business Growth Incentive for New Businesses

What makes Mississippi such a good destination for starting a new business? Today, Mississippi has a diverse industry base as it offers a strong transportation network and marketing advantages. Let’s look at some of the basic advantages that a start-up company in Mississippi can leverage on:

Advantage#1: The benefits of Incorporation or LLC formation

Corporation

• Tax Exemption Programs: One of the highlights of forming a corporation in Mississippi is that your business entity will be able to benefit from several tax incentives and exemption programs. The two top programs are Industrial Property Tax Exemption and Manufacturing Investment Tax Credit program.
• Independent life: When you register a new business in Mississippi as an S Corporation, it will enjoy an independent life. This means that the incapacitation or death of a stockholder will not have a negative impact on the business operations.
• Federal taxation: If you register a new company in Mississippi as an S corporation then the corporation or firm will not pay any income tax. Instead, each shareholder or owners in the company will be liable to pay tax on their personal tax return.

LLC

• Loan Programs: If you are planning to establish a startup company in Mississippi, you may require a certain amount of funding. Hence, the state has implemented several programs that will ensure you can benefit from loan amounts based on the industry, the type of business, and the location. Some of the top loan and funding programs include Capital Access Contract Loan Program, Agribusiness Enterprise Loan Program (ABE), and Minority Business Enterprise Loan Program (MBE) among others.
• Limited Liability: As an owner of a Mississippi LLC, you will be able to enjoy limited liability protection quite similar to what a corporation enjoys.
• Flexible Profit Distribution: A start-up company in Mississippi LLC has the benefit of being able to select different ways of distribution of profits unlike a partnership where the distribution is 50-50.

Advantage#2: Mississippi Business Incentives

Once you register a new company in Mississippi, there are several business incentives and programs that your company can benefit from. Let’s take a look at some of the most popular programs:

• Rural Economic Development (RED) Credits: This is a tax credit program that you can benefit from after you register a new business in Mississippi. These credits are available to those businesses that use industrial revenue bonds that have been issued by the Mississippi Business Finance Corporation (MBFC). Business entities that qualify for this tax credit program include manufacturers, data and information processing facilities, technology-intensive enterprises, distribution and warehouse facilities, and telecommunications enterprises.
• Sales and Use Tax Rebate for Tourism Projects: This is another beneficial program for businesses in the tourism industry. The program is being administered by the Mississippi Development Authority (MDA). The amount of rebate a business entity can derive is up to 80% of the amount of sales tax revenue collected from that business. Businesses that can qualify for this program include Tourist attractions like theme or water parks, Professional sports facilities, full service hotel, and much more.
• Health Care Industry Zone Incentive Program: This is a program that is targeted at a start-up company in Mississippi that is located or planning to expand in the Health Care Zones of the state. The incentive that a business can derive through this program is a 10-year state income tax depreciation deduction as well as sales tax exemption for materials and equipment.

Are there any Disadvantages of Incorporating in Mississippi?

If you register a new company in Mississippi, are there any disadvantages? When it comes to tax or forming a business in Mississippi, there are no disadvantages. The only problems that businesses might face in the state are like limited life if you form an LLC and higher registration fee if you are a foreign LLC. It is important to note that the advantages of forming a business in the state are far more than the disadvantages.

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If you have incorporated a business in Mississippi or planning to form a small business in the state then it’s time to apply for a business license. In order to operate your business in Mississippi, business licenses, permits, and other professional licenses have to be obtained. The absence of a license or permit to operate a specific business can lead to heavy penalties and in some cases, closure of the business.

There are several types of businesses that require a permit or business license in Mississippi to become operational and at the same time, all businesses don’t require licenses issued by the state. There are certain licenses or permits that are handled at the city, county, or town level. This guide will provide an insight into the process of licensing in the state of Mississippi.

How to Get a Business License in Mississippi

Where and how do you apply for a company license in Mississippi? Are permits required for your business entity? Does the business entity require a single license or multiple permits or licenses? Who is the issuing authority for these licenses or permits? The only way to answer these questions is by understanding the process of business licensing.

The following steps will help you understand how to acquire a business license in the state of Mississippi and they are:

Step#1: The Industry and Business Operation

It is extremely important to identify the industry that your business is a part of. This will help you narrow down on the type of business license you require. It will also help you determine if you require a single license, multiple licenses, permits etc. Let’s look at an example to understand how the process works.

Food Services

If you have been planning to start a business that focuses on food services then the type of Mississippi company license will depend on the type of food service you choose. In the state of Mississippi, food business can be further categorized as:

• Retail: This type of food services includes Restaurants, Fast food, Catering Services, Bakeries and doughnuts, and Coffee shops among others.
• Manufactured: This type of food services includes Food processors, Food warehouses, Food vending companies, Re-packers, and Ice plants among others.
• Cottage Food: This type of business operation focuses on specific types of foods that is made in the kitchen or your private home and sold to customers. The types of approved food include Baked goods, candy, Dry baking mixes, Chocolate-covered nonperishable food, Granola, cereal, and trail mixes among others.
• Milk and Bottled Water (MBW): This business operation focuses on milk production, and the distribution of milk as well as milk products in the state of Mississippi.

Once you have identified the area or operation of your business, you can approach the right authorities for issuance of a business license or permit.

Step#2: Issuance of License

Who is responsible for issuance of Mississippi company license? What is the annual fee? Do I need to renew it? These are some of the important aspects to consider as licenses pertaining to different industries are issued by different government authorities. Let’s look at the above “Food Service” example to clearly understand this.

Business License Issuer – Mississippi State Department of Health

Type of License and Information

• The license or permit depends on the type of food services.
• If you plan to start a retail or manufactured food service then you will not require a business license. You will be issued a permit.

License or Permit Fee

The fee for an annual food permit varies according to the risk level associated with your facility. This risk is calculated during the plan review, and the Division of Food Protection will evaluate it on a yearly basis during facility inspection. The existing fee according to risk category are:

• Risk 1: $40.00
• Risk 2: $132.25
• Risk 3: $198.00
• Risk 4: $264.50

Validity of business license in Mississippi

• The Review of a completed application can take up to 30 days.
• The licenses expire annually and the due date is different for each type of business.

At the same time, it is important to note that not all type of business licenses in Mississippi are issued by the state as some are issued by the city or county. If you were to establish an amusement park or place of amusement in Jackson, MS, you would be required to apply for a license with the “Signs and License Division” of the City of Jackson.

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Why should you set up company in Mississippi? The state has one of the best business climates as the government has kept taxes low, strengthened existing infrastructure, brought innovation and advancement to workforce training programs. Today, the top industries in the state where businesses have experienced high levels of growth include Agriculture, Manufacturing, Services(hotels, private health care, repair shops, law firms, casino gaming), and Fishing.

Why Choose Mississippi for Incorporation?

Although Mississippi is home to a variety of industries, one of the largest is the tourism industry with food services and drinking establishments, casino and non-casino hotel, and motels being the key drivers of the $395.1 million revenue in 2016. Higher business incorporation in Mississippi travel and tourism industry has also bolstered employment in the state.

Now let’s take a look at some of the salient reasons that are responsible for fuelling growth of small businesses:

• Rural Opportunity Zones (ROZ): One of the programs that businesses can benefit from post incorporation in Mississippi is the “Opportunity Zones Program”. If your business qualifies for this program then you can earn tax relief on the capital gains. You can check the designated Mississippi opportunity zones map here.
• Business Incentive Tax Credits: There are a variety of tax incentives that are available to small and medium sized enterprises after they set up company in Mississippi. These tax incentives can be categorized under the following:
  – Income tax incentives
  – Franchise tax incentives
  – Sales or Use tax incentives
  – Property tax incentives

How do you incorporate in Mississippi?

What is the process of incorporation in Mississippi? What type of documentation is required? These are some of the common questions that you will be confronted with if you are planning to start a new business in the state. The following steps will enable understanding of the entire process:

Business Type

The first step towards incorporation in Mississippi is choosing the type of business you want to form. You can form different types of businesses in the state including Limited Liability Companies, C and S Corporations, General Partnership (GP), Limited Partnership (LP), and Limited Liability Partnership (LLP). If you choose to form an LLC or a Corporation then you need to identify if it will be a domestic or foreign entity. The forms and fee will be different for each type of entity.

Business Entity Name

One of the most important steps towards incorporation in Mississippi is naming your business entity. You have to start by identifying, searching, reserving, or registering the business entity name. There are 3 steps towards business name formation and they are:

• Naming Requirements: According to MS Code § 79-29-109 (2013) for LLC and MS Code § 79-4-4.01 (2013) for a business corporation, the name should contain the words “limited liability company”, “corporation”, “incorporated” or abbreviation like “LLC. “, “corp.”, and “inc.” The names should be distinguishable from existing names.
• Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
• Name Reservation: Once you have identified a business entity name, you have to reserve the name pursuant to MS Code § 79-4-4.02 (2013) for corporations and MS Code § 79-29-111 (2013) for a limited liability company. The name can be reserved for a period of 180 days.

Choose a Registered Agent

Whether you form a corporation or an LLC business entity, in order to transact business in the state of Mississippi, you will have to maintain a registered agent pursuant to MS Code § 79-4-5.01 (2013) and MS Code § 79-29-113 (2013). We are one of the respected registered agents in Mississippi and will be responsible for initiating incorporation in Mississippi through processing of your “Articles of Incorporation” for domestic entities and “Certificate of Authority” for foreign business entities.

Articles of Incorporation and Certificate of Authority

You will be required to submit “Articles of Incorporation” if your business is a domestic corporation and a “Certificate of Authority” if it is a foreign business entity. In order to streamline the process of incorporation in Mississippi, we can file documents on your behalf through the online process or through an expedited process.

Date Stamped Copies

As a part of the process of company incorporation in Mississippi, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.

Costs and Fees associated with Mississippi Incorporation

What would it cost to set up a company in Mississippi? Check Fees here!

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