How to Start a Business in Mississippi | Rules & Regulations

To start a business in Mississippi, you’ll need to decide on a business idea. Then, choose the best legal structure and business name.

Afterward, there are various licenses and permits that you need to get and other actions you need to take to make your dream of owning a business in Mississippi a reality.

If you’re ready to start, let’s take a rundown of all you need to know about starting a business in Mississippi in 2023.

How to Choose a Business Idea?

The first part of starting a business is deciding what exact business you want to venture into. Sometimes, it might not be as easy as ABC.

This could be that you have lots of ideas popping up in your mind, all at the same time. Or maybe you can’t figure out what to do at the time. Whatever your situation, let’s look at a few key self-assessment questions to answer:

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1. What Do I Enjoy Doing?

There must be something you enjoy doing that you can build a business around. It could be that you enjoy talking to people, filming, writing, working with your hands, or speaking on a stage.

2. What are My Interests?

Interests are things you like to be involved in. You could enjoy working with animals and children, driving, gardening, or reading.

3. What Skills Do I Have?

List the skills you have learned and mastered or that come naturally to you. Don’t worry if there are lots of them or if they’re just a few.

Note

Answering the above questions will help you draft business ideas that match your personality, interest, and skills.

Bringing together a couple of different skills and interests could help you develop the best business ideas. And it doesn’t have to be one.

Once you’ve come up with business ideas, then you can rank these ideas. Below, you’ll see three main factors that can serve as criteria to rate the viability of your business idea:

4. Is My Business Viable?

To determine if your business is viable, think through the questions below:

The Value of Your Business Idea: How much value will it provide to people?
Your Level of Excitement: how excited are you to embark on this business? You can rate your excitement by your level of excitement, say, on a scale of 1 to 10.
How much interest you expect other people to have in your business: your business should be based on what other people actually want in other to make money. And finally, imagine what a day will look like running each of the businesses you’ve come up with. And ask yourself if that is something you are willing to do in the long term.

5. What Type and Structure of Business Do I Want?

Once you’ve decided on the specific business idea to embark on, it’s essential to determine what category it should fall under and the business structure you want to adopt. The following is a list of 3 business structures you might want to consider:

Product: (Businesses that sell products (grocery stores, merchandise, etc.)
Service: (e.g., Hair salon, cleaning services, education, etc.)
Digital product: (e.g., Streaming service, online course, etc.)

After determining the type of business, you want to run and the structure it should take, the next step is to set up and start. With that in mind, let’s take a look at what business licenses you’ll need to secure to start a business in Mississippi.

What Business Licenses are Needed in Mississippi?

To start a business in Mississippi, you may need licenses and permits from several, city, county, state and several agencies.

The following is a breakdown of the most common licenses you may require to start a business in Mississippi.

Employer Identification Number (EIN)

This is the first registration you might get when starting your business. You will get this from the Internal Revenue Service (IRS).

The EIN is a unique identification number for businesses and works just like a social security number for individuals.

Local Business License

Some municipalities at the local level may require a license or tax certificate to operate. You can visit the various counties and cities to learn more about the requirement.

Some of the permits you may be required to get from your city or county building include the following:

Business Licenses / Tax Permits
Building Permits
Health Permits
Occupational Permit
Signage Permits
Alarm Permits
Zoning Permits
Alcohol & Tobacco Permits

Sales Tax Permit

Mississippi businesses that sell tangible, personal property, tobacco, and alcoholic beverages, must have a sales tax registration license or permit from the Department of Revenue.

Generally, if your business operates in Mississippi, you need to register for one or more tax-specific identification numbers, licenses, or permits. This includes income tax withholding, sales and use tax (seller’s permit, and unemployment insurance tax.

You can check the Business Information segment on the Mississippi website for detail of all the taxes.

However, you’ll need to contact them or seek the services of a professional to guide you through the permits and taxes required for your business.

Professional License

You likely need a license from the state to perform professional services if your business offers such services. The state requires licenses for many professionals, such as contractors, therapists, tattoo operators, attorneys, massage therapists, and many others.

Best Business Ideas to Start in Mississippi | 2023

Mississippi is well-known for its low corporate tax rate; offers a stable environment for company economics. The number one industry for the state is agriculture, employing approximately 17.4% of the state’s workforce either directly or indirectly.

Real estate
Social Media Consulting
Senior care services
Home improvement contracting business
Consulting business
Healthy fast food
IT Firm
Beauty salon
E-commerce store
Landscaping business
Digital marketing agency
Cleaning agency

How to Start a Business in Mississippi: List of Activities

How to start a business in Mississippi: easy steps

1. Choose a Business Idea
Choose a Legal Structure
2. Choose a Business Name
3. Register Your Business With the Secretary of State
4. Register for a Tax Number
5. Open a Business Account
6. Obtain Business Permits & Licenses
Find a Business Location and Check the Zoning
7. Get Insurance
8. Finalize Legal Documents

How to Market Your New Business in Mississippi

It would be best if you embraced both online and offline marketing tactics to create awareness about your business. Some of the tactics you can apply are:

Design and share colorful Business Cards.
Carry out low-cost newspaper ads in schools, colleges, etc.
Organize media giveaways.
Distribute flyers and pamphlets in strategic places.
Participate in community engagement.
Attend vendor trade shows and small business expos.

Conclusion

If you want to start a business in Mississippi, there are some cons and pros to consider. First, the state of Mississippi offers a year-after-year low cost of living. And this is an essential factor as inflation rates soar.

In addition, the state’s new tax cut postulates that residents will pay a flat 4% tax on income above %4,000 per year.

According to the U.S. Labor Department, this state is also improving its workforce as it is now one of America’s best records in getting workers from its training programs into jobs.

One major disadvantage of doing business in Mississippi is that it is said to have a worker shortage and is also America’s least educated and least productive worker. This means you may need to plan ahead about how to get the right workforce when starting your business in Mississippi.

FAQs

Is Mississippi a Good State to Start a Business?

One of the pros of starting a business in Mississippi is that it offers a low cost of living year after year. And this is an essential factor as inflation rates soar.

In addition, the state’s new tax cut proposes that residents pay a flat 4% tax on income above $4,000 per year.

According to the U.S. Labor Department, this state is also improving its workforce as it is now one of America’s best records in getting workers from its training programs into jobs.

However, one major disadvantage of doing business in Mississippi is that it is said to have a worker shortage and is also America’s least educated and least productive worker. This means you may need to plan ahead about how to get the right workforce when starting your business in Mississippi.

How Much is an LLC in Mississippi?

According to the Mississippi Secretary of State, starting an LLC in Mississippi would cost about $50 to $75.

Do You Need a Business License in Mississippi?

Some municipalities at the local level may require a license or tax certificate to operate. You can visit the various counties and cities to learn more about the requirement.

Also, Mississippi businesses that sell tangible, personal property, tobacco, and alcoholic beverages, must have a sales tax registration license or permit from the Department of Revenue.