Mississippi Startup

Not sure what Mississippi startup to form? We've brought together information on corporations, LLCs, foreign corporations, and nonprofits so that you can make your best decision.

Note: DBAs are not required in Mississippi.

Incorporate in Mississippi

Incorporating is done by submitting Articles of Incorporation to the Secretary of State's business division in Jackson. Once filed, the Mississippi corporation provides limited liability protection and is able to enter into contracts, pursue legal action, and take out loans.

As long as all of the corporate formalities are followed, there is no suspicion of mingling corporate and personal finances, and proper minutes have been kept of all meetings and activities, the personal assets of each individual owner cannot be seized to pay off debts and obligations of the corporation. However, if the corporation has been shown to have acted improperly, courts can indeed seize the individual owners' assets to pay for any debts or obligations.

Mississippi Foreign Corporation

If you've already registered your corporation in a different state, but you wish to do business within Mississippi, you'll need to register your business with the Secretary of State in Jackson as a Mississippi Foreign Corporation.

There are a few documents that must be filed simultaneously in order to form a Mississippi foreign corporation, including the Application for Certificate of Authority and a valid Certificate of Good Standing from the original state.

Mississippi LLC

An LLC, or Limited Liability Company, is another type of domestic business legally separate from its owners, but it has some structural differences. It is considered a pass-through entity, which means that rather than paying a corporate income tax, an LLC's income is passed through to the shareholders and officers and then taxed only at the individual level.

An LLC in Mississippi is formed by registering Articles of Organization with the Secretary of State, similar to a corporation's Articles of Incorporation.

Mississippi Nonprofit Corporation

A nonprofit corporation is a business that does not operate for the benefit of its individual owners or raise capital by selling stock.

A common misunderstanding is that by forming a Mississippi nonprofit corporation at the state level, the nonprofit is able to accept tax-deductible donations. In fact, in order to operate as a tax-exempt organization, an application to that effect must be accepted by the IRS.

An example of a tax-exempt nonprofit corporation is a 501c3 corporation, commonly used for charitable, scientific, or religious institutions.