Mississippi Startup

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

Incorporate in Mississippi

Incorporating in Mississippi is done by submitting Articles of Incorporation to the Secretary of State's business division. Once filed, the 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 pierce the corporate veil.

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 as a foreign corporation.

Two documents must be filed simultaneously in order to form a Mississippi foreign corporation: the Application for Certificate of Authority, and the Application for Appointment of Registered Agent.

Mississippi LLC

An LLC is another type of business legally separate from its owners, but it has some structural differences. It is 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.

Mississippi Nonprofit Corporation

A 501c3 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.