A Mississippi LLC operating agreement is a document that outlines the business operations and the duties and roles of all managers. Your operating agreement should lay out a few key pieces of information, including each member’s percentage of ownership of the business, how your company will measure losses and profits, how meetings and votes will be organized, as well as other provisions that allow for members to sell their share of the company.
You could wind up personally liable if you don’t have your business procedures and rules properly outlined. If you create an operating agreement, you have to store a copy in your business records.
- LLCs are governed by the Revised Mississippi Limited Liability Company Act.
- Operating agreements statutes: § 79-29-123.
Costs and Fees
You’ll need to cover the following fees for a Mississippi LLC:
- Certificate of formation filing fee – $50 ($250 for foreign LLCs).
- Name reservation fee – $25.
How to Form an LLC in Mississippi
Here are the steps you’ll need to take to register an LLC in Mississippi.
Step 1 – Choose a Company Name
The first step to starting your own LLC in Mississippi is to select your company name. Remember, the name must include “limited liability company” or an abbreviation. It has to be unique and cannot belong to any other business. If you want to register your name, you can do so up to 180 days in advance.
Step 2 – Select a Registered Agent
In Mississippi, LLCs must have a registered agent. These agents take care of service of process and handle legal documents on behalf of the limited liability company.
Your registered agent can be a current Mississippi resident. Or, it can be a business entity that’s authorized to do business in the state of Mississippi.
Step 3 – File a Certificate of Formation
You can either mail your forms to the Secretary of State or file them online. Either way, your business usually takes a few days to get set up. Remember, when you file this certificate, you’ll also need to pay the filing fee.
Step 4 – Write an Operating Agreement
The fourth step in the process isn’t legally required in Mississippi. However, having an LLC operating agreement is still a good idea as it establishes how your business will be run. It can also offer legal protections if you ever go to court.
Step 5 – Get an EIN
The final step of starting up your own LLC in Mississippi is to get an employer identification number, also called an EIN. EINs can be obtained from the IRS website and are free to create.
You need an EIN because it allows you to hire employees, open a business bank account, and take out business loans. You can use your social security number instead if you are a single-owner LLC.
Download a Mississippi operating agreement template below: