How to Start a Business in Mississippi
Starting a business in Mississippi requires taking the right legal steps to ensure compliance and protection. Here’s a step-by-step guide to setting up a legal small business:
1. Choose a Business Structure
Selecting the right business structure impacts taxes, liability, and paperwork requirements. The most common options include:
Sole Proprietorship – The default structure if no formal registration is made.
LLC (Limited Liability Company) – Recommended for liability protection.
S-Corp or C-Corp – Best for larger operations or specific tax benefits.
To register an LLC in Mississippi:
Visit the Mississippi Secretary of State website: https://www.sos.ms.gov
File Articles of Organization ($50 fee).
Appoint a Registered Agent (this can be yourself or a service).
Create an Operating Agreement (recommended but not required).
2. Apply for an EIN (Employer Identification Number)
An EIN is needed to open a business bank account or hire employees.
Apply for free at: https://www.irs.gov
3. Register for a Mississippi Tax ID (if needed)
If selling physical products (for photographers, this means prints, albums, etc.), sales tax must be collected.
Register with the Mississippi Department of Revenue: https://www.dor.ms.gov
4. Obtain Necessary Business Licenses & Permits
Mississippi does NOT require a general business license, but some cities/counties do.
Check with the local city hall for any required permits.
5. Open a Business Bank Account
Keeping business and personal finances separate is essential.
An EIN (or Social Security Number for sole proprietors) and business registration documents are required.
6. Get Business Insurance
General Liability Insurance protects against lawsuits.
Equipment Insurance covers damage or theft.
Professional Liability Insurance helps in case of errors
7. Set Up Business Finances
Choose an accounting method (cash or accrual).
Use tools like QuickBooks or Wave to track income and expenses.
Save for quarterly taxes (self-employment tax in the U.S. is ~15.3%).
8. Market the Business
Build a professional website using platforms like Squarespace, Showit, or WordPress.
Set up social media accounts (Instagram, Facebook, Pinterest).
Create a Google My Business listing to increase local visibility.
9. Start Booking Clients
Offer portfolio-building discounts to attract initial clients.
Use contracts (HoneyBook or paper agreements).
10. Leverage Social Media to Let Your Friends & Family Know What You Offer
By following these steps, small businesses in Mississippi can establish a legally compliant and successful business.
