Step by Step Guide to Starting your Business in Mississippi
you’re starting your own farm or entering the wide world of technology, there is a process to starting a business in Mississippi that must be followed. From registrations to insurance to sourcing the funds you require, everything that you need to take care of for your new business set up in Mississippi is covered in this easy-to-follow guide.
Licenses and insurance are required in the state of Mississippi
Every state in the US has its own requirements for licensing and insurance for small business owners in Mississippi. The first stage of starting your business is to research what the requirements for your type of company are. There are mandatory insurances in Mississippi that must be taken for every business, but certain types of businesses require additional insurances to operate as well.
Business licensing in Mississippi is a requirement for all businesses but if you are planning on operating a professional service, there may be additional licenses required. It is best to do your research on the licensing and insurance requirements for your proposed business start-up early in the planning stage so that you are aware of the costs associated with what is required of you.
Determining the type of business you want to set up
When you register your business in Mississippi, you need to take the time to understand the different business types that are available to discover which type of business will be the right choice for you.
If you are planning on operating a small business where you are the only financial stakeholder, then a sole proprietorship is most likely to be the right choice for you. Business finances in a sole proprietorship are taxed together with your personal finances so there is a degree of risk with this business type.
3 different types of partnerships can be registered in Mississippi. A general partnership, a limited partnership, and a limited liability partnership. If there is more than one person involved in your business setup, then one of these options will ensure that each stakeholder is a registered owner of the business you are starting.
A corporation is a good business type to set up as it removes all personal liability as the corporation exists as its own separate entity. This is a good choice if you are starting a larger business with more investment in the beginning.
Limited liability company (LLC)
The features of an LLC are a combination of a partnership and a corporation that offer limited liability for business owners while still being processed through their personal finances. An LLC offers the ability to allocate assets but has fewer legal requirements than a corporation.
Other business registrations
In the state of Mississippi, once you have your initial business registration completed, there are several other entities that you must register with also.
Internal Revenue Service
Registering a tax identification number for your business is a legal requirement in the United States, so once you have ascertained which business type is right for you and completed that registration, the next step is to have your business registered with the IRS. This can be done online or you can employ the services of a professional to assist you with this process.
Mississippi Department of Revenue
All businesses in the state must be registered with the MDR as this is the entity that collects both state and federal tax for businesses. Online registration with the Mississippi Department of Revenue is advised.
Unemployment insurance registration
Any business that employs staff in the state of Mississippi must register for unemployment insurance according to state law. This registration is completed through the Mississippi Department of Employment Security.
Choosing your software
There is a wide selection of software available to help with business start-ups. By choosing the software you are planning to use early on in the business planning process, you have the time to load in all the features that you are likely to use from product lists to pricing to stock management.
Most paid software comes with a free online introduction where sales representatives will spend dedicated time showing you how to use the package and training can be arranged in person with some companies for employees as well. Choosing software wisely is highly advised as it can assist you greatly with measuring income and calculating the taxes payable for your business.
Starting your business
Once the red tape and paperwork are completed for your business, you will be free to focus on executing the strategic plans for your start-up. It is in this stage that most new entrepreneurs will begin seeking finance, searching for the right property, and finding the equipment they need for the successful opening of their business.
Starting a business is an exciting time in your life and if the requirements are adhered to in relation to the state, then there is nothing stopping you from becoming a successful entrepreneur in the great state of Mississippi.