What You Need to Know in Starting a Business in Mississippi
Starting a business in Mississippi is one of the right plans to have. Mississippi is known for its diverse industry location that offers robust marketing advantages and a secured transportation network. Along with the growth-oriented business industry, the state also has ideal and unique benefits when it comes to taxation, incentives, ownership, and management for the businesses.
Mississippi keeps a leadership-driven society that pushes successful businesses to continue thriving among the communities throughout the years. Before starting a business in this state, you might ask yourself what are the things you should know about this. To answer your question, let’s dive in:
Be Informed with Loan Programs
Before starting a business in Mississippi, you must know first why should you choose this state? As a startup, you might be worried about funding. Fortunately, the state has established loan programs like Minority Business Enterprise Loan Program (MBE) to support startup businesses.
Determine the Legal Structure
Every business has its own business structure or entity such as S and C partnership, sole proprietorship, limited liability company (LLC), and corporation. Similarly, each type of this business entity has its advantages and disadvantages. Therefore, there is a need for you to assess what would be your overall business organization, that includes the management ownership, profit system, taxation, document filing among others. If you’re aiming to start an LLC, keep in mind that the cost in one state is different from another. For example, LLC cost in Mississippi for state filing is $50 to $100. This is relatively lower than the cost in other states.
Do you need a Registered Agent?
Choosing LLC isn’t a new matter for startups. Aside from having a benefit from the pass-through taxation, it also allows businesses to have an unlimited number of members, decide their own profiting system, run the business operation through the officers of the board, and many more. As a type of legally-recognized entity, you will be needing a registered agent if you will choose LLC.
Know the Business Incentives
What makes Mississippi extra ideal for businesses is its several incentives both for small businesses and huge companies. Examples are the Rural Economic Development (RED) credits, tax rebates for the tourism projects, and the healthcare industry zone program. RED is a kind of tax credit program that qualifies for data and information processing facilities, manufacturers, distribution and warehouse facilities, telecommunications enterprises, and technology-intensive enterprises.
Obtain Essential IDs
As a startup business, you must obtain the Employer Identification Number (EIN) if you are going to establish an LLC, even if it does not have employees. The EIN serves as your business’ federal ID to allow you to get necessary permits and licenses, hold a payroll, or even file taxes.
Don’t Forget the Permits and Licenses
To legally establish your business in the state of Mississippi, you are required to get the necessary permits and licenses to operate in the state. It will prevent you from facing unwanted consequences in the future.
Include a Website
In today’s era, potential clients used to search the products and services they need and want online. Having a website on the Internet will give you an extra edge to acquire customers.
Planning to launch a business in the state of Michigan may look challenging at first. Yet by having that pro-business environment in the state, it would be a great gateway for you to begin with.