Forms and Fees for Registering a Sole Proprietorship in Mississippi

By Jeff Franco J.D./M.A./M.B.A.

Starting a sole proprietorship in Mississippi is an easy way to get your business operations underway since it isn’t necessary for you to register with the Secretary of State’s office. However, there are additional Mississippi government agencies that require the filing of other forms and the payment of fees by sole proprietors.

Starting a sole proprietorship in Mississippi is an easy way to get your business operations underway since it isn’t necessary for you to register with the Secretary of State’s office. However, there are additional Mississippi government agencies that require the filing of other forms and the payment of fees by sole proprietors.

Forming a Mississippi Sole Proprietorship

In Mississippi, as in all other states, sole proprietorships are not recognized as entities that are separate and distinct from their owners like corporations and limited liability companies. However, despite the fact that your business isn’t subject to the same registration requirements as other business entities, a significant disadvantage to operating a sole proprietorship is that you’re personally liable for all debts and obligations you incur through your business. This means that everything you own, such as your house and personal bank accounts, are vulnerable to business creditors and any lawsuit judgments resulting from your business activities.

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Doing Business As

It is very common for sole proprietors to operate their businesses under a name different than their own. In most states, sole proprietors must register any trade name they use. This is commonly known as “doing business as” or “DBA” for short. However, one advantage you have as a Mississippi sole proprietor is that the state allows you to operate under a DBA name without having to register it with the state – which in other states can require the payment of fees as well as the filing of forms.

Business Licenses and Permits

One thing you can’t avoid as a sole proprietor in Mississippi is the requirement to obtain a business license or permit if your operations warrant it, such as if you sell alcohol or operate a construction business. Moreover, it also depends on the area of Mississippi in which your business operates, since many licenses and permits are issued by local governments. For example, if you operate a construction business in the city of Starksville, you need to submit an application form and pay a $50 fee to the city each time you want to place a trailer on a construction site. The application form itself isn’t lengthy or complex, but you need to report the location of the construction site, the length of time the trailer will remain there and the utility services it requires.

Mississippi Tax Registration

There are a number of situations when sole proprietors must register with the Mississippi Department of Revenue prior to commencing business operations. If you operate a business that sells tangible goods that are subject to state sales taxes, you must obtain a separate permit for each location where you operate and file periodic returns with the state to remit the sales taxes you collect from customers. If you hire employees who reside within the state, you also need to register for a withholding tax account and periodically remit the income taxes you withhold from your employees’ paychecks. It isn’t necessary to pay any fees when completing your registrations and you can even register for both taxes on a single Form 70-001.

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How to Create a Sole Proprietorship in South Carolina

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Sole Proprietorship in Georgia

A sole proprietorship is a common business entity because it is relatively simple to set up and allows for a great deal of flexibility in how the business is managed. As a sole proprietor, you have complete control over the management of the business, take all the profits and avoid corporate income taxation. Although there are no registration requirements to initially form a sole proprietorship in Georgia, depending on the type of business, the Georgia Secretary of State recommends professional, local and tax registration.

The Requirements of a Sole Proprietor in Pennsylvania

Sole proprietorships are common business entities because they are simple to set up, and have relatively few filing requirements. By definition, a sole proprietorship is owned by one person, who remains personally liable for the debts of the business. Most states, including Pennsylvania, do not require sole proprietors to register the business. However, depending on the business type, a business owner may be required to file for licenses, permits and tax registration.

Guide to Setting Up a Sole Proprietorship in Florida

A sole proprietorship operates as an alter ego of the business owner who runs it. Since the owner is personally responsible for business affairs, Florida does not require a separate state-level registration for the business as long as you operate it under your own name. If you want to run the business under a different name, you must register it with the state. Depending upon the type of business you are conducting and where you are located, you may also have to obtain local licenses and permits to before you can open for business.

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