The Complete Guide to Mississippi Business Licenses
Mississippi has no central business licensing authority. Sellers get a free sales tax permit from the Department of Revenue, cities issue annual business licenses, and the State Board of Contractors licenses larger projects. This guide explains each step for a new Mississippi business.
Step 1: Form the LLC
File a Certificate of Formation with the Mississippi Secretary of State online for $50. The annual report is free, filed online by April 15. See the Mississippi LLC guide for every formation step.
Step 2: Free sales tax permit
Register with the Department of Revenue through TAP. There is no fee for a sales tax permit, although a bond may be required depending on the business. The state rate is 7% (groceries 5% since July 1, 2025). Withholding is registered in TAP too.
Step 3: City business license
Most cities require a business license. In Jackson, the license is renewed every year with a notarized privilege tax form, and fees depend on business type and size.
Step 4: Contractor and professional licenses
The State Board of Contractors requires a license for commercial work over $50,000, new residential construction over $50,000 and residential remodeling or roofing over $10,000. Other professions are licensed by their boards.
Hiring staff and trade names
Employers register for unemployment insurance with the Mississippi Department of Employment Security through AccessMSTax. Registering a fictitious business name with the Secretary of State is voluntary ($25).
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Certificate of Formation | Secretary of State | $50; free annual report |
| Sales tax permit | Department of Revenue (TAP) | Free |
| City business license | Jackson and others | Annual |
| Contractor license | State Board of Contractors | By project size |
Frequently Asked Questions
Does Mississippi require a business license?
Mississippi has no central licensing authority. Sellers need a free sales tax permit, cities require business licenses, and larger construction projects need a state contractor license.
How much is a sales tax permit in Mississippi?
It is free from the Department of Revenue, though a bond may be required for some businesses.
When does a Mississippi contractor need a license?
For commercial work over $50,000, new residential construction over $50,000, and residential remodeling or roofing over $10,000.
How much does it cost to form an LLC in Mississippi?
The Certificate of Formation costs $50, and the annual report is free.
What is the Mississippi sales tax rate?
The state rate is 7%; groceries are taxed at 5% since July 1, 2025.