Licenses and permits in Mississippi

The Secretary of State filing is not a license to do the work. There is not a central licensing authority for regulatory and professional licenses¹. Start with the activity, then the city or county, then the board that regulates your kind of work.

What’s different in Mississippi

• No single statewide business license. A sales tax permit is still required when the sales are taxable, and it is not the same thing as a city license.
• Contractors are licensed by job size, and some trades have no dollar floor on the FAQ. Commercial work, houses, and roofing use different amounts.
• Cottage food stays in the state, and you have to be present for the sale. The cap is $35,000⁷ in gross sales a year.
• Beer, tobacco, liquor, and a dispensary are separate permits. The Department of Revenue’s general FAQ names them, and the beer and tobacco pages list their fees.

Do this

1. Read the Department of Revenue’s answer on licenses. There is not a central licensing authority for regulatory and professional licenses¹. The department’s advice is to contact the agencies that affect your work. Ask the city clerk where you will operate, and the county if you are outside a city.
2. If you sell taxable goods or taxable services, get the sales tax permit first. Beer and light wine, tobacco, alcoholic beverages, and medical cannabis at a dispensary each need a permit, in addition to a sales tax permit when you sell taxable goods or services¹. You apply for the beer, tobacco, and alcoholic beverage permits in TAP. A retail beer permit is $30 a year for each location, and the city or county may charge a permit fee equal to 50% of the state fee⁴. A retail tobacco permit has no fee, but every tobacco retailer needs one⁵. The general FAQ does not print the alcoholic beverage or dispensary permit fees.* Read the fee on the application for the permit you need. Sales tax registration is on Get your tax IDs.
3. Get a contractor license if the job size requires one. The State Board of Contractors FAQ draws these lines. Commercial contractors and subcontractors need a license for commercial jobs over $50,000, including equipment installation. A license is also required for fire sprinkler work over $5,000 on a public project or over $10,000 on a private project. Residential work needs one for new residential construction over $50,000, remodeling or additions over $10,000, or residential roofing over $10,000. Residential electrical, mechanical, HVAC, and plumbing subcontractors need a license. Construction managers and residential solar contractors need one too. The FAQ gives no job-size floor for that subcontractor work. The license lasts one year, and it can be renewed up to 180 days after it expires. Every applicant has to show general liability insurance. There is no minimum coverage requirement for a residential license. A commercial license needs a Mississippi sales tax or use tax number. A residential license can use a Mississippi income tax number, a federal tax number, or a Social Security number⁶. The FAQ does not print the application fee.* Read it on the application before you pay.
4. If the work is construction, register for the contractor’s tax as well as the license. The license does not replace the tax. Non-residential jobs over $10,000 are taxed at 3.5%. If the contract is over $75,000, or the contractor is from another state, the contractor's tax is paid before work begins unless a surety bond is on file. Apartments and condominiums are not residential for the contractor's tax. Work on a house pays the regular 7% on materials and taxable services². The business FAQ says to qualify the contract with the Department of Revenue before the work starts.
5. Selling food from home? Read the cottage food FAQ. The food is non-potentially hazardous food made in your private home that does not need time or temperature control for safety. You can sell up to $35,000 in gross sales a year. Sales are only in Mississippi. Cottage food from another state cannot be sold here. They are also not at wholesale, not to a restaurant, convenience store, or grocery store, and not on consignment. You sell person to person, and you have to be present. Check with your city, or your county if you are outside city limits, to see whether you need a business license or other permit. An operation that breaks the rules can be fined up to $1,000⁷. A restaurant that serves meals on site is not this exemption.
6. A professional license is separate from the company filing. The Secretary of State does not issue it. Register your business has the name rules that block words such as bank and insurance on an LLC.

What you get back

A city or county license where one is required, a contractor license if the job size or the trade requires it, a cottage-food operation if you stay inside the food list and the sales cap, and a beer, tobacco, or alcohol permit if you sell those. Each one renews on its own date. A sales-tax permit does not expire and does not require renewal while the holder continues the same business at the same location³. Sellers still file sales-tax returns on their assigned schedule.