How to Start a Catfish or Aquaculture Farm in Mississippi: Permits, Processors and Delta Land

Catfish is one of Mississippi's best-known farm products, and the Mississippi Delta has long been a center of commercial catfish production. Starting a catfish farm in Mississippi is still a real business, but the paperwork and the market both need attention before you dig a single pond. This guide covers the steps in the order most new farmers should handle them: confirm your buyer, form your business, get the state permits, check local licenses, and secure land and water.

Where a fee, threshold, or rule is not settled in the sources we reviewed, we say so and tell you which agency to confirm it with. This article is informational content, not legal or tax advice. Talk with a qualified attorney and a CPA before you sign a lease, a processing contract, or a loan.

What You Will Need Before You Start

• A decision on your legal structure, and a filed Certificate of Formation (LLC, Form F0100) or Articles of Incorporation (Form F0001)
• An IRS employer identification number (EIN) and a business bank account
• A registered agent with a physical Mississippi street address
• Land you own or lease, with a soil test and a reliable water supply
• A written market plan that names at least one processor or buyer you have talked with
• A records system for feed, stocking, water quality, harvest, and sales
• An equipment budget covering pond construction, aerators, feeders, harvest gear, and a truck or trailer
• Applications for the MDAC aquaculture permit, the Department of Revenue sales tax permit, and your city or county privilege license

Step 1: Confirm the Market Before You Build

Catfish is central to Mississippi's economy, but measured demand for new farms is low. The industry's size does not prove that a new farm of your size can find a buyer. Before you commit money, call two or three processors and ask whether they are taking new producers, what contract terms they require, and how they set prices. Ask your county Cooperative Extension office for current production cost estimates for your region.

If you plan to raise a species other than catfish, expect a thinner buyer list and confirm the market even more carefully. Get the buyer commitment in writing before you order construction work.

Step 2: Form Your Business Entity

Most farms organize as a limited liability company. The LLC Certificate of Formation (Form F0100) carries a $50 filing fee, filed with the Mississippi Secretary of State's Business Services Division. Online filings are normally approved and filed immediately. Filings that need staff review are normally returned within 24 hours. Paper filings take significantly longer.

Follow these rules when you set up the LLC:

• Name: The name must include the words limited liability company or the abbreviation LLC or L.L.C. It must be distinguishable from other entities on the Secretary of State's records. You can reserve a name for 180 days for a $25 fee.
• Registered agent: Every Mississippi LLC must keep a registered office and agent in the state. The agent must be a Mississippi resident or an authorized business entity, with a physical Mississippi street address. A commercial agent files a listing statement with the Secretary of State for $100, and must accept or decline the appointment within 14 days.
• Annual report: The LLC annual report (Form F0108) is due April 15 each year, may be filed on or after January 1, and must be filed online. The fee is $0. Missing it can lead to administrative dissolution.
• Fictitious name: If you sell under a farm name that differs from the LLC name, register it with the Secretary of State on Form F0070 for $25. The county does not handle this filing.

Corporations pay a $50 filing fee and file an annual report for $25 by April 15. Ask your CPA how your entity will be taxed. An LLC taxed as a partnership reports income on the members' Mississippi returns and does not pay the franchise tax. An LLC or corporation taxed as a corporation may owe corporate income tax and the franchise tax, which for tax year 2026 is $0.50 per $1,000 of capital above $100,000, with a $25 minimum. The franchise tax is scheduled to be repealed effective January 1, 2028.

Step 3: Register for the Sales Tax Permit

Mississippi issues no general statewide business license. The Department of Revenue (DOR) sales tax permit is a tax registration, and there is no fee for it. A bond may be required for applicants with no permanent Mississippi location. Apply through the DOR sales and use tax registration page.

The state sales tax rate is 7%. There is no county add-on, and city levies apply only in Jackson and Tupelo. Farm tractors and implements are taxed at a reduced 1.5% sales tax rate under DOR rates for 2026. Confirm with DOR which purchases qualify, and ask whether your fish sales are taxable or exempt for each buyer type.

Step 4: Get the MDAC Aquaculture Permit

The Mississippi Department of Agriculture and Commerce (MDAC) Bureau of Regulatory Services issues the aquaculture cultivation permit under the Aquaculture Act of 1988. The permit covers anyone raising certain cultured aquatic products. MDAC runs a one-stop process that coordinates the agencies involved in your operation.

Call MDAC at 601-359-1111 and ask two questions: whether your species and pond operation need the permit, and what the fee and processing time are. Those figures are not settled, so get them from MDAC before you budget.

Step 5: Decide Whether You Need Processor Registration

Catfish processors must register with MDAC under the Mississippi Catfish Processors Fair Practices Act of 1986 (Miss. Code 69-7-651 to 69-7-669). The registration form is on MDAC's aquaculture page. Growing fish and selling them to a processor is a producer activity. If you plan to clean, fillet, smoke, or package fish yourself, ask MDAC whether that activity requires you to register as a processor.

Step 6: Get Your Local Privilege License

Every city, town, and village in Mississippi issues its own privilege license under Miss. Code 27-17. Counties license only businesses located outside municipal limits. Your license authority depends on where the farm and any on-site sales are located. Inside city limits, ask the city clerk. Outside city limits, ask the county licensing office. Fees vary, and no fee schedule is confirmed for every locality, so confirm the amount with the office that will issue the license.

Step 7: Secure Delta Land, Soil, and Water

Pond aquaculture depends on soil that holds water and a dependable supply to fill and refill the ponds. Get a soil survey for each parcel, and ask a qualified engineer or NRCS technician to evaluate the levee and pond sites before you buy or lease. Confirm water access and any permit needed to withdraw water with the agencies that regulate it. Do not sign a lease until you have confirmed both the soil and the water.

Step 8: Use USDA, Extension, and Small Business Resources

Check with your county USDA Farm Service Agency (FSA) office about any program that may apply to your land, equipment, or operating costs. Ask your county Cooperative Extension office for production guides and regional advice on feed, stocking, water quality, and disease management. For planning and financing help, the Mississippi Small Business Development Center Network has 19 locations statewide, and the SBA Mississippi district page lists SBA resources for the state.

Step 9: Build, Stock, and Keep Records

Build ponds to an engineered plan, install aeration, and test water quality before you stock. Keep daily records of feed, water readings, mortality, treatments, harvest weights, and sales. Those records help you meet permit conditions, support your tax filings, and show a processor or lender how the farm actually performs.

Expected Results

A well-managed catfish operation may produce a steady harvest and may build a repeat buyer relationship over several seasons. Results depend on water quality, feed management, stocking density, disease, weather, and the price your processor pays. No one can promise a yield, profit, or payback period for a new farm, so build your plan around conservative assumptions and test them with your Extension contacts.

If you sell fish or fish products, avoid health or nutrition claims on labels and in marketing unless you have verified them. FDA rules on food labeling apply to your product, and a claim that cannot be supported can create a compliance problem.

Common Mistakes to Avoid

• Building ponds before you have a written buyer commitment
• Assuming the MDAC permit applies only to catfish, without asking about your species and operation
• Forgetting the LLC annual report due April 15 each year
• Looking to the county for a privilege license when the farm sits inside city limits, or the reverse
• Filing a fictitious name with the county instead of the Secretary of State
• Paying the full 7% sales tax on farm tractors and implements without checking the 1.5% rate
• Expecting a Mississippi state minimum wage. Mississippi has no state minimum wage law, so federal wage rules apply to your employees
• Naming a registered agent who has not agreed to serve

Tips for a Smoother Startup

• Call MDAC, DOR, and the Secretary of State before you spend money on construction, and write down each answer with the name of the person who gave it.
• Ask your Extension agent to review your pond design and stocking plan before you finalize them.
• Start with a smaller operation you can manage well, then expand after you have real harvest and sales data.
• Keep your personal and farm finances separate from the first day.

Mississippi Startup Costs at a Glance

Item	Cost	Where to Confirm
LLC Certificate of Formation	$50	Secretary of State
Name reservation (180 days)	$25	Secretary of State
Fictitious business name (Form F0070)	$25	Secretary of State
LLC annual report (due April 15)	$0	Secretary of State
Commercial registered agent listing	$100	Secretary of State
Sales tax permit	No fee	Department of Revenue
State sales tax rate	7%	Department of Revenue
Farm tractors and implements	1.5% sales tax	Department of Revenue
MDAC aquaculture permit	Confirm with MDAC	MDAC, 601-359-1111
Catfish processor registration	Confirm with MDAC	MDAC aquaculture page
City or county privilege license	Varies by locality	City clerk or county licensing office

Where to Get Official Information

• Mississippi Secretary of State, Business Services Division
• Secretary of State online filing portal
• Mississippi Department of Revenue

Disclaimer and Next Steps

This article is informational only and is not legal, tax, or financial advice. Entity choice, lease terms, processing contracts, and tax treatment depend on your facts. Consult a qualified Mississippi attorney and a CPA before you form the business or sign any contract. Confirm every fee and deadline with the agency that administers it, because rules and amounts can change.