How to Start a Real Estate Brokerage in Mississippi: Broker Requirements and Business Setup

Opening your own brokerage in Mississippi runs on two tracks at once. One is your license with the Mississippi Real Estate Commission (MREC). The other is a business entity that the Mississippi Secretary of State will accept. Most people who stall do so because they treat these as a single task, or because they file business paperwork before they know what MREC will license. This guide lays out the order that avoids that problem. It covers the core Mississippi real estate broker requirements, the business setup that surrounds them, and the points you still need to confirm.

This article is informational content, not legal or tax advice. Entity choice, tax treatment and trust account handling depend on your situation. Talk with a Mississippi attorney and a certified public accountant (CPA) before you file anything or sign a lease.

Broker License Versus Agent License: Know Which Track You Are On

The license you need depends on your role. A salesperson works under a broker and cannot run a firm. A broker can hold a brokerage license and act as the responsible broker. This article covers the broker and firm track. For the separate salesperson path, see our guide on Mississippi real estate agent requirements. MREC licenses three things: individual brokers, brokerage firms (a partnership, association or corporation), and each branch office. You need the individual broker license before you can be the responsible broker for a firm.

Materials and Information You Need Before You Apply

Gather these items before you start the paperwork. Missing one usually means a delay, not a rejection, but delays cost money because your fees and lease commitments may already be running.

• A chosen legal name for the firm, checked against the Secretary of State Business ID search at corp.sos.ms.gov.
• Education and experience records. Broker prerequisites differ between sources, so confirm the current requirements with MREC before you plan around any specific number of courses or years.
• Exam results. The broker exam passing scores are 75% on the national portion and 80% on the state portion.
• A Mississippi office address. The responsible broker must keep an office and display the license there.
• A registered agent with a physical Mississippi street address. Your registered office must stay in the state at all times.
• Funds for the fees listed in the table below, plus the cost of a bank account that can hold a trust account.
• Your city privilege license application if you will operate inside a city, town or village.

Fees at a Glance

The table lists only the fees confirmed so far. Where a fee depends on your city or on a tax position, the table says so and tells you who to ask.

Item	Agency	Cost
Broker license application (first year)	MREC	$100
Firm license	MREC	$75
Branch office license	MREC	$50
Broker or firm renewal (two years)	MREC	Up to $150
Branch office renewal (two years)	MREC	$100 per branch
LLC Certificate of Formation (Form F0100)	Secretary of State	$50
Corporation Articles of Incorporation (Form F0001)	Secretary of State	$50
Fictitious (assumed) business name (Form F0070)	Secretary of State	$25
Name reservation (lasts 180 days)	Secretary of State	$25
Commercial registered agent listing statement	Secretary of State	$100
LLC annual report (Form F0108)	Secretary of State	$0
Corporate annual report (Form F0008)	Secretary of State	$25
City privilege license	Your city, town or village	Set by the city. Confirm with the city clerk.

The Secretary of State is the registration office for your entity. The filing receipt is not a license, and it does not authorize you to broker real estate. Only MREC issues the real estate licenses.

Step 1: Confirm Your Broker Eligibility With MREC

Start with MREC, not the Secretary of State. Call or write MREC and ask three questions in writing: what education and experience a broker applicant must show today, which exam you must pass, and how MREC licenses an LLC as a firm. Many people assume an LLC is licensed the same way as a corporation. MREC's rules list partnership, association and corporation as firm types, so do not form an LLC until MREC confirms how it will license that structure. Save the written answer. If the rules change while you are building your plan, that record shows what you relied on.

Step 2: Pass the Broker Exam and Apply for Your Individual Broker License

Complete the required education, pass the exam with at least 75% on the national portion and 80% on the state portion, then submit your broker application. The first-year fee is $100. Keep a copy of every document you submit. An application that lacks a required transcript or exam record is the most common reason for a slow file.

Step 3: Choose Your Business Entity

Your entity choice affects liability, taxes, paperwork and how MREC licenses the firm. The main options are a limited liability company (LLC), a corporation, a partnership or an association. The options work as follows:

• LLC. An LLC is a pass-through entity by default. Income is reported on the members' Mississippi returns. An LLC that elects to be taxed as a corporation pays Mississippi corporate income tax (0% on the first $5,000 of taxable income, 4% on the next $5,000, and 5% above $10,000) plus the franchise tax.
• Corporation. A corporation pays the corporate income tax above. It also pays the franchise tax, which for tax year 2026 is $0.50 per $1,000 of capital in excess of $100,000, with a $25 minimum. That tax steps down to $0.25 for 2027 and is repealed effective January 1, 2028. Confirm the current schedule with the Mississippi Department of Revenue before you rely on any figure.
• Partnership or association. These can be licensed as firms, but the liability exposure for owners is different. Ask an attorney how the owners' personal assets are protected in each structure.

Franchise tax applies to corporations, not to an LLC taxed as a partnership. Do not assume that an LLC avoids every state tax. Ask a CPA to model your first three years before you choose.

Step 4: Form the Entity With the Secretary of State

File online through the Secretary of State Business Services online filing portal at corp.sos.ms.gov. An LLC files a Certificate of Formation (Form F0100) for $50. A corporation files Articles of Incorporation (Form F0001) for $50. Most documents paid for online are approved and filed immediately. Filings that need staff review are normally returned filed within 24 hours. Paper filings take significantly longer.

The name rules matter. An LLC name must contain the words limited liability company, or the abbreviation L.L.C. or LLC (Miss. Code 79-29-109). The name must also be distinguishable on the state's records from every other registered entity and every reserved name. Search the Business ID search at corp.sos.ms.gov before you commit to a name, because a name that looks close to an existing one can be rejected.

If you need time to finish the MREC application, you can reserve the name for 180 days for $25. The state's name reservation form lists the procedure.

Step 5: Appoint a Registered Agent

Every Mississippi LLC must continuously maintain a registered office in the state and a registered agent to receive legal papers. Under Miss. Code 79-29-113, the agent must be an individual Mississippi resident, or a qualifying domestic or authorized foreign entity whose business office is the same as the registered office. The address must be a physical Mississippi street address.

Under the Mississippi Registered Agents Act, effective January 1, 2013, a registered agent is either commercial or noncommercial. A commercial agent files a listing statement with the Secretary of State for $100 and appears on the state website. It must accept or decline a representation within 14 days. A noncommercial agent does not register with the state, but you must have that person's permission before you list them. If you use a friend or a family member, get written permission and confirm they will be home or in the office when service arrives.

Step 6: File a Fictitious Name if Your Brand Differs From Your Legal Name

If your brokerage will operate under a name other than its legal name, file a Fictitious Business Name Registration (Form F0070) with the Secretary of State for $25. The filing goes to the Secretary of State, not the county clerk. Confirm with MREC which name it will license for the firm, and make sure the same name appears on your signage, contracts and trust account.

Step 7: Apply for the Firm License and Any Branch Offices

Once your entity exists and your individual broker license is issued, apply for the firm license at $75. Each additional office needs its own branch office license at $50. Renewals run on a two-year cycle. The firm and broker renewal is up to $150, and each branch renewal is $100 per branch. If your team operates under a team name, MREC requires that the team be registered with the commission before it does business.

Step 8: Get Your Local Licenses and Check Your Tax Registrations

Mississippi has no single state general business license. Your Secretary of State filing is a registration, and MREC licenses your real estate activity. The local layer is a city privilege license. Every city, town and village issues its own privilege license under Miss. Code 27-17. Counties license only businesses located outside municipalities. If your office is inside Jackson, Gulfport, Hattiesburg, Tupelo or any other city, the city clerk can give you the fee and the local rules. Ask for the current application and fee schedule in writing, because these amounts are not included in this guide.

A Department of Revenue sales tax permit is a tax registration, not a license. It has no fee, although a bond may be required for applicants with no permanent Mississippi location. A real estate brokerage that sells no taxable goods may not need this permit, so confirm the question with the Mississippi Department of Revenue at dor.ms.gov. The state sales tax rate is 7%, and there is no county add-on. City levies apply only in Jackson and Tupelo, so confirm any local levy with the city before you quote prices for taxable items.

Some related occupations, such as contractors or appraisers, require separate state board licenses. Confirm whether any ancillary service you plan to offer needs its own license before you advertise it.

Step 9: Open the Trust Account and Set Your Escrow Process

Earnest money goes into a trust account, and the deposit must be made by the close of the next banking day. Keep a per-transaction escrow record for every deposit, because those records are open to MREC inspection. Open the trust account in the firm's name, not in your personal name, and keep it separate from your operating account. Ask your bank which account type to use and what statements it provides. Ask MREC whether it has specific rules on interest or on who may sign, because those details can change.

Trust account errors are the most common cause of trouble for new brokers. Build the deposit deadline into your calendar and assign one person to reconcile the account each month.

Step 10: Set Up the Office and Display the License

The responsible broker must keep an office and display the firm license there. Confirm that the office meets your city's zoning and occupancy rules before you sign a lease. A home office may be permitted in some cities and prohibited in others. Ask the city clerk or planning office directly.

Step 11: Calendar Your Recurring Deadlines

Put these dates on your calendar the day you form the entity:

• April 15 each year: LLC annual report, which may be filed on or after January 1. It must be filed online. The fee is $0, but failure to file can lead to administrative dissolution.
• April 15 each year: Corporate annual report for a profit corporation, $25.
• Every two years: MREC renewal for the broker, the firm and each branch.
• Each year: Confirm your city privilege license renewal date with the city clerk.

Common Mistakes to Avoid

• Forming the entity before confirming MREC's firm rules. Ask MREC how it licenses your structure first.
• Treating the Secretary of State filing as a license. You still need the MREC broker and firm licenses.
• Assuming a county license covers your city. Cities issue their own privilege licenses. Counties license only businesses outside municipalities.
• Using an unconfirmed fee from a forum or a competitor. Use the agency's current schedule.
• Opening a second office without a branch license. Each office needs its own license at $50.
• Letting the annual report slide. Failure to file can lead to administrative dissolution, and reinstatement takes time.
• Depositing earnest money late. The deposit deadline is the close of the next banking day.
• Running a team without registering it. Teams must be registered with MREC.

What Results to Expect

A complete, correctly sequenced setup should help you open the firm without repeated rejections or late fees. The most important result is a clean paper trail: a name that the Secretary of State accepted, a firm license that matches the entity, a trust account that the deposit deadline can support, and a calendar that catches each renewal. Individual outcomes vary with your market, your experience and your business plan. Nothing in this guide promises a specific number of listings, closings or income. Treat the setup as a foundation for the business, not as a guarantee of results.

Next Steps

1. Write to MREC and confirm the broker prerequisites, the firm types it licenses, and the current application forms.
2. Pass the exam and submit your individual broker application with the $100 first-year fee.
3. Choose your entity with a CPA and an attorney, then search the name on the Secretary of State Business ID search.
4. File the Certificate of Formation or Articles of Incorporation online, and appoint a registered agent.
5. Apply for the firm license at $75, then the branch licenses at $50 each.
6. Get the city privilege license from the city clerk where your office sits.
7. Open the trust account and calendar your April 15 and MREC renewal dates.

Reminder: this article is informational content, not legal or tax advice. Confirm every fee, deadline and requirement with the agency named above before you act, and consult a qualified Mississippi attorney and CPA for your specific situation.