How to Start a Rideshare or Taxi Business in Mississippi: TNC License and Local Taxi Permits

If you are looking for a Mississippi rideshare license, start by understanding that rideshare and taxi service are regulated in two different places. The Mississippi Insurance Department licenses transportation network companies (TNCs), the companies that connect riders with drivers through an app. Taxi and limousine service is not covered by that license. It is handled by the city or county where you plan to operate. Mississippi also has no general state business license, so the paperwork is a mix of a Secretary of State registration, a state license, and local privilege licenses. This guide walks through the steps in the order most applicants find easiest to follow.

Informational content, not legal or tax advice. This article explains how the process is generally structured in Mississippi as of October 2026. It is not legal, insurance, or tax advice. Fees, forms, and deadlines change, so confirm each one with the agency named in the step before you pay or file. If you have investors, several owners, or plans to operate in more than one city, talk with a licensed Mississippi attorney and a CPA before you commit.

What you need before you start

Gather these items before you file anything. Most delays come from missing paperwork, not from the agencies.

• A company name that is available on the Secretary of State’s records. An LLC name must contain “limited liability company,” “L.L.C.,” or “LLC.”
• A physical Mississippi street address for your registered office, and a Mississippi registered agent to accept legal papers.
• Funds for the $50 Certificate of Formation filing, the $5,000 TNC license fee, and any city or county fees you will owe later.
• An EIN from the IRS, and a Mississippi sales tax permit application if your business will make taxable retail sales.
• A written driver screening standard that includes background check criteria, and a written zero tolerance drug and alcohol policy.
• Draft driver agreements that describe the independent contractor relationship and the conditions your platform requires.
• Current contact information for the clerk or licensing office in each city or county where you will operate, because each one sets its own forms and fees.

Step 1: Confirm which license applies to your business model

Decide what you are actually operating before you file anything. The answer determines which agency you deal with and what it costs.

• An app-based rideshare platform (TNC). You need a TNC license from the Mississippi Insurance Department. Mississippi’s TNC rules sit in Miss. Code 77-7-5 and 77-7-7, the insurance provisions at 63-15-39 to 63-15-43 and 83-11-101, and 2016 HB 1381.
• A taxi or limousine service. The TNC license does not cover this. You need the permit or license from each city or county where you will pick up passengers.
• Both. Some operators run a platform and also dispatch traditional vehicles. You will need both sets of approvals, and you should keep the two sets of records separate.

Step 2: Form your company with the Secretary of State

Most applicants form an LLC. The Certificate of Formation (Form F0100) costs $50 and can be filed online through the Secretary of State’s Business Services Division. Your TNC application requires that the company already be registered with the Secretary of State, so do this step first.

A few details matter here:

• Processing. Most documents paid for online are filed immediately. Filings that need staff review are normally returned filed within 24 hours. Paper filings take significantly longer, so file online.
• Name reservation. A reservation costs $25 and holds the name for 180 days. Use it if your name is not yet cleared and you expect the Insurance Department process to take a while.
• Annual report. The LLC annual report (Form F0108) has no fee. It is due April 15 each year, may be filed on or after January 1, and must be filed online. Failure to file can lead to administrative dissolution, which would put your TNC license at risk.
• Tax treatment. An LLC is a pass-through entity by default, so its income is reported on the members’ Mississippi returns. The franchise tax applies to corporations, not to an LLC taxed as a partnership. If you elect corporate treatment, the corporate income tax and franchise tax rules apply, so review that choice with a CPA.

The online filing portal is at corp.sos.ms.gov. General business information is at sos.ms.gov/business-services.

Step 3: Appoint a Mississippi registered agent

Every Mississippi LLC must continuously maintain a registered office in the state and a registered agent for service of process. The agent must be either an individual who is a Mississippi resident, or a business entity authorized to transact business in Mississippi. The agent’s business office must match the registered office, and it needs a physical Mississippi street address.

Mississippi recognizes two kinds of agents:

• Commercial agents file a listing statement with the Secretary of State for $100, appear on the state website, and must accept or decline a representation within 14 days.
• Noncommercial agents do not register with the state, but you must have the agent’s permission before you list them.

The TNC application also requires a registered agent for service of process in Mississippi, so one agent can cover both filings. Confirm the agent’s acceptance in writing and keep a copy in your compliance folder.

Step 4: Register for tax and check whether sales tax applies

Mississippi issues no single general business license. For a business making retail sales, the Department of Revenue sales tax permit is the main state registration. The Department describes it as a permit for the privilege of operating a business in Mississippi. There is no fee for it, although the Department may require a bond from applicants with no permanent Mississippi location. Apply through the Department’s sales and use tax registration page. The Department’s main site is dor.ms.gov.

Whether a rideshare or taxi fare is subject to sales tax, and how any platform or local fee is treated, depends on how your operation is structured. Ask the Department of Revenue to confirm the treatment for your model before you set your fare structure. The state sales tax rate is 7%. The state tax has no county add-on. City levies apply only in Jackson and Tupelo, so if you operate in either city, confirm whether its levy would reach your trips.

Step 5: Build your driver program before you apply

The Insurance Department expects a TNC to meet the rules that apply to it. Under the TNC framework, drivers are independent contractors when the set conditions are met. TNC drivers are not taxi or limousine operators, and they do not need to register their cars as commercial vehicles. Your driver agreements and screening process must reflect those conditions.

Build these three elements into your program:

• Background checks for every driver, completed before the driver takes a trip and repeated on a schedule you set. Write down your criteria so you can show them later.
• A zero tolerance drug and alcohol policy, in writing, covering drivers and describing how you respond to a violation.
• Driver agreements that describe the independent contractor relationship and the platform conditions drivers must accept.

Mississippi has no state minimum wage law, so driver pay is set by your contracts and by federal rules. Have an employment attorney review your classification. Misclassifying drivers is a common source of expensive disputes.

Step 6: Submit the Mississippi rideshare license application

The Mississippi Insurance Department licenses TNCs. The application is a paper filing sent to its Licensing Division, and questions can be directed to 601-359-3582. The Department’s instructions for TNCs took effect October 1, 2016 and the page was reposted in 2023, so confirm with the Department that the instructions you are using are current. The license terms are:

Item	What to know
License fee	$5,000
Annual renewal	$5,000 each year, not prorated
License term	October 1 to September 30
Registered agent	Required for service of process in Mississippi
Prerequisite	Secretary of State registration of your company first

Because the fee is not prorated, a late-year application still carries the full $5,000. Ask the Insurance Department how it handles an application received in the middle of a term before you choose a launch date. Assemble the following before you call or mail the packet, so you can answer questions without delay:

• Your stamped Secretary of State filing and your registered agent’s written acceptance.
• Your written background check criteria and zero tolerance drug and alcohol policy.
• Your driver agreement template and a description of how you enforce the independent contractor conditions.

Step 7: Obtain taxi or limousine permits for each city or county

Taxi and limousine service is not covered by the TNC license. Cities and counties set their own rules, and their permit and per-vehicle fees vary. Do not assume that a figure from another city applies to yours. Before you buy a vehicle or sign a lease, check with the city clerk or the county licensing office where you will operate, and ask:

• Is a taxi or limousine permit required, and what is the application process?
• What is the permit fee, and is there a separate fee for each vehicle? Get the per-vehicle amount in writing.
• Are there vehicle inspection, insurance, or driver certification requirements?
• Does the local rule apply to app-based trips, or only to hailed or dispatched trips?

Step 8: Obtain the city privilege license

Mississippi issues no statewide business license, but every city, town, and village issues its own privilege license under Miss. Code 27-17. The city privilege license applies to your operation within city limits. Counties license only businesses outside municipalities, so if your base or pickup area is outside city limits, ask the county instead. Confirm which one applies to your address before you apply. The privilege license is separate from your TNC license and from any taxi permit.

Step 9: Calendar your recurring obligations

1. October 1 to September 30: Your TNC license term. Budget $5,000 for each renewal and confirm the renewal filing deadline with the Insurance Department.
2. April 15 each year: LLC annual report, filed online, with no fee.
3. Each year: Review your city or county privilege license, your taxi permits, and the per-vehicle fees with each issuing office.
4. When something changes: If your registered agent, address, or ownership changes, update your Secretary of State records and notify the Insurance Department promptly.

Expected results

A complete, well-organized file is designed to let you move from formation to a licensed TNC operation in a predictable sequence. No timeline is guaranteed. Online Secretary of State filings are typically fast. The Insurance Department review, the city permit reviews, and your driver onboarding each depend on agency workload and on how complete your file is when it arrives. The state fees described above are fixed amounts. Local fees, vehicle requirements, and insurance costs can add meaningful expense that varies by location. Build a budget that covers the state fees, local fees, and insurance quotes, and treat any projected result as a planning assumption rather than a promise.

Common mistakes to avoid

• Treating the TNC license as a taxi permit. It is not. A city or county permit is still required for taxi or limousine trips.
• Applying before forming the company. The Secretary of State registration must come first.
• Budgeting for a prorated fee. The $5,000 fee is not prorated, so plan for the full amount whenever you enter a term.
• Using a registered agent without a matching in-state office. The agent’s business office must be identical to your registered office.
• Skipping the April 15 annual report. It carries no fee, but missing it can lead to administrative dissolution.
• Assuming a neighboring city’s fees apply. Each city and county sets its own permit and per-vehicle fees.
• Classifying drivers without a legal review. Independent contractor status depends on meeting the set conditions, so have it reviewed.

Tips from the filing process

• File the Secretary of State paperwork first, and save the filed certificate. The Insurance Department will want proof that your company is registered.
• Ask the Insurance Department for its current checklist before you assemble the paper packet.
• Call the city clerk early. Permit offices often have their own forms, inspection schedules, and waiting periods.
• Keep one compliance folder with the formation certificate, the registered agent letter, the TNC license, the city and county licenses, and every renewal date.
• If you are unsure whether you need a Mississippi sales tax permit, ask the Department of Revenue in writing and keep the answer on file.

Where to get help

The Mississippi Small Business Development Center Network, a statewide program with 19 locations and a lead center hosted by the University of Mississippi, offers business counseling and planning help. Start at mississippisbdc.org. The U.S. Small Business Administration’s Mississippi district page is at sba.gov/district/mississippi.

Final note

This guide describes how Mississippi’s TNC and local permit system is generally structured. It is informational and is not legal, insurance, or tax advice. Before you sign a driver agreement, a lease, or a platform contract, talk with a licensed Mississippi attorney and a CPA who can review your specific facts.