License123 is an online resource for business owners to see what licenses and permits they will need to open their doors. Last week we did a License123 review followed by a list of business licensing resources by state. In our License123 review we compared the list of licenses that License123 came up with (for a $99 fee) vs. what CalGold.ca.gov — a free license search website in the state of California — showed us for our business, a hair salon in Menlo Park, CA.
What we found was that License123 gave us incomplete information about the forms we needed to fill out to open our business. Following this discovery, we were interested to see how using License123 would compare with a state in which reaching business licensing information was harder than in California where we can just use CalGold. So we decided to open a (fictitious) business in Jackson, Mississippi.
License123 License Information
Our business is a hair salon in Jackson, Mississippi. Here are the requirements for my business according to License123:
The packet that License123 provides you for $99 includes some application forms, including the Jackson Business License and Mississippi Salon License. Forms that are not included in the packet have links to the proper web page where the form must be filled out online. Because my hair salon does not do massage therapy, but I will be hiring full-time help, these are the forms that I will need according to License123:
- Jackson Business License
- Mississippi Salon License
- Mississippi Tax Registration
- Employer Identification Number
- Mississippi Employer Registration
- Mississippi Fictitious Business Name Registration (DBA) — this allows me to name my business something that does not include my actual name, and maintain exclusive use of that name
License information found using our own research
Using
First, I checked out the SBA’s Business License Permit Search tool. You can use the SBA search tool by typing in your zip code and the type of business you own. I did so, and the only result was a cosmetology license.
Not only did the SBA search tool only give me one result, but when I try to click on the cosmetology licenses, the link was broken.
Next I decided to check out the Mississippi State Department of Health website. Under “Licensure” I can find a short list of license applications, including a “hair braiding application packet.” None of the other application packets look pertinent to my business, but I am sure that this list is incomplete.
The MS Department of Health website also offers a list of license information at a cost of $50. These are only per-profession licenses, I can not find specific establishment licenses.
Lastly, I decided to check out the website of the Jackson, MS city clerk. There is a tab devoted to business, and under that tab there is a link to business licensing information.
This page indicates that my business will need a City of Jackson business license (unless exempt), that there will be a business license fee based on the number of employees my business has, and it lists a whole slew of miscellaneous fees that might apply (i.e. soft drink machine fee, massage parlor permit fee, etc.).
So far through my own business licensing information search I have found two licenses that I will need:
- City of Jackson business license
- Hair braiding permit
According to the License123 information, it seems as though I am still missing some license and permit information to start my business. Thus, I decided to contact the manager of the Signs and License Division in Jackson Mississippi via phone. After speaking with one of their representatives, I was directed to call the Mississippi State Tax Commission.
I spoke with a woman on the phone at the Mississippi State Tax Commission who asked me a few questions about my business: is the business run out of my home or is it a new establishment, have I ever filed taxes in the state of Mississippi, etc. She then directed me to the department of revenue website to register my business. She told me to click on the big blue button to get started with tax registration, and warned me that I will need an EIN and I will have to fill out employee withholding information and employer registration if I have employees other than myself.
As for business licensing information, she directed me to the Mississippi Secretary of State website. I am absolutely overwhelmed by the Secretary of State website. There are so many links, and none of them seem to be specifically for business information.
I clicked on “SOS Office Locator” to try to find a number to call for the office in Jackson, MS. When I called, I was redirected to the business services department. The woman I spoke with on the phone couldn’t tell me anything about business licensing, but told me that I probably needed to register my business as an LLC or Corporation on their website (same website as above). She told me that this registration can be done online.
I am still not satisfied that I have all the information I need, and judging by the License123 information it seems as though I’m still missing a very important, required license, the Mississippi Salon License, along with any other licenses that License123 might be missing. As a last resort, I decided to reach out by email to the business services department at the Secretary of State and to my local city clerk.
The MS Secretary of State office got back to me within 20 minutes of sending my email. She told me that I covered everything on their end, and all I needed to do was check with the Department of Health and the state Cosmetology Board.
Since I already check the State Department of Health, I went straight to the MS State Board of Cosmetology. What I found is a page with links to a bunch of different forms I might need to fill out for my business.
I know I will need to fill out the “Salon Application Packet.” There is also a “permit to work” application that I will need, and I will need to take an examination that proves my eligibility to own and operate a salon in Mississippi. There is an “Exam Approval Form” that I need to fill out with that. Here is my updated list of business licensing documents that I will need:
- City of Jackson business license
- Hair braiding permit
- Completion of Mississippi Tax Registration
- MS Employer Registration
- Employer Identification Number
- Salon Application Packet
- Permit to work
- Exam + Exam approval form
All the requirements I know about match (and exceed) those that were provided in the License123 packet, with the exception of the fictitious business registration. I have not been able to find information about this form anywhere, although according to the link in the License123 packet, it looks like something I will fill out after I register my business as a corporation. Thus, it seems as though License123 once again gave us incomplete information.
The Verdict
Researching business license and permit information in the state of Mississippi took a lot of time out of my day and required numerous phone calls and a couple emails as well. I still don’t have most of the physical applications that I need to fill out — to get all of the applications, I might need to contact various departments of the State of Mississippi. License123, on the other hand, provides everything that I need in the downloadable packet of $99.
Business owners have a lot on their plate and often do not have enough time to do it all. If your state does not have a designated website for license and permit information, you could spend hours of your time just researching all the forms you need to compile to start your business. If I were a business owner in Mississippi, I might consider purchasing the License123 business licensing information packet to get started. However, be careful! As we have demonstrated, the License123 information is not always complete — if you are considering purchasing a License123 packet, it would also be a good idea to make an appointment to see your local city clerk’s office to discuss what forms you might be missing.
This article was originally written on March 5, 2015 and updated on November 2, 2016.
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