Anthla Wade, 46, is being held in the Pontotoc County Jail while police finish their investigation into the standoff.
Sherman Assistant Police Chief Jeff Turner said they plan to place multiple charges against Wade by Monday.
Turner said police received a call around 6:15 p.m. Thursday reporting a man throwing things out of the window of the Sherman Service Station and shouting and cursing.
"An officer got out there and tried to reason with the person," Turner said. "But the guy wouldn't talk and barricaded himself in the building."
Wade then allegedly fired shots at officers and set the upstairs area of the building on fire. The area contained living quarters.
Officers from Tupelo Police Department and the Pontotoc County Sheriff's Office responded to assist Sherman Police.
The Sherman Fire Department received assistance from the Belden and Southeast Union County fire departments.
The fire destroyed the upstairs living quarters and was contained to that area.
Turner said the smoke got so thick in the building that Wade came out.
Emergency officials began leaving the scene around 10 p.m.