LLC Annual Report and Tax Filing Requirements in Mississippi

If you're interested in running a limited liability company (LLC), you'll need to be aware of this business structure's advantages and maintenance requirements. Apart from providing limited liability to its owners, an LLC offers flexible tax and management structures. But you'll need to prepare and file various documents with the state to maintain your LLC.

In Mississippi, all LLCs must file an annual report and file and pay applicable business and employer taxes. Let's look at the most important ongoing state reporting and tax filing requirements for Mississippi LLCs. (If you need information about other states' LLC requirements, take a look at our article on LLC tax and filing requirements.)

Mississippi LLC Annual Report

The State of Mississippi requires you to file an annual report for your LLC with the Mississippi Secretary of State (SOS). The SOS uses the annual report to keep updated records for all companies doing business in the state.

You must file your report online through the SOS's online filing system. To use the online filing system, you'll need to create a username and password using your LLC's business ID number. You can find your ID number by doing a business name search on the SOS website.

The annual report must be filed by April 15. But you can file your report starting January 1. There's no filing fee for the annual report for a Mississippi LLC.

State Business Taxes in Mississippi

For income tax purposes, most LLCs are considered "pass-through tax entities." With a pass-through entity, the responsibility for paying income taxes passes through the entity and falls on the entity owners. So, the business doesn't pay taxes on its income. Instead, the owners pay taxes on their share of the business's income.

By default, multi-member LLCs are taxed as partnerships and single-member LLCs are taxed as disregarded entities. As a result, LLC members pay taxes on their share of the LLC's income on their personal tax returns.

In Mississippi, you must file your individual and business tax returns with the Mississippi Department of Revenue (DOR). You can register your business through the Mississippi Taxpayer Access Point (TAP) to file returns and pay taxes for you and your LLC.

Electing corporate tax status. While LLCs are typically taxed as partnerships by default, you can choose to have your LLC taxed as a corporation for federal tax purposes. You can elect corporate tax status by filing IRS Form 2553 with the IRS. If you elect to have your LLC taxed as a corporation, your LLC will also be taxed as a corporation in Mississippi and you'll need to pay the state's corporate income tax. In Mississippi, this tax is generally calculated at a series of marginal rates. You can file and pay this tax using the state's Corporate Income and Franchise Tax Return (Form 83-105) with the DOR.

Might pay a corporate franchise tax. All corporations—including LLCs taxed as corporations—doing business in Mississippi must pay a franchise tax. The franchise tax is calculated based on the net book value of the capital used, invested, or employed by the corporation in Mississippi. Corporations must pay a minimum tax each year. As of 2024, the minimum tax is $25. The franchise tax will be completely phased out after 2027. So, starting in 2028, the franchise tax will no longer be assessed.

Electing pass-through entity status. Mississippi LLCs—along with S corporations and other pass-through entities—can elect to be taxed at the entity level. If you make this election, your LLC will pay taxes on behalf of its members. Then, each member will receive a credit on their state income tax return equal to their pro rata or distributive share of the tax paid. Your LLC can make this election by filing Form 84-381 with the DOR during the tax year. After you make the election, it's binding on the current and future tax years until revoked. You can make the election, file your returns, and pay taxes through TAP.

Visit the corporate income and franchise tax webpage of the DOR website for more. On this webpage, you can find links to frequently asked questions (FAQ) pages about the corporate income and franchise tax and the pass-through entity election. You can also access links to forms, online filings, notices, laws and regulations, and other helpful information.

Mississippi Employer Taxes

Does your LLC have or plan to have employees? If so, you must pay employer taxes to both the federal and state governments. Before you start reporting and paying these taxes, you'll need to apply for an employer identification number (EIN) from the IRS.

Withholding employee wages. As a Mississippi employer, you must withhold and pay employee income taxes to the DOR. Register your business for a withholding account number online using TAP. After you've registered your LLC, you'll need to file withholding taxes periodically (typically monthly or quarterly) as determined by the DOR. You must also reconcile your LLC's tax withholding using Form 89-140. See the DOR's withholding tax FAQ webpage for additional guidance.

Unemployment insurance (UI) tax. In addition to withholding taxes, your LLC will probably need to pay state UI taxes to the Mississippi Department of Employment Services (MDES). To pay and report UI taxes to the MDES, register your business through ReEmploy MS, the MDES's online system. After you register your LLC, you'll need to file quarterly tax and wage reports and make payments. You can use ReEmploy MS to submit these reports and make payments. The MDES website has a lot of resources for employers including an Employer Reference Guide.

Mississippi Sales and Use Tax

If your LLC will sell taxable goods or services to customers in Mississippi, you must collect and pay sales tax to the DOR. You can register online with the DOR using TAP. Once registered, your business will receive a sales tax permit.

After you've registered, you must submit sales tax returns periodically—either monthly, quarterly, or annually. Your filing frequency depends on your annual sales tax payment. You can file and pay your sales tax online through TAP. You can also file on paper using the form the DOR mails to you 30 days before your due date.

Visit the sales and use section of the DOR website to learn more.

LLC Registration in Other States

Sometimes, owners organize their LLCs in one state but do business in another. For example, you might organize your LLC in Mississippi but do business in Louisiana or another state. If you do business outside your home state, you might need to register as an out-of-state (foreign) LLC in the states where you have business activities.

Each state has rules for when an out-of-state business must register. But typically, you'll need to qualify as a foreign business if your LLC:

• has a physical presence in the state (such as an office, warehouse, or store)
• hires employees in the state, or
• solicits business in the state (such as by telephone, print ads, mail, or the internet).

You should check each relevant state's laws around qualifying as a foreign business. For more guidance on when to register, see our state guide to qualifying to do business outside your state.

More Information About Mississippi LLCs

Mississippi state websites offer a variety of resources to small business owners. The SOS and DOR websites are particularly helpful when learning about your business's continuing legal requirements.

Specifically, the SOS, in collaboration with other state departments and agencies, offers Mississippi BOSS: Business One Stop Shop. By completing the BOSS application made up of only a few basic questions about your business, you'll receive a customized business startup guide. The guide includes information about:

• business plans
• business financing
• business structures
• tax registration
• business licensing
• employer responsibilities, and
• business insurance.

Many business owners can keep up with their LLC's state legal requirements on their own. But many others benefit from professional guidance, including businesses with complicated tax structures or a lot of employees. If you need legal help, talk to a Mississippi business attorney. They can help guide you through the often complicated paperwork and ensure that your business is meeting its legal obligations.

If you'd like more general or topic-based guidance related to operating your LLC, take a look at the articles in the LLC section of our website. There, you can find information about operating agreements, taxation, and asset protection.