Mississippi LLC Taxes

Mississippi’s low cost of housing and natural environment make it a great place in which to start a business. Yet, as more business owners choose to start their ventures within this state, many may find it challenging to understand the business taxes involved.

Regardless of the size of your business, if you operate a limited liability company (LLC) in Mississippi, you’ll need to stay up to date on your finances and pay federal, state, and local taxes. Our guide will help you understand which taxes you must pay for your Mississippi LLC.

Recommended:Schedule a free consultation with an accountantto stay on top of your taxes.

Mississippi LLC Taxes Owed

LLCs benefit from pass-through taxation, which means the business’s profits pass through to its members’ individual tax returns. As a result, your LLC itself doesn’t pay taxes to the federal government or the state of Mississippi. Instead, LLC owners must pay taxes on their portion of the income generated by the LLC.

In Mississippi, LLC owners can expect to pay the following taxes:

Federal Taxes

Regardless of where your business is located, if you have an LLC within the United States, you will have to pay federal income taxes and federal self-employment taxes. These taxes are reported on your Form 1040.

Federal Self-Employment Taxes

It doesn’t matter if your LLC is a single-member LLC or a multi-member LLC; all LLC members must pay self-employment taxes on their share of the LLC’s profits. The self-employment tax rate is 15.3%.

Federal Income Taxes

Your federal income taxes will depend on your tax bracket, and the cutoffs for individual tax brackets, as well as the percent owed, will change each year.

Mississippi State Taxes

Each state has its own laws that dictate how it taxes individuals and businesses. Here’s an overview of the Mississippi state taxes most likely to affect your business.

Mississippi Income Taxes

Mississippi has a state income tax rate of 5%. This places it on the low end of the states that impose income taxes.

Mississippi Sales and Use Tax

Mississippi’s state sales tax rate is 7%. You also may encounter a local sales tax in some Mississippi counties and cities, which adds an average of 0.07% to the state sales tax rate. As a result, the combined average sales tax rate in Mississippi is 7.07%.

Register for a Mississippi Sales Tax License

如果your business sells taxable goods or services, you must register for asales tax licensewith the Mississippi Department of Revenue.

Additional State Taxes

The Mississippi Department of Revenue oversees the collection of various state-specific taxes businesses may have to pay, depending on their location, industry, and number of employees. Some examples of these additional taxes include:

  • Gaming Tax
  • Petroleum Tax
  • Telecommunications Tax
  • 烟草消费税
  • Transient Room Tax
  • Utility Gross Receipts Tax

To learn more, visit theMississippi Department of Revenuewebsite.

Mississippi Local Taxes

The local laws and ordinances in one Mississippi city or county likely will differ from those in another. Regardless of where you live within the state, we recommend you check with your local jurisdiction to ensure your business obtains the proper local permits and follows any local regulations that may impact its operations.

Mississippi LLC Compliance

You must obey Mississippi state and local laws in order to maintain your business in good standing. While Mississippi LLCs technically don’t file taxes with the state, these businesses must still file an annual report each year.

Mississippi LLC Annual Report

All Mississippi LLCs need to file an annual report with the Mississippi Secretary of State. While you mustfile online, there’s no fee as long as you file on time.

年度报告将于每年4月15日。如果you fail to file on time, you’ll receive a warning from the state that you must file immediately or risk the dissolution of your LLC. If you still don’t file this report, the state of Mississippi will intervene and shut down your LLC.

For more information, check out ourMississippi LLC Annual Reportguide.

LLC taxes are complex. While our guide can provide you with important information, we recommend youschedule a free consultation with an accountantto ensure you handle your business taxes correctly.