Mississippi LLC Annual Filing Requirements

Learn about Mississippi LLC annual report and tax filing procedures.

To establish and operate a Mississippi limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses Mississippi LLCs’ most essential continuing reporting and state tax filing needs.

The Annual Report

Your LLC must submit an annual report with the state of Mississippi. You may submit the report by mail or online at the Secretary of State’s website. In order to submit the report, you must first register with the SOS online filing system and have your state-issued Business ID Number. The ID number may be found by doing a company name search on the SOS website.

The report requires just a few pieces of information, such as the LLC’s formal name, the location of its major office, and the name and street address of the resident agent.

The annual report may be submitted at any time after January 1 but no later than April 15. There is no filing charge for a Mississippi LLC’s annual report.

State Corporation Tax

Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. Some states charge LLCs a separate tax or fee for the privilege of conducting business in their jurisdiction. Mississippi, on the other hand, is not one of those states.

However, in certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Mississippi, like almost every other state, has a corporate income tax. The tax in Mississippi is normally determined using a set of marginal rates. Mississippi also levies a company franchise tax. This extra tax is often dependent on the amount of capital utilized, invested, or employed by a corporation. You must pay both of these taxes if your LLC is taxed as a corporation. Pay by submitting the Mississippi Department of Revenue’s company and franchise tax return (Form 83-105) (DOR)

Employer Taxes in the State

Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Mississippi employers, on the other hand, must pay state taxes.

To begin, you must withhold and pay employee income taxes to the DOR. Begin by registering your company with the DOR through Mississippi’s Taxpayer Access Point (TAP). After you’ve enrolled, you must submit withholding taxes on a regular basis (typically monthly or quarterly). Each year, you must additionally utilize Form 89-140 to balance your LLC’s tax withholding.

You’ll also need to register to pay state unemployment insurance (UI) taxes. These are disbursed by the Mississippi Department of Employment Security (MDES). You may register in person (with Form UI-1) or online. Then, on a quarterly basis, you must submit Form UI-2/3 to the MDES. Check out the MDES website for further details.

Taxes on Sales and Use

If your LLC sells items to Mississippi clients, you must collect and remit sales tax. This implies you’ll need to register with the Department of Revenue for this reason. Online registration is available at the DOR website. You will be awarded a sales tax permit after you have registered. Then, on a regular basis, you must produce reports on state sales tax collection. (The frequency of filing is determined by the total amount of tax owed; if it is less than $600 for the year, you only need to file yearly.) You may report and pay sales tax online at the DOR website or on paper.

Other States Registration

If you want to do business in states other than Mississippi, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.