Mississippi Business Taxes for LLCs
What taxes does a Mississippi LLC need to pay? This guide covers state income tax, sales tax, payroll tax, franchise tax, and estimated payments — with specific rates, forms, and deadlines.
Bizee Editorial Staff
Editorial Team
Mississippi LLC tax facts at a glance
Filing fee: $0 (domestic LLC annual report); $250 (foreign LLC annual report)
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State agency: Mississippi Secretary of State (annual report); Mississippi Department of Revenue (taxes)
Annual report due: April 15 each year (filing window opens January 1)
State tax rate: State income tax: 0%–5% (graduated); Sales tax: 7% (general rate); Corporate income tax: applies to LLCs taxed as corporations
Mississippi LLC tax structure
A Mississippi LLC doesn't pay income tax at the entity level by default. Instead, the Mississippi Department of Revenue follows the LLC's federal tax classification — so how your LLC is taxed in Mississippi depends on how the IRS classifies it. Most LLC owners pay state income tax on their share of profits through their individual returns.
Beyond income tax, Mississippi LLCs may also owe sales tax, payroll withholding tax, and — if the LLC elects corporate taxation — franchise tax. The taxes that apply to your business depend on your LLC's structure, whether you have employees, and whether you sell taxable goods or services.
- Single-member LLC: owner reports income on their individual Mississippi return; no separate entity-level income tax return required
- Multi-member LLC: each member reports their share of income on their individual Mississippi return; the LLC files a Mississippi partnership income tax return
- LLC taxed as a C corporation: files a Mississippi corporate income tax return and pays corporate income and franchise tax
- LLC taxed as an S corporation: subject to Mississippi corporate income tax rules at the entity level
State income tax for Mississippi LLCs
Mississippi has a graduated state income tax with rates ranging from 0% to 5%. For most LLC owners, this tax is paid at the individual level — you report your share of the LLC's profits on your Mississippi individual income tax return, not through a separate business return.
If you run a single-member LLC treated as a disregarded entity, you don't file a separate Mississippi state income tax return for the LLC. Your business income flows directly onto your personal return. Multi-member LLCs classified as partnerships do file a Mississippi partnership income tax return, but the tax itself is still paid by each member individually based on their distributive share.
One thing that catches people off guard: even if your LLC has no separate filing obligation, you still owe Mississippi income tax on the profits. The pass-through structure changes where you file, not whether you owe.
Mississippi sales and use tax
Mississippi's general sales tax rate is 7%. If your LLC sells taxable goods or services in Mississippi, you're required to collect sales tax from customers and remit it to the Mississippi Department of Revenue. Some categories carry lower statutory rates or exemptions, so the 7% rate doesn't apply to every transaction.
Mississippi also imposes a use tax at the same 7% rate. If your LLC buys taxable tangible personal property — things like equipment or computers — from an out-of-state seller that doesn't collect Mississippi sales tax, you're responsible for self-assessing and remitting use tax on those purchases.
Payroll taxes and withholding
If your Mississippi LLC has employees, you'll have 2 main state-level payroll obligations: withholding state income tax from employee wages and paying state unemployment insurance tax. Both are separate from federal payroll taxes.
Mississippi employers must register with the Mississippi Department of Employment Security to file and pay unemployment insurance tax. The unemployment tax is the employer's responsibility — employees don't pay it. State income tax withholding applies to taxable wages paid to employees working in Mississippi, regardless of where the employee lives.
A tax professional can help you figure out your specific withholding and unemployment tax rates, which vary based on your payroll history and industry.
Corporate and franchise tax
Most Mississippi LLCs don't owe corporate income tax or franchise tax. These taxes apply only if your LLC has elected to be taxed as a C corporation or S corporation for federal purposes. By default, single-member and multi-member LLCs are pass-through entities and aren't subject to Mississippi corporate income or franchise tax at the entity level.
If your LLC does elect corporate taxation, it must file a Mississippi corporate income tax return with the Department of Revenue and register for the appropriate corporate tax accounts. The franchise tax applies to corporations doing business, earning income, or existing in Mississippi.
Estimated tax payments
Mississippi requires estimated tax payments when your annual state income tax liability exceeds $200. This applies to both individual LLC owners and corporate taxpayers. If you don't have enough withheld from other income to cover at least 80% of your annual Mississippi tax liability, you'll need to make quarterly estimated payments.
Individual estimated payments are due in 4 installments: April 15, June 15, and September 15 of the tax year, then January 15 of the following year. Missing these deadlines can mean underpayment penalties on top of the tax you owe.
Annual report requirements
Mississippi LLCs must file an annual report with the Mississippi Secretary of State each year to stay in good standing. The filing window opens January 1 and the report is due by April 15. Domestic LLCs formed in Mississippi pay no state filing fee. Foreign LLCs registered to do business in Mississippi pay a $250 filing fee.
The annual report is filed online through the Mississippi Secretary of State's Business Services portal — paper filings aren't accepted. This is a separate requirement from your tax filings with the Department of Revenue, so don't confuse the two deadlines.
FAQ
It depends on how your LLC is classified. By default, a single-member LLC is taxed as a disregarded entity and a multi-member LLC is taxed as a partnership — in both cases, income passes through to the owners' individual Mississippi returns. If your LLC elects to be taxed as a corporation, it pays Mississippi corporate income and franchise tax at the entity level.
Yes. Mississippi has a statewide sales tax rate of 7% on most taxable goods and services. Some categories carry lower rates or exemptions. If your LLC sells taxable items in Mississippi, you're required to collect and remit sales tax to the Mississippi Department of Revenue. Mississippi also has a use tax at the same 7% rate for out-of-state purchases used in the state.
Yes. Mississippi has a graduated state income tax with rates from 0% to 5%. LLC owners who are self-employed report their share of business profits on their individual Mississippi income tax return. There's no separate entity-level income tax return for a single-member LLC treated as a disregarded entity — the income flows directly to the owner's personal return.
Generally, no — not for most LLCs. Mississippi's franchise tax applies to entities taxed as corporations. If your LLC is taxed as a pass-through entity (the default for single-member and multi-member LLCs), you don't owe franchise tax. If your LLC has elected C corporation or S corporation status, franchise tax applies.
Yes, if your annual Mississippi income tax liability exceeds $200 and you don't have enough withheld to cover at least 80% of that amount. Individual estimated payments are due April 15, June 15, September 15, and January 15 of the following year. Missing these deadlines can mean underpayment penalties on top of what you owe.
All LLCs doing business in Mississippi — both domestic and foreign — must file an annual report with the Mississippi Secretary of State. The report is due by April 15 each year and must be filed online through the Secretary of State's Business Services portal. Domestic LLCs pay no filing fee. Foreign LLCs pay a $250 fee.
Mississippi LLCs with employees must withhold state income tax from employee wages and pay state unemployment insurance tax to the Mississippi Department of Employment Security. The unemployment tax is the employer's responsibility — employees don't pay it. You'll need to register with both the Department of Revenue and the Department of Employment Security before running payroll.
