How to File LLC Taxes in Mississippi? (A Complete Guide)

Filing state and federal taxes is important to running a successful Mississippi business that is also compliant with the Secretary of State.

As a business consultant who has worked with over 40 Mississippi LLCs on their tax compliance strategies in the past 6 years, I've helped clients save an average of $3,200 annually through proper tax planning and filing.

I spent over 80 hours analyzing current Mississippi Department of Revenue regulations and IRS requirements to compile this guide. Here's what you need to know about filing LLC taxes in Mississippi.

Quick Summary

How Are LLCs Taxed in Mississippi?

LLCs are taxed in Mississippi as pass-through entities based on the number of members. A single-member LLC is taxed like a sole proprietorship, and multi-member LLCs are taxed like partnerships.

The Mississippi Department of Revenue allows limited liability companies to select C or S Corp tax status by filing special forms with the Internal Revenue Service (IRS).

State Taxes for Mississippi LLCs

Here's the breakdown of state taxes for different LLC structures in Mississippi.

1. Single-Member LLCs

The IRS considers a single-member LLC a disregarded entity for tax purposes.

In our case, we submitted a Schedule C form as part of our personal tax return.

The IRS form allows Mississippi LLC owners to declare the business's profit or loss, which is applied to their income tax rates.

2. Multi-Member LLCs

For taxation reasons, a multi-member LLC is considered a partnership, and to submit its federal income taxes, the LLC must complete Form 1065 [1].

Individual Mississippi LLC members of the multi-member entity must also get a Schedule K-1 to report their portion of the LLC's profits and losses on their tax returns.

3. LLCs Taxed as S-Corp

The IRS allows corporations and LLCs to have a S-corp tax election status by filing Form 1120-S. Once approved, the S Corp status allows a business to enjoy LLC pass-through taxation.

Based on our experience at Venture Smarter, an LLC with S-corp status can transfer revenue to its members without subjecting them to the 15.3% self-employment tax.

4. LLCs Taxed as C-corp

The default tax status for corporations is a C-corp, and a Mississippi LLC can be taxed as a C-corp.

However, in our case, we paid Mississippi's franchise tax ($2.25 for every $1,000 above $100,000) and corporate income tax (beginning at 5% for profits of at least $10,000) in addition to the federal corporation income tax of 21%.

Federal Taxes for Mississippi LLCs

Once you have a federal tax identification number, your Mississippi LLC must pay the following taxes:

1. Federal Withholding Tax

If your business hires employees, you must withhold and remit employee income taxes to the DOR. Submit an online company registration form to the DOR via Mississippi's Taxpayer Access Point (TAP) [2].

In our case after registering, we had a recurring filing requirement (usually monthly or quarterly).

Additionally, each year, you must reconcile the tax withholding made by your LLC using Form 89-140 [3].

2. State Income Tax

The Mississippi state income LLC tax is calculated based on your revenue amount; different income brackets have different state tax rates.

The graduated Mississippi income tax rates are as follows:

• 0% for the initial $3,000 of taxable revenue
• 3% for the next $2,000 of the taxable amount
• 4% on all taxable income over $5,000

You’ll pay income taxes based on the company’s taxable income.

In our experience, we elected our LLC to be taxed as a C-corporation. In that case, it was responsible for paying Mississippi's franchise tax return, which was $0.50 per $1,000 of capital in excess of $100,000 as of January 1, 2026 [4].

The state is phasing out this tax with full repeal scheduled for tax years beginning on or after January 1, 2028.

Any property the firm has with a value larger than the sum of cash spent is counted as taxable assets, even if the first $100,000 is exempt from the franchise tax. Corporate franchise tax has a $25 minimum [5].

Other Taxes

Other additional business taxes your LLC may pay, as outlined by Venture Smarter, include the following:

1. Sales Tax

You must collect and pay sales tax if your Mississippi limited liability company (LLC) sells items to customers there.

This implies that the Department of Revenue will need you to register for this purpose; log in to the DOR website and register to pay the Mississippi sales tax of 7%.

"Once you receive a sales tax permit, you must provide reports on the state sales tax you've collected on a regular basis. "
- LJ Viveros, Distinguished Growth & M&A Transition Advisor, Former General Manager

Our Mississippi sales tax filing frequency was determined by the total amount of tax we owed.

If the Mississippi sales tax is less than $600 for the year, you must submit it once. The DOR website offers online and mail options to file and collect sales tax.

2. Unemployment Insurance Tax (UI)

The employer taxes, like the UI tax for your Mississippi LLC, will fluctuate between 0.0% and 5.4% due to several factors.

A start-up's typical tax rate is 1% in the first year of responsibility, 1.10% in the second, and 1.20% each succeeding year until the employer qualifies for a reduced tax rate (often peaking at 5.4%).

3. Workers' Compensation

Mississippi workers' compensation rates vary by industry, with an average cost of approximately $37 per employee monthly for a two-person business in 2025.

Rates range from as low as $3 monthly per employee for speech therapists to $418 per employee monthly for roofers.

Unless the employee is exempt, such as domestic or agricultural labor, all Mississippi enterprises with more than five employees must obtain workers' compensation insurance.

4. Local Taxes

Your LLC can be liable to regional Mississippi taxes depending on the county or city your firm is in. This varies from location to location and the type of business you operate.

Some regions require you to pay taxes on specific types of commerce, such as hospitality or tourism, and the privilege to sell specific items, like tobacco, cigarettes, or alcohol, in addition to sales tax.

For instance, Baldwyn levies a 2% tourism tax on the revenue from eateries, restaurants, and prepared food sales at convenience stores.

What is Tax-Deductible for an LLC in Mississippi?

The tax-deductible for an LLC in Mississippi are standard deductions, itemized deductions, child and dependent care tax credits, and earned income tax credits.

Related Articles:

• How to Set Up an LLC in Mississippi
• Premium LLC Formation Services in Mississippi
• Top Registered Agent Services in Mississippi

Mississippi LLC Tax Filing Deadlines

Meeting tax deadlines protects your Mississippi LLC from costly penalties. The IRS imposes failure-to-file penalties of up to 25% of unpaid taxes, plus Mississippi adds its own interest charges.

Your filing deadline depends on your tax classification. Single-member LLCs file by April 15 using Schedule C. Multi-member LLCs and S-corps file Form 1065 or Form 1120-S by March 15. C-corps file Form 1120 by April 15.

In our experience, we've used Form 4868 and Form 7004 to request six-month extensions when needed, but we learned quickly that extensions only delay filing—not payment. We now pay our estimated taxes quarterly on April 15, June 15, September 15, and January 15 to avoid penalties.

FAQs

References:

1. https://www.irs.gov/pub/irs-pdf/f1065.pdf
2. https://tap.dor.ms.gov/_/
3. https://www.dor.ms.gov/sites/default/files/Business/89140228.pdf
4. https://taxfoundation.org/research/all/state/2026-state-tax-changes/
5. https://www.dor.ms.gov/business/corporate-income-and-franchise-tax-faqs