Mississippi LLC Taxes: The Complete Filing Guide (2025)

Mississippi LLC Tax Basics

Navigating your Mississippi LLC tax obligations doesn’t have to be complicated. We’ll walk you through the essentials of pass-through taxation, explain Mississippi’s specific requirements, and highlight strategies to stay compliant and organized. This guide covers everything from federal income taxes to city-specific requirements and filing deadlines.

Use the links below to jump directly to the section you need:

• Mississippi LLC Taxes at a Glance
• Understanding LLC Taxation Basics
• Federal Tax Obligations
• Mississippi State Taxes
• Local Tax Considerations
• Tax Calendar and Filing Tips
• Tax Strategies for Mississippi LLCs
• Forms and Resources

Mississippi LLC Taxes at a Glance

Tax Type	Rate	Filing Deadline	Forms Required
Federal Income Tax	10-37% (personal brackets)	April 15, 2025	Form 1040 + Schedule C or Schedule E/K-1
Self-Employment Tax	15.3%	April 15, 2025	Schedule SE
Mississippi Income Tax	0%-4.7%	April 15, 2025	Form 80-105
Mississippi Corporate Income & Franchise Tax	0%-5% plus $25 minimum franchise tax	April 15, 2025	Form 83-105
Federal Payroll Taxes (If Employees)	7.65% employer + 7.65% employee (FICA)	Quarterly (April 30, July 31, October 31, January 31)	Form 941
Mississippi Unemployment Tax (If Employees)	0%-5.4% (new employers: 1%)	Quarterly (April 30, July 31, October 31, January 31)	Form UI-3
Federal Unemployment (FUTA)	6% on first $7,000 per employee (0.6% after credits)	January 31, 2026 (annual)	Form 940
Sales & Use Tax	7%	Monthly, quarterly, or annually based on sales volume	Filed online
Annual Statement	$0 fee	April 15, 2025	Filed online

Understanding LLC Taxation Basics

How Mississippi LLCs Are Taxed By Default

Your Mississippi LLC doesn’t pay taxes itself. Instead, profits flow through to you and your members, who report them on personal tax returns. This is called pass-through taxation.

Here’s how it works:

1. Your LLC earns income from business activities
2. The LLC itself files no tax return (unless you elect otherwise)
3. Profits “pass through” to members based on ownership percentage
4. Each member reports their share on their personal tax return
5. Members pay tax at their individual income tax rates

What this means for you: Unlike corporations, your business profits are only taxed once, which typically saves money.

Tax Classification Options

While pass-through taxation is the default, your Mississippi LLC can choose alternative tax treatments:

Default LLC Tax Status:

• Single-member LLC: Taxed as a sole proprietorship
• Multi-member LLC: Taxed as a partnership

Optional Tax Classifications:

• S Corporation: Can reduce self-employment taxes by paying “reasonable salaries”
• C Corporation: LLC pays corporate tax on profits, members pay personal tax on distributions (creates double taxation)

Mississippi Pass-Through Entity Tax Option:

• Optional tax that allows LLCs taxed as partnerships or S Corps to pay tax at the entity level
• Can help overcome the $10,000 SALT deduction limitation
• Tax structure maintains until revoked by owners or shareholders 

Not sure which tax classification is right for your business? Schedule a free consultation with 1-800Accountant.

Federal Tax Obligations

Income Tax

As a Mississippi LLC owner, you’ll report your share of business profits on your personal tax return using:

• Form 1040 + Schedule C (single-member LLCs)
• Form 1040 + Schedule E + Schedule K-1 (multi-member LLCs)

Federal income tax rates range from 10% to 37% based on your tax bracket (actual brackets will depend on inflation adjustments and any tax law changes).

Simply Put: Whatever money your business makes (after expenses) gets added to your personal tax return, just like income from a job.

Self-Employment Tax

LLC members actively involved in the business must pay self-employment tax of 15.3% (covering Social Security and Medicare) on their share of LLC profits.

Key points:

• Applies to net earnings of $400 or more
• Calculated on Schedule SE
• You can deduct 50% of the self-employment tax as an “above-the-line” deduction, which lowers your adjusted gross income

What happens if I miss this payment? The IRS charges penalties of 0.5% per month plus interest. However, first-time mistakes can often qualify for penalty abatement if you have a clean compliance history.

Employment Taxes

If your LLC has employees, you must:

• Withhold federal income tax
• Pay and withhold FICA taxes (7.65% each for employer and employee)
• Pay federal unemployment tax (FUTA)
• File quarterly employment tax returns (Form 941)
• Provide W-2 forms annually

Estimated completion time: 2-3 hours per quarter (significantly less with payroll software or professional help)

Estimated Tax Payments

Because no tax is withheld from your LLC profits, you’ll likely need to make quarterly estimated tax payments using Form 1040-ES. These payments cover both income and self-employment taxes on your share of the business income. Missing deadlines or underpaying can lead to IRS penalties, even if you pay in full later.

Working with an accountant can help ensure accurate calculations, on-time payments, and a smarter overall tax strategy.

Key deadlines:

• April 15
• June 16
• September 15
• January 15

Pro Tip: Set calendar reminders 15 days before each deadline. This gives you time to prepare without the last-minute rush that leads to mistakes.

Mississippi State Taxes

Mississippi Income Tax

Mississippi has a personal income tax rate of 0%-4.7% that applies to your LLC’s profits on your personal return. 

This is a gradual rate that changes each tax year. Taxable income under $10,000 is 0%, the rate for higher income is as follows: 

• Tax year 2024 → 4.7% on taxable income over $10,000
• Tax year 2025 → 4.4% on taxable income over $10,000
• Tax year 2026 → 4% on taxable income over $10,000 

Filing requirements:

• Use Mississippi Form 80-105
• Due April 15, 2025

Mississippi Corporate Income and Franchise Tax 

LLCs that have elected to be taxed as c corps are subject to Mississippi’s 0%-5% corporate income tax as well as franchise tax. The corporate income tax is calculated as follows: 

• 0% on the first $5,000 of taxable income
• 4% on the next $5,000 of taxable income
• 5% on all taxable income over $10,000

Filing requirements: 

• Use Mississippi Form 83-105
• Due April 15, {Current_Year]
• Minimum $25 franchise tax 

Mississippi Pass-Through Entity Tax

LLCs that have elected to be taxed as a partnership or an s corp can choose to file Mississippi’s pass-through entity tax, levied at the same rate as corporate income tax.

Filing requirements: 

• Use Mississippi Form 84-105
• Due March 15, 2025
• Includes minimum $25 franchise tax

Sales and Use Tax

If your Mississippi LLC sells physical products or certain services:

• Collect 7% sales tax on taxable sales (full list of rates by item)
• Register for a sales tax license through the Mississippi Department of Revenue TAP portal
• File and pay collected taxes monthly, quarterly, or annually based on sales volume
• Due dates vary based on filing frequency

60-Second Check: Do I Need to Collect Sales Tax?

• Do you sell physical products in Mississippi? → Yes, collect tax
• Do you sell digital products? → Yes, collect tax 
• Do you provide services? → Many services are taxable (see exceptions below)
• Do you sell online to Mississippi customers? → Yes, collect tax

Services typically exempt from sales tax include:

• Professional services (legal, accounting)
• Personal services (haircuts, fitness training)
• Medical services

Products typically subject to sales tax include:

• Tangible personal property
• Prepared food
• Digital products

Payroll Taxes 

If you have employees in Mississippi, you will be responsible for two types of payroll taxes. 

Unemployment Insurance (UI) Tax 

• Register through the Mississippi Department of Employment Security (MDES)
• Rate is 1% for new employers (0%-5.4% afterwards) 
• Due quarterly 
• Use Mississippi Form UI-3

Withholding Tax 

• Register and file through the DOR’s TAP portal 
• Rate is 0%-4.4%
• Due monthly or quarterly (filing frequency assigned by DOR) 

Annual Report Filing

While not a tax, your Mississippi LLC must file an annual report:

• Due April 15 each year
• $0 filing fee
• Filed with Mississippi Secretary of State

Calendar Alert: Set a reminder for March 15 to ensure you don’t miss this easy but required filing.

Local Tax Considerations

City Sales Taxes

Mississippi allows cities to impose local sales taxes from 0% to 1% in addition to the statewide sales tax requirement. 

Filing requirements:

• Register and file through the DOR TAP portal
• Due alongside state sales tax payments
• Rates depend on city and business type

Property Taxes

If your LLC owns real property in Mississippi:

• Rates vary by locality
• Assessed annually
• May qualify for various exemptions based on business type
• Tax also applies to business-related property such as inventory and furniture

Tax Calendar and Filing Tips

Key Deadlines for Mississippi LLCs

January:

• January 15: Final estimated tax payment for previous year
• January 31: Issue W-2s/1099s to employees/contractors
• January 31: Fourth quarter payroll tax payment due (state and federal) 

March:

• March 15: State partnership/S-Corp tax returns due

April:

• April 15: State personal or corporate income tax returns due
• April 15: Federal income and self-employment tax returns due

• April 15: First quarter estimated tax payment due 
• April 15: Mississippi annual report due
• April 30: First quarter payroll tax payment due (state and federal) 

June: 

• June 16: Second quarter estimated tax due 

July: 

• July 31: Second quarter payroll tax payment due (state and federal) 

September:

• September 15: Third quarter estimated tax payment due

October:

• October 31: Third quarter payroll tax payment due (state and federal) 

Record-Keeping Checklist

Keep these records for at least 7 years:

• Business income records (invoices, receipts)
• Expense receipts and documentation
• Bank and credit card statements
• Asset purchase and improvement records
• Vehicle mileage logs
• Home office documentation
• Payroll records
• Previous tax returns

Tax Strategies for Mississippi LLCs

S Corporation Election Benefits

Converting your LLC to an S Corporation for tax purposes can save on self-employment taxes:

1. File Form 2553 with the IRS
2. Pay yourself a “reasonable salary” subject to employment taxes
3. Take remaining profits as distributions exempt from self-employment tax

Example: An LLC making $100,000 in profit pays 15.3% self-employment tax on the entire amount. As an S Corp, if $60,000 is a reasonable salary and $40,000 is taken as distributions, only the $60,000 is subject to employment taxes.

Potential Savings: In this example, you’d save about $6,120 in self-employment taxes.

Pass-Through Entity Tax Election

Consider electing Mississippi’s Pass-Through Entity Tax if:

• You’re affected by the $10,000 SALT deduction cap
• Your LLC has elected to be taxed as an s corp or partnership already
• All members agree to the election

Business Expense Deductions

Common deductions Mississippi LLC owners often overlook:

• Home office deduction
• Business mileage (70¢ per mile for 2025)
• Health insurance premiums
• Retirement plan contributions
• Professional development expenses
• Business meals (50% deductible)

Forms and Resources

Federal Tax Forms

• Schedule C: Profit or Loss From Business (sole proprietors)
• Form 1065: U.S. Return of Partnership Income
• Schedule K-1: Partner’s Share of Income, Deductions, Credits
• Form 1120-S: U.S. Income Tax Return for an S Corporation
• Form 2553: Election by a Small Business Corporation (S Corp)
• Form 8832: Entity Classification Election

Mississippi Tax Forms

• Form 80-105: Mississippi Individual Income Tax Return
• Form 83-105: Mississippi Corporate Income and Franchise Tax Return
• Form 84-105: Mississippi Flow-Through Entity Tax Return
• Form UI-3: Mississippi Unemployment Insurance Quarterly Tax Return 

Helpful Resources

• Mississippi Department of Revenue (DOR)
• Mississippi Department of Employment Security (MDES) 
• Internal Revenue Service
• Mississippi Secretary of State