When it comes to Mississippi business taxes, there’s no other way to it than to face it head on and complete each and every requirement. When incorporating a business in Mississippi, you should be ready to comply with tax obligations as this is an integral part to business operations.
Ignoring it or delaying the inevitable will only cause problems for your business. A good understanding and working knowledge of the Mississippi business tax system and its corresponding laws, policies, and regulations are keys to give you a better grasp of what must be done and how to do it.
Business taxes vary depending on business structure (LLC, Corporation, DBA, etc), the way it operates, among other factors. To give you a better grasp on your business tax obligations, here is a list of the standard types of federal taxes your business is required to comply with.
The Mississippi Corporate Income Tax is in effect in the state. In addition, a Corporate Franchise Tax is also imposed. Your business may qualify for both, any or none of these tax types depending on the structure you have incorporated in. Corporate Income Tax is applicable to Corporations imposed in marginal rates that range from 3% to 5%.
The Corporate Franchise Tax on the other hand is also applicable for traditional and S Corporations as per the net worth of the business. In addition, if the income of a business personally passes through you, this is also subject to taxation to be deducted on your personal state tax return.
Obtaining the right federal tax forms for your tax obligations is a must. To ensure that you are using the standard Mississippi federal tax forms and publications, use only the ones found on the Mississippi State Tax Information website.
The Mississippi Unemployment Insurance is an employee benefit temporarily provided by the state for workers laid off from work or that are jobless through no fault of their own to sustain them through their next job. This benefit is paid by employers or business owners and is a national program managed by the US Department of Labor.
When filing the Unemployment Insurance Tax Program, there are a number of reports and forms that must be filed while observing the due date for these deliverables. For more information on the details of reporting and filing for Unemployment Insurance Tax, you can visit the Mississippi Department of Employment Security.
If your business is doing transactions subject to sales and use tax, you are required to file for a permit and a registration license. For each location in Mississippi that you will transact in, a separate registration license is also required.
The Mississippi Sales and Use Tax are both in effect in the state. The standard rate of the Sales Tax is 7% unless otherwise stipulated by state laws. In lieu of the Sales Tax, the Use Tax is applied for any property used, stored, and consumed inside Mississippi in which no sales and use tax has been paid to another state. The rate for the Use Tax is the same as the rate of the Sales Tax.
For more information on Sales and Use Tax, visit the Mississippi Department of Revenue.
Just as there are startup resources that help in speeding up the process of starting a business while allowing entrepreneurs to save up on startup costs and expenditures, there are also powerful tools available for an easier tax life.
These tools help manage various aspects of completing business tax obligations that range from financial reports generation, bookkeeping to financing tracking features, payroll systems, and more.
When it comes to small business accounting software, Xero, QuickBooks, and FreshBooks are among the popular choices. Each of these small business accounting applications contain a number of tools that help in automating accounting and bookkeeping tasks. It also features tools that help generate reports, financial statements, payrolls, etc. Best of all, these tools are available at a cost effective package just right for startup entrepreneurs.
This article is not a legal document or tax advice. This is for informational purposes only. For questions on the specifics of Mississippi business taxes or the process of starting a new business, seek the expert advice of a business lawyer.