What You Should Know About Mississippi LLC Taxes

In the state of Mississippi, if you have formed an LLC, you are responsible for paying taxes if you are the owner. The Mississippi limited liability company itself. For example, if you are the sole owner of your business, and you are the only one registered as a member of the LLC, you will be responsible for paying taxes. The limited liability company is not something that is taxable, nor is it an entity that pays taxes according to the IRS. This information will be filed on a Schedule C which will be turned in with your tax documents. Let’s go over a few more important points regarding Mississippi LLC taxes.

 

Are There Any Other Taxes That You Must Pay?

The taxes that you will owe the IRS, or the state, really depend on the business’s legal form. It will be different for S corporations, as well as partnerships and soil proprietorships. Pass-through entities such as LLCs pass on the taxes to the members. If you have multiple members, this can be divided up between the different members of the LLC as presented in the limited liability companies’ documents.

 

Mississippi LLC Taxes

What If You Want To Set Up An LLC In Mississippi?

Setting up a limited liability company in Mississippi will require you to do a couple of things. First of all, you will need to verify that the name of your LLC has not been officially registered. Second, find your registered agent that can receive the legal paperwork for your LLC. Third, you need to fill out what is called a Certificate of Formation. You also have the option of filling out an Operating Agreement, plus you must obtain your IRS EIN number and file your financial reports.

 

What Is The Certificate Of Formation?

This is a document that will include the name of your LLC. You must have the email address of the LLC on it. You will then want to consider the future effective date of the LLC, and this can be up to 90 days after filing the certificate. You must also place the NAICS code on this document, something that is used to identify the business. You will then put the registered agent’s name and address, and for all of the organizers, managers, and members, all of them must sign. This will then be sent to the Mississippi Secretary of State’s office using their online filing system. The filing fee is $50, and it can take about 3 to 5 days to complete this process.

 

Do You Need To Complete Your Operating Agreement?

The operating agreement is not required in Mississippi. As with most other states, it is advisable to do so. It is going to list the following information which will include the percentage of interest for each of the LLC members, their rights and responsibilities, the voting power that they have, how losses and profits can be allocated, and all of the rules, including buyout provisions that will be listed. This overview of the LLC is useful in court, and it can provide you with an overview of this entire process. It allows you to know what your limited liability company is in summary and all of the responsibilities of those that are participating within it.

 

How To Set One Up Quickly

Setting one up quickly is very easy to do. All you have to do is contact a business that does this all the time. There are businesses that can provide their services in all 50 states, and they will be willing to help you if you would like to set up your LLC in Mississippi. They can handle the creation of your Certificate of Formation, your Operating Agreement, and also assist you in obtaining your EIN number and registered agent. All of this is possible if you have taken the time to look for, and start working with, an LLC formation business.

This brief overview of how you can set up an LLC in Mississippi should help you understand why it is important and how you can do this as fast as possible. You also understand how to complete the paperwork on your own, and why it is important to verify that your LLC business name is still available. You can search for registered agents online. Remember that they must have a physical address where the mail can be sent so that they can redistribute this to you. They will act as your intermediary between legal entities that are sending you this mail.

Additionally, complete your Operating Agreement just to have it available. It’s going to help you in defining the rights and responsibilities of all those involved. Finally, you do need to complete your Certificate of Formation so that it can be sent to the Mississippi Secretary of State’s office, preferably digitally, so that this can be approved as soon as possible. For more information on this, contact a reputable LLC formation business today.