How to Incorporate a Business in Mississippi (MS)
There are three ways to incorporate your business in Mississippi hire a lawyer to do the job for you (a very expensive option), walk in to the State Department office and do it by yourself or to use a professional incorporation company, like Active Filings. Whatever method you chose, this section will provide you the basic information you need to know about MS filings.
MS Corporate Name Endings
The name must contain word “corporation”, “company”, “incorporated”, or limited” or the abbreviation “corp”, “co”, “inc”, “ltd”, or words or abbreviations of like import in another language. The name may not contain language implying the corporation is organized for any unauthorized purpose. The name must be distinguishable from that of domestic or foreign corporations entitled to do business in state, or to reserved or registered name.
Mississippi Articles of Incorporation Requirements
* Minimum Number – One or more.
* Residence Requirements. – No provision.
* Age Requirements – None.
* Directors are not required to be listed in the articles of incorporation.
* The officers are not required to be listed in the articles of incorporation.
* An increase in shares or par value does not effect initial fees.
* Annual Statements
* Annual reports are due within 60 days of each anniversary date of incorporation with respect to a domestic corporation, and within 60 days of authorization to transact business in Mississippi with respect to a foreign corporation. A $25 fee must accompany the annual report.
Income Tax Rate
* Tax is based on taxable income allocated to Mississippi at 3% of first $5,000; 4% on next $5,000; 5% over $10,000.
Franchise Tax Rate
Every domestic corporation and every foreign corporation doing business in Mississippi must pay a franchise tax.
Basis and rate.
$2.50 per $1000 or fraction of the value of the capital used, invested or employed in Mississippi. Minimum tax, $25. Based on the corporation’s capital at close of its year preceding the filing of the return. Capital includes issued and outstanding capital stock, paid-in capital, surplus, retained earnings, and all true reserves as well as amounts designated for payment of dividends unless irrevocably placed to the credit of stockholders, excluded are debts, bonds, mortgages, and reserves for bad debts, depreciation or valuation.
Allocation and apportionment.
Corporations doing business both in and outside Mississippi determine the capital employed in Mississippi by multiplying the year-end total capital by the local-to-local ratio represented by (1) real and tangible personal property in Mississippi plus gross receipts from business in Mississippi (numerator) divided by (2) total of such property plus total of such receipts everywhere (denominator).
An organization using a formula method of apportionment determines its gross receipts from business carried on in Mississippi by applying to total unitary receipts the ratio achieved (or which would be achieved) by such formula and adding to the result of such application any nonunitary Mississippi receipts.
Effective for tax years after 1998, the gross receipts of a corporation using a formula method of apportionment will also include any receipts from the taxpayer’s operations which are not apportioned but rather are directly allocated (or assigned) to Mississippi. If the taxpayer is required to use a formula method of apportionment in making income tax returns that does not have a receipts or sales factor, then the receipts factor for the franchise tax formula will be determined by regulation of the State Tax Commission.
Return and payment.
Pay to State Tax Commission, by 15th day of 3d month following close of annual accounting year. The Commission may require the payment of any tax liability of $20,000 or more in funds that are immediately available to the state on the date the payment is due.
Payments of estimated taxes are due on the 15th day of the 4th month of the income tax year together with the declaration or in four equal installments, due on or before the 15th day of the 4th, 6th, 9th, and 12th months of the tax year.
* Annual Report
Every domestic corporation and every foreign corporation authorized to do business in Mississippi must file an annual report with the Secretary of State. Annual reports are due within 60 days of each anniversary date of incorporation with respect to a domestic corporation, and within 60 days of authorization to transact business in Mississippi with respect to a foreign corporation. A $25 fee must accompany the annual report.
For more information on taxes, visit www.mstc.state.ms.us
Cost of Incorporating in Mississippi
ONLY $59.00 + State Fees!
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