General tax structure - Every corporation, other than a qualified subchapter "S" subsidiary, either registered to do business in Mississippi or otherwise doing business in the state must file a combination income and franchise tax return. The term combination is used to indicate two separate taxes which are computed in a single return filing. The corporation will compute its Mississippi income/loss and its taxable capital on a separate company basis. The tax is computed as follows: 3% on the first $5,000 of taxable income, 4% on the next $5,000 of taxable income and 5% on the remainder of taxable income.
Property tax, or ad valorem tax, is a tax imposed on the ownership or possession of property and is generally based on the value of the property. In Mississippi, all property is subject to a property tax unless it is exempt by law. The various taxing entities where the property is located levy the tax. This includes the county, municipality, and school districts.
Businesses which pay employees must register with the state and pay state unemployment and withholding taxes. Self-employed individuals who pay themselves wages from their business are also subject to unemployment and withholding taxes.
Sales taxes - 7% statewide. Cities can add on additional tax to restaurant and lodging sales to push the rate to 9%.
Business licenses - Mississippi has various boards which manage the licensing of many professions, including architects, chiropractors, cosmetologists, dentists, dietitians, geologists, doctors, and psychologists. Most boards offer an online searchable database whereby professional records searches can be performed by name, location, license number, or license type. The State of Mississippi manages a database which provides access to each professional board.
Information Links –
Mississippi State Sales Tax Rates and Requirements
Mississippi Tax Commission - Most tax related questions
Mississippi Small Business Development Center - Information on starting an LLC or corporation
Mississippi State Agencies - Information on specific industry regulations
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