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Doing business in

Mississippi

Navigate Mississippi’s business landscape with ease—whether you’re incorporating, expanding, or managing tax compliance. Commenda helps you stay ahead with automated solutions for incorporation, compliance, and tax filings.
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mississippi

Business Overview

Mississippi offers competitive advantages in manufacturing, agriculture, and maritime industries. The state provides low operating costs, customized workforce training, and significant incentives for new business development. Its transportation infrastructure supports distribution and logistics operations.

Key Facts & Figures

Category Details
Capital Jackson
Major Cities Jackson, Gulfport, Southaven, Hattiesburg, Biloxi
State Sales Tax Rate 7%
Local Sales Tax Rate Up to 1% additional municipal tax
Corporate Income Tax 9.8% flat rate
Physical Nexus Threshold Physical presence through employees, offices, or inventory
Economic Nexus Threshold $250,000 in annual sales

Did you know?

Mississippi has a growing automotive manufacturing sector, with major plants from Toyota, Nissan, and other international manufacturers.

Setup & Compliance

Mississippi offers straightforward business formation with moderate regulatory requirements.

Mississippi Business Formation Steps:

  1. Choose Your Business Structure: Consider tax advantages and liability protection needs.
  2. Register Your Business: File formation documents with the Mississippi Secretary of State.
  3. Register for Tax Accounts: Register with the Department of Revenue for sales tax and withholding.
  4. Obtain Required Licenses: Research and secure necessary state and local business licenses.
  5. Register as an Employer: Register with the Department of Employment Security if hiring employees.

Ongoing Compliance Requirements:

  • Annual Reports: Most Mississippi entities must file annual reports with the Secretary of State.
  • Sales Tax Collection: Collect and remit 7% state sales tax on taxable transactions.
  • Corporate Income Tax: Corporations pay progressive tax rates from 3% to 5%.
  • Franchise Tax: Corporations and LLCs taxed as corporations pay franchise tax based on capital value.
  • Professional Licensing: Various professions require specialized licenses through state boards.

Hiring & Payroll

Mississippi offers a business-friendly employment environment with minimal state requirements.

Mississippi Payroll Taxes:

  • Unemployment Insurance: Rates from 0.2% to 5.4% on first $14,000 of wages.
  • State Income Tax Withholding: Required with rates from 0% to 5%.
  • Workers’ Compensation: Required for employers with 5+ employees.

Mississippi Employment Laws:

  • Minimum Wage: No state minimum wage; follows federal minimum wage ($7.25/hour).
  • No state-mandated paid sick or family leave.
  • Child Labor: State-specific restrictions on hours and occupations for minors.
  • No state law regarding final paychecks; federal regulations apply.
  • Mississippi is an at-will employment state with right-to-work laws.

State Incentives

Mississippi provides targeted economic incentives to promote business growth and job creation.

Key Business Incentives:

  • Advantage Mississippi Initiative: Tax incentives for job creation and investment.
  • Mississippi Works Fund: Support for workforce development.
  • Research and Development Tax Credit: Supports innovative company development.

Small Business & Startup Support:

  • Mississippi Small Business Development Center: Comprehensive business resources.
  • Rural Business Development Grants.
  • Minority Business Enterprise Certification Program.

Regulatory Considerations

Mississippi maintains a business-friendly regulatory approach with clear guidelines.

Key Business Regulations:

  • Data Privacy: Laws protecting consumer and business information.
  • Environmental Compliance: Regulations for agricultural and industrial sectors.
  • Professional Licensing: Required for various service-based professions.

Additional Regulatory Areas:

  • Agricultural Industry Compliance.
  • Manufacturing Sector Regulations.

Explore Tax & Compliance Topics

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