Entities taxed as Corporations pay franchise tax annually for the privilege of doing business in the State of Mississippi. The franchise tax is a component of the corporate income and franchise tax return, so it is typically filed by an accountant.
Mississippi has an FAQ on the subject on the Department of Revenue's website.
Corporation income and franchise tax returns are due on or before the 15th day of the 4th month following the close of the taxable year (April 15 for calendar year filers).
Corporations with franchise tax liability above certain thresholds are required to make estimated quarterly tax payments throughout the year.
Franchise tax is computed at a rate of the value of the capital employed, or the assessed property values in this state, whichever is greater. The rate changes from year to year.
The rate is being phased out over the next several years:
The minimum franchise tax due is $25.00.
Note: Each corporation in a combined group must calculate and remit its franchise tax separately, even if combining for income tax purposes.
Mississippi imposes penalties for late or missed franchise tax filings, including:
Timely filing and payment help avoid these additional costs.
While Discern does not file Mississippi franchise taxes directly (these require an accountant due to the detailed financial information involved), Discern can file your Mississippi Secretary of State annual reports, notify you when franchise taxes are due, and provide guidance and tracking to help you stay compliant across all your entities.
Ready to simplify your multi-state compliance? Book a demo to see how Discern streamlines compliance management across all states you operate.
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