If you're managing a Mississippi medical practice, you're dealing with entity formation rules, annual report deadlines, franchise tax calculations, and professional licensing coordination—all while trying to focus on patient care. The uncertainty of compliance management creates constant anxiety: Did you file the annual report on time? Is your registered agent current? Are all physicians maintaining their licenses? Miss a deadline and you risk administrative dissolution or licensing complications.
Mississippi gives you two main options for structuring your medical practice: Professional Corporations (PCs) and Professional Limited Liability Companies (PLLCs). Both entity types require coordination with the Secretary of State for formation, continuous good standing through annual compliance, and ensuring all owners hold appropriate Mississippi medical licenses (Miss. Code Ann. §§ 79-10-1 through 79-10-117 for PCs; §§ 79-29-901 through 79-29-933 for PLLCs). The critical difference: Professional corporations face franchise tax on capital exceeding $100,000 (currently $0.50 per $1,000 in 2026, phasing out by 2028) plus $25 annual report fees, while professional limited liability companies are exempt from franchise tax entirely and pay no annual report fees—providing substantial long-term savings for practices with significant capital.
Mississippi's Professional Corporation Act establishes that PCs and PAs operate under identical statutory requirements (§§ 79-10-1 through 79-10-117). If you choose to form one of these entities, you must organize it specifically to render professional services requiring a Mississippi license. Your corporate name must include "Professional Corporation," "Professional Association," or approved abbreviations (P.C., PC, P.A., PA). Share ownership is restricted exclusively to licensed physicians, preventing non-physicians from acquiring ownership interests (Section 79-10-35). Mississippi State Board of Medical Licensure oversight is preserved regardless of your corporate structure (Section 79-10-105).
If you choose a professional corporation structure, you'll face franchise tax on capital exceeding $100,000, with a $100,000 exemption threshold. The current rate of $0.50 per $1,000 (2026) is phasing out: $0.25 in 2027, and complete repeal effective January 1, 2028. Professional limited liability companies, by contrast, are exempt from franchise tax, representing a significant structural advantage.
Healthcare professionals including physicians, surgeons, osteopaths, and dentists are explicitly authorized to form PLLCs (Section 79-29-902). When you form a PLLC, your entity name must include "professional limited liability company" or approved abbreviations (P.L.L.C., PLLC). Membership is limited to licensed professionals, similar to professional corporation ownership restrictions (Section 79-29-909). Licensing authority jurisdiction is preserved, ensuring MSBML oversight continues despite limited liability protection (Sections 79-29-930 and 79-29-931).
PLLCs offer you significant structural advantages: exempt from franchise tax regardless of capital amount, $0 annual report filing fees compared to $25 for professional corporations, and identical professional services capabilities. For practices with capital exceeding $100,000, PLLCs provide substantial long-term savings.
Mississippi does not enforce a strict Corporate Practice of Medicine prohibition. According to Mississippi State Board of Medical Licensure Policy 3.02, the board "does not concern itself with the form or type of business arrangement" a physician chooses, instead focusing on preserving physician independence in medical judgment, billing practices, patient care decisions, and ethical standards. This flexible position gives you practical advantages: you can explore hospital employment arrangements, work with management services organizations (MSOs), and structure corporate relationships that would be prohibited in strict CPOM states. The key requirement is maintaining your independence in clinical decision-making, not avoiding corporate structures entirely. Professional corporations must comply with physician-ownership requirements (Section 79-10-31), while alternative structures face no blanket prohibition on physician employment provided they maintain physician independence in clinical decision-making.
When you're ready to form your entity, you should file formation documents electronically through the Mississippi Secretary of State's online portal to ensure fastest processing. The Secretary of State customer service line (601-359-1633) and email (CustomerService@sos.ms.gov) provide support for filing questions.
You must file annual reports by April 15 for both professional corporations and professional limited liability companies through the online portal. Professional corporations pay a $25 filing fee; professional limited liability companies pay $0. The filing window opens January 1 and closes April 15 (Miss. Code § 79-4-16.22 for PCs and §§ 79-29-901 through 79-29-933 for PLLCs). If you fail to file, your entity faces administrative dissolution.
If you've formed a professional corporation, you're subject to franchise tax on capital exceeding $100,000. The current rate is $0.50 per $1,000 of excess capital (2026), reducing to $0.25 in 2027, with complete repeal effective January 1, 2028. Your filing deadline is April 15 for calendar-year taxpayers, filed together with corporate income tax returns. Professional limited liability companies are exempt from franchise tax, representing a significant structural advantage for healthcare practices.
You must maintain municipal privilege licenses with annual renewal by September 30: $20 annually for 3 or fewer employees, $30 annually for 4-10 employees, and $30 plus $3 per employee over 10 (Mississippi State Code 27-17-9). Rates may vary by municipality; verify with your local government.
Mississippi enacted no significant legislation during 2023-2026 affecting healthcare professional entity formation, annual compliance structures, or corporate practice of medicine doctrine. The Mississippi State Board of Medical Licensure completed administrative code recodification in June 2025, consolidating existing rules without substantive changes to requirements.
The Mississippi State Board of Medical Licensure regulates physician licensing independently from entity formation. You can file entity formation documents directly with the Mississippi Secretary of State without obtaining prior medical board approval. However, if you're operating a pain management practice, you must register with the MSBML through the physician's online licensure gateway. MSBML jurisdiction includes licensing allopathic physicians (MD), osteopathic physicians (DO), podiatrists (DPM), physician assistants, radiologist assistants, and acupuncturists. According to Policy 3.02, the regulatory framework prioritizes your independence in clinical matters rather than restricting specific entity structures.
Mississippi requires continuing medical education for license maintenance:
For MD/DO/DPM Licensees:
For Physician Assistants:
Requirements are codified in Mississippi Administrative Code Title 30, Part 2610, Chapter 2.
Despite the two-year CME cycle, Mississippi requires annual license renewal by June 30. Late fees apply after July 1; licenses not renewed by August 1 require explanation; licenses expired one year or more require formal reinstatement. If your license expires, it creates immediate compliance issues for professional entity ownership (Miss. Code Ann. §§ 79-10-1 through 79-10-117 and § 73-25-1).
Mississippi law prohibits multi-discipline ownership of healthcare professional entities. You cannot form professional corporations or professional limited liability companies with nurse practitioners, physician assistants, dentists, or other non-physician healthcare professionals as co-owners, though you may employ these professionals without granting ownership interests.
Can non-physician entities employ physicians in Mississippi, or does the corporate practice of medicine doctrine prohibit this arrangement?
Mississippi does not enforce a strict Corporate Practice of Medicine prohibition. Mississippi State Board of Medical Licensure Policy 3.02 (March 2019) permits corporate structures provided they maintain physician independence in clinical matters, billing practices, and patient care decisions. Hospital employment, management services organizations, and various corporate structures are permissible. However, professional corporations organized under Miss. Code Ann. §§ 79-10-1 through 79-10-117 must be owned exclusively by licensed physicians (Section 79-10-31).
What happens to a physician's ownership interest in a professional corporation if their medical license lapses or is suspended?
License expiration creates immediate compliance issues for professional entity ownership. Every person practicing medicine must obtain a state board license (Mississippi Code § 73-25-1). Because professional medical corporations may only render services through licensed individuals under the Professional Corporation Act, license lapse places the physician in unlicensed status, likely triggering ownership transfer provisions in corporate governing documents.
Do Professional Corporations and Professional LLCs have different annual filing requirements in Mississippi?
Yes. Both entity types must file annual reports by April 15, but professional corporations pay a $25 filing fee while professional limited liability companies pay $0. More significantly, professional corporations face franchise tax on capital exceeding $100,000 (currently $0.50 per $1,000 in 2026, phasing out completely by 2028), while professional LLCs are exempt from franchise tax regardless of capital amount.
Can physicians form a professional entity with nurse practitioners or physician assistants as co-owners in Mississippi?
No. Mississippi law prohibits multi-discipline ownership of healthcare professional entities. Professional corporations and professional limited liability companies can only render professional services through individuals licensed in the same profession. Physicians can employ nurse practitioners (subject to collaborative agreement requirements) and physician assistants, but cannot grant them ownership interests.
Does the Mississippi State Board of Medical Licensure require pre-approval before forming a professional medical corporation or PLLC?
The Mississippi State Board of Medical Licensure does not require general pre-approval for forming professional medical corporations or professional limited liability companies. You can file directly with the Mississippi Secretary of State without obtaining prior medical board approval. Exception: pain management practices must register with the MSBML through the physician's online licensure gateway (Mississippi Administrative Code Rule 30-2640-1.14).
Managing compliance across multiple entities means tracking different deadlines for annual reports (April 15), license renewals (June 30), and municipal privilege licenses (September 30). Miss one deadline and you risk administrative dissolution or license complications.
Discern provides comprehensive entity management solutions specifically designed for healthcare organizations with complex compliance requirements. Book a demo with Discern today and reduce administrative burden while maintaining compliance.
.png){kind=small}