StructureCost2026

Mississippi: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $4,928 a year less than a sole proprietorship in Mississippi. All figures are 2026 tax and fees.

$4,928 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Mississippi, at these numbers. That includes the state's pass-through entity tax election.

More settings revenue, salary, filing status, payroll costs, PTET

Mississippi, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $25,350 $0
Itemized: $25,350
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxdor.ms.gov, checked Oct 23, 2026$2,985
Yearly cost$25,350
Single-member LLC $25,350 +$0 $50
Itemized: $25,350
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxdor.ms.gov, checked Oct 23, 2026$2,985
Yearly cost$25,350
LLC taxed as an S corp lowest $20,422 −$4,928 $50
Itemized: $20,422
Payroll tax on your salaryirs.gov, 2026 rates$6,330
Payroll service and tax return (estimate)$1,800
Mississippi corporate franchise taxdor.ms.gov, checked Oct 23, 2026$25
Mississippi pass-through entity tax, paid by the company (elected)dor.ms.gov, checked Oct 23, 2026$2,445
Federal income taxirs.gov, 2026 rates$9,203
State income tax, after the PTET creditdor.ms.gov, checked Oct 23, 2026$619
Yearly cost$20,422
S corporation $20,442 −$4,908 $50
Itemized: $20,442
Corporation Annual Report (Form F0008)sos.ms.gov, checked Oct 23, 2026$25
Payroll tax on your salaryirs.gov, 2026 rates$6,330
Payroll service and tax return (estimate)$1,800
Mississippi corporate franchise taxdor.ms.gov, checked Oct 23, 2026$25
Mississippi pass-through entity tax, paid by the company (elected)dor.ms.gov, checked Oct 23, 2026$2,444
Federal income taxirs.gov, 2026 rates$9,199
State income tax, after the PTET creditdor.ms.gov, checked Oct 23, 2026$619
Yearly cost$20,442
C corporation $29,284 +$3,934 $50
Itemized: $29,284
Corporation Annual Report (Form F0008)sos.ms.gov, checked Oct 23, 2026$25
Payroll tax on your salaryirs.gov, 2026 rates$6,330
Payroll service and tax return (estimate)$2,000
Mississippi corporate franchise taxdor.ms.gov, checked Oct 23, 2026$25
State corporate income taxbillstatus.ls.state.ms.us, checked Oct 23, 2026$2,434
Federal corporate income tax (21%)irs.gov, 2026 rates$10,972
Federal income taxirs.gov, 2026 rates$4,979
State income taxdor.ms.gov, checked Oct 23, 2026$2,519
Yearly cost$29,284
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Mississippi

Electing S corp tax treatment for an LLC starts to pay in Mississippi at about $50,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in Mississippi can elect to pay the state's income tax itself, a pass-through entity tax of 0% to 5%, and the owner gets a credit for it. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totaldor.ms.gov.

ProfitSole propLLCLLC as S corpC corp
$30,000$5,564$5,564$6,980$7,410
$50,000$10,859$10,859$10,598$12,827
$75,000$17,551$17,551$13,878$19,816
$100,000$25,350$25,350$20,422$29,284
$150,000$42,451$42,451$34,617$49,707
$200,000$60,133$60,133$49,609$69,311
$300,000$102,775$102,775$82,050$109,939

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Mississippi

LLCCorporation
Filing to form$50Certificate of Formation (Form F0100)$50Articles of Incorporation (Form F0001)sos.ms.gov
Yearly reportLLC Annual Report (Form F0108), no feeCorporation Annual Report (Form F0008), $25 a yearsos.ms.gov
Report dueApril 15April 15
Mississippi corporate franchise tax0.05% of net income, minimum $25if taxed as S corpyesdor.ms.gov

Not in the calculator: Mississippi has no city or county income taxes. Some cities add local sales or tourism taxes.

Switching calculators for Mississippi

By profession in Mississippi

Questions

Is an S corp worth it in Mississippi?

On these figures, from about $50,000 of profit. At $100,000 an LLC taxed as an S corp costs $20,422 a year against $25,350 for a plain LLC, $4,928 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Mississippi?

The state charges LLC Annual Report (Form F0108), no fee. Forming one costs $50.

Does Mississippi recognise the S corp election?

Yes. The federal election carries over with no separate state form. Mississippi follows the federal S election (Miss. Code 27-8). S corporations still pay the franchise tax until it is repealed in 2028.

What income tax does Mississippi charge?

Mississippi taxes personal income in 2 brackets, from 0% to 4% (2026, single filer). C corporations pay 0% to 5% of net income.

How this page models Mississippi (1)

Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.

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