How to Get a Sales Tax License in Mississippi

A sales tax license must be obtained if you want to launch a business in Mississippi. Any company that offers goods or services subject to sales tax must have a sales tax license. This permit is also referred to as a sales and use tax permit or seller’s permit.

1. Determine the Type of Business: Choosing the type of business you’ll run is the first step in obtaining a sales tax license. You must get a sales tax license in your name if you plan to operate as a lone proprietor. You must obtain a sales tax license in your company’s name if you want to operate as a corporation or LLC.

2. Register your firm with the Mississippi Secretary of State: If you’re forming an LLC or corporation, you must register your company with the Mississippi Secretary of State. You can do this via mail or online. You will be given a certificate of incorporation or certificate of formation after your company has been registered.

3. Obtain an Employer Identification Number (EIN) from the IRS. The IRS requires all businesses, including sole proprietorships, to obtain an Employer Identification Number (EIN). This number serves as your company’s tax identification number.

4. Apply for a Sales Tax License: The Mississippi Department of Revenue will accept your application for a sales tax license once you have your business registration and EIN. Either online or by mail applications may be submitted. Your EIN and the kind of products or services you’ll be offering must be provided as information about your company. Do I Need an Attorney to Form an LLC? A lawyer is not required to form an LLC in Mississippi. By submitting the required documents to the Mississippi Secretary of State, you can finish the procedure independently. To make sure that your LLC is set up correctly and that you are abiding by all state and federal rules, it is advised that you speak with a lawyer.

Creating an LLC has a number of benefits, including:

Pass-Through Taxation: An LLC isn’t taxed separately from other entities. Instead, the owners receive a pass-through of the firm income, which they then declare on their personal tax forms.

3. An LLC can have a flexible management structure that allows it to be run by its members or by a chosen manager (manager-managed). 4. Simple to Form and Maintain: An LLC requires less paperwork and formality to form and maintain than a corporation. Should I Use My LLC to Pay Myself a Salary? You have the option of receiving dividends from your LLC or paying yourself a salary as the owner. Payroll taxes must be withheld and paid if you decide to pay yourself a wage. You won’t be required to pay payroll taxes if you receive distributions, but you could have to pay self-employment taxes on the business income.

In theory, you can create an LLC without having a company. However, an LLC’s main function is to shield a company’s liabilities. You don’t need this protection if you don’t run a business. Additionally, since there will be continuous expenses and maintenance needs, incorporating an LLC without a business may not be cost-effective.