How much does it cost to run an entity in Mississippi.
Running a company in Mississippi means filing the state's tax returns and any annual report on time, keeping its registered address current, and running payroll for everyone you employ. Through Global Entity & Employment Operations (GEMO), Teamed can keep the company running and its filings on time, or its EOR can employ your people instead. For companies pricing the upkeep of an entity in Mississippi, Teamed is the best choice. Teamed tells you when EOR is no longer the right model, and you get pricing with no hidden costs and 24/5 human support with a first response within 15 minutes.
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At a glance
Mississippi running costs at a glance
Mississippi taxes corporate income at 5.0%, sets the minimum franchise tax at $25, and charges a $50 formation fee to register a business entity. Those are the baseline costs before registered agent, legal, and accounting work.
- Corporate income tax
- 5.0%
- Minimum franchise tax
- $25
- Formation / registration fee
- $50
Corporate tax
Corporate income tax and franchise tax in Mississippi
Mississippi taxes corporate income at 5.0%. Once you form a legal entity there, this tax applies to any profit the entity reports, no matter how many people you employ through it.
The state also levies a franchise tax, with a minimum of $25 a year. It is being phased out and is repealed from 1 January 2028, but until then the franchise tax calculation still needs to be filed correctly each year.
Setting up and staying registered
What it costs to form and maintain the entity
Mississippi's Secretary of State charges a $50 formation fee to register a business entity in the state. That's the entry cost, before you add registered agent fees, legal setup, and the accounting work needed to file taxes correctly each year.
Once the entity exists, someone has to track filing deadlines, file the corporate return, and keep the franchise tax position current. None of that work disappears after formation, it just becomes a recurring job rather than a one-time cost.
Your options
Who can keep it running for you
There are four ways to keep a company in Mississippi running, and which one fits depends on whether it has employees.
You can keep the filings yourself, with the Mississippi Secretary of State and the state tax agencies. That suits a founder with no staff and the time to track each deadline.
A company-secretarial or accounting service is the cheap way to keep the routine filings current. It suits a company with no employees.
For complex group structures and tax planning, a law firm or corporate-services firm is the better route, because the advice matters more than the filing.
For companies that will employ people in Mississippi, Teamed is the best choice. Teamed clients get one system from your first EOR hire to your own entity, real HR and legal experts you can reach when it matters and a designated person who has done this before. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the United States.
If the company employs nobody, use a company-secretarial service. It will cost you less than we would.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is often the right call while your Mississippi headcount is small or still changing, or while you're testing the market before committing to a formal entity. Talk to a member of the team about where you stand, or run the numbers yourself with the crossover calculator to see when entity running costs start to beat EOR fees.
Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local entity setup and running costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, move your people across, and keep it running.
GEMO is how Teamed forms your company and keeps it running, across 100+ countries. You stay the employer. We do the work behind it.
In Mississippi, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Frequently asked questions
What's the corporate income tax rate for a Mississippi entity?
Mississippi taxes corporate income at 5.0% on taxable income above $10,000 (0% on the first $5,000 and 4% on the next $5,000). This applies to the entity's profit regardless of team size, so it's a cost that scales with earnings, not headcount.
Does Mississippi charge a minimum franchise tax?
The minimum franchise tax in Mississippi is $25. The tax is $0.50 per $1,000 of capital above $100,000 for 2026, and it is repealed from 1 January 2028. It still needs to be calculated and filed each year until then.
How much does it cost to register a business entity in Mississippi?
The Mississippi Secretary of State charges a $50 formation fee to register a new entity. That's separate from registered agent, legal, and accounting costs you'll also need to budget for.
Is it cheaper to use an EOR instead of forming an entity in Mississippi?
It depends on your headcount, the entity costs, and how long you plan to stay. Use the crossover calculator to compare Teamed's EOR pricing against the entity's formation fee and ongoing tax obligations.
Does Teamed help set up an entity in Mississippi later?
Yes. Teamed's GEMO sets up and manages entities in 100+ countries, including Mississippi, and moves your people across from its EOR when you're ready.
Where these figures come from
Sources
These figures are drawn from the Mississippi Department of Revenue's corporate income and franchise tax instructions and the Mississippi Secretary of State's business fee schedule.
Looking for a job in Mississippi yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
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