You did it. Your Mississippi LLC is officially up and running, ready to take on challenges, roll in the profits, and change the world.
There’s no doubt that this is an exciting time in your business journey. After starting your LLC, it’s easy to get carried away in all the excitement and expectations. After all, as a new business owner, you’ve got a lot on your plate.
But the state does too. They need to keep updated records on thousands of businesses so that they can effectively reach out with any important tax or legal communications down the road. How do they do it? With your cooperation, of course.
Every year, your LLC must submit an Annual Report to the Secretary of State to keep your information current. Unsure how to go about it? Never even heard of it? No worries at all. That’s why we’re here. Keep reading for everything you need to know.
What is a Mississippi Annual Report? Why is it Important?
Consider an Annual Report the state’s yearly checkup on your LLC. It’s similar to a census in that its purpose is to collect the necessary contact and structural information about each Mississippi business.
Each state has its own annual reporting requirements, and some don’t even require them. But in most states, you’re required to submit one per year that includes your LLC name, principal office address, registered agent information, and member/manager names and addresses. Whether you run a domestic or foreign LLC, you should plan on submitting an Annual Report.
Don’t be intimidated, but it’s not something you want to take lightly. This is how the state updates your LLC’s record with the most recent information. They need to know how to reach you with important information about your business status, upcoming filings, taxes, and service of process.
For example, if you change your registered agent, or your current agent resigns, you’ll need to keep the state informed so they can update their contact information. Miss one of their communications and your LLC in Mississippi might end up falling out of good standing or, even worse, administratively dissolved.
Moreover, keeping your information current will help other businesses and potential customers find you. If the Secretary of State has the most updated data on record, people can find your business by performing a name search.
How Much Does the Mississippi LLC Annual Report Fee Cost?
If you’re putting together a budget for all your LLC’s costs – like formation costs, name reservation fees, and initial operating expenses – it’s important to include annual filings like this one, just so that there are no surprises.
Costs vary from state to state. Some are free while others can be several hundred dollars. If you run a domestic LLC, congratulations! Your Annual Reports are free. But if you have a foreign LLC, get your checkbook ready, because you’ll need to pay $250 per report.
Due Date and Frequency for an Annual Report in Mississippi
You’ll need to submit an Annual Report every year around the same time you submit your taxes – the due date is April 15th. Want to get it out of the way early? Go for it, but you can’t file any earlier than January 1st. There’s no initial report requirement in Mississippi, but if you file your Certificate of Formation before December 31, you’ll still need to submit an Annual Report by April 15.
What Happens if You Don’t File?
You might be thinking, “that sounds like a pain. How bad could it be if I just fly under the radar?” The short answer: don’t try it. Failing to file your Annual Report can yield some serious consequences.
There’s no late fee for failing to file an Annual Report, but don’t let this fool you into thinking you can skate by unnoticed. The state can administratively dissolve any business that misses an Annual Report. If this happens, you would need to file for reinstatement through the online system and pay the $50 reinstatement fee.
Time to dig into the meat of the annual reporting process: the information. When you sit down to file your Annual Report, you’ll need to supply the following information:
- LLC business ID (you can find this on your Certificate of Formation or by searching for your LLC)
- Business email address and phone number
- Federal Tax ID
- NAICS Code for your business purpose (find your code here)
- Whether or not your LLC has an operating agreement
- Principal address
- Registered agent name and address
- Member or manager names and addresses
While it’s slightly longer than some other states’ annual reports, the whole process shouldn’t take too long, especially if you have all your information ready beforehand.
All Mississippi Annual Reports must be submitted electronically through the Secretary of State’s online filing system. You will need to create an account if you don’t already have one. After you’ve successfully logged in, click the “File an Annual Report” button and you’ll be directed through a series of pages where you can provide the information above.
After you submit your Annual Report online, the Secretary of State’s office will process it immediately. Having trouble with the online filing system? Take a look at this step-by-step set of instructions provided by the state.
Does the State Send Reminders?
Reminders are always nice. They help you stay on top of your business requirements and ensure that you won’t fall out of good standing.
One to three months before your Annual Report is due (January-March), the Secretary of State will send a reminder to the email address you listed on your LLC’s Certificate of Formation. These reminders are helpful, but we also suggest setting up your own system of notices, just to make sure you don’t forget. Try writing notes in your planner, setting reminders on your phone, leaving Post-It notes on your mirror, whatever will best help you remember.
Can I Hire a Service to Handle it?
You probably have a full plate as it is, and the thought of adding one more responsibility to your to-do list might make you shudder. You’re not alone.
Plenty of other LLC owners have outsourced their reporting duties to LLC services. These companies will take the entire process off your hands, handling your Annual Report each year. If that piques your interest, we recommend ZenBusiness, which is an experienced and trustworthy LLC company.
But their services aren’t restricted to forming an LLC or managing Annual Reports. They can also help you form your business, draft an operating agreement, handle registered agent responsibilities, and much more, all for a reasonably low price.
If thinking about your LLC responsibilities ties your stomach in knots, let ZenBusiness take some of those worries off your plate.
There you have it, everything you need to know about Mississippi’s reporting requirements. Follow this guide to a T and your LLC will be prepared to operate smoothly and in good standing long into the future.
And remember, if at any point it seems overwhelming, you’re not alone. A good LLC service like ZenBusiness (or LegalZoom) can be a valuable resource, taking care of all the little details, so you can focus on growing your business.