Forming an LLC is generally a good idea if you’re starting a business. If your business is based in Mississippi, then you have to file your LLC with the Mississippi state government. That way, you’re legal to operate and you avoid unnecessary fines and penalties.
However, if it’s your first time to form an LLC, then you need to know that it will involve quite a bit of paperwork. And that paperwork doesn’t end once you’ve formally established your LLC. To maintain the good standing of your limited liability corporation, you have to periodically send in more paperwork.
These include filing your LLC Annual Reports. Mississippi law requires all LLCs based in Mississippi to file an Annual Report with the Mississippi Secretary of state.
What is an LLC Annual Report?
An LLC Annual Report is a report you file every year, and it’s meant to furnish the state government with the crucial details regarding your LLC. This report should include any updated info or changes that may have happened since the last filing period. As the annual report contains crucial data, it’s also sometimes referred to as a statement of information.
Every LLC in all states have to submit their annual reports. The required information may change a bit depending on the state, but usually, the report will contain the following information:
- The name of the LLC
- The main business address of the LLC
- The names of each LLC member (owner), and their addresses
- All the crucial ID numbers for the LLC, such as the state entity number
- The main purpose of the LLC
- A list of authorized signatories
- Information regarding your registered agent
There’s no option to do this by snail mail or in person, as these options take more time and effort anyway. The annual reports have to be filed online.
The good news is that you don’t have to pay any sort of fee to file the annual report. However, it may be costly if you fail to file the report on time, as it may result in the dissolution of your LLC. You’ll then have to spend money, time, and effort to reestablish the LLC.
Filing the Annual Report helps to make sure that your LLC is compliant with all state regulations. That should keep your LLC in good standing with the Mississippi state government, ensuring that your business enjoys all the LLC benefits and protections.
If you’re a member (owner) of a Mississippi LLC, you have to ensure that you send in these Annual Reports on time. You can file your Annual Report starting from January 1 of the year. The absolute deadline is by April 15 of the year.
Your LLC’s first Annual Report is required for the year right after the LLC’s year of formation. For example, let’s assume your LLC was formed on January 27, 2021. Your first Annual Report will be due by April 15, 2022.
To keep you from forgetting, the state helpfully sends out email reminders about 1 to 3 months before the due date. These email reminders will be sent to the email address you listed on your application when you filed the Certificate of Formation.
If April 16 arrives and you haven’t filed for that year, then you’re late. You’ll first receive a warning letter from the state, informing you of your tardiness. This will also carry the warning that your LLC may consequently be administratively dissolved (shut down, in other words).
If you continue to ignore the letter and still fail to send in the Annual Report, your LLC will then receive an Intent Notice from the state. Any further inaction on your part, and the state will then shut down your LLC.
It’s easy, since you only have to go online. Here are the detailed steps you need to take to file your Mississippi LLC Annual report:
- Log in to the Mississippi Secretary of State website. Use the same username and password you supplied when you filed the Certificate of Formation.
- Go to your account dashboard, and find the Annual Reports section. Click on that section, and then click on the File an Annual Report (Corporations and LLCs) option.
- In the search box, enter the Business ID of your LLC. If you don’t know your LLC Business ID, find it on your stamped Certificate of Formation.
- You can also use the Business Search page on the Mississippi Secretary of State website. Look for your LLC name, and click Details to find your LLC Business ID.
- Click the Next button to continue on.
- In the Business Email box, enter your email address. This doesn’t have to be the official LLC email. You can use your own personal email.
- Below this is the Business Phone box. Enter your phone number, which can also be your personal smartphone number.
- Enter in the provided box your Federal Tax ID Number (or EIN). If you haven’t obtained your EIN yet, go online and get it.
- Look for the Nature of Business section. Here, enter your NAICS code. This North American Industry Classification System code will correspond to the primary industry of your LLC business. Use the NAICS code search page to find the right code. You can search by keyword or scroll through a list of industries.
- Check off the “Operating Agreement” box at the bottom of the page, confirming that your Mississippi LLC does have an Operating Agreement. If you haven’t completed your Operating Agreement yet, then go online and download a template you can use.
- Enter the principal address of your LLC. This can be the office address, or even your residential address if you’re running a home business.
- Enter the pertinent details regarding your registered agent. If you’ve changed your registered agent, then you must file an amendment to file the changes.
- Did your LLC have a change with the owners or managers? If so, click the Add Party button and add the names of the new members and managers. Then click on the Next button to continue.
- You’re nearly done. At this point, you should get a message saying that the Annual Report has no errors, and you can now submit it. Click on the Next button to continue.
- Now you’re at the section that lets you upload any pertinent attachments for your LLC. In most cases, this isn’t necessary so you can just leave the section blank. Click on the Next button to continue.
- The next page will confirm that you’ve submitted your Annual Report for Filing. You’re done.
Again, just make sure you do all this on or before April 15. You now have to only wait for the verification, and it won’t take long. After only a few minutes, you’ll get an email confirmation. This will include a downloadable link along with a tracking number to your filed Mississippi LLC Annual Report.
Who Should Do This Task?
Basically, the right person to do the task is that person with access to the necessary information that must be included in the Annual Report. This can be a member or LLC officer. It can be someone that the LLC authorizes to file on its behalf.
It’s very possible that you can foist this task to professionals, such as the online service provider that helped you with the LLC formation procedure and provided you with its registered agent services. This may be part of a package (usually the medium or premium package), though it may be available as an extra service for a fee with the basic formation package.
This does save you a lot of time and tedium. Plus, you can concentrate on your business while the service deals with all the necessary report filing.
In addition, the service provider can maintain your privacy, as it will take care to submit only the absolutely required information. The privacy benefits may include the following:
- The service provider can list their contact information, so that you won’t have to file your residential address and personal smartphone number.
- The service provider will also list only their IP address. This limits the connection between your smartphone, personal PC, and LLC work computers. That way, advertisers can’t track you online.
- In case that the report asks for bank and credit card information (when the filing suddenly comes with a fee), then the service providers also furnish their own bank and credit card information. You still protect your own bank and credit card info.
An online service provider charges much more reasonable rates, compared to what a lawyer might charge. A reputable service provider can also file the Annual Report as soon as possible, so you can be sure that it won’t be late and your LLC won’t suffer any fines and penalties (such as dissolution). You can check our top brands such as ZenBusiness or Northwest Registered Agent.
There’s no uniform fee as to what a service provider will charge for filing the Mississippi LLC Annual Report. The best brands in the business usually charge $100 or so.
If you’re the sole owner of the LLC and you have the time to spare, then it’s really no trouble doing this yourself. The main risk is that you may make a mistake, by entering the wrong information or by pressing the wrong keys. A professional with extensive experience with this task will be very unlikely to make those mistakes.
Still, it’s all up to you. Just make sure you get the Annual Report filing done for the year!