Franchise and Self-Employment Taxes in Tennessee
Franchise Tax: Tennessee imposes a franchise tax at a rate of 0.25% of net worth or capital, with a minimum tax of $100.
Self-Employment Tax: Sole proprietors and freelancers in Tennessee may be subject to self-employment taxes for covering social security and Medicare costs.
Tennessee Franchise and Excise Taxes Overview
Franchise Tax Calculation: The franchise tax in Tennessee is calculated at 0.25% of a taxpayer’s net worth or the book value of property owned or used in the state at the end of the tax year.
Excise Tax: Businesses in Tennessee must pay an excise tax of 6.5% of their Tennessee taxable income.
Tennessee LLC Taxes and Filing Requirements
Tennessee limited liability companies are subject to various taxes, including franchise and excise taxes, local income taxes, and other state taxes.
Miscellaneous Questions and Information
Single Member LLC Taxation: Single-member LLCs in Tennessee are required to pay federal income taxes, along with franchise and excise taxes to the Tennessee Department of Revenue.
LLC Taxation in Tennessee: Tennessee LLCs benefit from pass-through taxation, with owners paying taxes on their portion of the LLC’s income.
Additional Information and Resources
Foreign LLCs in Tennessee: Foreign LLCs conducting business in Tennessee are required to register for local and state taxes, with tax rates varying based on the LLC’s type and structure.