How Do I File My LLC Taxes in Tennessee?

Most entities doing business in Tennessee must file a tax return.
LLCs are subject to franchise and excise taxes.
Your franchise tax is based on the net worth or book value of property owned in Tennessee.
Business tax can be filed online using TNTAP.
Seventeen entity types are exempt from franchise and excise taxes.
LLCs don’t pay income taxes. Instead, tax responsibility passes through the LLC to individual members.
Regarding other taxes, LLCs must pay fuel, property, motel, and short-term rental property taxes.
Tennessee also imposes an annual franchise tax calculated by assessing property value.
LLCs taxed as C-corps can deduct more taxes and attract investors.
To elect C-corp status, LLCs file IRS Form 1120 and pay federal and Tennessee corporate income taxes.
LLCs should keep state tax records for three years from filing or payment date.
The Hall income tax taxes certain investment income for retired business owners.
More tax info is on the Department of Revenue’s website.
Failure to collect and remit sales tax can result in fines, penalties, and permit suspension.
Use tax returns are due annually.
Out-of-state sales to Tennessee residents may still be liable for use tax.
Some sales are exempt from sales tax by state law.
LLC organizers file formation documents with the state.
An operating agreement is not legally required in most states.

To maintain an LLC in Tennessee, you will need to pay an annual fee of $300.
State sales & use tax at 7%, state franchise & excise tax at 6.5%, and federal taxes are also required.
When establishing an LLC in Tennessee, there are various initial costs involved, such as filing fees, which differ depending on the desired type of LLC.

By default, LLCs themselves do not pay federal income taxes, only their members do.
Paying taxes is an important part of running a business.
Tennessee imposes a franchise tax and an excise tax on most LLCs.
You must register for this tax through the Department of Revenue (DOR).

Tennessee LLCs may be subject to additional taxes, such as franchise and excise taxes, local income taxes, sales tax, withholding taxes, employer’s state unemployment tax, and employer’s federal unemployment tax.
Foreign LLCs operating in Tennessee are obligated to register for local and state taxes.
LLCs are required to pay franchise and excise taxes to remain legitimate in Tennessee.
The franchise tax rate is 0.25% of the LLC’s net worth, with a $100 per year minimum fee.
The excise tax rate is 6.5% of Tennessee taxable income.