Get Tennessee Consolidated Net Worth Election

Seventeen different types of entities are exempt from the franchise and excise taxes. Industrial Development Corporations. Masonic lodges and similar lodges. Regulated Investment Companies owning 75% in United States, Tennessee, or local bonds. Federal and state credit unions. Venture Capital Funds.

Minimal Activity License Code Ann. § 67-4-712(d) if the person has annual sales of more than $3,000 but less than $10,000 per year within the jurisdiction. The minimal activity license will be issued upon receipt of an application prescribed by the Department of Revenue and payment of a $15 fee.

There are some exemptions to filing franchise and excise tax. For example, certain limited liability companies, limited partnerships and limited liability partnerships whose activities are at least 66% farming or holding personal residences where one or more of its partners or members reside are exempt.

The commissioner may, within the commissioner's discretion, require any taxpayer to file with its Tennessee franchise tax return, a copy of the federal tax forms filed with the internal revenue service for the same tax year.

Settlement Upon Selling or Quitting Business. If any person liable for tax, interest or penalty levied under this part sells out the person's business or stock of goods, or quits the business, the person shall make a final return and payment within fifteen (15) days after the date of selling or quitting the business.

Tenn. Code Ann. § 67-4-708 classifies taxable businesses ing to their “dominant business activity,” and these statutory classifications determine the rate and due date of the tax.

If you are a corporation, limited partnership, limited liability company, or business trust chartered, qualified, or registered in Tennessee or doing business in this state, then you must register for and pay franchise and excise taxes.