Tennessee Sample Letter for Information regarding Corporation
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Tennessee-Specific Considerations Just like C corporations, S corporations must pay a 6.5% excise tax in addition to a franchise tax, which is equal to the greater of $0.25 for each $100 of net worth or actual value of tangible property, but no less than $100. However, Tennessee has no personal income tax.
LLCs can have an unlimited number of members; S corps can have no more than 100 shareholders (owners). Non-U.S. citizens/residents can be members of LLCs; S corps may not have non-U.S. citizens/residents as shareholders. S corporations cannot be owned by corporations, LLCs, partnerships or many trusts.
One main difference is that C-corp owners pay a corporate tax to the federal, and sometimes state, governments, while S-corps don't. S-corps owners are limited to 100 shareholders and must file a special form with the IRS to elect S-corp status.
To start a corporation in Tennessee, you must file a For-Profit Corporation Charter with the Secretary of State. You can file the document online, by mail or in person. The For-Profit Corporation Charter costs $100 to file ($102.35 for online filings).
Immediately in-person. Choose a Corporate Structure. Incorporating means starting a corporation. ... Check Name Availability. ... Appoint a Registered Agent. ... File Tennessee Articles of Incorporation. ... Establish Bylaws & Corporate Records. ... Appoint Initial Directors. ... Hold Organizational Meeting. ... Issue Stock Certificates.
