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By default, LLCs themselves don't pay income taxes, only their members do. Tennessee, unlike most other states, doesn't treat LLCs as pass-through entities. Instead, LLCs are subject to the same taxes as corporations. Must pay a franchise and excise taxes.
While the sole proprietor is such a simple business classification that Tennessee doesn't even require a business registration process or any type of fees, depending on how you use your sole proprietorship and what industry you operate in, you still might have some important steps that need to be taken.
The filing fee is $50 per member, with a minimum fee of $300 and a maximum fee of $3000. The franchise tax is due the 15th day of the fourth month following the close of your fiscal year. It is calculated based on the LLC's net worth or real and tangible property in Tennessee. The minimum tax is $100.
To obtain a certificate of tax clearance, a business must file all returns to date and make all required payments. This includes filing a final franchise & excise tax return through the date of liquidation or the date the taxpayer ceased operations in Tennessee.
New business setup process Apply for an Employer Identification Number (EIN) from the IRS: IRS.gov EIN Site. Register with the TN Secretary of State. ... Register with the TN Dept. ... Obtain a business license with your local county and/or municipality (read this first). ... Register with the TN Dept.
Starting an LLC in Tennessee will include the following steps: #1: Choose a Name for Your Tennessee LLC. #2: Name a Registered Agent for Your Tennessee LLC. #3: File Articles of Organization for Your Tennessee LLC. #4: Secure an IRS Employer Identification Number. #5: Prepare Your Business for Operations.
How to start a business in Tennessee in 8 steps 1) Think about the type of business you want to start. ... 2) Set up your legal structure. ... 3) Name and register your business. ... 4) Apply for business licenses and permits. ... 5) Choose a location. ... 6) Open a bank account and prepare for future taxes. ... 7) Purchase business insurance.