LLC Taxes In Tennessee: What You Need To Know
Tenessee LLCs must be registered with the Tennessee Department of Revenue, and they are responsible for paying franchise tax as well. Depending on the kind of business in which you are engaged, you may also be required to have your LLC registered with the county clerk for the purpose of paying local taxes.
In Tennessee, franchise tax amounts to 0.25% of the entity’s net worth or its tangible property within Tennessee, whichever number is greater. A minimum of $100 in tax applies.
Excise tax for Tennessee LLCs is 6.5% of the business’ net taxable income earned within the state.
Determining your Tennessee tax liability, particularly if you employ multiple people, can sometimes be challenging. If it is not done correctly, there can be negative ramifications for your LLC.
Because of this, it is often wise to secure the assistance of a taxation professional who an ensure that your business remains in full compliance with revenue authorities and can ofer guidance on other key matters. No matter if your business is profitable or not, you must file your tax returns annually. This responsibility must not be overlooked, because if it is, your business enterprise can suffer.
To find the right accountant for your business, a great place to start is by asking family, friends, and colleagues you respect. They can often provide the names of professionals who will complete your business tax filings promptly and comprehensively.
Searching online through local membership clubs, business associations, and networking groups can also be helpful when it comes to finding a financial and tax professional you can trust.
A key element to the process of selecting a tax professional is to find someone with whom you feel personally comfortable and who is willing to answer any and all questions you may have along the way. Having a strong relationship with a tax or accounting professional can pay big dividends over the course of your business career. Do not rush into this kind of decision, and always feel free to take enough time to do your research. Consider interviewing at least two or three prospects before making a final choice.
Useful resources on LLC taxation and related matters in the state include the Tennessee Comptroller Office of Small Business Advocate at (615) 401-7806 and the Tennessee Department of Revenue at (615)253-0700.
Remaining in full revenue compliance is a critical part of building and sustaining a successful LLC in Tennessee. As such, the process of hiring professional guidance in this realm is something to which you should devote sufficient time, attention.