LLCs formed in Tennessee are liable to pay franchise tax and must also register with the Tennessee Department of Revenue.
Furthermore, dependent on your type of business, you will most likely need to register your LLC with your County Clerk for local taxes.
Franchise tax is 0.25% of the greater of net worth or real and tangible property in Tennessee. The franchise tax has a minimum payment of $100.
The excise tax is 6.5% of the net taxable income made in Tennessee.
Calculating your tax obligations in Tennessee – (especially if you have employees) – can be complicated and if done improperly can negatively impact your LLC.
Hire a Professional
Taxes can be challenging and we recommend you get help from a tax professional once your LLC is formed.
Hiring a tax professional will not only help you keep your LLC in compliance with the State, but will also give you an advisor to go to for other business questions.
Whether you realize a profit or lose money, you will still need to file tax documents every year.
This is not something to be taken lightly. If you want to run a serious business and not run into trouble with the State, you should get assistance in filing your taxes properly.
How to Find a CPA/Accountant
A referral from a friend or someone else you trust is usually the best way to find someone to do your tax return.
You can also ask co-workers, acquaintances from local clubs or organizations you belong to, your neighbors, and other business people.
You could also ask your Twitter, Facebook, LinkedIn or other social media friends and maybe find a trusted name from a friend of a friend.
It’s as easy as typing into your social media account, “Hey – anyone know of a good accountant? I just formed a new LLC!”
If you can’t get a personal referral, then try doing a search for “accountant” or “certified public accountant” on Yelp.
Look for Compatibility
You should want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions.
It should be someone you like personally as well as professionally.
It’s ok to take your time to find the right person.
We recommend talking with 2-3 people before making a final decision.