Overview

Tennessee, unlike many other states, does not have an individual state income tax. However, Tennessee does have Franchise & Excise Taxes.

The franchise tax is based on the greater of net worth or the book value of real or tangible personal property owned or used in Tennessee. (Currently 0.25%. The minimum franchise tax of $100 is payable if you are incorporated, domesticated, qualified, or otherwise registered through the Secretary of State to do business in Tennessee, regardless of whether the company is active or inactive.)

The excise tax is based on net earnings or income for the tax year. (Currently 6.5%)

Collective members with LLCs registered to do business in Tennessee must register and pay for Franchise & Excise Taxes and will need to file the Franchise Tax & Excise Tax reports for the assigned period (quarterly or annually). Your filing frequency will be assigned to your business when you register.

Registration of Franchise Tax & Excise Taxes is available on the Tennessee Taxpayer Access Point (TNTAP). To apply, please go to the Tennessee Taxpayer Access Point (TNTAP) and select Register a New Business.

Member Responsibility

Collective does not support filing Franchise Tax & Excise Tax reports. As a member at Collective with a Tennessee LLC, you are responsible for:

(a) Registering with the Tennessee Department of Revenue (TNTAP)

(b) Calculating Franchise Tax & Excise taxes owed and filing the tax returns. All franchise and excise returns and associated payments must be submitted electronically. This can be accomplished by using the Tennessee Taxpayer Access Point (TNTAP). A TNTAP logon should be created to file this tax. Click here for help creating your logon.

(c) Uploading a copy of the tax returns showing the breakdown of the taxes you paid to your Collective dashboard.

What Collective Will Do

After you've paid your Franchise & Excise Taxes from your business checking account, save your payment confirmation and upload it along with your tax return to your Collective Dashboard on the Documents Tab. Collective will categorize this transaction in your books as "Taxes and Licenses".

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