Tennessee LLC State Tax Obligations After Formation

Tennessee's entity-level tax obligations after formation. Key: the Franchise & Excise tax is the primary state obligation. No personal income tax exists. For the full tax guide. For all compliance, see our after-formation guide.

Your Obligations

1. Franchise & Excise Tax (Annual)

• 6.5% excise on net income + 0.25% franchise on net worth/property
• Combined F&E minimum: $300
• File Form FAE 170 at tntap.tn.gov
• Due April 15 (calendar year)
• Quarterly payments if liability > $5,000

2. Sales Tax (If Applicable)

• 7% state + up to 2.75% local
• Register at tntap.tn.gov
• File monthly/quarterly

3. Business Tax (Certain Cities)

• Nashville: gross receipts business tax
• Other cities may have similar taxes

4. Withholding (If Employees)

• Register with Tennessee DOR
• Withhold federal income tax (Tennessee has no income tax to withhold)

What Tennessee Does NOT Charge Members

• No personal income tax on pass-through income
• No capital gains tax
• No dividend/interest tax (Hall Tax repealed)

FAQ

Is the F&E tax mandatory for all Tennessee LLCs?

Yes. All LLCs doing business in Tennessee must register for and pay the F&E tax. $300 minimum even with zero income.