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franchise tax

A franchise tax is a state tax on businesses and other entities (corporations, limited liability companies, trusts, etc.) that are formed in or doing business in a state.

A franchise tax is said to be a tax on the privilege of doing business in a state and is sometimes referred to as a privilege tax. The amount of tax due is often calculated as a percentage of a business’s income, for example.

In Tennessee, the franchise tax is a tax levied on businesses for the privilege of doing business in the state. It applies to corporations, limited liability companies (LLCs), limited partnerships (LPs), and business trusts, among other entities. The tax is calculated based on the greater of the entity's net worth or the real and tangible property owned or used in Tennessee. As of the knowledge cutoff in 2023, the tax rate is 0.25% of the greater amount, with a minimum tax of $100. It's important for businesses operating in Tennessee to be aware of this tax and comply with the filing requirements to avoid penalties and interest on any unpaid tax.

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Taxes

franchise tax

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Taxes

franchise tax

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