File tn franchise and excise tax The form includes sections for taxable income, adjustments, deductions, and credits, with specific instructions to ensure accurate compliance. Apr 25, 2025 · Discover Tennessee's small business tax essentials, from compliance to deductions. Sep 4, 2025 · In this comprehensive guide, we'll walk you through various business taxes you might stumble upon and filing business taxes in Tennessee. tn. Therefore, a person with multiple Tennessee locations must register for sales/use tax and business tax for each individual location. TENNESSEE DEPARTMENT OF REVENUE Application for Extension of Time to File 2023 Franchise and Excise Tax Return RV-R0011401 (12/23) Overview Franchise and excise tax is imposed on entities that operate in Tennessee and offer their owners limited liability protection. This document serves as a crucial resource for individuals and businesses required to file taxes in Tennessee. The minimum franchise tax is $100 and 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. Entities other than unitary groups of financial institutions and captive real estate investment trust (“REIT”) affiliated groups are not permitted to file a consolidated or combined franchise and excise return. Passive investment Franchise & Excise Tax - Tax GuidanceThe Relevance Inspector will open in the Coveo Administration Console. Mar 12, 2021 · A SMLLC is required to file a franchise, excise tax return when 1) it is not disregarded for federal income tax purposes, or 2) when it is disregarded for federal income tax purposes, but its single member is an entity other than an entity that is classified as a corporation for federal income tax purposes. Jan 29, 2024 · NASHVILLE- Tax relief is available to businesses and homeowners affected by the severe weather on December 9, 2023, in Tennessee. 67%) of the activity of the entity is either the production of passive investment income or the combination of the production of passive investment income and farming. Electronically E-file-4 - Can File Return Without Payment E-file-5 - Taxpayer Controls When Department is Authorized to Debit Bank Account E-file-6 - Department's Use of Bank Account Information This adjustment is only made if the entity issuing the K-1 is itself subject to the excise tax and filing a franchise and excise tax return. Check out the great resources made available here through the TN Department of Revenue. . It offers the FAE 170 form, instructions, and updated manuals. You can file for an exemption using the Tennessee Taxpayer Access Point (TNTAP), without creating a logon. This adjustment is only made if the entity issuing the K-1 is itself subject to the excise tax and filing a franchise and excise tax return. Get expert guidance from QMK Consulting. This tax structure consists of two components: an Excise Tax based on net earnings and a Franchise Tax based on net worth. us Jan 1, 2021 · When filing the franchise and excise tax return on TNTAP, a taxpayer should check “yes” when asked “Have you filed for an extension?” Taxpayers who qualify for an exception from the electronic filing requirement may submit a paper Form FAE173 to request an extension. 1, 2024. Consider utilizing tax Overview Franchise and excise tax is imposed on entities that operate in Tennessee and offer their owners limited liability protection. 7 Both taxes are solely for state purposes and For more tax information, call toll free 1-800-342-1003 Nashville area and out-of-state call 615-253-0700 Email TN. All schedules and instructions are included. 25 per $1,000 (or $2. The return shall coincide with the accounting period covered by the federal return and the appropriate tax must be paid to the department at the time of filing the return. Learn strategies for growth and find the support your business needs. Excise Tax • net earnings or income for the tax year F&E Tax All for-profit, foreign, and domestic entities chartered, qualified, or registered in Tennessee or doing business in TN must file the F&E tax return and pay at least the minimum tax. Businesses must adhere to filing deadlines to avoid penalties Mar 12, 2021 · A limited liability company must file a franchise and excise tax return even if it chooses to be ignored as an entity for federal tax purposes and is treated as an individual taxpayer or as a "division" of a general partnership federally. All entities doing business in Tennessee and having a substantial nexus in Tennessee, except for not-for-profits and other exempt entities, are subject to the franchise tax. Tennessee has a Franchise Tax that applies to all Corporations, LPs, and LLCs doing business in the state. Tenn. Tennessee Business Taxes This guide provides an overview of the various business taxes in Tennessee, including state taxes like franchise and excise taxes, local business taxes, and sales taxes. Overview Franchise and excise tax is imposed on entities that operate in Tennessee and offer their owners limited liability protection. Entities Exempt from Franchise & Excise Tax Seventeen different types of entities are exempt from the franchise and excise taxes. Tax guidance from the Department of Revenue on franchise & excise taxes. TNTAP payments can be made for returns filed using software vendor. 7 Both taxes are solely for state purposes and Revenue Ruling 11-46 – Disregarded Entities and Filing Requirements 81 Overview Franchise and excise tax is imposed on entities that operate in Tennessee and offer their owners limited liability protection. All businesses are required to file Tennessee franchise and excise taxes and make payments online. TENNESSEE DEPARTMENT OF REVENUE Franchise and Excise Tax Exempt Entity Disclosure of Activity Please complete this page if you have indicated that you are applying for or renewing an exemption for a farming/personal residence or a family owned non-corporate entity. The excise tax is based on the taxpayer’s net earnings or income for the tax year. Jun 5, 2025 · The Tennessee FAE 170 form is used for reporting franchise and excise taxes, combining both taxes in one annual return. Nov 21, 2025 · The Tennessee Franchise and Excise (F&E) Tax is a dual levy imposed on most entities for the privilege of doing business or earning income within the state. Bill Lee approved legislation which eliminates the property measure for computing the Tennessee Business Privilege Tax (franchise tax) for tax years ending on or after Jan. Jan 31, 2024 · All corporations, limited partnerships, LLCs, and business trusts that are chartered, qualified, or registered in TN or doing business in the state must file a Franchise/Excise Tax Return and pay Franchise/Excise tax of a minimum $100 each year. The TN DOR’s Franchise and Excise Tax Manual provides detailed guidance on specific aspects of the tax. Below, you'll find answers to frequently asked questions about filing franchise and excise tax returns for a single-member limited liability corporation (SMLLC) in Tennessee: (a) The franchise and excise tax return shall be filed with the commissioner on or before the fifteenth day of the fourth month following the close of the taxpayer's taxable year. 7 Both taxes are solely for state purposes and Franchise & Excise Tax - The Department of Revenue is now accepting franchise and excise tax returns, extensions and quarterly estimated payments through the . This is the combined return used to report both taxes, and it’s required even if your business didn’t turn a profit during the filing period. It includes guidelines on how to fill out the return along with necessary schedules. Mar 27, 2025 · Tennessee law also requires that persons conducting business in this state report and remit sales tax and business tax on a location-by-location basis. Jan 1, 2024 · Franchise & Excise Tax Returns FAE170 Kit - For tax periods beginning January 1, 2024 and after For corporations, LLCs, & LPs. This partnership between states and the Internal Revenue Service allows tax preparers to include the state tax return and any associated payment with its electronically filed federal return. Using TNTAP you can file and pay taxes, check your account balances, view correspondence from the Tennessee Department of Revenue and more! You can In this article, you'll find answers to frequently asked questions about filing franchise and excise tax returns for a single-member limited liability corporation (SMLLC) in Tennessee:. IRS Modernized e-File - Allows tax preparers to include the state tax return and any associated payment with its electronically filed federal return. Franchise & Excise Tax - Due Dates and Tax Rates Overview Franchise and excise tax is imposed on entities that operate in Tennessee and offer their owners limited liability protection. It is mandatory for eligible entities to file electronically via TNTAP. In addition, the Tennessee Department of Revenue (Department) issued some noteworthy rulings addressing sales factor sourcing and other issues impacting To qualify for the FONCE franchise and excise tax exemption, the entity must meet two criteria: At least 95% of the entity’s ownership must be directly held by family members, and Substantially all (66. Oct 28, 2025 · If you own an entity that operates in Tennessee, you’re probably subject to required Franchise and Excise Taxes. Tennessee Franchise Excise Tax Return Instructions This file outlines the details for the Tennessee Franchise and Excise Tax Return. It applies to corporations, limited partnerships, limited liability companies, and business trusts chartered, qualified, or registered in Tennessee, or those doing business within the state. In the event the return covers a period of Sep 29, 2023 · E-file-13 - How to Pay Franchise and Excise Tax Online If your tax preparer has filed your return and you only need to make a payment, follow these steps. - Tennessee Taxpayer Access Point (TNTAP) allows you to create and manage your account, file and pay your taxes online, and more. Aug 5, 2025 · The Tennessee Franchise and Excise Tax is a business tax imposed on entities for the privilege of doing business in the state. The excise tax rate is 6. Tax Deadline Extensions The Department of Revenue is extending the franchise and excise tax filing and payment deadlines to June 17, 2024, for businesses impacted by the December 2023 storms. Read more about exempt entities at the link on the left. 7 Both taxes are solely for state purposes and Overview The excise tax and the franchise tax are imposed on corporations and most limited liability companies for the privilege of doing business in Tennessee. This sometimes comes as a surprise to people who incorporate or create their entities in another state (like Delaware, Nevada, or Wyoming) but Feb 13, 2025 · Many Tennessee franchise and excise tax (F&E tax) taxpayers benefited from major changes to the F&E tax for 2024. Tennessee Department of Revenue Tennessee Taxpayer Access Point (TNTAP) Tennessee Taxpayer Access Point (TNTAP) Find answers to frequently asked questions and watch how-to videos on how to navigate the Tennessee Taxpayer Access Point (TNTAP) here. 7 Both taxes are solely for state purposes and For assistance, please watch this video; Registering for Business Tax; Registering for Franchise & Excise Tax; Calculating taxes owed and filing tax returns. Franchise & Excise Tax - Excise Tax All persons, except those with nonprofit status or otherwise exempt, are subject to a 6. To pay without logging into TNTAP: Navigate to the main TNTAP page; Click on “Make an ACH Debit Payment” or “Make a Credit Card Payment” hyperlink and provide the information as Mar 12, 2021 · The following entity types may be required to file the franchise and excise tax return: corporation subchapter S corporation limited liability company professional limited liability company regist Overview Franchise and excise tax is imposed on entities that operate in Tennessee and offer their owners limited liability protection. This includes extension requests and estimated payment filings. The Tennessee Department of Revenue has a Franchise and Excise tax section on its website that outlines details about the tax and provides guidance and Jan 29, 2025 · Learn about Tennessee franchise tax rates, who pays, calculations, deadlines, and deductions. It is typically filed by an accountant as part of Tennessee's combined business tax filing: Form FAE170 - Franchise & Excise Tax Return. This kit does not include financial institutions or captive REIT. 5% corporate excise tax on the net earnings from business conducted in Tennessee for the fiscal year. In-state and out-of-state entities can both be subject to franchise and excise tax. Form FAE170 Franchise and Excise Tax Return, includes Schedules A-F, H-K, M, N-P, R-V Form FAE170 Instructions Nov 20, 2025 · The franchise tax rate is currently $0. Franchise & Excise Tax - FONCE You can read frequently asked questions about the Family Owned Non-Corporate Entity Exemption (FONCE) exemption for franchise and excise tax here. 7 Both taxes are solely for state purposes and Overview Franchise and excise tax is imposed on entities that operate in Tennessee and offer their owners limited liability protection. §§ 67-4-2001 et seq Tenn. 1 This legislation allows taxpayers that were required to use this method to file tax refund claims for the three prior tax years. 7 Both taxes are solely for state purposes and Oct 12, 2022 · The franchise and excise tax return is due on the 15th day of the fourth month following the closing of the taxpayer’s books and records. Nexus with TN Taxes Nexus is the requisite contact between a taxpayer and a state before the state has jurisdiction to tax the taxpayer. Exemptions and Credits Entities Exempt from Franchise & Excise Tax: Seventeen different types of entities are exempt from the franchise and excise taxes. §§ 67-4-2101 et seq The Tennessee Department of Revenue mandates electronic filing. 7 Both taxes are solely for state purposes and Dec 27, 2024 · Filing the Tennessee FAE 170 can seem daunting, but numerous resources are available to assist taxpayers. ; and E-File & Pay E-file-1 - How to File Business Tax Online E-file-2 - List of Approved Software Vendors E-file-3 - No Difference between Paying by Check vs. Revenue@state. The Tennessee Department of Revenue (TN DOR) website is the primary source for information. 6 These taxes are accrued taxes imposed on the privilege of doing business in this state or by exercising the corporate franchise. You can file for an exemption (without creating a logon) using the Tennessee Taxpayer Access Point (TNTAP). You need to file all franchise and excise tax return filings and payments related to Forms FAE 170 and FAE 174 electronically. Code Ann. A taxable entity that is incorporated, domesticated, qualified or otherwise registered to do business in Tennessee that was inactive in Tennessee for the entire taxable period and owes only the minimum tax may file only page one of this return and omit the remaining pages. Oct 12, 2022 · If you are a corporation, limited partnership (LP), limited liability company (LLC), or business trust. May 15, 2024 · On May 10, 2024, Tennessee Gov. chartered, qualified, or registered in Tennessee or doing business in this state, then you must register for and pay franchise and excise taxes. F&E-1 - Entity Types that File Franchise & Excise Tax Returns F&E-2 - Criteria That Must be Met Before There is a Filing Requirement F&E-3 - Filing Requirements for Disregarded Entities F&E-4 - Tennessee Filing Requirement for an LLC that Files Federally as an Individual or Division of a General Partnership This adjustment is only made if the entity issuing the K-1 is itself subject to the excise tax and filing a franchise and excise tax return. This can be accomplished by using the Tennessee Taxpayer Access Point (TNTAP). 7 Both taxes are solely for state purposes and Jun 1, 2022 · Sales of interests in Tennessee regarded but federally disregarded entities One of the many questions that arise due to the partial nonconformity to the federal entity classification rules concerns the Tennessee excise tax consequences of the sale of a federally disregarded, but Tennessee regarded, entity. Mar 3, 2025 · Understand Tennessee LLC tax requirements, including registration, franchise and excise taxes, and filing obligations to stay compliant. Specifically, taxpayers who paid franchise tax Overview Franchise and excise tax is imposed on entities that operate in Tennessee and offer their owners limited liability protection. 5% of your net earnings allocated or apportioned to Tennessee. The franchise tax is a privilege tax imposed on entities for the privilege of doing business in Tennessee. This adjustment is to prevent the duplicate recognition of the pass-through loss and expense in the excise tax base. All tax returns and associated payments must be submitted electronically. The requirement to file online became effective on January 1, 2014. The combined tax is a mandatory filing for nearly all corporations, Limited Liability Companies (LLCs), and certain Tennessee businesses that are subject to franchise and excise taxes must file Form FAE-170 each year with the Department of Revenue. 50 per $10,000) of your franchise tax base, with a minimum tax of $100. It also covers how to calculate and file these taxes, and what business owners need to know to ensure compliance with Tennessee tax laws. This followed Tennessee’s enactment of the Works Tax Act in 2023, which also introduced significant changes to the F&E tax. For example, a calendar year taxpayer’s return is due on Ap For franchise and excise tax purposes, each taxpayer is considered a separate and single business entity and must file individual tax returns.