Franchise & Excise Tax

Overview

If you are a corporation, limited partnership, limited liability company, or business trust chartered, qualified, or registered in Tennessee or doing business in this state, then you must register for and pay franchise and excise taxes. The franchise tax is based on the taxpayer’s net worth, which is the difference between the taxpayer's total assets less its total liabilities, as derived from the taxpayer’s books and records. The excise tax is based on the taxpayer’s net earnings or income for the tax year.

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.