Do Sole Proprietors Have To Pay Tennessee Business Tax?

Forum|Forum|4 years ago
February 25, 2022
2 replies
74 views

I have a client who operates as a sole proprietor in TN. She told me that she has to file a business tax return with the TN Dept of Revenue. I think she may be wrong.

I know that sole proprietors are NOT subject to TN franchise and excise tax. But I think TN also has a "business" tax (I don't think that's another name for the excise tax as far as I know). I don't think she would owe any tax in TN if she is a sole proprietor.

Do sole proprietors have to pay business tax in TN?

ProSeries Professional

This topic has been closed for replies.

E

Ephesians3-14Author

Level 7

EDIT: Sole proprietors, corporations and LLCs all pay the TN business tax.

dd4vols

Intuit Community Champion

The "BUSINESS TAX", applies to most businesses. But don't confuse that with the Tennessee Franchise & Excise Tax

The business tax is imposed generally on anyone delivering goods or services to Tennessee customers, but a number of activities and entities are specifically exempted. For example, taxpayers are exempt from the business tax if they generate less than $10,000 in sales. Manufacturers are exempt from Business Rax also. These are licenses to do business in specific counties and cities.

You have to get these licenses in each county you do business, and renew each year by april 15. These are based on Sales...has nothing to do with profits.

The Tennessee Franchise & Excise tax is applicable for Corporations, S-Corps, and LLCs, The Franchise & Excise Tax is NOT applicable for sole proprietors, as Tennessee has no personal income tax.

If an answer solves your issue, click on the "Mark as Best Answer" button! Makes it easier for people to find answers to similar questions that have already been posted.

Sign up

Login with SSO

Let's get you signed in

Login with SSO