Because of its reputation for being a business-friendly state, Tennessee is a great place for entrepreneurs to launch their businesses, including LLCs. Once your LLC is set up, it’s crucial to follow state laws and submit your taxes on time. Here is a step-by-step instruction sheet for Tennessee LLC tax filing.
Step 1 is to get an EIN. You must request an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) before you may file LLC taxes. Your LLC will be identified by this number for tax purposes. On the IRS website, you can submit an online application for an EIN.
Step 2: Ascertain the tax classification of your LLC LLCs can normally be categorized as a S company, C corporation, partnership, or sole proprietorship. Selecting the appropriate tax classification for your LLC is crucial since it will affect how your company is taxed. You can get advice from a tax expert to assist you choose the right category for your LLC.
Step 3: Submit the Annual Report for Your LLC All LLCs in Tennessee must submit an annual report to the Secretary of State. The report contains fundamental details about your LLC, like its name, location, and registered agent. Through the website of the Secretary of State, the annual report may be submitted online.
Step 4: Complete and submit the LLC tax return Tennessee does not require LLCs to pay state income taxes, but franchise taxes are still due. The franchise tax is computed based on the net worth of your LLC and is due by the 15th day of the fourth month after the end of the fiscal year for your LLC.
Do I Need a Registered Agent in Tennessee for My LLC?
Yes, a registered agent is necessary for every LLC in Tennessee. A registered agent is a person or business chosen by your LLC to receive official correspondence and other vital documents. The registered agent must be physically present in Tennessee and have a Tennessee-based address.
Annual Reports, or ARs for short, are papers that LLCs must submit annually to the Secretary of State. The first day of the fourth month after the end of your LLC’s fiscal year is when the AR is due in Tennessee. For instance, if the fiscal year of your LLC ends on December 31, your AR is due on April 1.
The fiscal year 2021–2022 budget for Tennessee is $42.6 billion. Among other things, the budget contains financing for public safety, infrastructure, healthcare, and education. Sales tax, income tax, and franchise tax make up the bulk of the state’s revenue.
You can visit the Secretary of State’s website and sign into your account to submit an annual report in Tennessee. Then, you can choose the option to submit your annual report and follow the on-screen instructions to finish the procedure. In Tennessee, submitting an annual report costs $50.