Tennessee has a Franchise Tax that applies to all Corporations, LPs, and LLCs doing business in the state. It is typically filed by an accountant as part of Tennessee's combined business tax filing: Form FAE170 - Franchise & Excise Tax Return.
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 the forms themselves.
Tennessee Franchise Tax is due on the 15th day of the fourth month following the close of your tax year. For calendar-year filers, that's April 15th.
Tennessee automatically grants a seven-month filing extension when Form FAE 173 is filed, but payment is still due by the original due date.
For tax years ending on or after January 1, 2024, the Tennessee franchise tax is calculated as 0.25% of your entity's Tennessee-apportioned net worth (assets minus liabilities).
The alternative property-based measure was repealed through HB 1893/SB 2103, passed in April 2024. The minimum tax remains $100.
Tennessee provides schedules on Form FAE170 to help calculate franchise tax based on net worth (Schedule F1, F2, or F/SF depending on entity type).
Tennessee's franchise tax calculation—0.25% of Tennessee-apportioned net worth—requires detailed financial analysis and is typically handled by an accountant through the combined Franchise & Excise Tax Return.
While Discern does not file Tennessee franchise taxes directly, Discern can file your Tennessee annual reports with the Secretary of State, provide registered agent services, notify you when tax obligations are due, and help you track compliance across all your entities.
Ready to simplify your multi-state compliance? Book a demo to see how Discern streamlines entity management across all 50 states and DC.
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