This is a great idea if you live within the state’s borders. Tennessee does not have a personal income tax. Income that flows from you to your business is not taxed by the state, which means that you have more money in order to invest in your business. Tennessee has one of the most competitive tax burden in the country. A mixture of no state personal income tax and no state property tax helps keep the tax burden low.
5 Tips On Running Your Business
Register with the state
register with Department of Revenue through the states website online tax registration site and you can register your new business, location, and change address.
where state keeps up with your business
Know The Business Enterprise Resource Office
TN provides assistance to companies with less than 20 employees to encourage revenue growth and job creation
BERO office helps identifying financing avenues, connection to buyers in corporate and government offices, and networking with other entrepreneurs
Know your taxes
you must pay taxes
number of taxes you pay depends on company
franchise tax- tax on greater of net worth or book value property owned or used in Tennessee
tax rate – $.25 per $100
excise tax – based on net earnings of the firm earned with the state’s borders.
formula to determine taxes owed
sales and use tax – 7% state tax (plus local tax 1.5% to 2.75%) on anyone or company that manufactures and sells tangible personal property within the state. There is a long list of exemptions to this tax based on specific situations.
Grab State Incentives
start a business you want to make sure you are grabbing as much free money or tax discount incentives as possible. Tennessee’s state government has a website that allows you to see discounts offered for those who start a business in the state’s border
Grant and Loan Programs
reinvesting in smaller communities to encourage job growth.
business can’t directly get access to these programs since they go to the community, but be in contact with the right people within those communities to encourage investment in your firm so you can open your business on their main street and not the town on the other side of the interstate.
Hello! I'm a self-employed entrepreneur. I enjoy affiliate marketing and photography in my spare time. I am currently in college for communications in social media and working towards my undergraduate degree in graphic design.
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