LLC fees in Tennessee
Varies
Are LLC Fees Tax Deductible in Tennessee?
Short answer: Yes, as a business expense: Tennessee charges $300 ($50 per member, minimum $300, maximum $3,000) to form an LLC; ongoing: $300-$3,000 annual report ($50 per member, minimum $300). Franchise tax 0.25% of net worth (minimum $100) plus excise tax 6.5% of net earnings; applies to LLCs including single-member LLCs owned by individuals. Annual report due 1st day of 4th month after fiscal year end (April 1 for calendar year); +$20 if registered agent/office changes.
Annual report fees and state LLC taxes are ordinary business expenses (IRC §162). Formation fees are organizational costs: deduct up to $5,000 the first year and amortize the rest over 15 years (IRC §195, §709).
Records to keep: Keep the state filing receipt, proof of payment, and your LLC's formation and annual report confirmations.
LLC fees in Tennessee
Varies
General Business
Yes, as a business expense: Tennessee charges $300 ($50 per member, minimum $300, maximum $3,000) to form an LLC; ongoing: $300-$3,000 annual report ($50 per member, minimum $300). Franchise tax 0.25% of net worth (minimum $100) plus excise tax 6.5% of net earnings; applies to LLCs including single-member LLCs owned by individuals. Annual report due 1st day of 4th month after fiscal year end (April 1 for calendar year); +$20 if registered agent/office changes.
Business justification
Yes, as a business expense: Tennessee charges $300 ($50 per member, minimum $300, maximum $3,000) to form an LLC; ongoing: $300-$3,000 annual report ($50 per member, minimum $300). Franchise tax 0.25% of net worth (minimum $100) plus excise tax 6.5% of net earnings; applies to LLCs including single-member LLCs owned by individuals. Annual report due 1st day of 4th month after fiscal year end (April 1 for calendar year); +$20 if registered agent/office changes. Annual report fees and state LLC taxes are ordinary business expenses (IRC §162). Formation fees are organizational costs: deduct up to $5,000 the first year and amortize the rest over 15 years (IRC §195, §709).
Category
- Tax Write-Off Rules