Tennessee · No tax on wages, franchise & excise tax
CPA, bookkeeping & fractional CFO services in Tennessee
Tennessee does not tax wages or most personal income, but most business entities, including LLCs, pay the Tennessee franchise and excise taxes, and the state has one of the highest combined sales tax rates. CPA Torrance is a CPA-led firm based in Torrance, California that provides bookkeeping, tax planning, tax filing and fractional CFO support to Tennessee businesses remotely.
- Serving all of Tennessee remotely
- Tennessee franchise and excise tax tracked for you
- Monthly reporting included
In short
Do Tennessee LLCs pay state tax?
Yes, in most cases. Tennessee has no tax on wages, but LLCs, corporations, limited partnerships and similar entities pay the franchise tax, based on net worth, and the excise tax, based on net earnings. Many businesses also pay the Tennessee business tax on gross receipts to the state and their city or county.
- State income tax
- None on wages
- State sales tax
- 7% + local
- Key business tax
- Franchise and excise tax
- How we serve
- Remotely, statewide
Services in Tennessee
What we do for Tennessee business owners
From Nashville healthcare companies and music businesses to Memphis logistics firms and Knoxville manufacturers, Tennessee owners need entity taxes and sales tax handled correctly. We provide monthly bookkeeping, federal and Tennessee tax planning, filings and CFO reporting from one coordinated team.
Bookkeeping Services
- Monthly reconciliations in QuickBooks Online
- Tennessee state and local sales tax tracking
- Payroll and contractor payment review
- Monthly profit and loss and balance sheet
- Catch-up and clean-up bookkeeping
Tax Planning & Strategy
- Entity and S corporation review
- Franchise and excise tax planning
- Federal and state estimated payments
- Multi-state income review
- Year-end tax planning meeting
Tax Filing & Compliance
- Federal business returns (1120, 1120S, 1065)
- Tennessee franchise and excise tax and business tax returns
- Owner individual returns
- IRS and state notice help
- Due-date tracking for every filing
Fractional CFO Services
- Cash-flow forecasts
- Budget versus actual reviews
- Margin and pricing analysis
- Lender- and investor-ready reporting
- Growth and hiring plans
Tennessee tax planning
Planning around Tennessee taxes
Tennessee planning focuses on franchise and excise taxes, the business tax, high combined sales tax rates and federal planning.
Book a 15-min callFranchise and excise tax
We calculate the franchise tax on net worth and the excise tax on earnings and look for exemptions that apply.
Business tax
Many Tennessee businesses owe state and local business tax on gross receipts. We track classifications and filings.
Entity choice
Because LLCs pay franchise and excise tax, entity choice works differently here. We compare options for you.
Who we work with
Tennessee industries we serve
We work with owner-led businesses across Tennessee, with experience in the industries that drive the state economy.
Healthcare companies
Practices and healthcare service companies around Nashville.
Music and entertainment
Artists, studios and production companies.
Logistics and freight
Trucking and warehousing around Memphis.
Hospitality and tourism
Restaurants and venues across the state.
E-commerce sellers
Online brands with Tennessee sales tax, inventory and multi-channel books.
Professional firms
Consultants, agencies and law firms billing by the hour, project or retainer.
Why Tennessee businesses choose CPA Torrance
Areas we cover
Serving businesses across Tennessee
Businesses in Nashville, Memphis, Knoxville, Chattanooga, Franklin work in healthcare, music and entertainment, logistics, manufacturing and tourism. CPA Torrance helps Tennessee businesses, including those owned from out of state, stay compliant and organized through remote meetings.
- Nashville
- Memphis
- Knoxville
- Chattanooga
- Franklin
- Murfreesboro
- Clarksville
- Brentwood
- Jackson
- Johnson City
- Video meetings on your schedule
- Secure document portal for statements and returns
- Cloud accounting you can see any time
FAQ
Tennessee business tax and accounting questions
Not covered here? A 15-minute call gets you a straight answer for your situation.
What financial services can CPA Torrance provide to Tennessee businesses?
We provide monthly bookkeeping, federal and Tennessee tax planning, business tax filing and fractional CFO services. Everything runs from one set of books, so your bookkeeper, CPA and CFO advisor work from the same numbers.
Is Tennessee really tax free for business owners?
Not completely. Owners do not pay state tax on wages, but most entities pay franchise and excise tax, and many pay the business tax and high sales tax.
Do musicians and creators owe Tennessee tax?
Individuals operating as sole proprietors generally do not pay franchise and excise tax, but those operating through an LLC usually do. We review your structure.
What is the Tennessee business tax?
It is a tax on gross receipts paid to the state and to cities or counties, with rates based on business classification.
Can CPA Torrance work with Tennessee businesses remotely?
Yes. We serve businesses across Tennessee, including Nashville, Memphis, Knoxville, Chattanooga, Franklin, Murfreesboro, Clarksville, Brentwood, Jackson and Johnson City, through video meetings, a secure document portal and cloud accounting you can see any time. Our office is in Torrance, California.
How do I get started?
Book a 15-minute call or request a free financial assessment. We review your books, tax position and systems and recommend the right mix of support for your Tennessee business.
Get your Tennessee books and taxes in order.
Book a call to review bookkeeping and tax planning for your Tennessee business.