5 Tips to Running a Business in Tennessee
Register with the StateEvery business must register with the Tennessee Department of Revenue. Through the state's online tax registration website you can register a new business, register a new location you are opening, and change your address. This is where the state keeps record of how to get in touch with your business, so this information must always be kept up to date.
Know the Business Enterprise Resource OfficeTennessee provides assistance to small companies with less than 20 employees to encourage revenue growth and job creation. The BERO office offers help with identifying financing avenues, connecting to buyers in corporate and government offices, and networking with other entrepreneurs. As you are just starting out this office can be invaluable in making sure your business survives those first few tough years.
Know Your TaxesIf you are going to operate a business, you will have taxes to pay. The number of taxes you will need to collect depends on the top of company you are operating. You might need to collect sales tax if you are selling items or just pay general business tax if your business falls under those guidelines. Here are three of the biggest taxes to know.
Franchise Tax: A tax on the greater of net worth or book value of property owned or used in Tennessee. The tax rate is $0.25 per $100.
Excise Tax: A tax based on the net earnings of the firm earned within the state's borders. There is a formula to determine how much tax will be owed.
Sales and Use Tax: A 7% state tax (plus local tax ranging from 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.