Collected by
Tennessee Department of Revenue
Due
The 15th day of the 4th month after the tax year ends, April 15 for a calendar year
Main forms
FAE 170 (Franchise and Excise Tax Return), FAE 183 (Exemption application or renewal)
Who owes it
LLCs formed or registered in Tennessee or doing business there, from their formation date. A single-member LLC owned by an individual is not disregarded: it files its own return. It is disregarded only when its owner is a corporation.
How it is worked out
The franchise tax is based on net worth (assets less liabilities, from the books). The excise tax is based on net earnings for the year. Since 2024 the franchise tax no longer has a property measure.
When it is due
The 15th day of the 4th month after the tax year ends, April 15 for a calendar year.
The first return runs from the formation date to the first year end. Register with the Department of Revenue within 15 days of becoming subject to the tax.
Extensions: An automatic seven-month extension to file, if the tax is paid by the original due date.
How to file
Electronic filing is required, through the Tennessee Taxpayer Access Point (TNTAP) or approved software. Forms you may need:
- FAE 170 (Franchise and Excise Tax Return)
- FAE 183 (Exemption application or renewal)
If it is missed
Penalties and interest, and the Secretary of State can revoke the LLC’s charter or registration. Returns stay due while it is revoked, and every missing return must be filed to reinstate.
- Exemptions exist, notably for obligated member entities and family-owned non-corporate entities; they file FAE 183.
- Do not rely on sites that say single-member LLCs are exempt: Tennessee’s own notice says they file.
- The Secretary of State annual report is a separate filing.
Other yearly Tennessee filings
Tennessee LLCs file an Annual Report every year. It is due on or before the first day of the fourth month after the close of the LLC's fiscal year (April 1 for a December 31 fiscal year end). See the Tennessee annual report page and the compliance tracker for every date.
Sources
Related
Frequently asked questions
Does my Tennessee LLC have to pay the Tennessee franchise and excise tax?
LLCs formed or registered in Tennessee or doing business there, from their formation date. A single-member LLC owned by an individual is not disregarded: it files its own return. It is disregarded only when its owner is a corporation.
When is the Tennessee franchise and excise tax due?
The 15th day of the 4th month after the tax year ends, April 15 for a calendar year. The first return runs from the formation date to the first year end. Register with the Department of Revenue within 15 days of becoming subject to the tax.
Do I have to file if no tax is owed?
Every for-profit entity formed or registered with the Secretary of State files a return and pays at least the minimum franchise tax, even when inactive. Exempt entities file an exemption application or renewal (Form FAE 183) instead.
How is the Tennessee franchise and excise tax calculated?
The franchise tax is based on net worth (assets less liabilities, from the books). The excise tax is based on net earnings for the year. Since 2024 the franchise tax no longer has a property measure.
What happens if I do not file or pay?
Penalties and interest, and the Secretary of State can revoke the LLC’s charter or registration. Returns stay due while it is revoked, and every missing return must be filed to reinstate.
Can I get an extension?
An automatic seven-month extension to file, if the tax is paid by the original due date.
