Why incorporate in Tennessee?
Business Information & Rankings
- Bloomberg Wealth Manager ranked Tennessee 3rd in Wealth Friendliness. (2004)
- Tennessee ranked 15th in the Tax Foundation’s State Business Tax Climate Index. (2004)
- Tennessee ranked 4th in charitable giving on the Internal Revenue Service’s Generosity Report for 2003 (reported in 2005)
- Tennessee ranks 4th in the nation in automotive manufacturing.
Cost of living
|For Chattanooga, TN (2005)||Index Score|
|Misc. Goods & Services:||96.8|
Tennessee has the 44th lowest overall crime ranking in the U.S. (FBI, 2004)
Fees & Taxes
Business Inventory Tax
Corporate Income Tax
Tennessee’s corporate tax structure consists of a flat rate of 6.0% on all corporate income.
Personal Income Tax
Tennessee’s personal income tax system consists of a flat 6% rate on only dividend and interest income. All other personal income is not subject to state taxation.
Personal Property Tax
Tennessee collects property taxes at the local level. Intangible personal property is assessed on the shares of stock of stockholders of any loan company, investment company, insurance company or for-profit cemetery companies.
State Sales and Use Tax
Base Rate: 7.0%
Machinery Rate: none
There is an exemption for industrial machinery.
Tennessee’s new employers’ rate is 2.7% for 3 years.