Filing taxes for a small business presents a set of unique challenges and considerations that distinguish it from individual or corporate tax filings. Small businesses, often structured as sole proprietorships, partnerships, or limited liability companies (LLCs), are subject to specific tax regulations that cater to their size and organizational structure. This is particularly relevant in the state of Tennessee, where the tax landscape can impact businesses differently compared to other states.

One significant aspect of small business tax filing in Tennessee is the absence of a state income tax on personal wages. However, businesses operating in Tennessee are subject to the Tennessee Franchise and Excise Tax. This tax applies to entities with gross receipts over a certain threshold, and the calculation involves both income and net worth components. Navigating the intricacies of this tax requires a thorough understanding of the applicable thresholds, rates, and exemptions, making it crucial for small businesses to stay informed and seek professional guidance.

Moreover, small businesses in Tennessee may benefit from various tax credits and incentives aimed at fostering economic growth and job creation. These incentives can include job tax credits, investment tax credits, and credits for research and development activities. Understanding and leveraging these opportunities can significantly impact a small business's overall tax liability and contribute to its financial health.

Another unique aspect of small business taxation in Tennessee is the Business Tax, which is assessed on gross receipts rather than net income. The specific rates vary based on the nature of the business, and exemptions may apply to certain entities. Navigating the nuances of the Business Tax requires small business owners to accurately track and report their gross receipts, making meticulous record-keeping an essential aspect of the tax filing process.

Furthermore, small businesses must consider sales tax obligations in Tennessee, as the state imposes a sales tax on the retail sale of tangible personal property and certain services. Understanding the rules surrounding sales tax collection and remittance is crucial to avoid potential compliance issues.

In summary, filing taxes for a small business in Tennessee is both unique and important due to the specific tax landscape within the state. From the Tennessee Franchise and Excise Tax to various credits and incentives, small businesses must navigate a complex framework that requires attention to detail and compliance. Seeking professional advice and staying informed about the state's tax regulations are critical steps for small business owners in Tennessee to ensure accurate filings and maximize available opportunities for tax relief.

Please be sure to contact us as soon as possible so we can assist you and your business with your tax filings.

General Services For Tennessee Small Businesses

At EZ Tax Services, we understand that running a business means wearing many hats—but your time is best spent growing your company, not buried in spreadsheets or payroll reports. That’s where we come in. Our bookkeeping and payroll services are designed for small and medium businesses (SMBs) all over the East Tennessee region with clients located all over from Lenoir City, Farragut, Oak Ridge, Powell, Rockport, and even Chattanooga!

Full-Service Bookkeeping

We offer monthly bookkeeping plans to meet your needs and budget. Whether you’re a sole proprietor with basic needs or a growing business with complex reporting, we’ve got you covered.

Our bookkeeping services include:

  • Categorizing and reconciling bank and credit card transactions

  • Managing accounts payable and receivable

  • Monthly or quarterly financial statements

  • Custom reports to track profit, cash flow, and expenses

  • Sales tax and business tax tracking (TNTAP support)

  • Year-end reporting for tax filing

We work with QuickBooks Online and other major platforms. We also offer cleanup and catch-up services if your books are behind.

Payroll Services

Payroll can be one of the most frustrating aspects of running a business. Our streamlined payroll services help you stay compliant and stress-free. We ensure your employees get paid accurately and on time—while you stay focused on operations.

Payroll services include:

  • Weekly, biweekly, or monthly payroll processing

  • Direct deposit or paper checks

  • Federal and Tennessee payroll tax filings (941s, 940, SUTA)

  • Year-end W-2s and 1099s

  • New hire reporting and onboarding

  • Integration with time-tracking software

We serve small businesses, startups, and independent contractors in various industries including construction, retail, professional services, and eCommerce.

Who We Serve

We’re proud to support business owners throughout Loudon, Lenoir City, Tellico Village, Rarity Bay, Vonore, Athens, Sweetwater, Farragut, and surrounding communities. Whether you operate a boutique, restaurant, consulting firm, landscaping crew, or home-based business, we tailor our services to meet your unique needs.

Why Choose EZ Tax Services?

  • Local expertise – We know Tennessee tax rules inside and out

  • Clear pricing – No hidden fees; you’ll always know what to expect

  • Cloud-based solutions – Access reports and documents securely from anywhere

  • Integrated services – Bookkeeping and taxes handled in one place for added convenience

Most clients save hours each month by outsourcing bookkeeping and payroll—and that’s time they can reinvest into their business.

Let’s Talk

We’d love to learn more about your business and how we can help! Book a consultation today or call/text us at (865) 968-0018.