CNBC 2025 · #8 of 50
Tennessee
Very favourableRank: #8 of 50
Year-over-year movement
Category breakdown
All 10 CNBC categories — score out of category max, rank among 50 states.
CNBC methodology — 10 categories, 2,500 points max
Founder Snapshot
Lite operational context for Tennessee — what to know before operating here. Sourced public facts, separate from CNBC scores.
Tax posture
Tennessee has no tax on wage income. The excise tax (6.5% of net earnings) and franchise tax (0.25% of net worth) apply to most corporations and LLCs.
Business registration
Register entities through the Tennessee Secretary of State Business Services.
Source: Tennessee Secretary of State
Compliance calendar
Annual reports are due by the first day of the fourth month after fiscal year end; excise/franchise returns follow DOR deadlines.
Source: Tennessee SOS — Annual Report
Multi-state heads-up
If you operate outside Tennessee or hire remotely — informational, not legal advice.
Remote sales & economic nexus
Remote sellers must collect Tennessee sales tax once economic nexus thresholds are exceeded.
Source: Tennessee DOR — Sales & Use Tax
Remote employees & payroll
Tennessee employers register for unemployment insurance and franchise/excise accounts as applicable.
Also applies across state lines
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If you are incorporated elsewhere but transact business here, you may need to foreign-qualify with the Secretary of State.
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Multi-state operations often trigger registration, withholding, or nexus rules — confirm with official state agencies.
Source: IRS — State government websites
Regulatory Pulse
Recent regulatory changes in Tennessee — sourced public updates for founders operating here.
Tennessee Identity Theft Deterrence Act
Businesses must notify Tennessee residents of unauthorized access to personal information.
Source: Tennessee Attorney General