Boo for Tennessee
My company is moving into Tennessee as a campground operator. I was disappointed to see Tennessee is one of only a couple of states that double tax s-corporation earnings. The state takes a straight 6.5% cut of all corporate earnings, even of an S-corp, and then charges regular income tax rates on the same income as it passes through to the individual. This makes Tennessee one of the few states where, from a state tax perspective, S-corps are worse than C-corps, because if you are going to be double taxed, at least with the C-corp you can indefinitely delay taxation by not issuing dividends.
PS- TN lodging tax rates are horrendous. Whenever I see tax rates higher than comparable rates in CA, I know they are too high.
Watchman:
Tennessee has no regular income tax, so they try to soak every other source of revenue they can find as much as possible--especially those tied to out of state (ie: non voting) interests.
March 18, 2012, 11:41 amNL_:
Do they also entity-tax LLCs? Or LLLPs or LLPs or whatever else?
March 18, 2012, 3:20 pm