{"id":3374,"date":"2016-04-21T14:41:38","date_gmt":"2016-04-21T21:41:38","guid":{"rendered":"http:\/\/evergreensmallbusiness.com\/?page_id=3374"},"modified":"2019-07-01T15:56:15","modified_gmt":"2019-07-01T22:56:15","slug":"setting-up-a-tennessee-s-corporation","status":"publish","type":"page","link":"https:\/\/evergreensmallbusiness.com\/s-corporation-kits-for-all-fifty-states\/setting-up-a-tennessee-s-corporation\/","title":{"rendered":"Setting up a Tennessee S Corporation"},"content":{"rendered":"

\"tennessee\"<\/a>If you\u2019re a Tennessee\u00a0entrepreneur or business owner operating a profitable small business, you probably ought to consider forming either an LLC or corporation and then electing to use the Subchapter S tax accounting rules for your\u00a0business.<\/p>\n

Here\u2019s why: If you\u2019re not operating as an s-corporation, you\u2019re paying not only federal and state income taxes on all your business profits, but you\u2019re also paying hefty self-employment taxes on those profits too. Those self-employment taxes run roughly 15% on the first $120,000 of business profit an owner enjoys and then roughly 3%-4% on any profits in excess of the $120,000 threshold.<\/p>\n

However, you can operate your firm as an s-corporation and this lets you sidestep some of (and oftentimes, a lot of) the self-employment taxes you pay.<\/p>\n

Sound interesting? We\u2019ve got two do-it-yourself kits that Tennessee\u00a0small business owners can use. Both kits provide complete instructions for setting up your s-corporation and supply sample operating agreements or corporate by-laws. With one of these kits, you should be able to get your s-corporation set up, literally, with a few minutes of effort.<\/p>\n

Note:<\/strong> Some people like to use a corporation as the platform for the s-corp\u00a0because corporations are, well, traditional. But many accountants and attorneys recommend you use an LLC as the base\u00a0for an s-corporation. An LLC should give you just as much legal protection, should mean less\u00a0red tape, and may give you additional tax flexibility\u2014especially as you start your\u00a0 \u201cincorporated\u201d life\u2026<\/p>\n

Our Tennessee\u00a0S Corporation kit<\/h2>\n

As mentioned above, we typically recommend\u00a0the LLC version of our s-corporation kit which you can acquire by clicking the button below:<\/p>\n