Employer S Annual Federal Tax Return: Fill & Download for Free

Yes having an LLC in TN means that you are subject to TN franchise and excise tax. Franchise tax in TN is based on net worth with a minimum annual tax of $100. While in many jurisdictions excise tax is also known as a sin tax, in TN excise tax refers to the state tax on earnings of corporations and LLC's. TN excise tax is a tax on earnings.Here are your general tax reporting requirements-US federal tax, you are a SMLLC disregarded entity and the LLC's income is reported on schedule C of your 1040 tax return. Net profits are subject to individual income tax and self employment tax.TN state tax, you will file a TN annual franchise and excise tax return. Franchise tax will be based on $0.25 per every $100 of net worth with a minimum $100 tax. Excise tax is based on 6.5% of net earnings from TN business profits.

I don't know your specific tax situation, but generally I can say that an S-Corp does save some SE tax for a single owner compared to filing as a sole proprietor. There is some overhead involved with an S-corp, including you need to have a legal entity, most likely an LLC and you need to file a form 2553 with the IRS to elect S status. On an ongoing basis you will have to file a separate federal tax return for the LLC, run a payroll, file and pay employment taxes including unemployment tax and your LLC will probably have to file an annual state franchise and or state income tax return depending on the state where you are located, so you want to know that the SE tax savings will justify this additional overhead and reporting burdenThe requirement for S-corp owner compensation is "reasonable compensation" which leaves a lot to interpretation and depends on the nature of your business, so 20% may be reasonable if there is significant investment in productive assets in the business and that 20% figure represents an amount comparable to what you would have to pay an outside person to perform the duties you perform for the business. If you are providing personal services, I doubt 20% would pass the reasonableness test.

There may be signs in the documentation you provide. Note that you will be filling out and signing an application called a 1003 which can have legal repercussions if you lie on the application.If your income is Schedule-C income, the only acceptable source of income will be 2 years of federal tax returns. And there it will show.If your income Sub-Chapter S or Partnership, your income on the tax returns will show on line 17 of the front page of the federal 1040. Your annual income is verified by a form called a K-1 instead of a W-2, all of which are telltale signs.If you have a C-corp it is much easier to hide. Paycheck stubs have a distinctive look that can trigger an underwriters concern. Your title within your company usually has a distinct flavor as well, President, CEO, Executive VP maybe, all will make an underwriter blink upon review. You cannot hide your salary either, nor would you want to. Your personal federal tax returns would not look different as it would in the other categories of self employment.Besides being illegal, lying about your self-employment status will also eliminate part of your income as a portion of your income will show only on your business returns.There are other “smell” factors that underwriters (the person who approves your loan) will sniff out, a bit too complicated to go over all scenarios. Remember you are submitting paycheck stubs, W-2’s, 1099’s, tax returns, bank statements and on and on. You’d be stunned what footprints you leave when self employed.