Franchise Tax on Partnership LLC (K1s)

[Christian Morsing]

Hey Guys,

I'm getting a Franchise tax based on the Property value of my Partnership LLC.

The company invests in MFH, but I assumed it would still be the $100 and not Property value-based.

Does anybody know why it's value-based and not just the $100?

[Allan Smith]

FAE = franchise AND excise taxes

there is a tax on holdings as well as income in TN.

this is the primary reason I believe LLCs in TN should be used strategically. I have had many rentals in GPs and land trusts.

if your llc only holds rentals and all owners are blood related, do FONCE exemption from FAE.