What are the reasons for doing business in Tennessee?
A skilled labor force, favorable regulatory environment, low taxes, and low operating costs are some of the key reasons why an increasing number of businesses have established themselves in Tennessee in recent years. When looking at factors such as the cost of goods, rent, and utilities, Tennessee’s prices are ranked as the 10th lowest in the nation.
Tennessee also offers a number of tax incentives for businesses that relocate or expand in the state. Examples include tax credits for job creation or purchases of industrial machinery, as well as various sales and use tax exemptions. Tennessee also invests in workforce programs that help individuals acquire the skills that are in high demand.
What is the cost of doing business in Tennessee?
Tennessee has a flat corporate income tax rate of 6.5% and a franchise and excise tax that it levies on corporations, limited partnerships, limited liability companies, or business trusts that are registered to do business in the state. There is no individual income tax. The general state tax rate is 7%, and there is a local sales tax rate that varies by county and/or city. The local sales tax rate cannot go above 2.75%.
How is the infrastructure in Tennessee?
In the last infrastructure report card, the American Society of Civil Engineers (ASCE) described Tennessee’s freight rail network as strong and the energy grid as reliable. It also warned of the potential impacts brought on by population growth and increasingly severe weather. Tennessee received a C grade, which was higher than the national average of C-.
What are the challenges of doing business in Tennessee?
Although Tennessee ranked in the top ten for CNBC’s Top States for Business report, it received a D- grade for the category of life, health, and inclusion. For this category, CNBC looks at factors such as crime rates, childcare availability, and health care. Tennessee’s restrictive laws on reproductive and gender care may also make it difficult to attract and retain talent.