A sole proprietorship is not a legal entity, separate and apart from the owner. The income and expenses of a sole proprietor are reported on Schedule C (Form 1040) as part of your individual income tax.
The State of Tennessee does not have a general income tax for individuals. Accordingly, your sole proprietorship income is not taxable in Tennessee.
Tennessee has the Hall income tax, which is assessed only
against interest and dividend income in excess of certain limits. If this tax
applies to you, you should complete and file your tax return before April 15.
The Tennessee Hall income tax is imposed only on individuals and
other entities receiving interest
from bonds and notes and dividends from
stock. Your Hall income tax return is due on the 15th day of the fourth
month following the end of your fiscal year. For example, if your fiscal
year ends on December 31, then your return is due on April 15.
