we are looking to start an at home website business in the state of Tennessee with revenue coming from advertising.

There are many issues to consider when selecting a type of business entity in Tennessee.  The most common forms for ownership among a husband an wife are a for profit corporation (which will then make an S Corporation election by filing Form 2553 with the IRS) and the limited liability company.  Some concerns to consider are the type of business to be engaged in and the type of revenue stream to be received.  This may influence the type of accounting practices/deductions you will be able to receive.  Overall, both of these entities will have the same liability protection, but will have different filing fees with the State of Tennessee, with the LLC being significantly more expensive.  There are also several other issues to consider such as where the office will be located (at home or in a rented building) that may influence other arrangements to minimize taxes. This answer is for general informational purposes only and is not intended to constitute legal advice or a recommended course of action in any given situation. This answer is not intended to be, and should not be, relied upon by the recipient in making decisions of a legal nature with respect to the issues discussed herein. The recipient is encouraged to consult independent counsel before making any decisions or taking any action concerning the matters in this answer. This answer does not create an attorney-client relationship between the author (John R. LaBar)/Henry, McCord, Bean, Miller, Gabriel & LaBar, P.L.L.C. and the recipient.