Each business has up to 20 days after it opens to apply for a county business license. The initial license fee is $15.00. If a business is located within the city limits of a municipality, the business is also required to hold a city license, which can be obtained at city hall. If the business has gross receipts totaling $3,000.00 or less, the business is not subject to hold a business license. A business planning to gross between $3,000.00 and $100,000.00 per year may apply for a Minimal Activity License, which is renewable yearly at the clerk’s office for a fee of $15.00 and no tax payments are made to the Department of Revenue.
For more information regarding the Tennessee Works Tax Act please click here.
Business Classifications
There are 5 classifications based on the activities of the business. The business will need to file a tax return and pay taxes based on the total gross receipts for its fiscal year. Examples of the activities associated with each classification are listed below.
- CLASS 1 — Gas stations, grocery stores, lumber & building supplies
- CLASS 2 — Restaurants, car dealers, clothing stores
- CLASS 3 — Body shops, beauty shops, janitorial services, general services
- CLASS 4 — Contractors, sub-contractors, exterminators
- CLASS 5 — Industrial loan and thrift companies, natural gas marketers
At the end of the business’s fiscal year, tax payments should be made online to the Tennessee Department of Revenue. To be directed to the Tennessee State website, please click here. A business, unless exempt, operating without a current business license is violating state laws.
