September 12, 2017

Business Tax

Business License

 

Click Here to Apply for a Business License

Click Here to File a Business Tax Return

 

Opening a Business: A business license must be obtained from the County clerk within 20 days after commencement of business. Applications are available at the County Clerk’s office or via our webpage. Anyone purchasing and existing business should be certain the previous owner filed a final gross receipts tax return with the Department of Revenue, or the new owner can be held liable for any tax due.

 

What Kind of Business License Do You Need?

  1. The Standard Business License is for businesses that gross more than $10,000 annually that are not exempt (600 “Exempt” businesses below) To obtain the initial license, remit an application along with $15.00 to the County Clerk’s office. Then at the end of the business tax year, a tax return stating annual gross receipts is filed with the Tennessee Department of revenue. Note that a tax year is not necesssarily based on the calendar year but is based on the fiscal year end of the business.
  2.  The Minimal Activity Business License is for businesses that gross more than $3,000 and less than $10,000 annually. To obtain the annual license remit an application along with the $15.00 to the County Clerk’s office. No annual tax return is required. The license must be renewed at the end of the fiscal year end of the business.

3.       The following businesses are EXEMPT from Business License Requirements.

·         Businesses with a gross of less than $3,000 annually.

·         Manufacturers as described in Division D of the SIC.

·         Services (but not tangible personal property sales) listed under the provicion of TCA and so described in the Division C of the SIC. Exempt services generally include but are not limited to doctors, dentists, veternarians, attorneys, accountants, schools, religious organizations, insurance agents, loan companies, security exchanges and public utilities. If providers of any exempt service also make sales of tangible personal property and/or taxable services, they are subject to business tax on such sales.

**Important Information About Closing Your Business**

 

Terminating the business license:

·         Standard Business License- A final business Tax Return must be filed with the Department of Revenue within 15 days of closing.

·         Minimal Activity Business License- You do not have to file anything. It just expires on its own.

·         The Loudon County Assessor’s Personal Property department must be contacted at 865-458-2059 to close your account. Failing to close your account will result in future forced assessments.

·         The Loudon County Trustee’s office must be contacted at 865-458-3103 to determine if any Personal Property tax is owed.

 

 

Additional Business Tax information is available at the TN Department of Revenue’s website www.tn.gov/revenue or by calling 1-800-342-1003.

Business Tax Guide

The Business tax guide is intended as an informal reference for taxpayers who wish to gain a better understanding for Tennessee Business tax requirements.

Federal Employer Identification Number (FEIN)

Generally businesses need a FEIN. Contact the IRS at 1-800-829-1040 or online at www.irs.gov.

Sales Tax Number

Sales tax is imposed on all retail sales, leases and rentals of most goods, as well as taxable services. Contact the Tennessee Department of Revenue at 1-800-342-1003 or online at www.tn.gov/revenue.

New Businesses Tax Workshops

The Tennessee Department of Revenue sponsors free tax workshops for new businesses. The sessions normally include business tax, sales and use tax, and state unemployment tax. To register for the free course, download the Registration Form (tn.gov/revenue), and fax or mail the completed form to the contact information listed.

US Small Business Association

SBA provides small business counseling, mentoring and training through a variety of programs and resource partners, located strategically around the country.