Clarksville tn business license renewal

The Tennessee Works Tax Act (the “Act”), Public Chapter 377 (2023), increases the business tax filing threshold from $10,000 to $100,000 per jurisdiction. Therefore, taxpayers with less than $100,000 in annual gross receipts are not required to file an annual business tax return.

Contractor “Deemed Location” Threshold Increases to $100,000

The Act also increases the gross sales threshold for contractors who perform contracts in Tennessee from $50,000 to $100,000. These contractors will only be considered to have established a “deemed location” in a given jurisdiction if their annual gross receipts are more than $100,000.

* These changes apply to tax years ending on or after December 31, 2023.

LICENSE REQUIREMENTS FOR NEW AND EXISTING BUSINESSES

Annual Gross Sales/Receipts:

$0 - $3,000: No business license is required.

$3,001 - $99,999: A minimal activity license is required. The minimal activity license is issued by the county clerk's office and does not require a tax return to be filed. The license must be renewed through the county clerk's office annually based on the fiscal year of the business.

$100,000 or more: A standard business license is required. Business taxes must be remitted annually based on the fiscal year of the business. Standard business license holders must create an account with the State of Tennessee, Department of Revenue, prior to filing a business tax return electronically. It is critical that you do this as soon as possible and do not wait until the due date of your return, as this could delay processing.

NOTE: A standard business license may be obtained by request for any business, regardless of gross sales. Businesses choosing to have a standard business license must file a business tax return with the Department of Revenue and remit tax for that location.

For additional information regarding business taxes, click here to visit the Department of Revenue's website. For assistance by phone, the Department may be contacted at 1-800-342-1003 (toll free) or (615) 253-0600.

New Businesses:

Existing Businesses: