Frequently Asked Questions
What is the difference between a standard Business License and a Minimal Activity License?
A standard Business License is required of businesses who anticipate having gross receipts/revenues of $10,000 or greater and an annual business tax return must be filed with the Tennessee Dept. of Revenue each year.
A Minimal Activity License is required of businesses that anticipate having gross receipts/revenues between $3,000 to $9,999 and must renew the license if the business continues.
How much does a business license or minimal activity license cost?
The fee for a business license or minimal activity license is $30.00 if you are located in the USD (Metro) and $15.00 if you are located in the GSD (County only).
What happens when my license expires?
Your business license or minimal activity license will expire 30 days AFTER your payment due date. By that time, you should have received your renewed business license (if you filed your annual return with the State) OR your minimal activity license (if you renewed the license with this office.) The payment due date for both licenses is the 15th day of the 4th month following your fiscal year end. For those with a business license, both penalty and interest are charged on delinquent returns. Final business tax returns are due within 15 days of termination, sale or closing of a business.
What if my business never starts?
If a business license is obtained yet the business never started, the Tennessee Department of Revenue and this office must be notified in writing to close/inactivate the license (a fee may be required) to avoid the business being carried as a delinquency and assessed penalty and interest. If a minimal activity license is obtained yet the business never started, you are NOT required to close/inactivate your license; it will NOT be renewed.
What if I sell my business?
A final business tax return is due within 15 days after your last day of business and the new owner must apply for his/her new business license. It is the new owner’s responsibility to verify that all the business taxes have been paid to the Tennessee Department of Revenue by the previous owner; otherwise, the new owner must pay the outstanding taxes. If you have a minimal activity license, please notify this office; there is NO business tax to pay. The new owner will need to obtain a standard business license or a minimal activity license.
What if I have to move?
Please notify this office and the Tennessee Department of Revenue if your business location or business mailing address changes.
*Effective July 1, 2008,T.C.A. 8-21-701 increased the transfer fee of a business from one location to another to $5.00 for county (GSD) and $5.00 for Metro (USD).