As a result of a law change by the state, your business may need to obtain a different business license.
New Business License Thresholds and Requirements:
If a business has gross sales of at least $3000, they MUST have a business license.
If a business has gross sales of less than $100,000, they must get a Minimal Activity Business License
If a business has gross sales of over $100,000, they must get a Standard Business License.
If you have a business that currently has a Standard Business License and your business will NOT gross over $100,000 in the 2023 tax year, you must call the Tennessee Department of Revenue at (615) 253-0600 Ext 3 and close your Business Tax Account. Your current Business License is still valid until the 2024 expiration date regardless of what type it is. After the current Business License expires, the business owner will have to go to the County/City Clerk and apply for a Minimal Activity Business License. We cannot apply for this license for the owner.
These new thresholds started in June of 2023 and apply to the 2023 tax year and future tax years.
Tennessee state law states that you MUST have a business license if your gross sales are over $3,000.
Tenn. Code Ann. 67-4-723 states “Every business in Tennessee with business taxable receipts of over $3,000 must obtain a business license. … If a business is located in a city that has enacted the municipal-level business tax and its annual gross receipts are $3,000 or more, a city business license is required as well.”
Read the full Law here: Tenn. Code Ann. § 67-4-723
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