Filing returns is based on the location of the business. Every business located in Tennessee that is required to hold a standard business license must file a tax return for that location.
A business with a location within the limits of a Tennessee city that has a business tax must file two business tax returns for that location - one return for the city and one return for the state.
A business located outside Tennessee that has no business location in the state, but derives gross income based on taxable activities in Tennessee will file only a state business tax return each year. Out-of-state contractors whose compensation exceeds $50,000 in a jurisdiction (city or county) must obtain a business license from the local business tax official(s) and file business tax returns with the Department of Revenue for each taxable jurisdiction.