If you are registered for business tax and hold a standard business license received from a city recorder or county clerk, you are obligated by law to file a final return and pay business tax to the Tennessee Department of Revenue within 15 days after the business closes. This is regardless of the amount of income earned during the tax year. Even if there was no income earned, the minimum tax amounts must be paid.
The minimum amount of state business tax due is $22 for each location. If your business is located in a city that has enacted the business tax, an additional $22 minimum city business tax is due. Click here for a comprehensive list of cities that have enacted business tax. Forms must be completed and taxes paid online on the business tax electronic filing website. When filing the final return, please choose the box indicating that the return is a final tax return for a closed business. Once processed, the tax account will be closed and the city recorder or county clerk will be notified that your business is closed.
If your business was not registered for business tax but had a minimal activity business license, you will not file a return or pay taxes to the Department of Revenue. However, you will need to contact the county clerk or city recorder to ensure they are aware your business has closed.
If your business is subject to real and/or personal property tax, please also contact your local county or city property tax assessor’s office for instructions on paying final property taxes for your business.