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What Businesses Are Subject to the Business Tax? The business tax is imposed generally on anyone delivering goods or services to Tennessee customers, but a number of activities and entities are specifically exempted. For example, taxpayers are exempt from the business tax if they generate less than $10,000 in sales.

Tangible personal property, taxable services, amusements, and digital products specifically intended for resale are not subject to tax. Retail sales to the federal government or its agencies and the State of Tennessee or a county or municipality within Tennessee are not subject to tax.

Overview. Generally, if you conduct business within any county and/or incorporated municipality in Tennessee, then you should register for and remit business tax. Business tax consists of two separate taxes: the state business tax and the city business tax.

Tennessee's excise tax, which effectively is an income tax, is a flat 6.5% tax on net earnings from doing business in the state.

The State of Tennessee requires you to file an annual report for your LLC. You can mail in the report or complete it online at the Secretary of State website. You can download an annual report form already containing key information for your LLC from the SOS website.

Step 1Collect your records. Gather all business records. Step 2Find the right form. Determine the correct IRS tax form. Step 3Fill out your form. Fill out your Schedule C or Form 1120. Step 4Pay attention to deadlines. Be aware of different filing deadlines.

Business tax can be filed and paid online using the Tennessee Taxpayer Access Point (TNTAP). A TNTAP logon should be created to file this tax. Click here for help creating your logon.

Tennessee requires businesses to collect sales tax on the sale of digital goods or services.

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