Business Tax

• You are required to obtain a Montgomery County Business License if you anticipate your annual gross receipts being $3,000 or more.
• The initial Business License application fee is $22.00.
• You may apply for your Business License Monday through Friday 8:00 a.m. to 4:30 p.m.
• Each year the license must be renewed and tax is assessed based on the gross receipts earned during the tax period.
• You are also required to obtain a Business License from the City of Clarksville if you will be doing business within the city limits.
• Businesses that gross less than $3,000 a year are exempt. The following businesses/services are exempt regardless of their gross receipts (TCA § 67-4-708):
  • manufacturers
  • doctors
  • dentists
  • veterinarians
  • attorneys
  • accountants
  • schools
  • religious organizations
  • insurance agents
  • loan companies
  • security exchanges
  • public utilities
  • nonprofit membership organizations operating on a nonprofit membership basis
  • domestic services performed in private households
  • nonprofit educational and research agencies
  • lessors of properties used for agricultural, airport, forest, mining, oil, and public utilities
  • architecture, engineering and land surveying services
  • Farmers providing services to other farmers for the planting or harvesting of, or preparation, improvement and maintenance of land in the production of, agricultural products.
• If you close your business, you must:
  1. Submit a final return & payment of taxes within 15 days of selling or closing your business. Simply not renewing will not close your business license and you may be subject to taxes and late fees for the years it was not officially closed.
  2. Notify the Montgomery County Assessor of Property at (931) 648-5709 and inform them that your business is closed.
• If there is a change of ownership:
  1. The current owner must submit a final return. The new owner should apply for a license in their name. If the business is a partnership and you want to remove a partner’s name, that person must sign the final return. TCA § 67-4-721 has obligations for the successor business owner in regards to liability of taxes, interest and penalties of the former owner. The new business owner should read TCA §67-4-721 in its entirety.

How to obtain:

• Federal Employee ID#

  Contact the IRS at 800-829-1040 or online at www.irs.gov

• Sales Tax #

  Contact the Tennessee Department of Revenue at 800-342-1003 or online at www.tennessee.gov/revenue/

• LLC

  Contact the Secretary of State at 615-741-3276

• Small Business Information

  Contact Tennessee Small Business Development Center (TSBDC) at www.tsbdc.org

Business Tax Applications & Documents

• Business Tax Return
• Business Tax Return Instructions
• 2009 Business Tax Guide
• Business License Application
• One Stop Business Resource @ Tennessee.Gov
• Business Name Availability @ TN Secretary of State