Tennessee DOR walks new business owners through business tax basics

Tennessee Department of Revenue presenters on July 2025 told attendees how the state's business (privilege) tax is assessed, when to register and what exemptions and deductions apply.

The Department stressed the practical link between the local business license and the state business tax account: obtaining a standard business license from a county or municipal clerk will automatically register the taxpayer for state business tax.

Katie Julian, presenter and host for the workshop, said, "business tax, which is a privilege tax on the privilege of doing business by making sales of tangible personal property, which we'll also be referring to as TPP throughout today, and services within Tennessee and its local jurisdictions." Julian led the session and walked through the Department's manuals and webinar resources while answering attendees' questions.

Why this matters: most Tennessee businesses will need either a minimal or a standard business license; the license category determines whether the business must file business tax with the state. The Department warned that…