Tennessee Department of Revenue outlines new-business steps, tax thresholds and online filing at workshop

Katie Gillian, education expert and presenter at the Tennessee Department of Revenue, led a three‑hour New Business Workshop webinar covering how to form and register a business, key tax thresholds and filing obligations, and the department’s online filing system.

The workshop focused on practical steps new businesses must take to register correctly and avoid tax penalties. “The first little small session we’re gonna have is gonna be dedicated to setting up your business,” Gillian said, introducing a checklist of actions including selecting an entity type, establishing a business location and mailing address, deciding on an effective start date and NAICS code, and choosing whether to obtain an EIN from the IRS.

Why it matters: Getting the basic registrations and account numbers right affects which Tennessee taxes apply and when returns are due. The presenters repeatedly warned that mismatches among Secretary of State filings, county/city licenses and Department of Revenue accounts can trigger notices and enforceable liabilities.

Most important details from the workshop

- Entity setup and identifiers: The presenters emphasized that sole proprietors must generally register tax accounts with the owner’s Social Security number, while corporations, partnerships and most LLCs use a federal EIN. The Tennessee Secretary of State handles charters and annual reports for corporations, partnerships and LLCs; those registrations typically trigger a notice from the Department of Revenue to set up franchise and excise (F&E) and other state tax accounts.

- Business license and business tax thresholds: Gillian explained the post‑2023 structure for local business licensing and state business tax. Businesses with annual gross sales under $3,000 do not need a local business license. Businesses with gross sales between $3,000 and $100,000 generally need a minimal local license but are not required to file state business tax. Businesses with annual gross sales above $100,000 require a standard business license and must file the Tennessee business tax return. The presenters said counties and municipalities administer local licenses and should be consulted about renewal procedures.

- Business tax basics and classifications: Business tax is based on gross sales and a classification chart (class 1–5) keyed to dominant business activity. Gillian urged new owners to confirm that the classification the clerk assigns matches the business’s dominant sales mix. “Classification is something that is set up when you get your business license or when you register directly with us,” she said.

- Sales tax thresholds and rules: The webinar covered sales tax registration triggers and the difference between in‑state physical presence and economic nexus. An in‑state seller must register and collect sales tax if annual in‑state tangible sales exceed $4,800 or in‑state taxable services exceed $1,200. Out‑of‑state sellers must register if they meet the economic nexus threshold of $100,000 in Tennessee sales within 12 months. The presenters reviewed retail vs. resale certificates, how to treat exempt organizations, and special rules such as the single‑article tax for high‑priced tangible goods.

- Franchise and excise (F&E) tax overview: Gillian gave a brief F&E overview for corporate entities (corporations, LLCs taxed as corporations, limited partnerships, business trusts). She noted F&E consists of a franchise tax (computed on net worth under the current law) and an excise tax (computed on net income). F&E returns have a filing due date (15th day of the fourth month following fiscal year end) and a 7‑month extension is available if filing/payment conditions are met.

- TINTAP (online filing) and department resources: Both presenters toured the Department of Revenue website (tn.gov/revenue), the webinar video library, the tax manuals and the department’s TINTAP online‑filing portal. Gillian reminded attendees that having a master TINTAP account is important even if a third‑party prepares returns: “We recommend that every business owner at least has access to their tax accounts on TINTAP,” she said. The presenters showed how to check resale and exemption certificates and how to request account access or submit questions via the TINTAP assistant or revenue.support@tn.gov.

Workshop cautions and common errors

Presenters highlighted several recurring errors they see for new registrants: using an EIN rather than a Social Security number for sole proprietors when registering state tax accounts; mismatching business addresses between clerk, Secretary of State and Department of Revenue records; failing to file zero returns after opening a sales tax account (accounts default to monthly filing); and missing the business‑tax filing deadline (the business‑tax return is due on the 15th day of the fourth month after fiscal year end, typically April 15 for calendar‑year taxpayers).

The session included live Q&A in chat; presenters repeatedly directed attendees to recorded webinars and the Department’s manuals for industry‑specific rules (contractors, short‑term rentals, marketplace facilitators, alcohol taxes, etc.). Billy Trout, with the Tennessee Department of Revenue, opened the session and said attendees can reach the department’s general tax line at 615‑253‑0600 or email revenue.support@tn.gov for written assistance.

Ending: The presenters asked attendees to review the department’s handbook and webinars and to contact the department for account‑specific questions; they said the workshop recording and materials would be posted to the department’s New Business Workshop page.