Nashville businesses must obtain a standard business license and pay Metro and state business taxes based on classification 1-5 set by Tennessee, with rates from 0.001875 to 0.003 of gross receipts.
Davidson County businesses with annual gross receipts exceeding $100,000 must register for a standard business license through the Metro Clerk and remit business tax to the Tennessee Department of Revenue under TCA 67-4-708. Tennessee assigns five classifications: Class 1 (retail goods), Class 2 (general retail), Class 3 (professional services), Class 4 (contractors), and Class 5 (industrial laundries and antiques). Each class has distinct Metro and state tax rates ranging roughly 0.001875 to 0.003 of taxable gross receipts. Lower Broadway honky-tonks, music venues, food trucks, and downtown service firms all classify under this scheme. Minimal activity licenses cover businesses with $3,000-$100,000 gross.
Operating without a standard business license is a Class C misdemeanor with fines up to $50 per day. Failure to file or remit business tax triggers 5% monthly penalties up to 25%, interest, and license revocation.
Nashville, TN
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Nashville, TN
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See how Nashville's business tax classification rules stack up against other locations.
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