Step 1: Submit your last tax return You must submit your final tax return to the Tennessee Department of Revenue before requesting a tax clearance certificate. This covers all state taxes that are applicable, such as the business tax, franchise tax, and sales tax. You must also settle any unpaid fines or taxes to the state.
Step 2: Finish filling out the Tax Clearance Application You can apply for a tax clearance certificate once you have submitted your final tax return and paid all necessary taxes and levies. You must complete the Tax Clearance Application, which may be found on the website of the Tennessee Department of Revenue, in order to do this. In addition to your taxpayer identification number, legal name, and the purpose of the application, you must supply details about your company.
Step 3: Submit the application and associated documents
Along with your completed Tax Clearance Application, you must also submit a copy of your final tax return and any applicable schedules, forms, or supporting evidence to the Tennessee Department of Revenue. Depending on the purpose of your application, you could also be required to present evidence of a legal entity change or dissolution.
Step 4: Hold off on processing You will have to wait while your application is processed after submitting the necessary paperwork. Your application will be examined by the Tennessee Department of Revenue, who will also make sure that all due taxes and fees have been paid. Before your tax clearing certificate is granted, you will be made aware of any unpaid taxes or fees and given the chance to do so.
Tennessee Business Dissolution
A tax clearance certificate is only one of several steps you need to complete if you want to dissolve a business in Tennessee. These include alerting any creditors or other interested parties of your intention to dissolve the business, submitting Articles of Dissolution to the Tennessee Secretary of State, and canceling any necessary licenses or permits. Tennessee’s registered agents
A person or organization designated to receive legal and tax paperwork on behalf of a business is known as a registered agent in Tennessee. In order to receive and sign for vital documents, a registered agent must have a physical address in Tennessee and be accessible during regular business hours. A company owner has the option of serving as their own registered agent or using a reputable registered agent service. S corporations exist in Tennessee. Due to their liability protection and pass-through taxation, S companies are a popular choice for small enterprises in Tennessee. S companies are not, however, recognized in all states. If your company conducts business in numerous states, you should speak with a tax expert to determine the ideal legal framework for your requirements.
In Tennessee, a tax clearance certificate must be obtained in order to dissolve a business or alter its legal form. You may make sure that your company is in compliance with all relevant state tax rules and regulations by following these instructions and providing the necessary documentation.