Local Government Corporation-2018 Zortec Business Tax: Local Government Corporation-2018 www.localgovcorp.com

Changes to Business License will be coming soon, but first let’s talk about our current process in Zortec.

Knowing what to do Knowing how to determine license types. Should it be Minimal or Standard? Who mails the license to the business after taxes have been paid? And how do you print those licenses? Who collects the taxes and fees from the businesses? How do you receipt the fees? What is the fee for a license? How do to print the Minimal Activity fee notices? Can a business change from Minimal to Standard license?

Difference Between Minimal and Standard A minimal activity fee of $15.00 is due annually for all businesses with annual gross receipts of more than $3,000, but less than $10,000. A standard business will gross more than $10,000 annually.

City’s Officials Responsibility It is the local officials responsibility to collect minimal activity tax. You are essentially responsible for printing and mailing the notices. How do you do this you might ask? In the billing menu you have an option to print license notices. You will need to run those accordingly.

Printing Minimal Activity Notices O-Only Minimal I-Include Minimal E-Exclude Minimal Form Code for Minimal Activity Notices is MAN

Minimal Activity License What report do you run to list all Minimal Activity Accounts? Contact LGC for help setting up a User Define Report.

Minimal Activity License A business may request a status change at any time. If the business gross receipts exceeds the $10,000 they must be updated from a Minimal (M) to a Standard (R) account with $15.00 initial payment due.

Standard Business City clerks office will collect a $15.00 initial tax fee. Business will renew their license annually to the state. The city is responsible for printing and mailing the license when they receive a clearance from the state.

What’s the fee for an Initial Business License or Minimal Activity? The fee should never be more than $15.00. There is no recording or processing fee for either Minimal or Standard License. If you charge more than the required $15.00, please, check with the state.

Creating a New Account Required Information Application must be complete with the business owner(s) name, address, phone, email address, social security number or FEIN. Social Security Number is preferred. Both Minimal and Standard Business License Applications can be found at www.tn.gov/revenue on the City Officials Resource Page.

How to Determine Fiscal Year End (FYE) FYE is the two digit number for which month fiscal year ends. i.e.: FYE Beginning Date Ending Date 01 02/01/2018 01/31/2019 02 03/01/2018 02/29/2019. . . . . . 10 09/01/2018 10/31/2019 11 10/01/2018 11/30/2019 ***Note most businesses will be opened with the FYE12, unless owner or state specifies differently.

Understanding What the Period Means Your initial Period is chosen based on when the next due on date is, i.e.: If you have a business opening as a FYE01 with opening date of 3/01/2018 then the period will be 2019. The business will have a tax period beginning date of 02/01/2018 ending date of 01/28/2019 with the next due on 05/15/2019.

Understanding What the Period Means Cont’d If you have a Business opening as a FYE09 with an opening date of 10/01/2018 their initial period would be 2020! Their tax period will be 10/01/2018 - 09/30/2019, but their next tax wouldn’t be due until 01/15/2020.

Where do you find the Period? When setting up a new business the Period goes in the Initial Pd section on screen 1.

Where do you find the Period? This also determines the Period for your License you will be receipting either thru the POS or BL application. This period will display after receipt is processed on screen 3.

How to Enter a License from Beginning to End File Maintenance

Business File

For AutoNumber press <Enter> or you can assign a specific number

Screen 1-Required Fields

Screen 1-Required Fields Complete Business Name and Physical Location Owner/responsible party’s name, address, and title

Screen 1-Required Fields Initial Period required The Class and Type are also required. The Class, Type, and PIA can all be selected by pressing <F3> Search and Select. Mail can be directed to (R)Responsible Party or (B)Physical location. Other required fields are the date open, SS#, and FYE.

Required Owner Info At least one owner must be listed with their home address and phone number. The number of owners and their info must match screen 13.

Screen 13-Required Fields SOS ID# is the Security of State ID#. This will be assigned by the state. Business may already have this number on their application. If not it will be imported from the state.

Screen 13-Required Fields Federal Employment # and Sales Tax # should be no more than 9 digits. Don’t include spaces or dashes. Must specify if they are required or not and if they have been applied for if the number is not available. If the FEIN is entered on screen 1 it will display on screen 13 and vice versa.

Screen 13-Required Fields Ownership Types can be displayed by selecting the F3 key on your keyboard.

Screen 13-Required Fields Transaction type is reason for applying. 1-New Business 2-Additional Location 3-Purchase of Existing Business Location SITUS is assigned to each city by the state. Some cities are in multiple counties are assigned a code for each county. Important to make sure the SITUS code is correct. Email address

Screen 13-Required Fields ID Type specifies 1-FEIN 2-SSN Owner Type is the type of ownership for the owner 1-Member 2-Officer 3-Partner 4-Owner/Individual 5-Owner/Company 6-Contractor When an account is create this flag will be N. After you create and send your file to the state this flag will change to Y. Do not Change this manually when creating your business. Activity status Minimal(M)/Standard (R)

What Else does Zortec Business License Offer?

Beer Tax

Screen 2 we would make the Beer Status (A)Active for the application year

This Screen can be more than just Beer Tax. We can customize for your additional tax needs. i.e. Liquor Tax, Transient Vendor Tax, let us know what you have in mind.

What is needed to add these additional taxes? Appropriate forms used by your office for formspooler set up. Is the tax a monthly or annual fee? Is the tax prorated if purchased in the middle of the year? What are the application fees?

Are there any questions?

Thank you! www.localgovcorp.com