How To Get A Business License In Tennessee (2024)

Kimberlee Leonard has 22 years of experience as a freelance writer. Her work has been featured on US News and World Report, Business.com and Fit Small Business. She brings practical experience as a business owner and insurance agent to her role as a.

Kimberlee Leonard Small Business Expert Writer

Kimberlee Leonard has 22 years of experience as a freelance writer. Her work has been featured on US News and World Report, Business.com and Fit Small Business. She brings practical experience as a business owner and insurance agent to her role as a.

Written By Kimberlee Leonard Small Business Expert Writer

Kimberlee Leonard has 22 years of experience as a freelance writer. Her work has been featured on US News and World Report, Business.com and Fit Small Business. She brings practical experience as a business owner and insurance agent to her role as a.

Kimberlee Leonard Small Business Expert Writer

Kimberlee Leonard has 22 years of experience as a freelance writer. Her work has been featured on US News and World Report, Business.com and Fit Small Business. She brings practical experience as a business owner and insurance agent to her role as a.

Small Business Expert Writer

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of.

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of.

Written By

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of.

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of.

Brette Sember, J.D. contributor

Brette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.

Brette Sember, J.D. contributor

Brette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.

Brette Sember, J.D. contributor

Brette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.

Brette Sember, J.D. contributor

Brette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.

Updated: Apr 17, 2024, 12:05pm

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

How To Get A Business License In Tennessee (2024)

Getty

Table of Contents

Starting a new business is exciting, but it can also be confusing. Businesses that require a license or a permit must determine if they need it issued from a state, county or federal level. Here’s what you need to know about when and how to get a Tennessee business license.

Most businesses that sell goods or services are subject to the business tax and must register with the state Department of Revenue to establish an account to pay the taxes. There are also other licenses and permits required for certain types of businesses, including those that sell alcohol to the public, insurance companies, agricultural and food services companies and medical professionals.

Each of these licenses or permits is issued by a specific department in the state. If you need more than one license, you’ll need to apply to each department individually.

When Do You Need a Business License in Tennessee?

The most common business license needed is the business tax license. You will need this license if you sell goods or services in the state of Tennessee. This includes those businesses headquartered outside of the state that sells to those within the state, even via mail order. If you are located within a specific Tennessee city, you may also need to pay city business taxes as well.

The threshold for needing a business tax license is $3,000 in gross annual receipts. If you have between $3,000 and $10,000 in gross annual receipts, you may qualify for a minimal activity license. Any business with more than $10,000 in receipts must obtain a standard business license.

Types of Business Licenses

Just about every business in the state will need to get a business tax license. Once you have this license, you’ll need to determine if you need to get a city tax license as well as any of the other types of licenses that Tennessee requires.

Other types of licenses and permits include:

Steps to Getting Your Tennessee Business License

The licensing process requires that you file an online application found at the Tennessee Department of Revenue’s Tennessee Taxpayer Access Point (TNTAP). The process will require you to enter your business’s name, address and contact number. It will also ask for the owner’s contact information. You will be asked to provide a copy of the owner’s driver’s license and an electronic signature is captured at the end.

Once the application is completed and submitted, you need to pay a $15 fee to the county or municipal clerk where your business is located. It can take up to ten business days to process the application and register the business.

Advertisement

Start A Limited Liability Company Online Today with ZenBusiness

Click to get started.

How Much Does a Business License Cost in Tennessee?

Most municipalities charge $15 for a business license. Nashville is considered an Urban Services District (USD) and charges a $30 fee for registration.

Other license fees will depend on the type of permit or license required. Liquor license fees depend on the size of the venue and range from $650 to $1,200. Food permits are issued by the county and start at around $30.

Check with your county to determine the actual cost of licenses and permits needed for your business.

Bottom Line

Every business in Tennessee should check with the Department of Revenue and local municipalities to determine what, if any, licenses and permits are required to conduct business. If you have at least $3,000 in gross receipts, you’ll definitely need a business tax license at the very least.

Frequently Asked Questions (FAQs)

Does Tennessee require a business license?

Tennessee requires a standard business license for businesses that have at least $10,000 in gross annual receipts. A minimal activity license is required for businesses with between $3,000 and $10,000 in receipts. Your business license must be posted in your business location.

Who is exempt from Tennessee business tax?

There are certain business organizations that are exempt from paying Tennessee business tax. The list of exempt businesses includes religious or charitable entities, movie theaters, manufacturers and direct-to-home satellite providers.

Was this article helpful? Share your feedback Send feedback to the editorial team Thank You for your feedback! Something went wrong. Please try again later. Buying Guides Comparison

Next Up In Business

More from

What Is SNMP? Simple Network Management Protocol Explained

What Is SNMP? Simple Network Management Protocol Explained

By AJ Dellinger

What Is A Single-Member LLC? Definition, Pros And Cons

What Is A Single-Member LLC? Definition, Pros And Cons

By Evan Tarver

What Is Penetration Testing? Definition & Best Practices

What Is Penetration Testing? Definition & Best Practices

By Juliana Kenny

What Is Network Access Control (NAC)?

What Is Network Access Control (NAC)?

By Leeron Hoory

What Is Network Segmentation?

What Is Network Segmentation?

By Leeron Hoory

How To Start A Business In Louisiana (2024 Guide)

How To Start A Business In Louisiana (2024 Guide)

By Jacqueline Nguyen, Esq.

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

Small Business Expert Writer

Kimberlee Leonard has 22 years of experience as a freelance writer. Her work has been featured on US News and World Report, Business.com and Fit Small Business. She brings practical experience as a business owner and insurance agent to her role as a small business writer.

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of directors of two non-profit organizations seeking to revitalize her former railroad town. Prior to joining the team at Forbes Advisor, Cassie was a content operations manager and copywriting manager.

© 2024 Forbes Media LLC. All Rights Reserved.

Are you sure you want to rest your choices?

The Forbes Advisor editorial team is independent and objective. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. This compensation comes from two main sources. First, we provide paid placements to advertisers to present their offers. The compensation we receive for those placements affects how and where advertisers’ offers appear on the site. This site does not include all companies or products available within the market. Second, we also include links to advertisers’ offers in some of our articles; these “affiliate links” may generate income for our site when you click on them. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. While we work hard to provide accurate and up to date information that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. Here is a list of our partners who offer products that we have affiliate links for.