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How do I get a business license?

Tennessee Secretary of State (entity formation) / Tennessee Department of Revenue (tax registration) / County Clerk (local business license - Tennessee requires a COUNTY business license) / City (municipal license if applicable)
Step by Step

How to do it

  1. Determine your business structure: sole proprietor, LLC, corporation, partnership
  2. Register your business entity with the TN Secretary of State (for LLCs, corporations, and LPs) - file online at sos.tn.gov (TN SOS Business Services portal); Tennessee offers streamlined online filing
  3. Obtain an EIN from the IRS at irs.gov
  4. Register with the Tennessee Department of Revenue for applicable state taxes at tn.gov/revenue or through TNTAP (Tennessee Taxpayer Access Point):
  5. - TN Sales and Use Tax registration (if selling taxable goods/services)
  6. - TN Withholding Account (if hiring employees)
  7. - TN Business Tax registration (nearly all TN businesses with gross revenues above $3,000/year must register and pay TN Business Tax; this replaces a local privilege license in most cases)
  8. Register through TNTAP at tntap.tn.gov
  9. TENNESSEE STANDARD BUSINESS LICENSE (REQUIRED IN ALL COUNTIES): Tennessee requires most businesses to obtain a STANDARD BUSINESS LICENSE from the COUNTY CLERK in every county where they have a business location; annual fee $15 for businesses with gross receipts under $10,000; higher for larger businesses; apply with the County Clerk's office in each county where you operate; this is a SEPARATE requirement from the TN Business Tax
  10. Check with your city or municipality for additional LOCAL BUSINESS LICENSE requirements; many TN municipalities (Memphis/Shelby County, Nashville/Davidson, Knoxville, Chattanooga, etc.) have their own local business license requirements in addition to the county license
  11. Check for industry-specific state licenses: contractors (TN Contractor's Licensing Board - tn.gov/commerce/sub-pages/contractors.html); healthcare professionals, real estate, cosmetologists through the TN Department of Commerce and Insurance (tn.gov/commerce/licensing)
  12. Renew entity annual report with TN SOS; renew business license annually with County Clerk; renew professional licenses per board schedule
Details

What you need to know

Required Docs
  • Business name and type of activity
  • TN business address and registered agent
  • Entity formation documents
  • EIN or SSN
  • Industry-specific certifications
Fee
LLC formation: $300 (online - one of the higher fees nationally); corporation: $100 (online); ANNUAL REPORT: $300 (LLC - notable!); Standard Business License: $15 (base fee, under $10,000 gross receipts; higher for higher revenue); TN Business Tax: rate-based; city license: varies RENEWAL: Annual report due April 1 each year; standard business license: annual; professional licenses: per board ONLINE OPTION: Yes - sos.tn.gov (entity formation and annual reports); tntap.tn.gov (tax and business tax registration); Tennessee Business One Stop portal: tnbusiness.tn.gov WHERE TO GO: TN Secretary of State (entity formation); TN DOR/TNTAP (tax registration); County Clerk (standard business license); City Hall (municipal license); TN DCI/Commerce (professional licenses)
Online Option
Yes - sos.tn.gov (entity formation and annual reports); tntap.tn.gov (tax and business tax registration); Tennessee Business One Stop portal: tnbusiness.tn.gov
Where to Go
TN Secretary of State (entity formation); TN DOR/TNTAP (tax registration); County Clerk (standard business license); City Hall (municipal license); TN DCI/Commerce (professional licenses)
County-specific variations apply

EVERY TN county requires the standard county business license from the County Clerk - this is a statewide requirement but administered locally. Davidson County (Nashville Metro) has a consolidated government with different processes. Shelby County (Memphis), Knox County (Knoxville), Hamilton County (Chattanooga), Rutherford County (Murfreesboro), and Williamson County (Franklin) also have local business requirements beyond the standard county license. The TN Business License One Stop Service is available for some filings.

Tennessee Notes

Important state-specific details

  • TN LLC FORMATION FEE: $300 - on the HIGH END nationally; annual report also $300.
  • STANDARD BUSINESS LICENSE (COUNTY CLERK): Required in EVERY TN county where you operate; $15 base fee; applies to most businesses; not to be confused with the TN Business Tax registration with DOR.
  • TN BUSINESS TAX: All TN businesses with $3,000+ gross revenue must register and file; replaces local privilege taxes in most jurisdictions; graduated rates by business classification.
  • TN has no state income tax on wages (Hall Income Tax on investment income eliminated Jan 1, 2022); business profits subject to franchise/excise tax.
  • TN FRANCHISE TAX: Based on greater of net worth or real/tangible property in TN; TN EXCISE TAX: Based on net income from TN sources; applies to corporations and some other entities; register through TNTAP.
Official Source

State office contact

State Office
TN Secretary of State, Business Services - sos.tn.gov | (615) 741-2286; TN DOR - tn.gov/revenue | (615) 253-0600; TNTAP: tntap.tn.gov; County Clerk (standard business license - varies by county)