Starting a business in Tennessee involves careful planning and understanding the legal requirements. Here is your guide on how to proceed.
Cost of Starting a Tennessee LLC
The cost to start a Tennessee limited liability company (LLC) online is at least $300. The fee is $50 per LLC member, with a $300 minimum and a $3000 maximum. This fee is paid to the Tennessee Secretary of State when filing the LLC’s Articles of Organization.
Choosing the Right Business Entity
When starting a business in Tennessee, one crucial step is selecting an entity. The choice can significantly impact your company’s operations, personal liability, taxes, and more.
Registering Your Business
To successfully register your business in Tennessee, familiarize yourself with the following steps:
- Choose Your Business Structure.
- Register with the Tennessee Department of Revenue.
- Plan for the registration process to take up to 10 business days.
The cost of registering ranges between $50.00 and $3,000.00, depending on the legal structure you choose.
Licensing and Permits
To operate legally in Tennessee, your business requires specific licenses and permits. While no single generic business license covers all requirements, all new businesses must pay a $15 business license registration fee to the county and/or municipal clerk.
If using a DBA (Doing Business As) name, ensure proper registration on a state, county, and city level, which offers several benefits such as legal protection and proof of legitimacy.
Cost of Licenses
The cost to obtain a sales tax certificate in Tennessee is $15, with the costs for other licenses varying depending on the type and licensing jurisdiction. Food sales and manufacturing licenses typically cost a few hundred dollars, while liquor licenses can be in the thousands.
Sales Tax Registration
Register to collect sales tax in Tennessee following the state’s sales tax nexus rules, which apply when you perform actions like buying and selling goods and services.
Additional Information
- Sole proprietors and general partnerships are generally exempt from the state’s flat 6.5% excise tax on net earnings.
- The cost and process of obtaining a business license in Tennessee vary by business type and location.
- Operating without a license can lead to penalties or fines.
- An EIN can be obtained online, by mail, fax, or phone for businesses formed outside the U.S.
Understanding the various licenses and requirements is vital for your business. This includes obtaining a General Business License, which is commonly required across different business types.